#0: SIXTH VALUN INCEPTION POINT REACHED

PNG image showing the price of gold over the last 60 days.  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 $2.22 to $2.23

  
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.

That 5th inception didn't last long. Based on record retail demand for precious metals, today the price of gold has just closed above the 5^th Valun inception point reached just yesterday.  All we're doing is following the rules for determining the lowest exchange rate for a proposed international standard value unit or Valun.     Therefore on 30 June, 2020, the price of gold closed above the close on 29 June, 2020, so a new inception point, always higher, never lower is henceforth adopted. All contracts that would be in force during the brief 5^rd inception period have now been raised 1 cent American to $2.23. Henceforth, no Valun will ever trade for anything less in US dollars and the half-Valun, the least denomination of proposed circulating V-Checks, rises to $1.12..  So far, from Valun's original inception back on 2 November, 2011, the lowest possible transfer of value has risen from $2.16 to $2.23. The new top is $4.46 which will never be reached because in that case gold would be worthless. We may see another inception point right after this one as we have seen.

Briefly recounting past inception points:

2 November, 2011 – First inception – V1 = $2.16
9 April, 2020 – Second inception – V1 = $2.17
14 April, 2020 – Third inception – V1 = $2.20
23 June, 2020 – Fourth inception – V1 = $2.21
29 June, 2020 – Fifth inception – V1 = $2.22
30 June, 2020 – Sixth inception – V1 = $2.23

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.

#0: FIFTH VALUN INCEPTION POINT REACHED

PNG image showing the price of gold over the last 30 days.  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 $2.21 to $2.22

  
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 expected a new inception within days based on record retail demand for precious metals and today the price of gold has just closed above the 4^rd Valun inception point. Let it be known that on 29 June, 2020, the price of gold closed above the close on 23 June, 2020, so a new inception point, always higher, never lower is henceforth adopted. All contracts that would be in force during the brief 4^rd inception period have now been raised 1 cent American to $2.22. Henceforth, no Valun will ever trade for anything less in US dollars. So far, from Valun's original inception back on 2 November, 2011, the lowest possible transfer of value has risen from $2.16 to $2.22. The new top is $4.44 which will never be reached because in that case gold would be worthless.

What will gold continue to do? We may see another inception point right after this one as we have seen. At gold's highest point, a Valun would have been $2.40. We'll be curious to see just how soon this point is reached. We continue to expect silver to do better than gold. What does this mean? It means that in some parts of the world where real money exchange through bank accounts is either impaired or impossible, that real day to day trade will take place using the local silver coinage or one that's imported. Mexican libertads still sell for a premium compared to other coins. We expect the reason is that they are readily recognized in some quarters.

Do we still anticipate a massive collapse in banking and finance? It's one reason this blog exists, so yes, we do expect it. But when? 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. This is exactly what happened AND NOW FOR THE RECORD during the long first inception period.

Briefly recounting past inception points:

2 November, 2011 – First inception – V1 = $2.16
9 April, 2020 – Second inception – V1 = $2.17

14 April, 2020 – Third inception – V1 = $2.20

23 June, 2020 – Fourth inception – V1 = $2.21

29 June, 2020 – Fifth inception – V1 = $2.22

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.

#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.