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Safe currencies

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Vladimir Ulyanov posted on Thu, Nov 3 2011 2:18 PM

I have been trying to convince my parents to put their money into precious metals for the past few years, however, they have continuously refused to do so. After recent events with the Euro they have finally agreed that they need to geet their money out of the Euro, but they are only willing to put their money into other currencies.

I don't really know which currency would be good though. I know that the Swiss Franc was good, but after their recent depreciation, I'm not sure whether it is a good currency. I have also heard that the New Zealand Dollar is a good currency, but again I'm no expert.

So my question is, what is a good currency for them to put their money into?

P.S. We live in Ireland which used to use the Púnt; if that's any help.

'' The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.'' Stephen Hawking

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Ireland produced some gold coins a few years back. The krugerrand is legal tender. Ask your parents why one piece of paper is worth more than another
Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
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It wouldn't even be a question for me, the Kruggerand is arguably the most liquid form of gold, routinely bought and freely convertible by most banks around the world.  The only reason I don't buy Kruggerands in the States is because of Utah's latest move to declare U.S. minted coins legal tender in that state - not treated as a commodity, or subject to [state] taxes of any kind. I expect other states to follow suit in time. 

"...to debauch the currency...engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." -- John Maynard Keynes, 1920
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Steven Douglas:
The only reason I don't buy Kruggerands in the States is because of Utah's latest move to declare U.S. minted coins legal tender in that state - not treated as a commodity, or subject to [state] taxes of any kind. I expect other states to follow suit in time.

Can you please explain why having them not taxed would make you refuse to buy the coins in the US?

 

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''Ask your parents why one piece of paper is worth more than another''. I have ad nauseum. No matter how much I explain to them, and how many articles I get them to read they still don't seem to get it. I even had my father read ''Economic Depressions: Their Cause and Cure'', yet he still wants more stimulus for the economy and blames recessions on investors. Some people are just stuck in their ways I guess.

And does anyone know a fiat currency rather than gold? I know this sounds stupid but they refuse to put money into any precious metal for some reason, and seem to think paper is more valuable.

Also, we recieved  leaflets through our letter-box about the krugerrand from the dublin mint office a few weeks back, but it was advertising 50% discounts which made us think it was a scam. How can we confirm it is legit?

'' The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.'' Stephen Hawking

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Well, they probably meant a 50% discount in their premium vs. Their premium last week. Most of the time when you buy bullion, you pay for the weight of the precious metal plus the dealer's premium plus tax. So a 50% discount in premium isnt important to you unless you wanted to buy it last week and thought $30 was too much.

as for your question on avoiding being ripped off, I can only advise you to buy in person from someone you trust, and get the tools to evaluate your own coinage, and become proficient with them. Size, weight, and design of bullion are all known data points.

Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
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http://www.dublinmintoffice.ie/irish-coins-new-issues/?gclid=CJOElPXxm6wCFYEZ4QodOzpc_Q

Its probably best you look at the website yourself and tell me what you think.

'' The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.'' Stephen Hawking

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Ok, tell them to invest in sovereign debt and get a lawyer (who specializes in international law) on retainer. Then when the sovereign defaults, they can file suit in the ICC as an 'unaffiliated party' and lay claim to some piece of unused government land. This is the best I could come up with so far, but I will keep thinking. And I am going to look at that website now.
Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
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Read this

http://www.boards.ie/vbulletin/showthread.php?t=2056375019

sorry I still havent learned to hotlink

Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
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@John James:

I'm not "refusing" to buy Kruggerands, so much as preferring specie that is minted in the U.S., and denominated in dollars (not bullion). That's partly because it is freely convertible without being taxed by one State thus far (only U.S. Minted specie is included in the act), but mainly anticipation of a fiat plunge, especially when the dollar loses its global reserve currency status, and how well known and easily convertible such coins are. 

I buy so-called "junk" coins. I don't care a whit about numismatic value, and I don't treat gold and silver coins as "commodities", even though they are that as well.  Furthermore, I don't see them as "investments".  I am not looking to "take a profit. I am fully aware that when the "fiat dollar price" of gold and silver coins goes up, the only thing that substantially changed over time was the value, or purchasing power, of the fiat currency itself, and not the coins.  

Under our goofy little current system, where so many things are reckoned with backwards "fiat-centric" logic, if I put U.S. minted [junk] coins under a mattress, and pull them out ten years later, and the price of those coins in Fed notes has gone up, somehow that represents a capital "gain", rather than the fiat currency "loss" that it really is.  The coins retained their purchasing power, with no "gain" to it. 

In Utah, the capital gains tax (at the state level anyway) was removed, and, as I said, coins minted by the US mint were declared legal tender in that state.  That opens the door, at least in that state, should I choose to eventually go there, to participate in an economy, and in a state, that is not afraid to challenge the Fed, and pave the way for alternate currencies.  

 

 

 

 

"...to debauch the currency...engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." -- John Maynard Keynes, 1920
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