Stefan Gleason explains Silver & Gresham's Law in 1 minute. Best Way to Teach Silver to Normies.
First Step - Watch this 1 minute clip.
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Transcript paraphrased a bit because YouTube transcripts are hard to transcribe.
Context Tom of Palisades asks Stefan Gleason about silver being used as money for ordinary consumer transactions.
Stefan Gleason: I support that idea. I I believe gold and silver are money. This is the reason we're involved in the Sound Money Defense League. To promote the idea of gold and silver as money, remove the friction around what makes it hard to be money (such as the taxes on the buying and the selling)
In today's setting I don't want to spend my gold and silver because that's my savings.
There's something called Gresham's law.
One aspect of this law is that bad money pushes out the good money from circulation. We saw that with the pre-1965 silver, dimes, quarters and half dollars.
Once they introduce the copper clad equivalents the silver, dimes, quarters and half dollars went into private Hoards. It took a while but it started accelerating in the 1970s with inflation and now today one dollar face value of dimes, quarters and half dollars is worth about twenty dollars.
This is a very easy obvious sort of example of inflation and in just 50 years.
The bad money stays in circulation. The good money is put into private Hoards and becomes a form of saving. So I am not personally interested in spending my gold or silver.
Part of the reason I'm not interested in doing that is because I can still use Federal Reserve notes pretty much everywhere and Federal Reserve paper is convenient (even though I don't keep a lot of those because they don't hold value.)
There's also a tax issue that is involved. If you're going to comply with the tax laws (and I think people should) you have to track gold and silver. e.g. Every time you spend your gold and silver you're engaging in a taxable transaction whether you have gains or losses.
You are either being taxed on gains or maybe you get a deduction.
I'm comfortable with borrowing against gold to get liquidity but prefer saving my gold and silver.
There are times in life when there are debates over guns, abortion, gender, GOP, DEMS, textbooks and dozens of things to fight about. Next time you want to win an argument on why silver or gold?
Just click the button above and let someone smarter do the talking. That's what I do often.
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