Wednesday, May 28, 2008
American Liberty Dollar
Getting off the techie topic for a min. My brother showed me a silver coin a few years ago.. i remember thinking how heavy it was. Come to find out it was printed by the US mint, but rather a separate body all together. The dollar amount imprinted on the coin was $10. The worth was based on the amount of raw silver that was used to make the coin. A few years later we were talking about the coin and come to find out they were now printing $20 coins out of the same of silver. The price of silver had doubled in the time that had past. I pulled out the $10 coin and my brother offered me a $20 in exchange for it.. I declined (if my brother wanted it.. I should keep it.. I grew up with this guy.. I should know ;)), instead I bought another coin (I think I bought dinner actually.. something like that). So now I have a $10 and a $20 coin, both "worth" $20 in silver. The story goes on in that the body that printed these coins www.libertydollar.org had a raid performed on them by the FBI. Apparently the FBI feels they were doing something underhanded. The law suit has been going through it's motions for some time now, but the company has been permitted to keep doing it's line of work. It'll be interesting to see what happens to the company, but in the end for me... silver is worth it's weight in... well.. silver. After looking at the real estate and stock markets... just buying silver and gold.. holding onto it for a while .. then selling on ebay.. sounds like a pretty good proposition... but I'm just an IT guy.. anyone out there care to comment with thier thoughts?
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the whole-ounce LD round now has a FIFTY-dollar face. for a reminting fee plus two-way shipping (and insurance if you want) you can get your one-ounce LD$10 round (1993-2005) and your one-ounce LD$20 round (2005-2008) remade into two one-ounce LD$50 rounds.
they're not coins. only govts make coins. the LD rounds (medallions, tokens, pieces, discs) explicitly disclaim around the reverse edge: "notice: not intended to be used as legal tender, current money or coin."
they're also NOT intended as investment, although you're allowed to hoard them if you want. there are much cheaper ways to buy silver, but none of them have useful denominations (most have no denomination at all). LDs are meant to be SPENT. they're a functioning alternate currency made of pure precious metal. they ARE the best, the least expensive way to CONVERT USD to silver CURRENCY.
for a one-time fee anyone can become a Liberty Associate entitling you to a lifetime discount off face value. discount percentage varies every 10 minutes with the spot price of silver. then you profit by spending them into circulation at face value (never misrepresenting them as anything they're not).
also it's incorrect to say the $X round "contains $X of silver." the melt value will always be less than the face value. the difference is the profit margin, technically called seignorage. all currency has seignorage. the us mint's seignorage is much more gouging than the LD's. melt down a one-ounce LD$50 silver round and you get about $17 of silver. but melt down $50 of us quarters and you get only about $10 of copper and nickel (zero silver).
when silver goes to $41 per ounce, the LD one-ounce round will start saying $100.
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