Tuesday, May 29, 2012

"Gold and Silver Coin History"

"Gold and Silver Coin History"," So it was only natural that the first coins ever made would start here.
 These first coins were made of a metal called electrum, an uneven mixture of gold and silver and sometimes had small traces of copper and or other metals in it.
76 grams, These were called the trites and valued at 1/3rd a stater.
1 grams, and equaled one stater.
 One stater size coins as well as smaller fractions were minted also: the trite 1/3rd, the afore mentioned coin, the hekte 1/6th, 1/12th, 1/24th, 1/48th and down to 1/96th of a stater.
 Widespread trading of electrum made coins was somewhat hampered however.
 For this reason a foreign merchant would offer very low undervalued rates on local electrum coins.

By 560 BC, the Lydians came up with a process to separate the gold from silver, bringing about the minting of the first gold coins.
 Electrum coins did remain a fairly popular form of currency until around 350 BC.
 What helped to bring this about so quickly was in 547 BC, when after 13 days of the siege the Persians scaled a lightly defended part of the wall and captured the city of Sardis.
 The Persians learned to mint gold coins and began to use them for trade.
 Unlike the Greeks, the Persians preferred gold coins over silver, and helped to make gold coins excepted as a world standard for currency.
 From that time gold and silver coins has been the only true form of money to this very day.
 Sometime in the early 7th century they also become the first to invent paper money.
 These first bank notes carried a guarantee that it could be traded at any time for coinage.
 The paper was just a form of a promissory note, a promise to trade for real money.
 It seemed as a joke that the Chinese used paper for money.
 In the mid 1600s paper money began to appear throughout Europe, some accepted, some not.
 These notes were printed as a promise from English gold smiths for account deposits.
 Again the paper was not the money, the gold it could be traded in for was the money.
 make any Thing but gold and silver Coin a Tender in Payment of Debts;"" From these 2 sections of The United States Constitution it is clear that our founders did not want paper money as a form of tender in this country, and for good reason.
 Many of our founders seeing the problems Europe had with their tries at using paper money, plus the early tries of the colonies to use paper money.
 In 1861 Congress authorized the United States Treasury to issue paper money for the first time in the form of non-interest bearing Treasury Notes called Demand Notes.
 Commonly called Greenbacks.
 In 1868 National Bank Notes, backed by U.
 government securities were printed.
 In 1913 the Federal Reserve Act was passed, then everything changed.
 For a while federal reserve notes could be also.
 Federal reserve notes no longer says it is redeemable for gold or silver, it only says ""This Note Is Legal Tender For All Debts Public And Private.

Today's federal reserve note is what is called fiat currency.
 Fiat currency is nothing but a government's order (fiat) that it must be accepted as a means of payment, back by nothing at all.
 That is why they made coins the only form of lawful money in our Constitution.
 Gold and silver coins has been and still is the only true real money.
 Back when quarters were still made of silver you could buy a loaf of bread with one of them.

Gold and silver coins is the safest place to invest your paper dollars.
 Stocks and bonds may crash, paper money may become worthless, banks may fail, but all through history gold and silver retains value.
 As the news informs us of the failing economy, and we see prices of everything go through the roof we need to find a safe place to put our hard earned federal reserve notes.
  There is nothing that offsets the shrinking value of currencies like gold coins.



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