Thursday, May 29, 2008

France to Issue Gold and Silver Coins as Legal Tender, and Without Dissuasive Taxation?

Although I'm not an expert on the legalities of legal tender either in the US or France, I think that France is about to begin issuing euro coins in silver and gold equal to the metals' market price.

[Thanks to the for this image of another coin.]

I'd love to have further information from anyone who is familiar with this subject.

Here is the article at the website.

A translation of the principal paragraphs follows:

"The big news is that the face value of these new silver coins (5, 10, 15, 25, 50 euros) and gold coins (100, 250 and 500 euros) will be equal to their market value. 'We will be able to use them for purchases or to save them as a precious souvenir.'

"The first issue, starting September, will be the 5 euro coins (2 million units), 15 euros (500,000) and 100 euros (50,000). In 2009 will appear 10, 25 and 250 euros. In 2010, 50 and 500 denominations will be put into circulation.

"The coins will be available for purchase in 1,000 of the 17,000 postal agencies. 'This is the greatest capillary distribution network that we could have dreamed of, so as to reach the greatest number of French people,' emphasized Christophe Beaux.

"He estimates that 'the introduction of about 20 million euros of purchasing media is infinitessimal compared to the one trillion in existence.' 'Furthermore, we believe that 90 percent of these coins will never circulate, because of their sentimental value,' he says."

I cannot believe what I am reading. Is France going to issue coinage in gold and silver that will be legal tender? Someone, please enlighten me. If so, this is a true bombshell. Either that, or the producers of these coins realize that they will be taken off the market as quick as they appear.

Economists, and coin producers whether public or private, are aware of Gresham's Law, whereby good money (like gold and silver) will immediately be withdrawn from circulation by a public leery of the bad money (paper euros and dollars).

Here are some more links to this story, in the original French:

Boursorama article article article website (State coinage facility)

From what I understand after perusing the Monnaie de Paris website, this national entity produces all of France's coins, but also much commemorative coinage, just like the Mint does in the US.

I'm still not clear as to whether these coins are legally to be considered as commemorative or as legal tender, nor whether these coins will be sold without TVA or sales tax or other capital gains treatment.

From what I understand about the US, our own Mint's gold coins may be legal tender, but there are laws on the books that prevent us from writing contracts based on anything other than what the Congress calls legal tender, and today that must include fiat paper currency, and may even exclude gold or other commodities of more intrinsic value than paper. (Someone, please enlighten me.)

I know that it is illegal to produce private coinage as legal tender, to wit what happened to Bernard von NotHaus. I think he's still fighting.

To be continued. Oh, and something else I noted on that Monnaie de Paris website: A lot of the gold coins for sale are "tirage epuise" -- out of stock.

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Anonymous Anonymous said...

Von NotHaus NEVER claimed that his American Liberty Dollars were legal tender.

They are private voluntary barter currency only.

Mesa AZ

9:49 AM  
Anonymous Rocco has said...

bil is right -- but it won't matter. The jack-booted thugs and their criminal accomplices will drag that old man through the criminal gulag system until he is gone - one way or t'other. Even that is not as bad as the outright CONFISCATION of millions of ounces of his innocent customers' coins, effectively castrating any Defense Fund he may have been able to assemble. I believe the actual charges revolve around some Technicality of Advertising that may lead to a misinterpretation of the alleged claims of Liberty Coins usage as payment in commercial trade. Basta!

The issuance by France of Legal Tender Gold and Silver Coinage by their very own Paris Mint is a much more important milestone than one may suppose. France joins Canada, the U.S., and some other countires in re-introducing the public to REAL MONEY after so long a time deluded by CARTOON MONEY which needs the Force of Law (or just Force) to make it accepted. Of course, Gresham's Law will rule until we reach the point of Fiat Collapse and the simultaneous appearance of Free(market)Gold. It is almost as if the PTB fully expect the inevitability of the coming paper 'money' rout.

"Paper is merely the ghost of money, not money itself."

For those interested, put "Hugo Salinas Price" in your favorite search engine and learn how FreeSilver will circulate along with government issued I.O.U.s such as Federal Reserve Notes (FRNs).

"Throughout history, the major metal of coinage has been silver, not gold."

"Gold cowers in government vaults, ready to fund the next war. Silver circulates freely among the people, filling their every need."

For the rest of the world, check out the Gold Dinar and Silver Dirham at the website.

Did I forget to mention that Russian Coronets are planned to be re-issued ( not holding my breath ) to act as an inflation-proof way to store your accumulated wealth?

IMNSHO, it won't be more than six or seven years before metal coins (and their 100% backed receipts) will replace paper as the preferred unit of exchange, pricing, and store of wealth.

It may be much sooner than that. It all depends on how stupid, maniacle, or criminal the PTB try to be in the death-throes of their damnable fiat currency.

The only safe place between now and then will be the back side of Earth's moon, imo.

And you thought it was just a little news item. Ha!

6:46 PM  
Anonymous vito has said...

Hey Rocco, whatsamattafoyou? Every gibbrone knows dose is da Russian Chervonetz gold coins in da 10 rouble denomination. Ain't we learned youse nuttin yet? Geeze, marrone.

7:06 PM  
Anonymous gold coin said...

Great post on gold and silver coins. We will include some of your writing and link into our newsletter to our gold coin collector forum newsletter and social website.
gold coin

2:36 AM  

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