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Liberty Dollar: Difference between revisions
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Minor cleanup; trying to fix problems caused by the {{Wikipedia}} redirect that should never have been created
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The '''Liberty dollar''' is an alternative form of currency issued in the United States by '''NORFED''', a non-profit organization based in Evansville, Indiana. The paper currency is backed by precious metal (silver and gold bullion) and is redeemable when presented at a NORFED Regional Currency Office. The coin currency is minted from pure silver or gold. | The '''Liberty dollar''' is an alternative form of currency issued in the United States by '''NORFED''', a non-profit organization based in Evansville, Indiana. The paper currency is backed by precious metal (silver and gold bullion) and is redeemable when presented at a NORFED Regional Currency Office. The coin currency is minted from pure silver or gold. | ||
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One might note that the face value of the coins is larger than the spot silver or gold price. The extra cost is here used to buy more silver and gold to back more notes and make more coins, as well as for storage, shipping, insurance, and other costs. While normally this would be an extra numismatic value, this mismatch presents a potential vulnerability of the currency, since numismatic value decreases with the increase of the amount of currency in circulation. | One might note that the face value of the coins is larger than the spot silver or gold price. The extra cost is here used to buy more silver and gold to back more notes and make more coins, as well as for storage, shipping, insurance, and other costs. While normally this would be an extra numismatic value, this mismatch presents a potential vulnerability of the currency, since numismatic value decreases with the increase of the amount of currency in circulation. | ||
==Liberty | ==Liberty Dollars in the Marketplace== | ||
NORFED maintains a list of merchants who specifically accept the Liberty dollar, however, the organization encourages the tendering of Liberty currency for all purchases. Surprisingly, a high number of merchants will accept Liberty coinage without realizing the money is not produced by the Federal Reserve. Undoubtedly, these merchants may experience problems with their bank rejecting the coinage for deposit. As a solution to this, some businesses tender the currency back out to customers, or exchange the Liberty dollars for Federal Reserve currency through NORFED. Others, however, train cashiers to not accept Liberty currency. Due to the Liberty dollar's limited circulation, the full retail reaction to the currency remains to be seen. | NORFED maintains a list of merchants who specifically accept the Liberty dollar, however, the organization encourages the tendering of Liberty currency for all purchases. Surprisingly, a high number of merchants will accept Liberty coinage without realizing the money is not produced by the Federal Reserve. Undoubtedly, these merchants may experience problems with their bank rejecting the coinage for deposit. As a solution to this, some businesses tender the currency back out to customers, or exchange the Liberty dollars for Federal Reserve currency through NORFED. Others, however, train cashiers to not accept Liberty currency. Due to the Liberty dollar's limited circulation, the full retail reaction to the currency remains to be seen. | ||
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According to estimates by the currency's founder Bernard von NotHaus, currently, over 100,000 people are using $10 million in Liberty Dollars. | According to estimates by the currency's founder Bernard von NotHaus, currently, over 100,000 people are using $10 million in Liberty Dollars. | ||
==See | ==See Also== | ||
*[[Federal Reserve Note]] | *[[Federal Reserve Note]] | ||
*[[United States Dollar]] | *[[United States Dollar]] | ||
==External | ==External Links== | ||
*[http://www.libertydollar.org NORFED] | *[http://www.libertydollar.org NORFED] | ||