The E. C. Riegel Blog: #0: FOURTH VALUN INCEPTION POINT REACHED

Tuesday, June 23, 2020

#0: FOURTH VALUN INCEPTION POINT REACHED

PNG image showing the price of gold over the last 6 months. This chart will change with the price of gold and will be updated by goldprice.org

Lowest exchange rate for the proposed international standard value unit - Valun - rises from $2.20 to $2.21

NOTE: There is no such thing as a Value Unit (Valun) either as a trading vehicle or a circulating currency. These estimated values represent the results of an experiment only.

We had a few near misses since third inception, but finally today the price of gold has just closed above the 3rd Valun inception point. At 14 April, 2020, the third inception exchange rate for the Valun was set at $2.20. Since that date the price has risen to inception on 17 May but never closed above the third inception. So let it be known that on 23 June, 2020, the price of gold closed above the close on 14 April, 2020, so a new inception point, always higher, never lower is henceforth adopted. All contracts that would be in force during the 3rd inception period have now been raised 1 cent American to $2.21. No Valun will ever trade for anything lower from now on.

What will gold continue to do? We may see another inception point reached higher than this one in a matter of days because we see further upward pressure on precious metals. However we do not control these markets, THEY do. It may suit THEIR purposes to have the precious metals retreat to some lower trading range for years to come. Right now, the trends favor upward pressure and we expect silver to do better than gold in terms of exchange rate and value. What of a massive collapse in banking and finance? Everyone wants to know, but we will watch and see what happens. Of course, should gold resume lower trading ranges, and silver too, the present value of the piece of purchasing power at this inception becomes even heavier in dollars. The new hypothetical top, which no Valun will ever reach because gold would never be worthless, is $4.42.

It is part of this blog's experiment to keep the Valun exchange rate measurements up to date with the current prices of gold and silver.

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Current Value of Proposed Valun

V1 = $2.89
7 May, 2021

$2.59 at 22nd Valun inception 6 August, 2020. The lowest price a proposed international standard value unit or Valun will ever trade in US dollars. If this 22nd inception point is exceeded by a rise in the price of gold in dollars, a 23rd inception point is chosen, always higher, never lower. In this way the Valun maintains and builds its purchasing power. Details in this blog.

Valuns are proposed as alternative currency, not "buy and hold" investments.

NOTE 4/25/21: For about the last week we have observed delays in reporting and closes when they come that seem to attempt to short the markets on gold and silver. Though this does go on all the time, the past week's performances have seemed manipulated. When or if this subsides, this note will be removed. We'll then resume the usual times posted for market daily closes.

SPECIAL NOTE: Each change in the Valun price is updated by hand. Between 5/10/21 and 5/24/21 regular Valun updates will not take place and will resume after that date.