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Re:So long, euro? by cabalamat on Thursday April 29, 2010 @04:29PM (#1305916)
There were fluctuations of gold relative to silver. There were not fluctuations of gold relative to gold, or of silver relative to silver.
Re:So long, euro? by roboneal on Thursday April 29, 2010 @04:56PM (#1306016)
You a projecting modern commodity trading exchange concepts onto history - until the advent of "virtual" trading of gold - there DEFINITELY was fluctuations of the value of gold and silver between countries.
Re:So long, euro? by olefoo on Thursday April 29, 2010 @05:10PM (#1306068)
But at the time, not all gold coins were the same. A florin from northern italy was not necessarily worth the same as a ducat of identical weight. Different mints formulated their metal differently and counterfeiting was a real and serious problem. The rumour that a king had ordered the adulteration of the currency could cause prices to swing wildly. Asset backed currencies were not some edenic pre-lapsarian device of peace and plenty. As an economic mechanism they have serious problems; in some respects more so than a fiat currency.