Gold and Silver as Standards of Value
Posted: Sat Oct 25, 2014 10:41 pmhttp://www.24hgold.com/english/news-gol ... er+Spooner
"The first question, then, to be settled is this, - namely, what is that fixed or definite value (or something like a fixed or definite value) which gold and silver coins have, and which enables them to be used as standards for measuring the values of other things?
The answer is that the true and natural market value of gold and silver coins is that value, and only that value, which they have for use or consumption as metals, - that is, for plate, watches, jewelry, gilding, dentistry, and other ornamental and useful purposes. This is the value at which they now stand in the markets of the world, as is proved by the fact that doubtless not more than one-tenth, and very likely not more than one-twentieth, of all the gold and silver in the world (out of the mines) is in circulation as money. All the rest is in plate, watches, jewelry, and the like; except that in some parts of the world, where property in general is unsafe, large amounts of gold and silver are hoarded and concealed to prevent their being taken by rapacious governments, or public enemies, or private robbers. Leaving these hoards out of account, doubtless nine-tenths, and very likely nineteen-twentieths, of all the gold and silver of the world are in other forms than coin."
. . . and the article goes on for another 2000 words. It is an effective (if a bit exhaustive) defense of gold and silver as the ultimate store of value. I've seen many articles make the same defense of PMs, complete with clever analogies and historical examples. Yet their effect is sadly negligible. Like using Socratic reasoning with house pets, being right carries no benefit or recognition. Such arguments must be made to be sure, but at present they fall on the deaf ears of a poorly educated public and an openly hostile financial media. PM advocates seem to be slow to realize that they are in a public relations war and they are losing badly. The other side (Media, Bankers, shadowdy elite. . .take your pick) have created the perception that PMs are nothing more than a desperate fringe investment a made it reality. . . at least for now. The public at large will need to feel the painful consequences of centrally managed fiat currency before there is any chance of them realizing that there must be an objective, uncompromising standard of value. Only then will articles like the one above begin to make headway.
"The first question, then, to be settled is this, - namely, what is that fixed or definite value (or something like a fixed or definite value) which gold and silver coins have, and which enables them to be used as standards for measuring the values of other things?
The answer is that the true and natural market value of gold and silver coins is that value, and only that value, which they have for use or consumption as metals, - that is, for plate, watches, jewelry, gilding, dentistry, and other ornamental and useful purposes. This is the value at which they now stand in the markets of the world, as is proved by the fact that doubtless not more than one-tenth, and very likely not more than one-twentieth, of all the gold and silver in the world (out of the mines) is in circulation as money. All the rest is in plate, watches, jewelry, and the like; except that in some parts of the world, where property in general is unsafe, large amounts of gold and silver are hoarded and concealed to prevent their being taken by rapacious governments, or public enemies, or private robbers. Leaving these hoards out of account, doubtless nine-tenths, and very likely nineteen-twentieths, of all the gold and silver of the world are in other forms than coin."
. . . and the article goes on for another 2000 words. It is an effective (if a bit exhaustive) defense of gold and silver as the ultimate store of value. I've seen many articles make the same defense of PMs, complete with clever analogies and historical examples. Yet their effect is sadly negligible. Like using Socratic reasoning with house pets, being right carries no benefit or recognition. Such arguments must be made to be sure, but at present they fall on the deaf ears of a poorly educated public and an openly hostile financial media. PM advocates seem to be slow to realize that they are in a public relations war and they are losing badly. The other side (Media, Bankers, shadowdy elite. . .take your pick) have created the perception that PMs are nothing more than a desperate fringe investment a made it reality. . . at least for now. The public at large will need to feel the painful consequences of centrally managed fiat currency before there is any chance of them realizing that there must be an objective, uncompromising standard of value. Only then will articles like the one above begin to make headway.
