ISIS starts issuing new currency

[Irbis]

BBC Video.

Ron Paul and Co. approved?

[madd0ct0r]

Makes sort of sense. It avoids inflation since the currency value cannot drop below us melt weight.

It is also a powerful hint to incomers on what to bring bring

[Titan Uranus]

Seeing as ISIS appears to be getting mauled by the Kurds, and have lost their supply line through Turkey last I checked, I expect that they will be worth about as much as Confederate dollars were in late 1864.

[Sea Skimmer]

They still hold a large chunk of Turkish border. Just not the most convenient piece for supporting operations into Iraq and south western Syria. The Kurds are also becoming highly overextended in the process of this, as shown at Kobane the other day so its unlikely they'll be capturing the rest quickly. And Daesh overran yet another large ammo dump, one of the largest in the Syria in fact, near Palmyra, which everyone ignored in the angst over stone ruins, so it is unlikely they'll be feeling a supply pinch anytime soon.

[Welf]

Makes sort of sense. It avoids inflation since the currency value cannot drop below us melt weight.

It is also a powerful hint to incomers on what to bring bring

Unless the price of gold falls, they have shortages or they start reducing the percentage of bullion. But right now it sends a powerful message, and it's likely people will buy those coins even if they don't like ISIS, giving them even more of the aura of legitimacy.
But aside that, it is funny how certain minds tend to think alike, and how interchangeable religious fundamentalists are across boarders.

[Irbis]

Seeing as ISIS appears to be getting mauled by the Kurds

Mauled? Last time I checked, two days ago Kurds barely defeated assault at Kobane, one that almost took the city, the very same city that after months of very heavy US bombardment was declared ISIS free forever and a starting point of offensive to drive them off from northern Syria. Oops.

Since then, 'defeated' ISIS captured 55% of Syria, with a number of important cities, and made major advances into Iraq. Yes, they saw setback here and there but somehow every time they are 'defeated' yet again another major city falls soon after. I wonder what will fall after next defeat, Bagdad or Kirkuk?

I expect that they will be worth about as much as Confederate dollars were in late 1864.

Did you even look at video?

[madd0ct0r]

Makes sort of sense. It avoids inflation since the currency value cannot drop below us melt weight.

It is also a powerful hint to incomers on what to bring bring

Unless the price of gold falls, they have shortages or they start reducing the percentage of bullion. But right now it sends a powerful message, and it's likely people will buy those coins even if they don't like ISIS, giving them even more of the aura of legitimacy.
But aside that, it is funny how certain minds tend to think alike, and how interchangeable religious fundamentalists are across boarders.

I'm not aware of the price of gold falling recently. Forget Ron Paul, it's a very popular wealth store in SEA and China, where nasty inflation in domestic currency is always just around the corner (or running about 12% in Vietnam)

[Sea Skimmer]

Gold is 1170 dollars an ounce today in London. At its peak in 2011 it was over 1900 dollars an ounce. At the start of 2014 it was nearly 1,400 dollars an ounce. Pretty hugedrop for a hard 'store of value'. Gold has its uses its had colossal price bombs followed by 50% class collapses in the past, and this is happening even though the rest of the world economy hardly looks all that good. The Euro and the dollar haven't shifted this much in buying power.

The fact is you can't make money on gold quickly, its far too volatile and not transferable enough. And while other assets make lose all value the clear superiority is in paper money and investments in actual value adding companies over just hoarding a single mineral. You make more money, get more things, physical things, to make up for those bad times. Gold is just gold that keeps being gold.

But if you have no legitimate economy the way ISIL is stuck with, gold based currency is the only option. But I'd expect them to fake it massively, tungsten has the same density as gold and can be alloyed to have less toughness and generally appear similar to gold to a human being. National level banks used to be tricked all the time until some fairly advanced sensors came into play. But for someone ISIL says 'accept our money' to at gunpoint, that isn't an option. And ISIL captured hoards of 115mm and 125mm tungsten carbide ammo in Syria they could be smelting down to extract a supply of pure tungsten from.