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Guest Post: Germany Unwittingly Adopts A Silver Standard Due to Soaring Price
By Toni Straka of The Prudent Investor
Germany Unwittingly Adopts A Silver Standard Due to Soaring Price
Silver'ssky-shot to a new 30-year high of $27.73 per ounce has led to a new
phenomenon in Germany. For the first time in history it is theoretically
possible to buy two last series of silver coins with a denomination of
€10 and a silver content of 0.535 ounces for less than the silver
equivalent. According to a report in German Daily "Welt"
the soaring silver price has forced the German government to bring
forward the starting time of sales of the 2 commemorative coins into
October to save face. The coins now have a value of €10.66 but have to
be sold at the denominated Euro value.
As this story is widely circulating in Germany it can be expected that these coins will be sold out by tomorrow.
Germany's time on a theoretical silver standard - the country was on a
bi-metallic standard before the Weimar Republic in the 1920s - won't
last long, though.
In order to counter soaring silver prices and keep the denominated value
below the silver value the country has announced it will reduce the
silver content to 10 grams or 0.3215 ounces in its commemorative silver
coin line from January 2011.
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It'll be back on in no time, if that is as low as they are dropping it.
The US is in even deeper shit.
They have to distribute the national park set in the 5 OZ blown version for 120 dollars a piece.
As this also needs to be done according to US law, they'll be sold out in 1 day when they sell them.
Launch will be in december and the maximum order quantity is 1000 pc for national parks and 50 sets per citizen.
AND!!!!
THEY HAVE TO MAKE THEM UNTILL DEMAND STOPS!!!
That's why they wait untill the end of the year to do so because at first it was planned after the summer.
Silbergeld, bitchez!!
deutschland, bitchez
I love coins for that reason. When the melt value gets to be more then the face makes the people ask "How did that happen?". Much like our old penny, US already forced off the copper standard, waiting for us to get forced off the zinc standard.
When the mind is locked into the illusion that the paper/coins in their wallet is "Money", the Cognitive Dissonance that occurs when mere metal suddenly is worth more than their "Money" is truly a sight to behold.
There is that point where the neurons start bouncing all over the place, like a rubber ball bouncing around in room full of mouse traps. Snap snap snap, the sound builds in intensity. Suddenly the tipping point is reached and amazing new ideas are born.
Sadly, the first thing they think about is how can they covert the metal they own into paper "money", thus signalling that the mountain peak has not yet been surmounted and the illusion remains strongly implanted.
Sadly 'people' don't understand that when the time comes, the force of circulating Money will in contractual terms denominate the contract. Depending on how pissed off you are, offer Money for that deal, along with some fiat. They are after all par. The county assessor will love the the deal for 'land and appurtenances', and fixing to adjust the taxable assessment.
Looking back into fraudclosuregate, it would seem to me, that it is high time for people to bring back a modern indenture, with a tear line (allowing the matching of the original to the copy), ink sample loci, correct language in terms of land etc. ....
Wishful thinking I suppose.
One is always allowed wishful fantasy. I restrict mine to Internet porn these days. :>)
The light caress of an illuminated flatscreen definitely has a contrast ratio to soiled glossy paper read by flashlight.
For anyone who cares, a currently minted US nickel is 75% copper and 25% nickel. It's melt value is 6.2 cents. Also a pre 1982 penny's melt value is over 2 cents.
Silver, betchez!!
BlitzKrieg!(Bitchez:-) )! Deutschland wird zur D-Mark zurückkehren, nachdem alle PIIGS TOD SIND! BYE BYE!
and most Germans agree with you.
At the rate this fiasco is going and when the BOE, BOJ, RBA and ECB and finally forced to acknowledge that they need to print too, all coins will be uneconomic.
If China cant maintain its peg to the USD for whatever reason they'd need to print too.
Dec10 silver $29.02!!!!
that may be tomorrow!
OK Turd, give it to me straight. Is this the end? Parabolic hyper-drive explosion of golden and silvery goodness? Cause it's starting to feel like that...
Maybe. Maybe not.
My best guess is a pause around $30. Sharp, quick round of profit-taking back to 27-28.
However, I believe the jig is finally up for the silver Comex. Read Harvey Organ.
http://harveyorgan.blogspot.com/
Harvey says that the attempt at December physical settlement will be "the most exciting event he will ever report on". That's pretty significant shit. The silver COMEX is dying. Buy all dips.
Add in $100B in new POMO by 12/8 and you get silver to 35. Maybe 50. Shit, who knows? Maybe 80. All I know is buy all dips and "never bet on the white guy".
But... but... I'm a white guy. Dang.
Many thanks for all you do here TF. You truly rock.
11/09/20010: Silver 29.02...
did it today already TF...Salute
That means contracts for December delivery hit 29.02. His post was a report, not a prediction...
Tmosley -
thanks for the clarification...no thang'...
I believe we're all on the same team...
Don't forget tulip mania bitchez!!! Derivatives/paper ....
In a related story, the U.S. Mint has announced plans to issue the first in a new series of commemorative wooden nickels.
Careful there, teak and mahogany coins might also break the bank. Maybe they can contract Ikea to make softwood (pine) coins but hopefully we don't have to assemble the coins ourselves.
Actually I heard the mint was considering balsa, or a good sturdy plywood.
I think you meant particle board; plywood is quite expensive since it ideally requires sheets of wood from large-diameter trees and... we've cut most of them down in North America.
Boffo!
The market takes care of the follies of man all by its lonesome!
Beware, manipulators, propagandists and thieves, your end is predetermined, for the Law of Unintended Consequences has arrived, again.
Awesome!
Of Fucking Biblical Proportions!
off to Berlin on Friday . I'll see if I can pick up a 1000 euros worth
where can one buy these lovely coins in Germany?
Might take a trip there soon.
I have an honest/newby question?
the price of Silver and Gold are in Troy Oz's and when you buy a Round or a bar the weight is in Troy Oz. however when you buy say a Canadian Maple it is weighed in Metric oz.
there are 12 Troy Oz in a pound and 16 metric Oz in a pound. so why is there are larger preimum on a Canadian maple that has less silver by weight in it?
The Maple is 1.000 troy ounces.
There is no such thing as a metric ounce (methinks you mean "imperial" ounce). There are 16 troy oz in one troy pound. There are 14.58333333... troy oz in a regular pound. There are 31.1 grams in a troy oz.
So yeah.
Even though you called me a dickhead yesterday (for refusing to suck Ron Paul's dick), I'll just politely point out that there are 12 troy ounces in a troy pound, since you are obviously confused on several fronts.
I must say that I am a little concerned about the exponential rise in silver price over the past week. The price has not taken a significant pullback which makes me a little unnerved. This hyperparabolic spike tells me either:
A. The Fed and/or the comex have lost control (the death spiral is accelerating - which means no worries about PM's for a long time)
B. Silver is potentially way overbought and the price will have a massive blow off to the downside?
This is exciting shit to watch, don't get me wrong, but is anyone else pondering the same? I have NEVER seen silver do this in my lifetime.
I've been watching and waiting to buy more on the dip only it doesnt dip, and have finally given up and just began buying in small steps with tight stops.
Cant explain it, every fiber of my being says it's sound fundamentally but absolutely NUTS technically and I waiting to get squashed but WTH.
If anyone can shed further light on the bizarre action PLEASE help LOL.
Bloody exciting tho.
"Fear-mongering of the Other Kind", eh? Speculation is nearly over, a little bit more then.................(-------------) one big hole!
You once said you were a floor trader. Got caught on the short side, eh? Keep shorting there, Mortimer.
The wheels are coming off the wagon indeed.
Lawsuits, Sprott's fund, Unbacked ETF's, Dollar dumping.
I'm sure I missed something.
We were discussing this exact thing on an earlier thread, but yeah... you're not alone- it is disconcerting. The general sentiment is that the price action is so relentless and the moves so strong that it is making alot of people nervous. Some argue this is the beginning of the endgame for the USD collapse, some think it is just big players starting to take delivery, or massive short unwinding by JPM HSBC, or even perhaps a harbinger of a black swan event of some kind... and the ZH crowd owns PM's and most of us are making $ in this, yet even here it's making everybody a bit jumpy. Strange days.
according to the toothsayers it is going higher. Seeing will be believing. In the UK the fsa has had complaints about new physical backed funds setting up which will balloon the price. LBMA are short. The Asians are apparently trying to corner the market. I think there are too many upward forces to see a blow off just yet. Law suits are going in thick and fast against JPM and HSBC. Chalcott says there is evidence of manipulation. This artificially kept a lid on the price for years. And well the death spiral could see huge rises if some demands delivery. When the ratio closes to 35:1 I'll be selling . Meantime enjoy the ride. As you say ..........exciting.
Silver temporarily hit $48/oz in the 80's.
Does anyone have any further info on ZH's expose detailing anomalies in SLV's holdings from http://www.zerohedge.com/article/project-mayhem-research-multiple-anomal...
http://www.pathtoasia.com/jobs/
To me, this is a good argument for a gold standard. You simply denominate in ounces or grams. Then one ounce gold/silver equals the same thing in Germany or any other country, regardless of what we say in dollars, marks, lira, yuan or anything else. You cannot get screwed and you can adjust your exchange rates in seconds if a country redenominates. You can actually price things in ounces of silver and gold fairly literally.
Freegold - http://fofofoa.blogspot.com/2010/10/freegold.html
The American Eagle 1 oz coins was introduced, as legal tender by Congress, at $50 nomination. Did it change anything? Some!
In principle, you can use these coins for payments, even for sallaries and you can calculate your payroll taxes based on the denominations. Was it tried? Yes it was! Did it work? Yes it did! Look it up on the net.
We could have a gold standard tomorrow in the US! (If THE PEOPLE does it).
All money of the United States is legal tender. Along with some other things that have been declared legal tender as well. (Federal Reserve Notes). Some are money and legal tender. Some are evidences of debt and legal tender.
The crowd at large is too stupid to realize the benefit of circulating the money that has been provided for their own private benefit.
I asked about that subject last night, yet had no takers and I'm unable to find my earlier brilliant middle of the night posting so I will try to replicate it from memory.
Federal Reserve Notes are not dollars. Dollars are a defined coin based on silver or gold as per Federal Law. The US Constitution gives congress the power to mint coins and determine the value. Congress can not delegate any of its constitutionally mandated obligations to anyone. That is why the US mint mints coins and not the federal reserve. FRNs are bearer notes. That is why they have 2 signatures in the front (sign and countersign) The value of the note is supposed to be based on the marked denomination. Kind of like a check, I write a $200 check and the receipient expects to receive $200 upon presenting it at the bank window.
Here is where it goes wrong. When FDR illegally disconnected the FRN from the dollar, he made it a rubber check and disconnected the value of the note from reality. It is now a fractional instrument that pays at current prices, 1/27th of face value. But, it is still "legal tender"
The US mint coins are real money and have also a face value determined by congress. Regardless of their numismatic or content value, they are worth, according to congress, $1 an OZ of silver and $50 and ounce of gold. So, legally speaking, a 1oz gold American Eagle is $50.Here is the interesting part. IRS regulations are denominated in dollars not FRNs. So legally I could be paid by my employer a 1oz American Eagle a week and not file any returns because my pay would only be $600, under the reporting threshold.
It has been tried before. A construction company in Florida paid their employees in silver dollars. They advised employees they did not have to file since they had been paid under the reporting threshold. The IRS prosecuted (of course) and after 3 tries they got guilty veredicts, not against the employees, but against the ownership. Not because they used silver to pay their employees, but because they claimed the numismatic value of the coins in FRNs in their tax returns as a business expense but were exchanging the silver dollars back to FRNs and recycling them every week while claiming new purchases in their tax forms.
Why is this important? Because it would be the key of DEFUNDING the federal government! If a precedent is set in court, we could ask our employers or customers to make payments in silver or gold and not file a return at all since the payments face value is the legal value of the currency we received payment in! Any lawyers out there, please jump in.
So much for the German hard money stereotype - they are thee most banked and propagandised of all European peoples............. making the elementary mistake of believing their own bullshit.
Now glad I got that off my chest - now I can go back to being buggered by a deviant Irish ? banker.
double post
Schmerzwelt
Things are exponentially increasing to the endgame for everything associated with the US.