/biz/ - Business & Finance

>>50141339
100 to 1 silver to gold ratio would be retarded

>>50141339
Because
A: Dividing by units of 240 is much easier
B:Those arent the real ratios of the metals so you could arbitrage by buying 1 and selling another coin

because thats not how scarcity works

>>50141339
>price fixing
>with commodities
Any government that tried this has capitulated

>>50141339
>the government says that 10 pieces of silver are worth 1 piece of gold
>however the market price of gold, which is based on supply and demand, not what the government says, is actually 11 pieces of silver
>so if I take 10 pieces of silver to the government bank and exchange them for 1 piece of gold, I just made a profit of 1 silver piece, because my 1 gold piece is actually worth 11 silver pieces, not the 10 I bought it for
>everybody realizes they can make a profit by looking for silver coins and forcing the government to buy them at a loss
>the government is pissed off because its own citizens are ripping it off
>the government eventually gives up and stops recognizing silver as legal currency
this is what happened in the United States in the 1860s-1870s, and this is why using multiple metals for currency is stupid.

>>50141495
that is bullshit, the bimetal movement was about bankers and creditors driving working class borrowers into financial hardships by denying the real value of money

this was the first step in creation of the FED. gov OUT of money

fuck you