Quote: Originally Posted by gerryh
https://www.e-dinar.com/cgi/?page=dinardirham&a=_4 (external - login to view)
you supplied the above link.Explain to me why the price of a 1 coin, 5 coin, or 8 coin is different on a per unit basis with the 1 coin being a single unit.
Do you mean why the USD value if one dinar is more than the USD value for five or eight?
I don't know. Maybe they're taking practical shipping costs into account? Though the weight is the same, the ratio of the value of the coin to packaging and delivery is greater?
That's just my guess.
But common sense dictates that if an 8 dinar coin contains eight times the Gold of a one dinar coin, that its intrinsic value is eight times as much.
With that in mind, it would make sense to buy the more expensive coin if you are thinking of investment. Or you might still want to buy the smaller coin for practical exchanges on a smaller scale.
Elsewhere on that site, you can also buy e-dinars that are backed by dinars held ii their vault. This means they save on shipping and maybe even minting costs since they could just subtract it from a gold bar in their vault.
Remember to that others might sell the same coins at a different price. It's a free market rate after all and it might be worth shopping for the best deal.
Quote: Originally Posted by petros
Both wheat and gold flactuate in relation to the USD. You overpay for the loaf until wheat, labour and overhead exceed the spot prices of the commodities smoothed.
Actually, the dirham is made of silver, not gold.
But I think I get your point. Does the same point not apply to the CAD? Do Canadian shops raise and lower their prices on US imports daily?
By the way, not only do gold, silver and wheat fluctuate relative to the US dollar, but the US dollar also fluctuates relative to other commodities too. In the end, it's all a moving target.