The problem of using precious metals for small denomination coinage has been an issue for centuries. This brought the United States to an awkward quad metallic system using gold, silver, copper, and nickel in its coinage. It is hard to believe today, considering we have copper coated zinc tokens, but the value of a cent was so great at one point that the amount of copper necessary in a penny would have made it too large and cumbersome to be practical. Because of this the US mint experimented with a small plug of silver in a penny but it was not cost effective and the concept was abandoned. Here is that early attempt to have a small denomination precious metal coin.
Today we have a new innovation that could solve many of the problems of small denomination gold or other precious metal currency in Aurum. Put simply the Aurum is a layer of gold laminated within polyester film. The most impressive aspects of Aurum are made possible by proprietary manufacturing techniques that results in a product with some amazing features. Aurum is created by bombarding gold with argon atoms, forcing atoms of gold to fly through a vacuum striking and adhering to a pre-printed polyester sheet. This allows amazingly precise and uniform amounts of gold to be applied which is then sealed with a second film of durable polyester. Here are some examples.
This product, created by the company Valaurum, currently is available in the smallest verifiable and fully recoverable amounts of gold in the bullion market, 1/10th of a gram and 1/20th of a gram.
The security features are far superior to those of a normal coin or bar. My favorite being a little-known trait of gold. If gold is thin enough, one half to one percent of the thickness of a human hair in the case of Aurum, so as to allow light to pass through it, it will show a green hue. This is unique to gold and most other metals will show a dull gray color. Other security features include tamper resistant serial numbers, security color shift thread similar to what you see on paper currency today, and micro printing protected by the polyester film.
These security features could allow precious metals backing of a currency, but instead of the classical gold standard where the bills were backed by gold held in a central location, the Aurum would allow precious metal backing inherent in the bill itself, with far less fear of counterfeiting than with coins. The Aurum would permit larger denominations of sovereign currency with a partial backing by the intrinsic value of the bullion sealed within. The Aurum technology could be very useful in the plan outlined in my previous post. While I speak of the monetary possibilities of the Aurum, currently it is simply another way to hold gold bullion.
For those that are wondering, this technology could be used for other precious metals as well.
Again, the company responsible for the innovation and manufacture of Aurum is Valaurum. Please visit their website at http://valaurum.com/ for more details and purchase information.