Gold backed currencyAwhile back I read an article about a new gold backed currency operation starting up. Believe it was by a former Wall street trader. Forgot the name, anybody know?
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There are a lot of things that have been teased and hinted at as “gold-backed currency” over the years, from collectible gold coins to gold royalty companies to the “allocated storage” firms like GoldMoney — but that doesn’t ring a specific bell. Do you remember anything else about it?
Finally found the article and the name is Anthem Vault. The former CEO of e-gold is also involved in another similar venture and the company name is Coeptis.
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http://www.coeptis.com/
It’s inevitable that attempts to bypass fiat currencies by setting up a digital exchange system based on vaulted gold would turn up, considering the state of the world. But I don’t see how they can call this a true “currency” since governments determine that, by designating what form of payment they’ll accept for taxes. In that regard, currently the only level of gov’t which may accept these payments might be the few U.S. states which determine they will accept gold or silver for payment of state taxes (a recent trend).
I think any system of exchange outside of government ones cannot accurately be called “currency” – only barter. I also think these independent systems are likely to be targets of government confiscation or appropriation in difficult times, as well as targets of the world’s most sophisticated financial hackers (gov’t sponsored or otherwise). I wouldn’t go near a system like this at this stage, just as I won’t go near Bitcoin. Not unless either makes it into widespread use, with the highest assurances of safety.
Frankly I have wondered why someone hasn’t started such a gold banknote earlier. And for silver also. It can be done privately, after all a lot of the original banknotes for gold and silver were from private banks.
I suppose that the profit in it could be achieved by a bid/ask spread and a redemption commission. There are a lot of people who would prefer the convenience gold certificates
backed up by real bullion.
Following up on this, if a mine set aside a certain reserve of bullion and issued certificates against it, I would have a high degree of confidence in the value of it as long as the pohysical was there. The mine could issue more as its production justified.
If Newmont Mining or American Barrick or Franco Nevada set up such a program, I’d feel pretty good about owning gold or silver in this way
That would be great, if you can completely trust the organization. So many of those private banks in early America went bust though, with their depositors losing everything, before the FDIC was conceived and created. And more recently there’s this:
http://www.mystatesman.com/news/news/local/downtown-austin-vault-of-precious-metals-turns-up-/nnYS2/
I’d love to see a digital international currency based upon precious metals (or some other form or combination of hard assets) – something agreed upon by most of the world’s governments. I believe it would create much more stability and confidence in all markets. But it will never happen unless the world’s peoples force their governments into it, and I don’t see public cluelessness on this subject changing anytime soon.
Does this discussion involve Goldbacks?
How about Goldbacks? Guaranteed amount of 24K gold in currency form that you can carry in your pocket! .