With economy tanking, 'liberty' coins made of silver are paying off
Arizona Coin Collector
http://www.nydailynews.com/money/2009/03/09/2009-03-09_with_economy_tanking_liberty_coins_made_.html
With economy tanking, 'liberty' coins made of silver are paying off
BY Matt Lysiak
DAILY NEWS WRITER
Tuesday, March 10th 2009, 1:16 AM
Nicolas Leobald is fighting the federal government - one
silver coin at a time.
The 42-year-old East Village writer struck one of his
mild-mannered political blows the other day at his
favorite deli, where he bought some cold cuts and a roll,
paying with a silver coin marked $10 and getting back
three dollars in change.
That simple transaction could mean jail time for Leobald
and the butcher. The coin, called a Liberty Dollar, is
not legal tender and passing it is a federal crime.
Libertarians, who are pushing the coins as an
"inflation-proof" alternative to the greenback, call it
a revolutionary act.
"It's about trying to take power away from the Federal
Reserve and return it to private citizens," Leobald said.
He says he spends his coins at Gray's Papaya, grocery
stores, movie theaters and on taxis.
"I use them all the time. People love Liberty Dollars,"
said Leobald, who has several hundred dollars' worth.
For years, those who obsessed about the Gold Standard
and tried to pass so-called "private money" were
considered fringe nutcases.
With predictions of the dollar weakening and consumer
fears of inflation strengthening, there is sudden new
interest in alternative money - even in New York City.
"I ask the merchants if they would rather be paid in
green pieces of paper or real silver, and more often
than not, they want the silver," said Karl Reile, 47,
who says he spends Liberty Dollars on a daily basis at
gas stations and restaurants.
He said store owners almost always accept the pieces.
"I take them at my store because they are so unique,"
said Andrew Ilnici, who runs the East Village Market
and Deli.
Ilnici says he brings them home for his children, who
enjoy the touch and feel of the silver.
The U.S. Mint says only Congress has the power to coin
money, but in the gray world of barter, shopkeepers
who accept the coins as souvenirs for their kids aren't
really breaking the law.
No one has ever been arrested for passing a Liberty
Dollar.
The alternative currency was invented 10 years ago by
controversial "monetary architect" Bernard Von NotHaus.
The coins come in several denominations, from a copper
piece marked $1 to a $500 gold piece. They have soared
in popularity since the economy tanked.
Sales of the coins are up more than 100%, Von NotHaus
said, adding that more than $22 million in Liberty
Dollars are in circulation.
Von NotHaus's company sells the coins over the Internet.
A 1-ounce silver coin stamped with "$20" costs $18.26
at bulk rates. The firm says buyers can make out by
spending Liberty Dollars and getting real money back.
Ultimately, the company wins. Silver is trading now
at around $13 an ounce.
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