It’s a great scam. He sells his silver coins with a cost of about $10 or paper with a cost of about 20 cents. he charges $20.00 in real moeny for it, with a promise to redeem it for real US moeny again any time you want it.
But they are rarely redeemed. So the “issuer” sells 20 cents of paper for 20 dollars....
Now he can keep all the real dollars he has hidden, claiming Uncle Fed took all his funds.
To us, he holds himself out to be Conservative. To the anti-war leftist, he is one of them. To the Ronpaulians, he is..........
It’s a scam, and a good one
The point you make (concerning the physical amount of silver in the coin) is well taken, and it’s the reason I don’t buy any of this money. You can do better buying bullion coins, if what you want to do is include some precious metal in your portfolio. (There are yet other ways.) This particular company tries to increase its profit by making commemorative coins with images and so forth that are emotionally appealing to particular buyers, and, similarly, with the paper certificates. I wouldn’t call this a scam, anymore than selling Harley’s is a scam. In business, you make money by serving your cusomters well, and there are many different kinds of people out there.
“It’s a scam, and a good one”
Damn, I need to start making a list. Nearly everything I buy isn’t worth what I paid for it.
It's such a great scam, the Federal Reserve and other central banks have gotten in on it - it even has a special name called "seignorage".