Quantcast
Channel: Gold Price – GoldCoin.org

Gold as a private currency

0
0

For the system to function once again, gold should constitute a private currency for which only users would be the guarantors; as in the spirit of SALT (system or service of local exchange), but with the advantage of a quick exchange, which would not rely on waiting for a service rendered by a neighbour.
“Gold was always the currency of choice of the free man, but the statesman does not want free men.” (Andre Dorais, in Le Québécois, September 21st, 2009).
Over recent years, gold has been exploited for political purposes, for instance the Chinese government’s policies on increasing gold holdings, or, equally politically inspired, Gordon Brown’s sale of nearly half the UK reserves. Yet gold is essentially apolitical: it has the same value beyond borders; it is the savings of conservative voters, the private currency of people of the left and even of the anarchists who await a new world order.
Could gold then be the federator, the currency of the future around which everyone would get together and exchange, without an intermediary as manipulator? It has after all the necessary qualities to constitute a private currency.

In opposition to the currency issued by a central bank, private currency is a financial security issued by a private bank (or free bank). A contract defines the conditions according to which the issuer guarantees the value and the liquidity of its currency, as well as the standard by which to measure the value of the currency.
If the value which one gives to a currency remains subjective, that of gold is universally recognized so that it can very well be used as a “value meter” (of standard) for any currency – and gold has itself the advantage of having once been actual currency, for example, French 20F &10F Napoleons or British gold sovereigns (Fig. 6).
Moreover, the value of the private currency is decided only by the currency contract, the private contract signed between the issuer and the user: thus, its value does not depend on the political whims of a state. The growing mistrust of citizens with respect to official currencies may one day encourage them to use a non-governmental currency tied to gold. It would thus constitute a true shield to the benefit of individual freedom.

Amazingly it is in the US that this has already started happening in the state of Utah where they have remonetized gold. Discontent with the erosion of their wealth and purchasing power arising from the effects of quantitative easing (devaluation of the dollar) citizens have campaigned for and forced new laws into being that have led to the establishing of a state depository where gold and silver coins can be stored. This new currency allows participants to conduct commercial transactions including paying their taxes using the value of their stored gold. They have introduced a card which can be “loaded” with dollar equivalents of their gold holdings so even though they have to spend dollars it is deducted from their precious metal account balance. This is effectively the reintroduction of the Gold Standard in one forward-thinking state whose citizens have lost patience with the dollar and the “untouchables” who manipulate it.

Extract from the English adaptation of the French book : L’or, Un Placement qui (R)Assure (2011) written by Jean-François Faure,President and founder of AuCoffre.com.


The Premium on Gold Coins

0
0

Some of you have been enquiring about the Premium. What is it ? What does it mean ? Here are a few answers.

sovbb3

Sovereign Price= Premium + Price of Gold

In the United Kingdom, the current premium is dependant on source, quantity, supply and demand and currently can range from 5% to over 40% depending on source and condition.  But what is this premium for gold coins?

The premium is the difference between the current gold value contained in the coin and the price paid for the coin and is usually expressed as a percentage. The price and premium depend on market factors at the time and are constantly changing.

e.g. a Sovereign may contain gold with a value of £160 but be worth £199 and for a newly minted proof coin £299 . The difference between these two figures, expressed as a percentage, is the premium thus a the proof coin is sold at approximately 46% premium

The premium for a coin is linked to several criteria:

· production: The smaller the coins and the harder they are to produce, the more chance there is that they will have a high premium, this principle that explains why the smaller half sovereign have a higher premium .  The quality of a proof coin usually demands a higher premium

· speculation: the premium changes to reflect supply and demand. In a period where more coins are being sold than are being bought, the premium is zero or slightly negative (in this situation, coins of moderate quality are often melted down). When there is high demand or excess speculation, the premium resulting from this speculation climbs sharply. The premium is therefore a very good indicator of the balance between supply and demand, the latter’s potential and also what actions should be taken. A negative, zero or slightly positive premium should stimulate purchases whilst a high premium of should lead to selling.

calc

· conservation: a quality coin that has no trace of being handled will retain all its premium. Poor conservation conditions (contact with fingers, scratches, wearing…) results in a reduction of 4 – 10% and can lead to a negative premium. When this happens the coins are melted down and sold for the price of their precious metal

· collectors: some coins are rarer due to them being minted in small numbers or because they have special characteristics related to numismatic rarity criteria. In certain years where very few coins were minted a sovereign can cost several thousand pounds depending on its rarity and its condition. This value is therefore completely unrelated to the value of the coin’s gold content.

· geographical location: gold coins are not equally popular in every country and generally speaking coins that were the currency of a country are more popular in that country e.g.: Napoleons are very popular in France but are much less well known in China or the USA and people there prefer to buy local coins the exception is the Sovereign which is the most popular in the UK but also has an international reputation.

Premium differential: This the differential between the basic (normal ) premium and the highest sale price usually in times of crisis where there is great demand.

Below is some translated correspondence that occurred with our partner in France:

LORetLARGENT.info editor and a reader about the premium:

Xavier (blog reader): Why do you consider that the ingot is “banal”? Although its premium is not high, or even zero, isn’t this the simplest means of buying investment gold at its market price? When the price goes up (very high, I hope), the deal becomes interesting. A coin currently has a high premium so is interesting if you want to sell but not necessarily if you want to buy…

LORetLARGENT.info: If you want to invest 2,000 Euros, don’t buy an ingot. Wait until the premium for Napoleons drops below 5% to develop your position.
The premium has a real lever effect. Consider the cases of buying, in a few months, an ingot or the same value of 20 FRF Napoleons with a premium of zero. If you sell when you need your capital (don’t forget that gold is an insurance against the crisis but not against life’s challenges – in this latter case, other investments are better), you will have at least 20% more for equal weights with your coins (the premium) without considering the greater ease of selling them.
In summary, starting from the principle that gold coins are an anti-crisis investment, an insurance where you get back what you pay (normally insurance is lost money), you have to take account of the concept of the premium from the start, especially the premium differential. You must buy gold coins with the greatest potential growth from their base premium (the average premium outside of crisis periods) and the highest premium recorded during a crisis. There is a differential of 5% for an ingot but 76% for a half Napoleon. Consider what this means for our investment of 2,000 Euros when we come to sell. Obviously, the coins must be in excellent condition. (Above all, avoid buying via generalist on-line auctions where about 1/3 of the coins are good for the smelter even if the photos are flattering).
Bear in mind that the only thing that should determine your gold purchase (coins or other) is its resale (when and how). Usually, you should do it quickly and at the best price. The ingot is not a winner in this type of competition…

Xavier: (…) Can the premium fall as the value of gold increases ?

LORetLARGENT.info: Trying to compare the changes in the price of gold with the premium on a Napoleon is like trying to compare the ethics of American and English bankers with those of French households. My proposition is a bit exaggerated but it is a good reflection of the fact that the criteria leading to an increase in the price of gold are not the same as those determining the premium on a Napoleon. To confirm this, look at the sharp rise in the price of gold in March 2008 and the dead calm for the premium during the same period. In March, the French only had a vague idea that a crisis was coming and continued to sell Napoleons until September 2008. You should be aware that our own bankers were using every conceivable method to try and sell gold coins to us in January 2008 whilst they had no difficulty in offering us LYXOR GOLD. In summary, we are talking about the same precious metal but certainly not the same investment instrument and the premium is an excellent indicator of the difference between the price of gold on the markets, linked mainly to changes in the price of oil and the US Dollar, and the value of gold coins sold in France, which is more linked to the moral of small investors with tangible values such as the readers of this blog.

Xavier: OK, I accept your arguments, which are logical. It’s a question of investment instruments.



India’s silver imports dropped by 40%

0
0

This is what has been announced by the Indian Government.


India is the second largest buyer of silver and Indian trade ministry confirmed the information that silver imports  dropped to $33.46 billion in 2013/14. This could be due to a series of restrictions rules that the government imposed in order to decrease the current account deficit.

Last March, gold and silver imports dropped by more than 15%.

The Reserve bank of India (RBI) finally allowed five private banks to import gold. Will that mean that the tough rules on imports will be eased ?  We do not think so since Indian authorities made physical checks of gold stocks held by wholesalers in order to ensure that inventories tally with the amount imported through legal channels. The checks were part of efforts aimed at curbing gold smuggling.

Pakistan even temporarily prohibited gold imports so to check smuggling to neighbouring India.

One has to expect that next Indian elections could change somehow the present situation.


Monopoly money is no game nor investment

0
0

The US would have exported a total of 215 metric tons of gold bullion to Hong Kong as well as other small quantities of Dore’ not yet specified.

Hong Kong is the only country to have received so much gold. If you have a close look at the table below, Switzerland comes in second at 150 metric tons.

TOTAL US GOLD EXPORT 2013

TOTAL US GOLD EXPORT 2013

August is the highest month at 30.7 metric tons.

According to the information released by the USGS, the US exported 57 metric tons of gold bullion to Hong Kong last January.

US total gold bullion export to Hong Kong

US total gold bullion export to Hong Kong

This new record is three times more than the amount of gold exported in January 2013 (17 tons) and 84% more gold than the record set in August 2013 (31 tons). Gold bullion goes from the US to the East;

Total gold exports in January 2014 (80.7 tons) nearly surpassed the total hit in March 2013 (80.8 tons).

Where was the majority of the remaining gold exported in January 2014?

Gold Bullion:

Australia 3.1 tons, Thailand 2 tons, Switzerland 1.5 tons and Singapore 1.0 ton.

Dore’:

Switzerland 10.6 tons, India 2.7 tons and United Arab Emirates 1.4 tons.

The Western countries carry on playing with Monopoly money whereas the Eastern countries accumulate as much gold as they can.

Fiat money or Monopoly money is no good. So much of if has been and still is printed out but is not backed by gold. It’s worth nothing. The Eastern countries have understood the importance of having gold. One should invest while prices are low.

Historic gold agreements

0
0

1944 – Establishment of the IMF

The first international agreement on gold came with the signing of the International Monetary Fund’s articles of agreement in July 1944.

The IMF was created in order to rebuild the global monetary system after the Second World War, and its articles laid down that all member countries should establish ‘par values’ for their currencies in terms of gold, or in terms of the US dollar which was itself pegged to gold. One dollar was valued at 0.888671 gram of fine gold, or US$35 an ounce.

The agreement confirmed the price of gold as established by President Roosevelt in 1933, and gold became the foundation of the first international monetary system established by international agreement. It was the ‘glue’ that held the system of exchange rates together.

To give the new IMF usable resources to enable it to start lending, members were also required to pay 25 per cent of their subscription to the Fund in gold. Members had to buy and sell gold at the fixed price, plus or minus a margin set by the IMF. Gold was the ultimate reserve asset.

This requirement and the growth of membership resulted in IMF holdings of gold rising to 153 million ounces by 1975, at the time worth US$21 billion.

1960s – Central banks try to stabilise gold prices

In 1961, a ‘gentlemen’s agreement’ among central banks – known as ‘The Gold Pool’ – was established to hold the price of gold close to the then official price of US$35 an ounce.

The previous year, the price had risen to US$40 per ounce following panic buying of gold during the US presidential race and a speculative attack on the dollar. According to the Bank of England, “this state of affairs threatened the whole structure of exchange relationships in the western world”. The bank, with the support of the US authorities, sold gold on a substantial scale to bring the price down “to more appropriate levels”.

In October 1961, following a further speculative flurry, the central banks of Western Europe agreed to cooperate with the New York Federal Reserve Bank to stabilise the market.

A period of coordinated gold purchases followed the change of market conditions. However, the Cuba missile crisis of July 1962 triggered record demands for gold on the London market, which was again met by official selling. The objective throughout was to “avoid unnecessary and disturbing fluctuations in the price of gold in the free market”.

The Bank of England’s conclusion on this experiment was that “the knowledge that the central banks were working together in the gold, as well as in the exchange markets, has helped to maintain public confidence in the existing international monetary structure”.

The central banks abolished The Gold Pool in 1968, agreeing that they would no longer supply gold to the market but transact only among themselves at the official price. This established a two-tier system – one for private transactions, where the price fluctuated according to supply and demand, and the other for official transactions.

This agreement lasted until November 1973, when the price of gold was allowed to move freely, following the suspension of dollar convertibility into gold—the end of the gold standard—in August 1971.

1978 – The IMF attempts to write gold out of the system

In the late 1970s, the United States led an attempt to remove gold from the international monetary system. The Second Amendment of the International Monetary Fund’s articles was intended to achieve this aim by barring members from fixing their exchange rates to gold and removing the obligation on members to conduct transactions in gold at the officially mandated price.

The amendment followed the failure of previous attempts to establish a new international monetary system, including the inability of European countries to force the United States to either settle its deficit in gold, or else devalue the dollar against gold.

Not only did the United States refuse to keep gold in the system, it then led a crusade against gold—while being careful to keep a very large strategic stock of gold in its own reserves, sealed off from the outside world.

Symbolising the plan to drive gold out of the system, the IMF was instructed to dispose of 50 million ounces of its gold stock of 153 million ounces. It achieved this partly by sales to the market and partly by giving some gold to members.

Ironically, this exercise had the effect of spreading gold much more widely through the international community than ever before, and gave many countries a new interest in the gold market. Few countries showed any inclination to sell the gold handed to them, and in the vast majority of cases it continues to sit on their books.

Ext.: World Gold Council.

Australia Seizes 360M From Dormant Bank Accounts And All 50 U.S. States Are Doing This Too

0
0

Do you have a bank account that you don’t actively use or a safe deposit box that you have not checked on for a while?  If so, you might want to see if the government has grabbed your money.  This sounds absolutely crazy, but it is true.  All over the world, governments are shortening the time periods required before they can seize “dormant bank accounts” and “unclaimed property”.  For example, as you will read about below, just last year the government of Australia seized a whopping 360 million dollars from dormant bank accounts.  And this kind of thing is going on all over America as well.  In fact, all 50 states actually pay private contractors to locate bank accounts and unclaimed property that can be seized.  In some states, no effort will be made to contact you when your property is confiscated.  And in most states, the seized property permanently become the property of the state government after a certain waiting period has elapsed.  So please don’t put money or property into a bank somewhere and just let it sit there.  If you do, the government may come along and grab it right out from under your nose.

In this day and age, broke governments all over the globe are searching for “creative ways” to raise revenues.  In Australia for example, the time period required before the federal government could seize a dormant bank account was reduced from seven to three years, and this resulted in an unprecedented windfall for the Australian governmentover the past 12 months…

The federal government has seized a record $360 million from household bank accounts that have been dormant for just three years, prompting outrage in some quarters amid complaints that pensioners and retirees have lost deposits.

Figures from the Australian Security and Investments Commission (ASIC) show almost $360 million was collected from 80,000 inactive accounts in the year to May under new rules introduced by Labor. The new rules lowered the threshold at which the government is allowed to snatch funds from accounts that remain idle from seven years to three years.

The rule change has delivered the government a massive bonanza with the money collected in the year to May more than the total collected in the past five decades combined.

Most Americans are not going to be too concerned about this because it is happening on the other side of the planet.

But did you know that this is happening all over the U.S. as well?

For instance, the waiting period in the state of California used to be fifteen years.

Now it is just three years.

And when California grabs your money they don’t just sit around waiting for you to come and claim it.  Instead, it gets dumped directly into the general fund and spent.

If you do not believe that California does this, just check out the following information that comes directly from the official website of the California State Controller’s Office

The State acquires unclaimed property through California’s Unclaimed Property Law, which requires“holders” such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the Controller’s Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.

And it is not just bank accounts and safe deposit boxes that are covered by California law.  The reality is that a vast array of different kinds of “unclaimed property” are covered

The most common types of Unclaimed Property are:

Bank accounts and safe deposit box contents

Stocks, mutual funds, bonds, and dividends

Uncashed cashier’s checks or money orders

Certificates of deposit

Matured or terminated insurance policies

Estates

Mineral interests and royalty payments, trust funds, and escrow accounts.

And when a state government grabs your property, the consequences can be absolutely devastating.  The following is an excerpt from an ABC news report from a few years ago…

San Francisco resident Carla Ruff’s safe-deposit box was drilled, seized, and turned over to the state of California, marked “owner unknown.”

“I was appalled,” Ruff said. “I felt violated.”

Unknown? Carla’s name was right on documents in the box at the Noe Valley Bank of America location. So was her address — a house about six blocks from the bank. Carla had a checking account at the bank, too — still does — and receives regular statements. Plus, she has receipts showing she’s the kind of person who paid her box rental fee. And yet, she says nobody ever notified her.

They are zealously uncovering accounts that are not unclaimed,” Ruff said.

To make matters worse, Ruff discovered the loss when she went to her box to retrieve important paperwork she needed because her husband was dying. Those papers had been shredded.

And that’s not all. Her great-grandmother’s precious natural pearls and other jewelry had been auctioned off. They were sold for just $1,800, even though they were appraised for $82,500.

And some states are even more aggressive than the state of California in going after bank accounts.

In a recent article, Simon Black noted that the state of Georgia can go after “dormant bank accounts” after just one year of inactivity…

In fact, each of the 50 states has its own regulations pertaining to the seizure of dormant accounts. And the grand prize goes to… the great state of Georgia!

Georgia’s Disposition of Unclaimed Properties Act sets the threshold as low as one year.

In other words, if you have a checking account in Georgia that you haven’t touched in twelve months, the state government is going to grab it.

So much for setting aside money for a rainy day and having the discipline to never touch it.

As economic conditions get even worse, the temptation for governments all over the planet to grab private bank accounts is going to become even greater.

We all remember what happened in Cyprus.  When the global financial Ponzi scheme finally collapses, politicians all over the world are going to be looking for an easy way to raise cash.  And our bank accounts may be one of the first things that they decide to confiscate.

So please don’t keep all of your eggs in one basket, and check on all of your accounts in regular intervals.

In this day and age, it pays to be diligent.

Ext : http://theeconomiccollapseblog.com

China 2014 gold demand heading for 2,100 tonnes

0
0

With gold withdrawals from the Shanghai Gold Exchange having reached 1,761 tonnes by November 14, and weekly withdrawals since the Golden Week holiday at the beginning of October averaging comfortably over 50 tonnes, China looks to be heading for an annual demand total (SGE gold withdrawals equate to overall demand) of comfortably over 2,000 tonnes again this year assuming these levels are maintained.

Historically November and December are strong months for Chinese gold demand ahead of the Chinese New Year (February 19 2015), which suggests gold demand will remain strong through January and the first half of February too.

CHINA 2014 GOLD DEMAND

Indeed should the current weekly demand levels hold up – the past six weeks have seen withdrawals from the SGE of 52 tonnes, 54 tonnes, 47 tonnes, 60 tonnes, 52 tonnes and 68 tonnes respectively – then we could be heading for an annual figure of around 2,100 tonnes. This is not far short of last year’s record of 2,199 tonnes as stated by the China Gold Association in its China Gold Yearbook released in September (of which 1,507 tonnes came from imports of gold bullion, 17 tonnes in dore imports from overseas mines, 428 tonnes of domestically mined gold thus leaving 247 tonnes to have come from recycled gold scrap. Figures are all from Koos Jansen, Nick Laird and the China Gold Association).

Reading more


SILVER SHORTAGE

0
0

Extract : Silver Shortage Blog

Silver to become a rare earth metal , it is Extremely undervalued. Silver to become extinct by year 2020 according to geologists only 300 millions ounces left! Silver is consumable industry metal it is used up : 95% gold ever found is still around 75% of silver is a by-product of mining other metal only 25% is primary product of mining,In 1480 the price of one ounce of Silver was equal to one ounce of Gold, Low supply, high demand Price to skyrocket get your silver and stay long!

Vera Silver Zanzibar one ounce - Obverse

Vera Silver Zanzibar one ounce - Obverse

Vera Silver Zanzibar one ounce - Reverse

Vera Silver Zanzibar one ounce - Reverse

Just to let you know that last June we launched our new coin : the Vera Silver Zanzibar with Tanzanian legal tender. It is 999.5 %oo fine silver.
It is QR Coded on the reverse side in order to guarantee authenticity, individually Prooftag sealed and struck by Agosi.
50,000 coins have been struck for 2015 and half of them have already been sold. The Vera Silver Zanzibar can be delivered so do not hesitate to order your own !

Please email us : contact@lingold.com


VeraMax 1/10 ounce of fine gold - Obverse

VeraMax 1/10 ounce of fine gold - Obverse

Another coin is now up for sale and can be delivered too : the Vera Max 1/10 ounce, with the same properties as the Vera Valor one ounce.

VeraMax 1/10 ounce of fine gold - Reverse

VeraMax 1/10 ounce of fine gold - Reverse

It has a synthetic DNA and adopts the ‘Prooftag’ security system that provides a high level of protection based on a unique ‘bubble code” that cannot be reproduced.
The VeraMax can now be ordered here.


Other coins are up for sale on our website – do not hesitate to visit us : Lingold.com

Our storage facilities are located in Switzerland, in Geneva, outside the banking system. Subscribe to our LSP and enjoy the free storage !


Buy silver before it’s too late !

0
0
silver-mine

Silver mine

We would like to share with you an article written by Jeffry Lewis

The ongoing plight of the long term value investor continues – seemingly without end. However, decades of exuberance and greed have colluded. The financial establishment has created an accident waiting to happen. The mainstream has not “priced in” risk, which makes it even harder to travel the road less traveled.
And once the accident happens, it may be too late.
If silver prices were to suddenly move back toward natural price equilibrium, there would naturally (not always the best thing) be a rush to get on board.

This could very likely induce a shortage, which would temporarily stoke a new monetary enthusiasm for the buy side.

There would be some selling, but we remember that a large amount personally held scrap was purged years ago in its last run toward what would be at least $150 in today’s inflated dollars.

Of course, that was followed by a massive and complete drawdown in world government stockpiles.

There is only one way to protect one’s wealth : by buying gold and silver ! it is possible and you can do so by contacting us. You will be given a large choice of gold and silver coins to invest in with the possibility of free storage in our Swiss vaults outside the banking system !


Why does Austria wish to repatriate its gold ?

0
0

Austria official gold reserves 2009 - 2013

Austria official gold reserves 2009 - 2013

Many central banks around the world are aware the international monetary system is moving away from the US dollar and that the role of gold will (officially) be much greater in the future. In this development central banks benefit from a smooth and slow transition to a new system, as sudden shocks will bring the global economy in a free fall and more time provides better preparations. Central bankers prefer slow and attentive change. Signs of the slow development towards gold by central banks can be seen across several continents. In Europe slowly more and more countries are repatriating their gold from the UK (Bank Of England) and the US (Federal Reserve Bank Of New York).

Austria reserve assets

Austria reserve assets

Certainly not all their gold but weighed amounts and in the case of Germany and Austria the gold is repatriated over several years. If all European countries would repatriate all their gold at once it would cause a panic in financial markets. In the East, Russia and China are increasing their gold reserves every single month by relative small amounts, respecting the slow development towards gold. Asian central bankers differ from their European colleagues because they verbally acknowledge the role of gold in finance.

In 2004 Zhou Xiaochuan, governor of the People’s Bank Of China, said:

… China’s gold market should move from commodity trade to financial product trade. Gold is a commodity that combines the attributes of a currency, financial commodity and general commodity. … gold still has a strong financial nature and remains an indispensable investment tool. In financial centers in the world, the gold market – together with the money market, securities market and FX market – constitutes the main part of the financial market.

Obviously all these central banks are aware what the future will hold. How else can we explain Europe’s repatriating gold policy and Asia’s buying gold policy?

Candid statements from European central bankers regarding their gold policy are scarce. The slow developmenttowards goldpreviously described is usually covered in excuses by European policy makers. I can recall the Dutch Minister Of Finance, Jeroen Dijsselbloem, was asked in a television interview why the Dutch central bank (DNB) had covertly repatriated 123 tonnes of gold from the Federal Reserve Bank of New York in 2014. Dijsselbloem answered with a condescending smile, saying, “ the decision was made by DNB to spread its gold stock in a more balanced way, but it was of little importance”. Of course the military operation that DNB had carefully planned and executed over the course of two years was of utmost importance for the financial well being of the Netherlands, but Dijsselbloem could not openly acknowledge this importance because of the sensitivity of the subject. Just like Jean-Claude Juncker said in 2011:

“When it becomes serious, you have to lie.”

Read more …





Latest Images