What I propose is simply to give a quoted monetary value to a one-ounce pure silver coin which already exists, the "Libertad" ounce (editors note: Libertad means freedom in Spanish). This coin has no engraved value upon it, and it would be given a QUOTED monetary value by the Central Bank; the quoted monetary value would always be slightly higher than the market price of a silver ounce, and when the price of silver rises, the Central Bank is to adapt to that situation by giving the coin a higher price. When the price of silver falls, the last quote remains in place, so that the quoted value can never diminish, only rise to accommodate the higher market price of silver.

By this means, something very important would happen: the silver coin would remain permanently in circulation with paper money; the silver coin would never be melted down, because higher prices of silver would simply mean a higher monetary value for the coin.

Comments: Be the first to add a comment

add a comment | go to forum thread