Re: (OPE-L) recent references on 'problem' of money commodity?

From: Allin Cottrell (
Date: Fri Nov 19 2004 - 19:21:36 EST

On Fri, 19 Nov 2004, Paul Bullock wrote:

> As a matter of fact Fred, I know of no one who would not be
> prepared to accept a certain quantity of gold for any of their
> property...

Fair enough.  The savvy individual property-owner can calculate
using the price of gold, the carrying cost of the gold in the period
between the barter of the gold for her property and the selling of
the gold, and the probable transactions cost of selling the gold,
and decide it's worth accepting x gold in exchange for her property,
provided that x * (expected selling price of gold) exceeds the
expected normal market price of her property by enough to compensate
for the carrying cost, transactions cost and a risk premium.


(a) Don't exepct your local supermarket to go for this; and

(b) Notice that it applies equally to any commodity, and has nothing
to do with gold (or silver) in particular.  Offer me enough ipods,
or enough wheat, or enough toothpaste, for my property, and if I'm
sufficiently "entrepreneurial" I'll make the trade.

Allin Cottrell

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