florian
The Shire
Feb 14 2013, 10:22pm
Views: 541
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Not to be beating a dead horse but...
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gold and silver coins were useful enough in our own history. If the metal a coin is made from is worth more than the amount the coin represents, the coin would not cease to be used as currency. The owner of said coin would be able to purchase more for his money than with a coin not as valuable. Its like when financial analyst say things like the dollar was down against the pound. The dollar may only be worth .92 cents where as the pound might be worth $1.02 in comparison. Someone from England could exchange his pounds for more American dollars whereas an American tourist would not be able to trade his dollar for pounds and have the same amount of money that he exchanged for. Besides that, unless I am mistaken, gold is still the standard used to judge a currency's worth.
(This post was edited by florian on Feb 14 2013, 10:23pm)
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