Gold/Silver monetary system question

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#1 Fri, Jul 3, 2015 - 7:10pm
Tampa, FL
Joined: Jun 14, 2011

Gold/Silver monetary system question

Odd question or maybe poorly thought out after several home drinks (haha), I'll do my best to spell my question out. I just don't know if I've seen this asked or explained before.


Say we ("we"...America, or the whole world...I don't know)....go to some kind of gold/silver monetary system.

A gold/silver miner digs shit up from the ground. It's not refined, just raw gold/silver in whatever way they refine it. Maybe they refine it to a certain point or not, but eventually they have to sell it to someone else, right?

So at that point what would be the exchange rate in that kind of physical precious metals monetary system???

Say the miner has 1 ton of gold or silver in some form, maybe not fully refined or maybe totally refined pure, right?

Well then how are they paid by whoever else? There would have to be some difference in amount of grams or ounces in exchange so that the miner could make a profit of gold or silver in return, right?

If they have 1000 ounces of say gold...then in a PM monetary system, and let's say they're selling to a refinery or a private mint or even the U.S. Mint...what would be the exchange rate of pay in gold to gold or silver to silver be???

There would have to be a difference right? Or else how would the miner make any profit?

And the miner would then need to use that profit or income in exchange for pure gold or silver in order to buy more diesel fuel, equipment, or make payroll so that they could keep mining, right?

To me it just doesn't make sense to have a fiat value on precious metals at all. Fiat is worthless and a total Ponzi scheme scam.

So if we went away with it, then do we still have some form of credit or does that go away too? Maybe just credit based on whatever someone's stack of gold or silver is?

Doesn't going back to that kind of system ultimately over however many decades lead the monetary system back to paper fiat all over again?

I admit that I don't have the concept figured out, so if I've missed big or little parts, please fill me in so that I can grasp the big picture.

I can see trading/bartering PM's for other goods and services. But as I started do they figure out the starting point from miners who are trying to sell their PM's? Wouldn't that in some way be the very start of the precious metals monetary system going forward?