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| I review many charts each and every business day. But I always watch this chart. |
We
have recently seen the precious metals surge in prices measured in US
dollars. These are the two principal brands of THEIR money. The
experiment we have conducted since 2011 has given us the vehicle to
comprehend the shifts in purchasing power of these two principal
brands of THEIR money.
The
Valun began at $2.16 or 1,000 Valuns for an ounce of gold bullion, on
the date of the Valun's inception, 11/2/2011. Since then, the price
of gold has fallen, so an ounce of gold bullion no longer buys what
it did back on 11/2/2011. This has been reflected in the value of a
Valun measured in US dollars; the Valun has almost always been well
above its inception, at its peak, reaching $3.00 on 12/02/2015.
As
we have always said, the Valun is offered as an international
standard unit of value measurement in a trade for goods and
service, a substitute to whole barter, while barter never goes away.
The Valun is never a commodity masquerading as money, that changes
its ability to measure value in a trade, based on the whims of
speculators and other insiders. These people are those engaged in
making money on THEIR money without work; without contributing to the
store of wealth, which must provide an income for its producers. The
Valun remains as an unchanging unit of purchasing power, devised to
represent an unchanging point of reference.
Critics, of whom
most wouldn't know an honest argument if posed to them, because half
of them have enormous chips on their shoulders to begin with, that
prevent them from having any honest discussion about anything
concrete or relevant, will say that this contention, that the Valun
remains unchanged, is not so. They will contend that the proposal
intends on changing this fixed unit as soon as the price of gold
rises above Valun inception.
So to anyone, the exception is
when the price of gold marches up above the original Valun inception.
Then, we would see a new inception point for the Valun, always
higher, never lower, and that's the key. What happens should
gold bullion no longer be sold for US dollars? We consider this
possibility highly unlikely, whether there's a Federal Reserve bank
or not, whether the US Treasury, unconstitutionally by the way,
decides to issue what they'll call US Government Notes or US Treasury
Notes, or whatever. We'll still see gold sold for these as it is for
FRNs today.
What
if there are a string of new highs for gold in quick succession?
We'll just post the inception point for the Valun as many times as
required to represent the highest point in THEIR valuations of
dollars and precious metals.
Example: The price of gold
reaches $2,200. That's our bid, not THEIR spot, which is always 25%
lower. That's our bid price, which means we have adequate advantage
and may be buying more gold than we need to cover the exchanges into
Valuns. At $2,200, the Valun's new inception is at $2.20 rather than
$2.16. But the next week, gold reaches $2,560. The Valun's new
inception point becomes $2.56. Now what's the price of gold actually
going to do? None of us knows. Why? Because none of us controls
any of that. Let's say that you have decided to purchase stock in
gold mines, or silver mines. Does your stock ownership affect
anything concerning those mines? Who determines what those shares
are worth day in and day out? Do you? Does anyone have anything to
do with any of the mints, public or private, unless they actually
work for any of them, and even then? The most basic question: do you
actually OWN any of the money you use?
So anyway, does the
price of gold just go up and up forever? Not unless the purchasing
power of US dollars is running downhill into a Weimar meltdown as we
have already seen in places like Zimbabwe and Venezuela. What could
happen to the Valun, if that begins happening here? The Valun just
gets harder and harder as a result, and we have no intention
whatsoever of devaluing the Valun, once a new inception point is
chosen.
So, if gold reaches our bid for it of $3,800, the
Valun is now $3.80. As the price of gold falls back from this point,
as it would, else the US dollar is toast, the Valun gets even
heavier, because it would take more gold to buy one. Right now it
takes more gold to buy a Valun than at its inception. Most of the
time, no, ALL of the time, we want it that way. Even so, the Valun would never do what is
common in typical “buy and hold” fake scarce commodity
cryptocurrencies, where one sees runs into the thousands of dollars
and gigantic price plunges soon afterward. I remind you all that
commodities speculators make money both ways, whether the price
changes are higher or lower.
There is always a range, the
reverse almost of the one chart seen at the head of this post. Gold
will never be worthless, so the upward limit to the Valun in US
dollars would always be far smaller. At $3.00 back in 2015, gold was
selling at just above $1,000. How much lower would gold have to go
for the Valun to reach $4.00? At our bid price of $260 an ounce for
gold, how likely is that?, the Valun reaches $4.00. So the Valun
trading range is always only a matter of a few dollars.
It's
more likely that precious metals would behave exactly as they have
for as long as people want to examine the charts. In the chart at
the top of this post, you see a volcanic looking formation centered
around 2011. We chose our Valun inception to be among those peaks.
Following this, we've seen gold fall back in price, where it tried to
find its bottom and normal trading range. Usually a kind of plateau
of trading prices for precious metals is established which lasts for
some years. Since all of this activity usually occurs far below the
occasional volcanic price surge formations, the Valun maintains its
comparative price advantage throughout these often multi-year
plateaus in precious metals prices.
As this blog has continued
over the years, we have received many suggestions for altering our
basis for the Valun. No matter what we could have chosen, prices in
any commodity possibly chosen are still affected by THEM through
THEIR speculators and without the clear fundamentals that basing our
exchange on the price of gold would offer us, to easily determine
what the exchange rates for all the rest of THEIR money would trade
for in Valuns. We have and will continue to steadfastly ignore any
other possible bases for the Valun. Those reading this blog ought to
know exactly why gold was chosen from the outset; it is THEIR oldest
brand of THEIR money and allows us to defeat that basis for value as
well as any of the other of THEIR STOLEN fiat currencies. As we have
stated many other times, there is no substitute.
We
certainly want anyone to know that when the Valun system gets going,
a Valun will never be worthless, nor subject to any more speculation
than already exists with all of THEIR money, yes, including THEIR
cryptocurrencies, which we consider more than worthless. We will
NEVER need to, nor ever will accept any cryptocurrencies in trade for
Valuns. We remind everyone that E. C. Riegel observed that all of
THEIR money was illegitimate because it was issued by non producers.
What backs a Valun? The work or will of the members, nothing more is
required.
Best
David
Burton
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