Topic: As far as a currency of the future goes, this is on the right path

[Libertas]

http://www.zerohedge.com/news/2014-01-20/democratizing-gold

I don't care much for the title of this piece...I would have preferred "Ideas on how to unleash the intrinsic real value of gold in the marketplace of tomorrow" or something like that..."democratizing" anything makes me flinch instictively as it reeks of progressive meddling in natural forces!

Anyway, they have to get the valuation thing nailed down tighter, but if the process of making Aurum is inexpensive and portable so that it can thrive in any world situation of the future mankind may find itself in I am all for it.  As long as there is no funny business and nobody is debasing the gold. 

If our collapse is hard enough, people will trade PMs in any way feasible.  But I like the idea of replacing fiat with something of real value.  If we don't make the game playing harder for the game players, we will just continue to be robbed blind.

[Weisshaupt]

Ooh. I like those.  But yeah, its really really easy to fake the amount of gold in them, isn't it?  Of course, how many people are willing to cut their 10oz bar in half?  How many would sacrifice a couple of these bills in a lot to make sure they had the right content?

But something isn't making sense.. they are offering 1/10 gram Aurum for $10. . the description says:

The Peak Prosperity Aurum® contains precisely one-tenth of a gram of twenty-four karat gold. 

It was created in collaboration with Chris Martenson's Peak Prosperity ([url=http://www.PeakProsperity.com]www.PeakProsperity.com[/url]).

The Peak Prosperity Aurum is a small-sized issue. Individual Aurum are approximately 250% of spot price, and with the volume discount, the cost is approximately double spot price. (Photographs are of the 1/20g,  which is not available at this time.)

I can go out to APMEX right now and buy a full gram for $52- including the  $9 premium over spot.  (secondary market bars are $6-7 premium)  Okay its a smaller amount at 1/10 of a gram, so yes, it should probably require a higher premium  but 250%?   This should cost on the order of $5-6, not $10.
So yeah, nice product. I like it. But no, I will stick to buying  that gold chain link I like to wear fishing. Too bad so much of it falls overboard.

Wonder if this is how China will issue its new reserve currency.. That would be Very dramatic, make it obvious its better than the fiat.. even if face value is 10X that of the gold imprinted.  Plus its shiny. Clever Apes like shiny objects and yes, that will aid in its adoption if the shiny happens to also correspond with a valuable recoverable asset.  Seriously, which would you want more $100 of American dollar bills  or $100 of equivalent face value in a currency printed with this?
In a collapse you dollars are worth $0  - Your $100 face equivalent is still worth $10 of gold.

[warpmine]

The Fed Reserve will have a kitten regarding this product and will have the authorities banging down the doors of the factory to shut them down just because of the implications of the stuff.

If on the other hand they decide not to break down the door, they will awake to a situation that nobody will accept the fiat Fed Reserve notes no matter what the wizards claim.

[Libertas]

Yeah, I acknowledged the valuation problems at present, and yes even at the higher premiums on small units at APMEX one would be better served using the real thing (and I am operating under that assumption for my plans...just those boating and ice-fishing accidents keep hampering me!) but I fully support the drive to get people off fiat and into something based on real value.  Perhaps the bonding process and capital invested is being built into the initial valuation, the more it comes into use the more it should revert down to more reasonable premiums.  And as with any form of PM, concerns over debasing will always exist, weighing and testing will be employed where possible, once screwed those individuals can and will be added to a blacklist, let them die I say.  Theives in the post-NeoKeynesian world will be dealt with harshly I expect.  And this is where technowizards could help...can't someone build a damn Tricorder already so molecular composition can be easily ascertained by anybody?