by the same logic, one might say that fiat money has no value.
I define value as "a measure of worth" that people assign to an item.
But there are institutions called governments, who create legal tender laws - which mandate a certain value to fiat currency. In the absence of these laws, would fiat currency have any value? Fiat currencies seem to have a mandated government value.
Gold and silver have no legal tender laws. In fact there were laws passed (Gold Reserve Act in 1933 or 1934) which made it illegal to contract with another party with the exchange of gold. Until 1971, it was illegal for US Citizens to own any gold. In appears that governments have to pass laws, as their citizen would intrinsically prefer to deal with gold. As such, one could say that there is intrinsic value in gold and silver.
Generally, we see that while in the short run, prices may vary, in the long run, thing tend to flow to their intrinsic value. If gold and silver have an intrinsic value, let's examine the last 80 years of Fiat Currency (the Dollar), vs. gold.
In 1932, a troy ounce of gold was worth about 20 times as much as a single dollar.
As of today (March 7, 2012), a troy ounce of gold trades for 1685 dollars or is worth 1685 times as much as a single dollar.
I rest my case.
The Coinage Act of 1792 specifies what a dollar is.
On April 1, 1792, Congress authorized the striking of gold coins. The dollar was defined as 24.75 grains of pure gold.
United States Dollar was defined also as a unit of weight equaling 371 4/16th grains (24.057 grams) of pure silver.
The point here is that the fiat doesn't represent either of those and yet the unchanged or amended wording of Article 1, Section 10 precludes the states from accepting anything in payment but gold and silver coin.
The Legal Tender Acts lack the authority to amend the Constitution. Are all governmental bodies now entirely rogue? If they are, are we in fact living under tyranny where property rights are now entirely disregarded and even to extending to what you can or cannot do with your own body?
Through the centuries past at has. But when Mr. Ron Paul waves a silver coin in front of Mr. Bernanke, like he did on flash crash Wednesday, I will be sure to sell SLW. Was the pm market manipulated to the sell side during Mr. Paul's speech to Mr. Bernanke? Too late now. In spite of it all, still holding 10%in SLW(insurance),and 5% in EUO.
Oh and you need to let the European banks know that too so the Greeks can keep their 111 tons of gold (that has no real value anyway).
And while you're at it, you need to tell the security guards around Fort Knox too. It's costing the American people a lot of valuable greenbacks to guard that stuff (you know, the stuff that has no real value).
Actually there is no gold in Fort Knox any longer. The banksters now have all of it, they and their friends that tell everybody they can get to believe it that it is valueless. Since they stole it in the first place, thanks to FDR, it needs to be taken from them again and exchanged to the people for their paper money. Unfortunately it will require that an overwhelming number of people are willing to use their 2nd Amendment rights under the US Constitution. As one wise person put it, "I'd rather die on my feet than be done away with on my knees."
Oh golly! Word hasn't gotten out to the chain snatchers on the subway here in NYC. Can you let them know for me so I can go back to wearing the stuff (which has no real value) when I travel? Thanks!
Factually wrong. Silver has several properties, some unique to this element, that make it valuable in many industrial and health related applications. In addition, there is a four thousand year history of silver being valued (by humans) just for its beauty.
Can't attribute any of that to greenbacks.
That's mauvebacks, pucebacks, and bluebacks. The only people for whom they're greenbacks, is the folks who've saved for forty years and watched buying power of paper erode 90%.
They're turning green, front, back, and sideways.