I was really excited about the prospects of the Silver & Gold Quint until I read the latest post from @stan Here.
Now I honestly feel bad I was promoting it before knowing more about it.
The devil is always in the details and it seems they are backing the Quint with a numismatic coin. That was in the announcement, but I missed it.
Most real stackers don't give much of a hoot about Numismatic value and if you do, then go start collecting wheat pennies because in a financial crisis, numismatic premiums are going to collapse to their intrinsic value which is near 0. Sure, I have a few "collectable" coins, but the bulk of my stack is in BU Coins and bars. I don't ever buy a 1oz coin for $50+ and expect to make a lot of money on the numismatic premium let alone want to own digital ones.
If they are really basing the pricing of the Silver Quint off of the price of a proof coin, all of the excitement just went out the window and I'm sorry I blogged about it.
I'm a huge fan of what @stan and BitShares is trying to accomplish, but how absurd of a pricing scheme is this? Why not just back it with BU coins? What if I want to redeem 500 coins, who in their right mind wants to take possession of 500 proof coins in proof packaging? I was going to dollar cost average into a monster box this year but not anymore.
No proof silver eagle coin holds its value in the retail market above what the mint charges and I certainly don't want to invest in a bunch of proof coins.
I am @matthewwarn and I have Stackitis... there are worse problems to have in life.
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interesting point @matthewwarn i didn't payed either
The whole thing is a scam.
@matthewwarn I like Silver with potential UPside Value but I don't see much UPside in Proof American Silver Eagles that have been Minted over the past 18 years...........
Yeah...Proof Silver Eagles are a collectable, not an investment product...even the US government won't let you put them into an IRA and they don't even have a clue what they are doing so I have no idea how they think this is going to work unless a bunch of dupes just throw money at it like a lot of the scammy Alt-coins that are out there.
You are probably right about that..
If you read the comments in the post by @stan...there is very little push back to the proof vs bullion issue. I don't think people understand the difference...good luck to them all....what a bunch of fish.
I think you misunderstand what Quintric is introducing. They have created a digital (blockchain) version of "lawful" money. They do not care about the numistic value. They care that gold and silver eagles issued by the US Mint is both lawful money in all 50 staystes and legal tender in the US Corporate UNITED STATES. It cannot be taxed. Each 1000 Quint issued triggers the Quintric team to buy 1 gold Eagle from the Mint. This is not a coin speculate on. It will be used the same as owning gold or silver except that it can be spent and / or exchanged much easier than the physical metal. It will also become the go to coin during market downturns as the dollar continues to deteriorate. Tether will deteriorate with the dollar while the Quint will hold its value. Think of the Quint as a digital gold certificate and the QuintS as a digital silver certificate.
Worse...it's just PRICED using the PROOF price...Redemption is done in normal circulated us mint dollars.
After having slept on this, I feel no better about it and feel ok calling this whole thing fraudulent. You can't price something in terms of Commodity "A" but then deliver it in Commodity "B". I know it happens all the time...and every time it does, a little bit of fraud happens. I'm not putting a lot more thought into this...its a scam and will end bad unless they change it to back it with bullion. If @stan and any fool buying into this thinks the free vaulting and 3 second transaction time is worth a 280% markup, then have fun...I'm just going to watch it from the sidelines.
Where does Quintric say that they price in commodity A and deliver in commodity B? They use the US Mint listed price for a Gold Eagle for the Quint. They will make a market in this and keep the price there. You can send them your Quint and for every 1000 Quint they will send you 1 Gold Eagle. The Quint is then extinguished and no longer circulates. The American Gold Eagle is a true currency of the 50 states. Having 1000 Quint is the same as owning 1 Gold Eagle and can be used for all transactions in the 50 states of America as well as all debts public and private. It is not a commodity and cannot be taxed. It could be worth $1M next month and the IRS cannot tax capital gains on it. If you want to hold gold as a hedge against the FRN (Federal Reserve Note) or to fight the FED and also want to be able to easily spend that gold without assaying / weighing machines then the Quint fits the bill. With that said, why would I ever use Tether now that the Quint exists? Tether is linked to the FRN which makes Tether a digital ponzi scheme. Quint is lawful money and legal tender.
They are pricing the Quints (Gold and Silver) based off "Proof" coins (which don't hold their numismatic value in the free market) but if you request delivery, they deliver a "Bullion" version. So they are not priced off of what will be delivered.
And you have to pay Federal capital gains taxes in the USA on Gold and Silver bullion gains just like any other commodity. They same will be true for the "Quint" if anyone is foolish enough to buy into it and make a gain and then report it.
I missed this as I did many of the new developments. But I found steemit !
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