Germany is debasing its silver collector coins because the silver is worth more than the face value.
The German finance ministry announced it's cutting the silver content in its 35-euro and 50-euro commemorative coins by 46%. The coins will drop from 18 grams to 17 grams, with copper replacing the removed silver. Officials say the move is meant to prevent the coins from "tracking metal prices" and to "curb speculation."
These are collector coins, not everyday circulating euros. But the principle is the same one that's played out across monetary history. When the intrinsic value of the metal inside a coin rises above what the state wants to pay, the state dilutes the metal.
Rome ran this playbook for over 200 years. Nero started cutting the silver content of the denarius around 60 AD, from near-pure down to 90%, then 50%, eventually near zero by the third century. The context was different. The pattern isn't.
Silver is surging because of real demand. industrial use, safe-haven buying, and a global flight to hard assets amid war and inflation. Germany's response isn't to acknowledge that reality. It's to make the coins cheaper to produce and keep the face value the same.
You can't debase 21 million.
Why are the masses Wrong on Silver? What is the REAL driver that you won't get from mainstream news? Why is @elonmusk talking Silver?
Tune in for some quick thoughts from the beach...
@LawrenceLepard@LukeGromen as someone who has CME experience from the brokerage side (ie backend developer for market data and trades) this analysis from @marketvelugu looks pretty darn good to me. Excellent arguments.
https://t.co/o62OD1RNVx
@LynAldenContact Is it about an out-of-control evil train that no matter what people do it just flat out cannot be stopped? If so, I'll take two copies please.
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Banking Crisis is just beginning... 💩💩
However, most of this is due to Diehard precious metals investors.
Wait until we get a significant amount of demand from New Buyers
VIDEO: https://t.co/NuBmMaZK7Z
Reserve currencies come & go. They usually go because the nation that issues the reserve currency abuses the situation.
Delusions of world domination, endless wars and endless welfare are embraced.
These terrible ideas are then financed by money that's created out-of-thin-air.