The Silver Standard: The Value Of (Sort Of) Real Money (July 15, 2013)
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E1 “The participants in the study are less expensively schooled rural residents who distrust dollars but desperately desire them. Or their equivalent. They regard Morgan silver dollars as real money.”
E2 “And Morgans are still a form of legal tender.”
E1 “One invoice stated that it could be satisfied by tendering three (3) Morgans or seventy-two (72) dollars. Two media of exchange.”
E2 “The Morgan silver dollar is a known quantity made with an alloy of ninety percent silver and ten percent copper. The local folks adopted a form of the silver standard using government coinage but without any government edict, direction or regulation.”
E1 “In my on-going survey, the value of a Morgan with no additional numismatic appeal is about thirty-three percent more than the assay value of the silver content of the coin. Those trading in Morgans have no idea what the Dow is that day or even what the Dow is, but they know the exchange value of Ag every day.”
E2 “Their allegiance is not unalloyed, however, because in the final analysis the value of both silver and Morgans is denominated in dollars. Dollars are still the unit of account.”
E1 “What is revealing and intriguing is the added value of the thing that is made out of the substance. Information has value and is valued. The Morgan conveys accurate information and is easy to convey while also providing a store of value which are attributes worth a premium in the market. The study continues.”
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Bumper stickers of the week:
One Morgan silver dollar = the price of Ag x .9 x 1.33 = $___ fiat dollars.
Rock-paper-silver; silver rocks paper.