Written by the Treasureguide for the exclusive use of the Treasure Beaches Report.
 |
| Source: nhc.noaa.gov |
So Hurricane Ernesto is still heading north.
 |
| Source: Surfguru.com |
It looks like we'll have a higher surf Friday.
---
The international monetary system after World War II was dubbed the Bretton Woods system... The countries agreed to keep their currencies fixed (but adjustable in exceptional situations) to the dollar, and the dollar was fixed to gold. Since 1958, when the Bretton Woods system became operational, countries settled their international balances in dollars, and U.S. dollars were convertible to gold at a fixed exchange rate of $35 an ounce. The United States had the responsibility of keeping the dollar price of gold fixed and had to adjust the supply of dollars to maintain confidence in future gold convertibility.
Initially, the Bretton Woods system operated as planned... (Source: Nixon Ends Convertibility of U.S. Dollars to Gold and Announces Wage/Price Controls | Federal Reserve History}
In contrast to fiat money, specie coinage refers to coins made from highly precious metals such as silver or gold.
Below are a few facts from Fiat Money: What It Is, How It Works, Example, Pros & Cons (investopedia.com) to set the background for what follows that.
Fiat money is a government-issued currency that is not backed by a commodity such as gold.Fiat money gives central banks greater control over the economy because they can control how much money is printed.
Most modern paper currencies, such as the U.S. dollar, are fiat currencies.
One danger of fiat money is that governments can print too much of it, resulting in hyperinflation.
The United States “temporarily suspended” the last vestiges of our specie currency in 1971. Sources indicate that between 1913, when the Federal Reserve Bank was established through 2023, the dollar's purchasing power declined by 98 percent. An Aug. 17, 2023, Money Metals Exchange article stated, “It [is] a cinch for the government to issue this fiat currency as legal tender with reckless abandon,” continuing, “As we live in an age of inflation, specie money reminds us that a more stable and sound monetary system once existed – and is possible for us to return to once more.”
While a total return to specie may be wishful thinking, there are chinks in the fiat currency armor. Between 1992 and 1995, Mexico attempted to circulate specie coins. These are ringed bimetal 10-, 20-, and 50-peso coins with a .925 fine silver central plug. While the intentions were good unfortunately the public hoarded the coins and for that reason, the economic experiment failed...
Today, specie have become desirable, especially in uncertain economic times. In July 2016, reports originating in Mosul, Iraq, announced a gold composition dinar coin being issued by the terrorist group ISIS that was introduced in a serious attempt to replace the U.S. dollar. Activists in Deir-ez-Zor, Syria, reported oil traders in ISIL-occupied oil fields being forced to purchase oil using these gold dinars.
A German jihadi terrorist group claimed the 1-, 2- and 5-dinar gold coins would “bring about the collapse of the U.S. dollar” and the “demise of the United States.” ISIS viewed bank notes as “oppressive” while claiming their gold coins would bring the United States “to her knees.”...
Specie Coinage is Not Dead - Numismatic News
---
Activity and values surrounding gold and silver coins continue to dominate the business of coins. Gold continues to trade in a tight range above $2,300 as this commentary is being written. Silver may yet hit the $30-an-ounce mark. The demand for intrinsically valued and for former specie coins isn’t coming from collectors alone, but from investors and speculators as well.
Costco has added fuel to this fire by selling not only gold ingots but also silver in the form of Canadian .9999 fine gold 1-ounce Maple Leaf coins, only to see them sell out quickly despite their steep price. Now there is another entity entering the field, stoking the fires of the demand for gold and silver even further. This time, it’s the Korea Minting and Security Printing Corporation. KOMSCO is selling what has been described as “fingernail-sized” gold bars weighing between 0.1 grams and 1.87 grams at appropriate prices for their weight...
No Encouragement is Needed for Gold and Silver Buying - Numismatic News
---
Good hunting,
Treasureguide@commcast.net