ISIS Launches Gold Dinar Coins

ISIS has launched a new video promoting its gold and silver coins. The video tells a few things about our money system and how it has evolved from money based on gold and silver coins to fiat money issued by the government that derives value from its status as legal tender. The makers of the video accuse the U.S. government of confiscation, because it banned the possession of gold with the Gold Reserve Act of 1934. The dollar was also devalued against gold, which ISIS said was a form of theft.

In the video, the new gold and silver coins of ISIS are presented, coins that were already sold last NovemberAnnounced and which in the summer also for the first time in real life were spottedThe gold dinar is a coin with a weight of 4.25 grams and a purity of 21 carat gold, this coin is worth about $139 at the current gold price. According to ISIS, this gold coin will never become worthless, unlike paper money.

The gold coin represents a relatively high value and will therefore not be used often in regular payments. That is why ISIS also puts three different silver 'dirham' and two copper 'fulus' coins into circulation. These coins have a different weight and therefore a different value.

The gold dinars weigh 4.25 grams and are made of 21 carat gold

Back in time

It remains to be seen how the terror group intends to put these coins into circulation. There is no face value on the coin, so we assume for the sake of convenience that they are traded for intrinsic value. This means that for every transaction one must consult the current prices of gold, silver or copper, prices that are in all probability kept in dollars anyway. A rather cumbersome process. On top of that, it is difficult to exchange small amounts, due to the rigidity of this system with only three different coins.

We give ISIS's monetary experiment little chance of success, because paper money is an easier means of calculation that circulates more smoothly than coins with only intrinsic value. We see the introduction of these new currencies primarily as a protest against the dollar system, which has allowed the United States to live beyond its means for decades.

The return to gold and silver coins is mainly a step back in time, it is a barbaric medium of exchange that is far less user-friendly and efficient than trust-based money. The gold and silver coins will be driven out of circulation if a more convenient alternative is available. Gresham's Law dictates that the overvalued money pushes the undervalued money out of the market. The undervalued money is hoarded as long as the undervaluation persists.

It will not be an easy task for ISIS to reintroduce the gold, silver and copper coins as the new money within its sphere of influence.

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