Fibonacci Financial

Posts Tagged ‘Silver Money’

99.9%  SILVER COINS
Cannot Be Used in Everyday Exchange
BECAUSE they are TOO SOFT !
They are MEDALLIONS aka Collectors Items.

REAL “HARD” MONEY

For Hundreds of Years since around the late 1400s, the standard in Silver Coinage was set by the THALER (which the Brits & British Colonists called “Dollars”).  An excellent discussion of the renaissance of silver coin minting in Europe is Professor Antal Fekete’s article:

ARCHITECTURE FOR A NEW  WORLD FINANCIAL SYSTEM

To make Thalers hard enough for everyday exchange and use at regional Medieval Trade Fairs required that the silver be alloyed with enough copper.  The Thalers included approximately 7% copper. This Thaler Standard became THE standard (eg: even the Brits’ “Sterling” standard was close to the Thaler at 92.5% Silver and 7.5% Copper) for many centuries.  Then the Americans raised the bar in “Hardness” by adopting a 90% Silver and 10% Copper alloy standard in 1792.  To this day in the Silver Industry “Coin Metal” means a 90-10 alloy.  Below is a chart that amongst other things presents the Provenance of the US Dollar:

To understand what a US Dollar IS!, may I recommend the world expert on the subject – Dr. Edwin Vieira and his essay on the topic or his magnum opus Pieces of Eight.

When the US Federal Government Mint began minting gold and silver coins again in 1985 they knowingly minted coins that COULD NOT be used in every day exchange. Instead of following the US Coin standard (90-10 alloy) set by the Founding Fathers that had stayed the same from 1792 to 1964 they minted 99.9% pure medallions. All private mints fell right in line world wide. After all WHO wouldn’t want 99.9% pure coins? These coins are beautiful “Collectors Items” BUT they like the Dodo Bird will never fly high as mediums of exchange.

So what is a Silver Investor to do ?
Stay Tuned for More

But until then remember the Fibonacci Financial Mantra:
CAUTION:  There are a wide variety of ways to protect your assets and profit from the tidal changes taking place in the world economy ranging from the very conservative to the highly speculative.

But you need active professional guidance – Contact us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from our blog entries.  These blog entries are EDUCATIONAL  and are an introduction to our services and DO NOT constitute investment advice.

It was really fun writing The Silver Phoenix Rises Again but embedded in the entertainment were some very serious, in fact revolutionary, recommendations – the take aways !

(if you haven’t read The Silver Phoenix Rises Again, please read it first)

The Primary Purpose of the article was to inspire action (your action dear reader) towards the remonetization of silver.  Remonetize silver and the remonetization of gold will follow as night follows day.  Ergo a return to sound money which is the foundation of a truly free and prosperous society.  The inimitable Harry Browne made the recommendation to always take the direct route to freedom in his classic How I Found Freedom in an Unfree World.  An example of indirect action would be to buy stock in B-Mart and plan to attend an annual shareholders meeting when you got extremely bad service.  The direct and rational action would be to walk across the street to Target.

The Political Route ? (1)

So what would be the direct route to remonetization of silver?  Join a political party and attempt to add sound money goals to the party platform (this means joining and then influencing the platform committee).  Then run for national office (House of Representatives).  IF  you win, draft legislation and stump for a consensus of rational support in congress…………………… Wrong!

The Societal Route – Individual Action (2)

The direct route would be to simply start using silver as money not just as an investment vehicle.  Currently, those of us who buy silver bullion coins or bars are using silver as a “Secondary Media of Exchange”.  To buy a candy bar or pay for services rendered we must first go to a coin shop and convert the silver (secondary media of exchange) into Money (in the US that would be Federal Reserve Notes or in colloquial terms “Dollars”).  Then we buy the candy bar or pay for services with a direct media of exchange (money) – dollars or euros or yen.  To start using silver as money (as a direct media of exchange) means to actually use it as the primary exchange item.

Actions

I am going to start paying my business partners each month with 10 ounce silver bars for up to 5% of what I owe them.  That would be paying for services with silver as money.  You could start by paying 10% of  your kids or grand childrens allowance with pre 1964 silver us coins.  This would give you the opportunity to share the history of the constitutional dollar with them.  Use it as a teaching moment to share our heritage with the next generation. (If anyone wants me to draft a short history of the constitutional silver dollar for their kids and grand children, let me know).  Be creative and share your ideas with us here.

Coin Metal

Now this is a small but vital first step.  Unfortunately, most of the physical silver out there can’t be used as coins in everyday transactions.  99.9% pure sounds great BUT it is not durable enough to be used as money.  So we need someone to start minting “coin metal” silver coins.  Coin metal silver coins would be 90% silver and 10% copper.  Each silver coin would have 1 full ounce of pure silver and .11 ounces of copper.  The coin would weigh 1.11 troy ounces and would be very durable and usable for many years in everyday transactions.  I am currently working on that project unless someone beats me to it – hint hint (I am a money manager and personal financial coach not a mint master).

Anyone interested in these “Coin Metal” silver coins please share your email address and I will keep you posted.

Silver is THE doorway to sound money – just open it and walk down the yellow brick road. 

Let freedom ring with the sound of silver in every ones pockets.

YOU HAVE THE POWER TO CHANGE HISTORY – USE IT – INFECT TWO OTHER PEOPLE WITH THE SILVER VIRUS BY SPREADING THE MONEY AROUND.

Rocky Mountain Illumi Naughty Dictionary definitions:

1 Political Science – The art of acquiring with a gun through governmental action what you can’t acquire on a voluntary basis through dialogue and a hand shake.  Always a win/lose situation.

2 Volitional Science – The art of acquiring what you want through dialogue and a hand shake.  It is always a win/win outcome.

C’est Moi !

Silver Currency Symbol created & copyrighted by Michael R Stoddard

Posted for the benefit of EZine Article readers – “The Silver Phoenix is Rising Again”.

Prices for goods in 1913 are all over the place – please dear reader please share your research.

See its use in a common GAAP Financial Statements below.

How much did an Orange Crush cost???

PS: If you found this valuable or interesting PLEASE let me know by dropping me a comment!

Currently Silver Does Not Have a Face aka a Symbol

A New Currency Symbol for ISO Silver Currency XAG No. 961

Silver Currency Symbol artist and creator is Michael R. Stoddard.

For those who want to include this new symbol in their word processing and spread sheet fonts, please email your requests to:

michael@fibonaccifinancial.com

I recommend that you go out to Wikipedia’s article on ISO 4217 on Currencies.

Sample Financial Statement Presentation

The “unit of account” for the Founding Fathers was the silver dollar. That is they kept their accounting records in silver dollars. What did they know that we don’t. During the constitutional convention they debated long and hard about allowing paper money but came down strongly against paper money. They resolved only to admit gold and silver as money. They also resolved to use silver as the monetary unit. Officially confirming what they were already doing independently. Why were they so vehemently against paper money? Why mandate in the Constitution that the States could only accept Gold and Silver?

Publishing financial statements in Silver ounces could be presented as follows. The currency symbol is prominently displayed in the upper left hand corner to help with the paradigm shift. The new symbol is displayed at the top and bottom of each financial statement column.