After much pondering on the utility and market place for the ‘Kin’ell Bank coinage, I think I have hit on a workable solution – one that benefits the producer, customer and allows for the pieces to be used in a LETS (local Exchange Trading System).
In simple terms, here is how it works:
You buy a coin for £150. At any time in the future I promise to buy this back from you, for £150.
- Alternatively, you may have one day of my time at your service.
- Alternatively, you may purchase other works of art through Acme at a reduced cost – perhaps each token is worth £200 if traded in this way.
Other people may also take coins in payment for services or goods, in the knowledge that they can be converted back to pounds sterling if required.
While in your possession the coin is a wearable piece of jewellery, and a promise of future services or payment.
What are the flaws in this arrangement?
- There is a risk that I will not be in a position to refund the purchase cost or provide a days labour – say when I shuffle off this mortal coil – so payments received will be set aside.
- Over a period of time inflation will affect the relative value of a coin. The fact it can be exchanged for a days service means it will become more valuable than the purchase price means this is of benefit to the buyer, and will also have provided additional utility in the form of jewellery in the meantime.
- Demand exceeds supply, either for the coins, art or my time – what a wonderful problem this would be!