What goes around comes around

Glint Pay Services says it is “reintroducing gold as money” with a debit card allowing people to store rights to gold, send it as gifts and spend it with counterparties — by the gram, or fraction of a gram. Jason Cozens, chief executive and co-founder, said he was confident there would be demand for the product which is available from today through a mobile phone app and by using a conventional Mastercard plastic card.

Sigh. There’s a reason we gave up doing this….

16 thoughts on “What goes around comes around”

  1. “There’s a reason we gave up doing this….”

    But if people desire it, and somebody wants to satisfy that desire…?

    That’s what the market is for, isn’t it? 🙂

  2. I was peripherally involved in a couple of these schemes back in the middle of the last decade. I still probably have, if the companies haven’t gone bust, a couple of grams I got “free” knocking around.

  3. So Much For Subtlety

    Sigh. There’s a reason we gave up doing this….

    Because the government wanted to debase the currency and cheat ordinary savers of their savings in order to pay for an utterly disastrous war that Germany should have won?[1]

    Doesn’t sound like an ideal reason to me.

    [1] I probably need to specify that was WW1, don’t I?

  4. Bloke in Germany in Hong Kong

    It has to have something to do with plotting Jewish bankers and inferior black miners.

    I’m sure some of the commenters can fill in the details.

  5. Stocking up on gold, bitcoin.etc. is the equivalent of stocking up on beans and ammo. It’s a hedge against the possible failure of fiat currency.
    Not a bad idea, done in moderation.

  6. Well, no doubt there’s a reason lemmings jump off cliffs. Remind us again what the benefits of abandoning a currency backed by tangible wealth in favour of a fiat currency at the whim of politicians were supposed to be.

  7. A fiat currency is perfectly fine for transactions, just not all that good for long-term “storage”. You don’t base your pension on a pile of tenners under the mattress, but it’s perfectly fine to use a pile of tenners to transfer some of your assets to somebody else.

  8. Yet another blind spot Tim?

    Nothing wrong with gold as a store of value.

    A Gold sovereign is vastly better than the nasty plastic shinplasters being turned out in the UK these days. If fiat money fell to zero value you couldn’t even use the new plastics to wipe your arse with.

  9. Unless you actually have the metal in your hot little hands, this scheme is no better than any other “wealth” that exists only on paper. Comes the day, only useful tangible items (canned food and ammo) will have any value.

  10. ZT has it.

    My dad was a little bit of a goldbug. After being a German POW here in Canada he was forcibly repatriated to a ruined country with a ruined economy using cigarettes as a currency. And gold. Gold could get you stuff even cigarettes could not.

    After managing to get back to Canada and achieving some financial success he squirreled away a few pounds of gold in small bars and coins. He seriously said it was “in case the Russians come”.

    After his death my brothers and I split it up and I still have my share, likewise squirreled away and augmented a bit. No point in putting it into a safety deposit box at a bank, because comes the day one needs it, the banks that aren’t closed will have government goons seizing the box contents.

  11. Doesn’t seem to be a blind spot, Tim’s basically saying exactly what I summarised it as. Gold is ok as a store of value, but less useful as a method of conducting transactions, aka “money”. Fiat currency is ok as a method of conducting transactions, aka “money”, but less useful as a store of value.

    Problems with inflation destroying wealth occurs when you need to transfer wealth via currency (eg buying stuff), and inflation is going fast enough during the intermediate ‘transaction’ step of wealth1-transaction-wealth2 that wealth2 is significantly less than wealth1. If you never need to convert your wealth into anything else, such as food, you can happily live out any inflationary period.

  12. Isn’t the problem that the amount of bullion reasonably fixed, but the wealth of the economy not. So if there is rapid economic growth it does peculiar things to the value of the money. Made worse by the fact that the changes are taking place overseas largely in a globalised economy.

    If the currency deflates, as less of it has to be worth more during a period of growth, then it does shocking things to anyone with serious debt. So businesses in such a situation would not operate with any debt, limiting economic growth opportunities. Conversely during economic downturns money would become more valuable, which would exacerbate the downturn as people just kept money.

    I’m sure I’ve got the details wrong, but basing your currency on gold seems, well, medieval.

  13. Bloke in Costa Rica

    I once tried to explain the concept of a contractionary monetary policy to someone who was convinced the Federal Reserve was run my the Trilateral Commission/Moonies/combination of Rothschilds and Saudi Arabians (I forget which) and therefore we should all go back to paying for everything with Vrenelis or pieces of eight or some such fucking silly nonsense. It did not go well.

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