Guild Wars 2

Why can’t I use my Gold Bars to make Gold “coins”?

I’d be rich, rich I tell you!

:P

Age old mystery in games, where gold is useless, unless its in coin form.

Good point. You should be able to buy a lot of stuff with those Gold Bars without making coins!

For the same reason you can’t print your own dollar bills.

Money is controlled by the governments. I’m sure the Tyrian treasury department mint stamps the legal gold coins with their seal. Your unmarked gold is counterfeit.

Glektor.2934:

For the same reason you can’t print your own dollar bills.

Money is controlled by the governments. I’m sure the Tyrian treasury department mint stamps the legal gold coins with their seal. Your unmarked gold is counterfeit.

The intrinsic problem with this statement is that dollars are valueless outside of the promise of being legal tender for all debts public and private. We’ve moved on from the gold standard, where the dollar was tied to and represented a given amount of gold. Gold coins in a society are valuable because they are made of gold. Gold coins minted in one section of Tyria are usable elsewhere because of this fact, or else they’d be valueless. It’s extremely unlikely that all the races mint the same currency. The economy of Tyria only functions because coins have intrinsic value, unlike the dollar. So, going into the market and plopping down a bar of solid gold should be a legitimate buying technique, you’d just need to figure out the value of the bar by the weight versus the weight of the gold coins (against how much gold is actually in them, since that’s where the value of the coins come from).

Thus, I posit that the only reason you can’t break that gold bar into coins is because fantasy world logic (or lack thereof) to stop you from destroying the economy of the game. I mean really, you can’t look at the in game economy in a logical light of value or else the whole thing falls into hilarious shambles.

hmmm suddenly I have a idea on how to profit on skritt…
“pssst, hey bud. I got a deal of a life time for you, i’ll give you this new SHINY solid gold bar if you bring me a handful of those silly old dirty gold coins”

Sajuuk.5706:

Glektor.2934:

For the same reason you can’t print your own dollar bills.

Money is controlled by the governments. I’m sure the Tyrian treasury department mint stamps the legal gold coins with their seal. Your unmarked gold is counterfeit.

The intrinsic problem with this statement is that dollars are valueless outside of the promise of being legal tender for all debts public and private. We’ve moved on from the gold standard, where the dollar was tied to and represented a given amount of gold. Gold coins in a society are valuable because they are maid of gold. Gold coins minted in one section of Tyria are usable elsewhere because of this fact, or else they’d be valueless. It’s extremely unlikely that all the races mint the same currency. The economy of Tyria only functions because coins have intrinsic value, unlike the dollar. So, going into the market and plopping down a bar of solid gold should be a legitimate buying technique, you’d just need to figure out the value of the bar by the weight versus the weight of the gold coins (against how much gold is actually in them, since that’s where the value of the coins come from).

Thus, I posit that the only reason you can’t break that gold bar into coins is because fantasy world logic (or lack thereof) to stop you from destroying the economy of the game. I mean really, you can’t look at the in game economy in a logical light of value or else the whole thing falls into hilarious shambles.

Well, there’s no reason you couldn’t make a dollar out of solid gold and have it legally be worth 1 dollar (pennies and nickels in the US are worth more than 1c and 5c in terms of materials IINM, but it’s illegal to melt them down and take advantage of that); with the right situation, a currency’s intrinsic material value doesn’t matter. If gold were worth about as much as the linens/silk/etc used to make current dollars it wouldn’t be much different than how things are now. Maybe that’s how it is in Tyria, and the currency value comes from it being minted rather than it being made of gold.

Because it’s a game. :P

In the real world, gold coins are ALWAYS given a printed dollar value lower than the price of actual gold. So the purpose of the coin is to merely guarantee you of at least the stated value. But it would be no real loss to melt that gold coin into gold bars. Conversely there’d be no change in value when you make your gold bars into blank coins or official coins (other than going to jail for counterfeit).

So, if you had a $1000 gold coin, it’s likely worth $3000 in pure gold.

In the real world anyway. ^^ (of today!)

Deathjester.9841:

WRONG. It is controlled by privately owned banks (like the federal reserve). As someone else said in this thread it is backed by nothing.

It is printed out of thin air, which causes never ending inflation every time more is printed. But that isn’t the real kicker…

Governments (or rather the people) pay interest to “borrow” this money (which is worthless). Who owns these “central banks”? Good luck finding out.

Who was the last president to mess with the federal reserve and to put out money/certificates backed by something REAL (silver)?

I will give you a hint. He signed Executive Order 11110.

It’s not backed by nothing. It’s backed by the government. The other poster didn’t say nothing either. You’re the only one saying that. There’s a law saying that you have to accept it as currency.

Unless you view government to be non-existent “nothing”.
But yes, it’s not backed by a commodity. But that’s a big difference.

The federal reserve system is not entirely private. It has components which are both public and private. It’s private in the sense that the executive choices made by the federal reserve doesn’t have to be approved by the president or congress but the federal reserve works under the congressional oversight. Additionally, the president and the congress gets to choose the board members of the federal reserve. So, it’s wrong to think they can do whatever they want free of government. Also, USA isn’t the only country in the world.

The infinite inflation is not a factor of whether or not there’s a backing commodity, but the question of whether or not the function of the money printed is converging. If you back it by a commodity, it must converge because there’s a finite amount of any commodity in the world. But if you regulate the money printed to eventually converge, it won’t have infinite inflation. Take bitcoins as example. bitcoin generation converges and thus once it reached a certain point, it can never inflate w.r.t. itself (which has it’s own problems too).

Lastly, I don’t know what your point is to bring up J.F. Kennedy. Perhaps you’re making a fallacious point that a “great” president always does what is right forever.

Backing a currency by a commodity (gold/silver/etc usually) is actually a poor choice now because it converges too early for the current economy. It made a lot of sense before. But we’re in an economy where there’s software and similar things that’s made out of thin air. But it’s of value and it can be made infinitely. Something like gold cannot keep up with that. So doing such would stifle the economic growth and it now actually makes sense to have a currency with infinite inflation. All a stable currency needs is a stable country with a responsible government (or governing body) to sustain that currency. Problem is that we seem to have met neither with the USA.

how many gold ingots does it take to make a ring? (looking it up: 1 gold band = 3 gold ingot + 1 gold setting = 2 gold ingot, so 5 gold ingot total)
gold rings in real life are around 30-90 grams (making each of the 5 gold ingots used to make it 6 – 18 grams)
gold coins tend to be 1 troy ounce = 31 grams
As you can see, it would be 2-5 gold ingots per gold coin.
these ingots are quite small (ingot is just a usable way to store a precious metal – it doesn’t have to be a 10 pound brick)

And after all this, it’s still hard to make forgeries. In the era this world is set in; probably impossible.

Sajuuk.5706:

Glektor.2934:

For the same reason you can’t print your own dollar bills.

Money is controlled by the governments. I’m sure the Tyrian treasury department mint stamps the legal gold coins with their seal. Your unmarked gold is counterfeit.

The intrinsic problem with this statement is that dollars are valueless outside of the promise of being legal tender for all debts public and private. We’ve moved on from the gold standard, where the dollar was tied to and represented a given amount of gold. Gold coins in a society are valuable because they are made of gold. Gold coins minted in one section of Tyria are usable elsewhere because of this fact, or else they’d be valueless. It’s extremely unlikely that all the races mint the same currency. The economy of Tyria only functions because coins have intrinsic value, unlike the dollar. So, going into the market and plopping down a bar of solid gold should be a legitimate buying technique, you’d just need to figure out the value of the bar by the weight versus the weight of the gold coins (against how much gold is actually in them, since that’s where the value of the coins come from).

Thus, I posit that the only reason you can’t break that gold bar into coins is because fantasy world logic (or lack thereof) to stop you from destroying the economy of the game. I mean really, you can’t look at the in game economy in a logical light of value or else the whole thing falls into hilarious shambles.

Considering how abundant it is in Tyria it might simply not be a valueable metal. And its use for jewelry is because it looks nice, its a nice metal after all. Its purpose for jewelry and currency is based on it not rusting.

When getting rid of the notion that gold is a rare and valueable metal (which, in Tyria it isnt) it makes perfect sense. And can be explained why its used as a form of currency, and not for its intrinsic value.