Tuesday, August 16, 2011

Chart of the day is...

...the US Dollar index.

The valley of Joachim, Joachimsthal, is a place now located in the Czech Republic. In the 15th century, very high grade silver veins were discovered there. The mines were run by the Count of Slik and the coin minted there was named after the location and called the Joachimsthaler, later popularly shortened to simply 'Thaler'. The Thaler quickly gained a reputation as an uncorrupted and reliable coin and became popular all over Europe. Its name was later linguistically corrupted by some country languages. In Denmark, for example, it was known as the 'Daler'. With the discovery and population of the New World, the name of Europe's most reliable coinage was adopted for its new money, the dollar.

I like the fact that the origins of the word dollar are so tightly connected with silver and the want to associate with reliable currencies.