tag:blogger.com,1999:blog-6089228851855763774.post8039179295578629067..comments2024-02-05T17:24:09.663+08:00Comments on Gold Chat: Why are there not enough coins?Bron Sucheckihttp://www.blogger.com/profile/00530576934994289879noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6089228851855763774.post-146866719846964082009-02-03T10:46:00.000+09:002009-02-03T10:46:00.000+09:00Keith,Yes, Government's keep a monopoly on the iss...Keith,<BR/><BR/>Yes, Government's keep a monopoly on the issuance of currency but there would not be anything wrong with you creating your own currency (but you would have to call them medallions or tokens) and marketing it as a medium of exchange. This is effectively what Barter Card does and that has not been shut down as illegal, so I see no reason why you could not creat your own gold backed/based payment system.<BR/><BR/>Looking for a consultant to advise you? :)Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-58717403007815653552009-01-30T08:52:00.000+09:002009-01-30T08:52:00.000+09:00Hello Bron,Great post. Very interesting to get a ...Hello Bron,<BR/>Great post. Very interesting to get a further insight into the production process, and the manufacturing investment scenario. One area your post does not touch on is the simple fact of the monopoly that the larger mints enjoy. Being part of government is a huge benefit that I don't think you really appreciate in your discussion.<BR/>Of course governmental monopolies are well known for their inefficiency and waste. Just look at the justice system. Other monopolies would include public transportation (even when 'privatised' they still enjoy government protection to preserve the monopoly).<BR/><BR/>If I were to start minting, I would expect the normal competitive pressures that a new entrant is subject to. However, if I were to produce a coin or bar and that were denominated in dollars, I am pretty sure I would be classified as a criminal. You may protest that I could seek government approval to do so, but we both know such approval would never be given. <BR/><BR/><BR/>Cheers,<BR/>KeithAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-25585553736485165012009-01-18T17:25:00.000+09:002009-01-18T17:25:00.000+09:00The cost of gold production does put a floor, it w...The cost of gold production does put a floor, it was one of the factors that came into play when gold got down to $250.<BR/><BR/>Various mines have difference cash costs of production. I don't know what the average is or the cost curve. Possibly http://goldnerds.com.au/ would know or try World Gold Council http://www.gold.org/ or GMFS http://www.gfms.co.uk/Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-16479380684480028192009-01-18T11:32:00.000+09:002009-01-18T11:32:00.000+09:00Bron,I was wondering if you have any idea of what ...Bron,<BR/><BR/>I was wondering if you have any idea of what it costs to get most gold out of the ground? For example around 80% of the world's oil apparently can be produced at less than $20 USD a barrel and this this puts a floor under the oil price. I wonder if these is a similar price support for gold?<BR/><BR/>Cheers,<BR/><BR/>Greg<BR/><A HREF="http://www.shareswatch.com.au/blog/" REL="nofollow">Shareswatch Blog</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-48630131546953036692009-01-17T11:37:00.000+09:002009-01-17T11:37:00.000+09:00It depends on the Mint. In the case of the Perth M...It depends on the Mint. In the case of the Perth Mint (and probably the Royal Canadian Mint), being for profit Government entities, they will invest in equipment, and I doubt it would take 3 years of continued demand to make it happen.<BR/><BR/>Other, more bureaucratic mints which are more Government department in nature are likely not to respond as quickly.<BR/><BR/>So your phase transition scenario depends on the country and how closely that country's mint is tied to government and how commercial it is. You would have to rank mints on a continum from bureaucratic to entrepreneurial.<BR/><BR/>In respect of the Perth Mint, consider these facts:<BR/><BR/>1. State Government owned, not Federal.<BR/>2. Purely precious metal mint, not distracted by circulating currency requirements - if it doesn't sell gold and silver, its existence is threatened.<BR/>3. Runs a $2 billion Depository<BR/>4. Issued an ASX listed ETF-type product<BR/><BR/>No other mint in the world demonstrates this sort of innovation and committment to precious metals. Add in 200+ tonnes of gold production and it is my view that Australians are sitting pretty compared to many other countries. There will still be some sort of transition, but it won't be as bad.Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-31553786042994538752009-01-16T19:51:00.000+09:002009-01-16T19:51:00.000+09:00Hi Bron,Thanks for the article. You have mentioned...Hi Bron,<BR/><BR/>Thanks for the article. You have mentioned these points before in Canberra, and it is good to have them now on a blog for others to see.<BR/><BR/>I agree with the points you have raised, however, I must say that as time goes on, is it plausible to suggest that if retail demand remains high for the next 3 years into 2011, or maybe possibly even for much longer, that the Perth Mint would actually take the plunge and invest in the required equipment to meet the high demand?<BR/><BR/>Or would it first take a phase transition, with its concomitant symptoms of: loss of confidence in governments, loss of confidence in currency, loss of confidence in the current makeup of the financial system, and the ensuing private markets that would arrive to meet demand, before governments would jump on the bandwagon, fearing that they would miss out and that their existential threat would end badly, and actually invest in required equipment to meet the demand?<BR/><BR/>One must remember that when dealing with issues pertaining to the populace, governments don't preempt - they never have - but rather, they react after the fact, and then dress this up as preemption, which actually results in the opposite of its intentions.<BR/><BR/>It seems to me that you are saying that it would take such a prolonged & sustained high retail demand, and a total loss of confidence in the current system, and an ensuing private market to form to meet demand, before government backed minters would even consider increasing their abilities to manufacture more precious metal coins. Would this be a reasonable summary of your points?<BR/><BR/>kind regards.<BR/>jl.Jacqhttps://www.blogger.com/profile/11448436852441692652noreply@blogger.com