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| 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 4rd 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 4rd 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.
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
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.
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