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

Tuesday, April 14, 2020

#0: THIRD 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 $2.17 to $2.20

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.

At or near inception, the two highest points on the chart above show the 2nd and 3rd inception points for the Valun, however the chart will be updated as the price of gold changes. The price of gold has just closed above the 2nd Valun inception point a few days ago on 9 April, 2020. At 14 April, 2020, the third inception exchange rate for the Valun was set at $2.20. No Valun will trade for anything lower from now on.

What will gold continue to do? If it marches on higher yet, a fourth inception comes into force. We will watch and see what happens. Of course should gold resume lower trading ranges, the present value of that piece of purchasing power at inception becomes even heavier in dollars. A new top exchange rate for the Valun is also set at $4.40, a limit that will not be reached because gold will never be worthless.

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. We note that silver did rise above the level it had at 2nd inception, but this is a gold based alternative value measurement, not one based on silver, although we would take silver as well as gold in exchange for Valuns when they eventually come into being.

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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.