Oh really ?
Posted on 11/16/2007 10:13:07 AM PST by KentTrappedInLiberalSeattle
"I don't know about the Feds, but I make it a point to not pay 180% or more of the value of a basic commodity." T.P.
Maybe I misqouted you then?
See, 180% is 100% + 80%.
Maybe I misqouted you then?
You misunderstood, or are really bad at math.
"If you buy an ounce of silver (spot price a little below $15) for $28, you've over paid by about 86%."T.P.
According to your math, we underpaid 14% for that ounce of silver.
According to my math, you paid spot ($15) + 86% of spot (another $13) for a total of $28.
Now if you understood division, you could see that 28/15=1.8666, that is more than 180% of the value ($15) of the silver.
Glad I could help.
Could you figure out my profit on Ebay today on a Ron Paul Silver Dollar? One went for 330. One went for 399. Thanks.
Oh really ?
But according to your math, wouldn't that be 186 percent?
100 + 86 is 186.
And that's not just my math, that's the way everyone, except maybe goldbugs, does math.
I'm so proud of you.
With regard to depositing a Liberty Dollar in a bank account:
From 1933 to 1977 it was forbidden for any American to own gold bullion. Prior to this, it was thought that the Federal government had no power to make anything illegal. Hence, they needed a constitutional amendment to take away our alcohol, and they tried to control opium through a very high tariff. But, once the Supreme Court, in a 5-4 decision, allowed the Federal government to make gold illegal, it was just a matter of time before the Feds started making more things illegal.
In addition to gold being illegal, it was illegal to write contracts in gold, in any foreign currency, or any form of indexation. The government decided not only what was to be the “legal tender” of the country (which is its power), but what would be the only legal “unit of account” and “medium of exchange.” As to where these powers came from, I just quote Mao, “from the barrel of a gun.”
Fast foward a couple decades and, in 1977, thanks to the leadership of the late Jesse Helms, a U.S. Senator from North Carolina and a then rather young U.S. Congressman from Texas named Ron Paul, the law banning ownership of gold bullion by Americans was voided.
In conjunction with allowing us to own gold, the Helms-Paul act allowed us to index our financial agreements. Subsequently, Sunshine Mining issued bonds indexed to silver, and other private borrowers followed up with bonds linked to other commodities and to the U.S. CPI. There were, however, a number of nagging questions concerning the legality of these bonds. During the 1990s, the U.S. Treasury issued CPI-indexed bonds, and the legality of indexed bonds was no longer in doubt.
Soon after the Helms-Paul voiding of the bans on gold and indexation, banks were allowed by the Federal Reserve to offer customers accounts denominated in gold; which the Republic Bank of New York did. In the 1990s, banks were further authorized to offer accounts in foreign currencies and, today, a growing number of them do (but this is because of globalization, rather than because of concerns about inflation).
Thus it should be perfectly clear that it is legal for individuals, banks and others, to own Ron Paul silver coins, to exchange them with each other as they choose and for whatever consideration they agree, to do this either by physically transfering possession or by paper or electronic transfer of coins held in deposit accounts, and to arrange for deposit of coins in accounts managed by banks or for that matter any other company.
As to whether Ron Paul silver coins are a good deal, I will not comment.
But, having said what I did about Ron Paul silver coins being legal, we also know that, according to the U.S. Supreme Court, the Congress can regulate anything you do or fail to do, with the one exception of sodomy, because it effects interstate commerce. Even if you DON’T do anything, that affects interstate commerce, so the Congress can regulate that as well.
If you doubt me about this, just wait until Hillary is President and the Democrats have 60 votes in the U.S. Senate. I strongly recommend that everybody keep their passports in good order, and sew a good number of gold coins and precious metals into the lining of their overcoat.
The real fools are not people who buy silver at a high mark-up over bullion value. The real fools are those who have their life savings in U.S. Savings bonds and other non-indexed debt instruments.
Jesse Helms is not late. LOL!
I'm sorry if I bore you with my lack of intellect. But if you add 100 percent to something, is it not double? You make it sound like it is even steven.
Yes. In this example, we added 86.6% (the premium I mentioned) to the spot price of silver to get the price of the Paul dollar. Doubling would have been $30, based on a spot of $15.
I don't mean to be ignorant, but this is one of your qoutes.
"That's the same as paying 180% of the value of the oil."T.P.
The problem I have is why do you switch back and forth?
180% of the value (spot price) is the same as the spot price plus an 80% premium.
The problem I have is why do you switch back and forth?
Most people understand that both statements mean the same thing (that you overpaid).
One just sold on ebay for $550
See post 176 below.
I meant above.
What you going to do about those stupid ebay people anyway? Another one went for 550.00.
Another friend of mine worked security for a bingo parlor. Every week there would be a few United States Notes or Silver Certificates spent, usually obvious by the different color seals, and many had a rust stain from a paper clip on them. They dated back as far as pre WWII.
He was pretty sure they were being spent by an elderly lady there, one who remembered the bank collapses of the Depression and who had a 'stash' of money.
If the stuff hits the fan, economically, I figure Gold and Silver will retain their purchasing power to some extent. Maybe clad coinage will 'trade' at a discount, if not they can always be drilled out and used for washers or something (I know, bimetallic washers would likely promote cathodic corrosion, but this is a fairly dry climate).
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