A Couple Of New 8 Reales Additions (Neat Error)

Thank you for the explanation, jfransch. I didn't think of that aspect and have been only focusing on the reproduction of Bust coinage by British as the way to undermine Spanish dominance in silver trade.

jfransch You nailed the concept of how you can make a full intrinsic value coin and still create a profit. But the Crime of 1873 uses a VERY low estimate of the Chinese premium. The premium was 8% by 1830. For decades it was above 25% and reached a high point of 80% premium. It was 25% in 1900. There is an excellent study of the premium itself which was published in 2009 which details the specifics of the rates but never makes the correlation that it drove two or three generations of forgers.

This premium over intrinsic value was STUPID then (as expressed by many officials on both sides for YEARS) but it drove a clandestine industry for nearly 100 years and involved MILLIONS of dollars.

I should probably apologize to anyone who is of Chinese descent because they are far from alone in this penchant for paying MORE than melt for bullion. It is happening today. Every time a US citizen buys a silver ounce from the US Government they pay TOO much.

Has anyone noticed the auctions for Pagnani Mint silver bars? Check them out on ebay. It is very interesting to look at past auctions and compare them to spot prices on the same day. They sell 10oz 3 oz and 1 oz. The have a pretty stamp applied several times BUT they sell for 20% OVER spot all the time? WHY?

The 10 ounces of silver in one of those bars is no better than the 10 ounces in any other bar but that mint gets great bids. Why? I don't know. It is again foolish a premium for absolutely ZIP.

The premium over melt get super high in the case of the ounce rounds where they have exceeded a 100% premium - BEATING the Chinese.

So what I am making fun of - is the willingness of most people to pay too much for silver based simply on the stamp that appears on the silver. It must be a very natural thing.