#0: SECOND VALUN INCEPTION POINT REACHED

PNG image of the price of gold over the last ten years.  This chart covers the entire time period since 1st inception point for the Valun on 1/2/2011.  This chart will change over time and be updated by goldprice.org

Lowest exchange rate for the proposed international standard value unit - Valun - rises from $2.16 to $2.17

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.

It was bound to happen eventually. The price of gold has just closed above the 1^st Valun inception point. At 2 November, 2011, the first inception exchange rate for the Valun was set at $2.16. Since that date, the price has risen above inception, but those were points early in the Valun's existence as an experimental unit of purchasing power, so we kept the original inception point all this time and have not needed to revise it upward until now. 

For most of the period between 1^st inception and now, gold was under the 1^st inception's bid price so there was no need to raise it. On 9 April 2020, the price of gold closed above the close on 2 November 2011, so a new inception point, always higher, never lower, is henceforth adopted. All contracts that would be in force during the 1^st inception period have now been raised 1 cent American to $2.17. No Valun will ever trade for anything lower from now on.

What will gold continue to do? If it marches on higher yet, a third 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 $4.34, 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 not rise back to the level it had at 1^st 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.