Liberty Dollar

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pleaseremoveme's picture
pleaseremoveme
Status: Silver Member (Offline)
Joined: Jan 24 2009
Posts: 115
Liberty Dollar

Because it seems to fit the ideas of many people on this site, I was surprised to find out that no-one has ever mentioned the liberty dollar here. It is a way of returning to a gold and silver standard money system, that seems to be working quite well. Just the thing you were looking for?

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: Liberty Dollar
woupiestek wrote:

Because it seems to fit the ideas of many people on this site, I was surprised to find out that no-one has ever mentioned the liberty dollar here. It is a way of returning to a gold and silver standard money system, that seems to be working quite well. Just the thing you were looking for?

Nothing against you, woupiestek, as I know you mean well.

However, while it looks tempting, I'm always leery of people that run on-and-on as this guy does on his web page. I guess my first question would be, "What's the catch?".

He claims people would accept the currency without a qualm. However, if someone tried to pay me with one of these, I'd be very reluctant to take it as it doesn't look like any legitimate currency I know of.

It may be perfectly legit, but I'm holding off until I get some real validation that it's kosher!  Money mouth

I'll be interested to see what others have to say after they have seen the web link.

gtazman's picture
gtazman
Status: Martenson Brigade Member (Offline)
Joined: Oct 6 2008
Posts: 48
Re: Liberty Dollar
woupiestek wrote:

Because it seems to fit the ideas of many people on this site, I was surprised to find out that no-one has ever mentioned the liberty dollar here. It is a way of returning to a gold and silver standard money system, that seems to be working quite well. Just the thing you were looking for?

The FBI raided the Liberty Dollar offices in Oct. 2007.  They confiscated all the silver and gold they found.  Seems the US gov't doesn't like competition!  Google "Liberty Dollar Raid" for more infromation.  It was too good to be trueFrown

stpaulmercantile's picture
stpaulmercantile
Status: Bronze Member (Offline)
Joined: Nov 19 2008
Posts: 87
Re: Liberty Dollar

 

It would be nice if the concept would catch on.  But I don't think there are very many people who would accept a non-mint coin instead of a $20 bill.  I would - no problem - but I'd bet that the percentage of people who would accept one, today, is probably less than 10%.  I could have silver rounds manufactured that said "St. Paul Mercantile - $50 - 1 oz .999 silver".  But that doesn't make it worth $50.

If you buy Silver Eagles on ebay, today, in quantities of 40-60, they cost around $20-21 each.  Anybody who buys silver knows that American Eagles carry a premium over the Canadian coins, or mint-issued silver rounds.  If the Liberty dollars were significantly cheaper than Eagles, I'd probably buy them. 

 

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
Re: Liberty Dollar
SamLinder wrote:

Nothing against you, woupiestek, as I know you mean well.

However, while it looks tempting, I'm always leery of people that run on-and-on as this guy does on his web page. I guess my first question would be, "What's the catch?".

Sam -

Call me a cynic but it looks to me like the "catch" is the Spot + Premium piece.  You pay $13.38 plus a 'premium' for something that is worth $13.38, yet is labelled $20.00.  Emphasis on "premium". 

Tell me what the seller's "Spot" basis is and given the stated premium, I'll tell you his margin - that's the "catch"

Shaddicus's picture
Shaddicus
Status: Member (Offline)
Joined: Mar 3 2009
Posts: 1
Re: Liberty Dollar

So here's my problem with it:  They printed a "Manufacturer's suggested retail price" of $20 on it.  So now you have an oz of silver which is subject to market fluctuations the same as any other commodity, with a fixed trade value in federal reserve notes on it...  which is currently about 30% ($6) too high.  Second problem with it is their claim that it's "inflation proof" balanced against the fact that it has "$20" pasted on the side and they want you as the store owner using it as a medium of exchange to continue to exchange them at that value to build customer confidence in the alternate currency.  How does that protect against inflation?

I do think it's an interesting gimmick to get repeat customers, which would probably work better than trying to give people all their change in giftcards.  From a big picture economic point of view, I don't think it does anything useful.  After all, I don't think the Liberty dollar people are taking the paper money out of circulation when you buy these coins off of them.  So it might even make things worse as they "print" silver coins that go into circulation in addition to the paper money you bought them with. 

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