Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (115906)	1/8/2024 1:53:44 PM
From: Real Man	Read Replies (1) \| Respond to of 116791

You mentioned stable coins, which are smart contracts on smart contract-enabled cryptocurrencies. These can collapse like any currencies pegged to US dollar when the country US dollar reserves run out. Terra US dollar was a programmably tied stablecoin, tied to US dollar. Other stablecoins rely on reserves of US dollars of the smart contract issuer. They are much less stable than pegged currencies because such reserves are thin. It can be tied to embezzlement because the company issuing a stable coin can lie about its reserves backing that coin. Whenever crypto market tanks the market doubts stablecoins and their value deviates downward from par. Typically stablecoins are issued by large exchanges such as Binance with reserves of actual U.S. dollars (or euro). There is PAXG crypto tied to gold held in vaults of its issuer. Whenever you buy PAXG you rely on the issuer going to London to buy actual gold. What are the chances it of it actually happening? GLD, a regulated exchange traded etf, is considerably safer. In case of PAXG I don’t even know what the Hell I am buying, and I don’t receive any proper reports of the trade.

To: Sun Tzu who wrote (115906)	1/8/2024 2:11:39 PM
From: Real Man	Read Replies (1) \| Respond to of 116791

I think the error in your argument is that somehow gold and silver as money give the power of issuing debt based money to the states. It doesn’t because gold and silver are not debt based. Anyone can mint and sell gold and silver coins, these will have the same value based on bimetallic content and the premium for the work of minting it whether minted in USA, Canada, Russia or China. If a state uses gold as a currency it will have to issue gold backed bonds to finance its operations and collect state tax of course. So the effect of using gold and silver as alternative currencies to US dollar boils down to effect on demand of minting such coins, which is minimal as I said originally unless the use becomes widespread.