SGTbull07: Silver Mania, What Is A Dollar?

[Serpo]

http://www.youtube.com/watch?v=eLHUOnVEOBE&feature=player_embedded#at=316

[Twisted Titan]

Silver has no bussiness being at 50 dollars ....... Joe Nadler

I think I am going to keep that one for posterity sake

[sirgonzo420]

Silver has no bussiness being at 50 dollars ....... Joe Nadler

I think I am going to keep that one for posterity sake


It doesn't have any business at 50 dollars.


Silver should be 1.29292929292929 dollars per troy ounce.

[Plastic]

Silver has no bussiness being at 50 dollars ....... Joe Nadler

I think I am going to keep that one for posterity sake


It doesn't have any business at 50 dollars.


Silver should be 1.29292929292929 dollars per troy ounce.


Should'nt it be less than a dollar per troy oz so that the "coin of the realm" would circulate?

[sirgonzo420]

Silver has no bussiness being at 50 dollars ....... Joe Nadler

I think I am going to keep that one for posterity sake


It doesn't have any business at 50 dollars.


Silver should be 1.29292929292929 dollars per troy ounce.


Should'nt it be less than a dollar per troy oz so that the "coin of the realm" would circulate?


This is supposed to be the coin of the realm:

http://www.silverpeacedollar.com/images/1921_peace_dollar.jpg

not this:

http://www.tulving.com/bullion/2009%201oz%20Silver%20Eagle%20Rev.jpg

A silver dollar, according to the Coinage Act of 1792, is composed of 371 4/16 grain (24.1 g) pure or 416 grain (27.0 g) standard silver, which would make one full troy ounce worth about $1.29292929292929.

The only reason, in my mind, that the US Mint opted to put the "one dollar" verbiage on the SAE is so they could technically call their SAE round a "coin" since it is minted by a government mint and has a denomination. Selling "coins" allows the Mint to more efficiently and effectively market to "coin collectors".

[Plastic]

I understand what you are saying sirgonzo, a troy oz of silver should make approz 1.30 in silver coin. However, the mine owner needs to make a profit, the miner deserves to be paid as well as the mint striking the coins "signorage" (mint workers deserve a paycheck but not at the citizens expense) that is why I thought silver was so "cheap" relative to the face value of coin struck in times past. The purchasing power of that money was awesome of course and should be again, but the purchase price of bullion silver for that reason should be less than a dollar even if that dollar buys ALOT more now than it did ages ago due to the rarity of silver imo.

What I am trying to say here is that if the silver costs more to make into coin than that coin is worth then there is no point in making silver coin for circulation because it's purpose is defeated...

[Large Sarge]

great video!

thanks much!

[Ponce]

People are not reacting to what silver is worth but rather to what the dollar is worth.......when you buy a box of Corn Flakes you can only expect that you are able to eat what's inside and that's why you don't mind paying X ammoung of cash........this is the same way that the dollar works, when you hold a dollar bill in your hand you can only expect that the bill will be able to buy something worth a dollar but as you can see everyday it buys less so that the confidence on the backing of the bill is gone and you have look for something else to replace the backing..........again, don't look at what silver is worth but rather at what the dollar is worth.

The up and downs of the PM market is nothing more than control of the same and as you can see it keeps going up no matter how they try to kill it.......with the dollar going down, down, down, the PM value has no choice but to go up, up, up.

First post of the day.........good morning to one and all.