Subnostr

140% of spot at US Mint is clearly over priced even for numismatic value.

Apmex and so on are private businesses exchanging goods, not the government.

a source familiar with the matter 2y ago

I agree. But, you *can* turn dollars into specie directly at the Mint, which is (with the caveats I mentioned) redemption.

If Federal Reserve Notes are theoretically worth 42.5 $/tz, then gold at 2000 $/tz is dramatically overpriced. 2700 $/tz is even more so, but obviously by lesser proportion.

The official brokers are private, but they get the current coins directly from the mint - you can order mint-sealed tubes of current-year coins. Does the fact that dealers act as a middle-man actually matter economically?

https://www.apmex.com/product/258634/2023-american-silver-eagles-20-coin-mintdirect-tube

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Discussion

Bill Cypher 2y ago

If you refuse to see the difference between allowing a market to exist and a guarantee that a bill can and will be exchanged for a fixed amount that does not change during its lifetime, I cannot help you.

a source familiar with the matter 2y ago

There's a difference, as I have twice acknowledged.

But US mint buying back "dollars" is not merely "allowing a market to exist".

The fact that someone somewhere wants to give up gold for "dollars" is not backing or relevant. The fact that the issuing government of those "dollars" will make that trade is relevant.

Bill Cypher 2y ago

Everyone, except the people who stand to profit from printing USD and you apparently, agrees that to be backed means a fixed exchange rate and that every dollar could be exchanged without running out of gold or changing the exchange rate. That is not the current state.