A Currency’s Value: The MarketPlace

Our MarketPlace, for no good reason, still happens to be the most overlooked component of the AOCS model. First, our core team is missing a MarketPlace Director. Without someone accountable driving the growth of the MarketPlace, it merely wanders aimlessly in the seas of distraction. We still desperately seek the right fit for this position, though it may be possible at time of writing that we actually found it[!]. You’ll know when to get excited.

But why does the MarketPlace matter? The answer is quite simple: the MarketPlace exists to provide credibility to our Currency. You see, without a MarketPlace of businesses willing to accept Silver (at trade value), our AOCS Approved medallions become little more than generic bullion rounds. Yes, many of them are shiny and have clever designs, but that’s not what matters most. I agree that many investors buy AOCS Approved medallions to save, and that’s just fine. However, a steadily growing number of people buy Silver because they may, someday, need it to barter. And a growing number of those people are dipping their toes in the water before the day comes when they’re forced to barter with Silver, simply to test the system. What is bartering with Silver like? Does it work? Will the Merchant be shocked when I show up and request their wares while offering payment in metal?

People don’t acquire paper dollars to save forever. They acquire them to spend, sooner or later. Spending dollars now satisfies immediate needs; saving to spend later yields something different. But what if you realize that a dollar today will not buy a dollar’s worth tomorrow. To understand, an example is in order:

In the Weimar Republic, just before World War II, hyperinflation was so devastating that shop owners had to

change prices three times a day! In fact, when the gentlemen went to the factories on Friday to work and pickup a paycheck, the sensible ones would sprint to their wives waiting at the gates, and pass over the paycheck with instructions to go to the bank, cash it, and buy anything they could get their hands on. They knew all too well that the prices would be higher in just a few short hours, and the money would be nearly worthless.

The people paying attention now are shedding dollars like a winter coat: they’re turning them into food, gold, silver, land and other real property. Essentially, they’re trading dollars for anything of value, as chances are good the green money won’t buy nearly as much in the future. When investors buy AOCS Silver, they do so because it is a store of value, but also because it can be traded if an incentive exists to do so. As the MarketPlace grows in strength and diversity, buyers gain confidence in the medium of exchange aspect of the barter medallions, which makes AOCS Approved worth more than other silver used merely as a store of value or unit of account.

For our purposes, it’s important that the MarketPlace grows, simply to demonstrate to Silver buyers that we intend to keep our promise. A Currency is a promise; a promise that someone somewhere is willing to trade their hard work and effort for your private money. Governments guarantee this promise with guns and taxation; the AOCS guarantees it with fine Silver. While the gradual reduction between face value of the Currency and the intrinsic value reduces the risk of accepting our promise, we intend to keep it just the same. In fact, we look at the rising “price” of Silver as a fortunate side effect of doing our job well. And we continue to do our jobs with Excellence as the only authority.

The most expeditious method for growing the MarketPlace on a regional or national level is by creating what are known in the barter industry as “reciprocal” agreements with other trade exchanges. This brings our concept to an established group of businesses that already understand the idea of trade. While the details of how this happens are complicated and boring, rest assured that it is our top MarketPlace priority. In fact, the majority of our existing MarketPlace is a compilation of Merchants from other exchanges.

Recently, GoLocal Dallas created our first direct official reciprocal agreement with MerchanTrade, a trade exchange that services Waco, Austin & Dallas markets. Now, GoLocal Dallas can promote the products and services of both Silver Merchants and those that belong to MerchanTrade. Fortunately, there are hundreds of prospective trade exchanges across the country and hundreds of thousands of participating Merchants. A good MarketPlace Director will connect our Silver Buyers with all of them. Then, in sharp contrast to the Weimar Republic, those acquiring our Currency will watch as the value our money increases daily.