On 8 December 2011, the Board of the South African Mint Company suspended the Managing Director of the Company and its General Manager Numismatic Coins, having become “aware of certain technical issues within the operations of the SA Mint Company.” The media statement went on to say that:  “Investigations into the matter have been instituted and are on-going.”

Nothing at this time was said publicly about what these “technical issues” were. However, dealers were alerted in confidential meetings to the need to assay their stocks of proof Krugerrands. A further statement, going into much more detail, was publicly issued on 13 April 2012.

This stated that “investigations into the matter have revealed that some of the proof Krugerrand coins cast between April 2011 and May 2011may not meet all the required quality specifications. Based on information that there had been fluctuations in assay results in the production process starting from April 2010, a conservative approach was adopted to analyse results from 01 April 2010 until 31 October 2011, the latter date being one on which  new quality control measures were introduced.  The extended period was adopted merely as a precaution.”

Proof and Bullion Kruggerands and Investment

The SA Mint only strikes the proof Krugers, bullion Krugers being the preserve of the Rand Refinery. Proof coins are issued in smaller quantities for the collectors’ market and are struck in a way that provides a mirror-like finish with a contrast of matt. They are important to collectors who are interested in “a perfect uncirculated” coin, a distinction that mattered when the Krugerrand was first struck given that the bullion coins were intended to circulate as currency.

This means that Krugers are minted from a copper-gold alloy, as the copper gives the coin greater durability. Apart from the mirror finish, the other difference between the proof and the bullion coins is the number of serrations (or reeds) around the edges, being 180 on the bullion and 220 on the proofs.

While the minting process is different between the SA Mint and Rand Refinery in order to achieve the required finish, the gold content and ultimately the investment are the same: bullion coins are still as valuable for their gold content and premium and are the most prevalent, but there is no difference to an investor if the Kruger is proof or just bullion.

The proof can be found to be more expensive but usually in collectors’ circles as they insist on this type of coin. However, in effect all of the Krugers are bullion coins and they can be found at the same purchase price. The importance of all this comes into play when demand is high: investors buy them all for the same reason. Even “proof” Krugers are important as they are part of the available investment quality bullion coins and there is no real need to differentiate their importance as an investment. Most Krugers are held for their investment potential and not by collectors – they are very “liquid assets” that contain a sure value (1 oz of gold).

Scandal Story Breaks – Misleadingly

Within a couple of days of the latest Media Statement issued by the SA Mint, TimesLive published a story that some of the proof coins were underweight. This was a very careless reading of the Mint’s statement which is quite clear on this point: the coins were under-specification, containing less gold than required by law. The South African gold collector who first alerted the Mint to the problem makes the crucial point on PM Bug (Precious Metals Forum):

“The coins are NOT underweight in any way, shape or form, they are under-spec. They weigh exactly the same as any of the Krugers available. This is just bad reportage from TimesLive. Now people will just weigh their coins, see the weight is right, and forget about it.” (Readers should view the short excerpt from CNBC Africa report that is posted on this forum after the statement just quoted – and look out for the moment when a gold coin being assayed registers at 94% silver! GoldCoin.org is attempting to discover more…)

Apparently TimesLive was aware that CNBC Africa and Forbes Africa were onto this story and wanted to scoop them – hence the sloppy reporting. Forbes Africa is due to publish the fruit of its investigations in its May issue.

So what was happening at the Mint?

“Concurrent with the investigation into proof Krugerrand coins, the SA Mint investigated the evidential theft of R5 circulation coins. This crime was ostensibly committed by a number of employees who appeared to have acted in collusion with what appears to be a syndicate-style operation that included external parties. Appropriate steps have been taken and all evidence gathered has been handed over to the Police’s Directorate for Priority Crime Investigation.”

How did a criminal gang come to be operating at the South African Mint, a wholly-owned subsidiary of the South African Reserve Bank? How far up the scale of management did it penetrate? Were the two officials suspended because this happened on their watch or is there evidence that they were somehow complicit and/or bought off? Is this yet another instance of the corruption and malfeasance that have embroiled South Africa after the early promise of the post-apartheid years? The ANC is after all no more than a tribal ascendancy and there is widespread disillusion with the ruling elite in South Africa.

True Value

This is an astonishing story and one that may have considerable implications for the Krugerrand, a popular investment because widely regarded as a strong one. Perhaps investors should start taking a very serious look at the Vera Valor, recently highlighted in the luxury magazine Meze.

The Vera Valor is a serious contender for replacing the Krugerrand as the gold coin of investor choice.

Editor: When did you first launch the blog LingORO.info?

Lizette: In March 2011 I posted my first article on line having spent some months previous immersed in the research of blog content. The first article is always special and I remember the feeling of excitement when I saw the visits to my blog and knew that people were reading my article. I was encouraged to continue producing and evolving content that was obviously attracting a growing audience.

Editor: What do you look for in an article?

Lizette: A story that tells a truth, with substance, meaning, logic and often on a subject ignored by the mainstream media. My articles present information to readers regarding the current economic climate and its impact on all of us. Many things are left unsaid that need expressing and this can be particularly true in the gold industry. I am originally from Colombia and so issues regarding “ORO VERDE” that could be so important for the survival of whole communities & their livelihoods need highlighting. Similarly I fully support the Clean Extraction initiative for 100% traceable gold that respects people and the planet. It is also important to have an historic perspective on the economy and gold investment as well as for the evolution of everyday changes in the economy. To this end I like to combine numismatic and historical facts about gold coins as well as the story of certain important coins that have a particular place in Spanish or Latin American history.

Editor: Why have you launched LingORO.com now?

Lizette: This is the ideal moment to launch an alternative method of Gold Investment to the Spanish and Latin American markets because there is no similar offer currently available. The current market is based more on jewelry and physical possession of gold bars and coins. However, our experience suggests that this is not the best way to invest in gold as it is difficult to realise a good value at resale when you inevitably have to sell it back to a dealer. Our business model allows Members to freely trade between themselves, therefore maximizing the opportunity to realise the full potential of their gold coins. It’s easy, practical, logical and has a proven track record in the French and the English speaking worlds as demonstrated by our sister sites AuCOFFRE.com & LinGOLD.com.

The advantages of LingORO are that investors can buy and sell on-line 24/7 from anywhere they want and also that we offer vault storage – this model allows ease of resale.

Editor: What type of products are available and why? Where do they come from?

Lizette: Only professionally sourced investment quality gold coins are available – these are all verified and sealed in cases. We also have a focus on certain Spanish and South American gold coins which are of great interest including the 25 Pesetas, The 50 Pesos and the Soles and Libra from Peru.

Editor: Why should we invest in gold?

Lizette: Gold is an excellent way to save, it is an alternative to the traditional bank products which have proved to be unreliable (particularly during the current crisis) and of course it is a diversification of a portfolio. Perhaps most importantly Gold is the safe haven currency when all other currencies are failing and losing value.
It is worth noting that most investments have a risk attached – that is to say a risk to the counterpart offered in the investment. If these are shares, certificates, funds etc there is a possibility that the counterpart to your investment ie. the shares or assets supposedly backing funds could fall to zero in a crisis due to company failure, the debt cycle or unscrupulous traders who have oversold their funds such as is the case with ETFs (less than 20% physical gold to back the certificates sold).
Gold can never fall to zero as it has consistently had value for 6000 years which is better than any modern day currency or fund.
Finally, we should think of gold as an insurance against economic crisis. It will protect your wealth against inflation and it will always maintain purchasing power whatever happens during the crisis. No other product can offer this. If you have a house you usually have fire insurance in case one day the unthinkable happens. At least you have the peace of mind that you can rebuil it.
If the crisis deepens as is largely expected our whole way of life could be challenged – therefore it is prudent and wise to take out an insurance against the effects of crisis.
As in the case of fire insurance it is wiser to buy insurance before the catastrophic event!

Editor: Do you have a message to the people?

Lizette: Choose a good option that helps you save not only in a moment of crisis but which will also work for them during normal situation.
Gold protects money and the people can have a real savings to leave for the family or indeed help them with the costs of life, houses, holidays, cars, university fees etc.
We have a beautiful collection of professionally certified coins that are designated as investment quality which is not always the case elsewhere. We offer quality of service as well as trust and confidence with our Members.
My message to investors is to look at what we have to offer and then compare this to other methods that they have traditionally used and evaluate which is the better option for you – that way I know I will be welcoming lots of them real soon.

Editor: Many thanks for your time and best of luck with LingORO.com

Lizette: You’re very welcome and thank you. I am a regular reader and fan of Goldcoin.org because there are so many interesting facts and articles that are pertinent to the economic situation and the gold market. I often post links to your articles and sometimes translate quotes made by economists and commentators about the gold market. I wish you continued success with your blog and hope to see you in Spain soon.

Is there a necessary connection between gold coins and politics? The short answer is: yes. Undoubtedly over the course of the last century, and beginning fairly early on, gold became, and still remains, a highly controversial political subject. The most influential economist of the century, John Maynard Keynes disparaged not just the gold standard but the metal itself: he thought wealth creation a sort of secular sin, and considered those who saved to be selfish. In 1933, President Roosevelt banned the private ownership of gold, and passed measures to confiscate privately held gold – something that may be about to occur in places as widely diverse as the European Union, Turkey and Vietnam, with a suspicion that the same is afoot in China.

Not surprisingly, these animosities towards gold have gone in tandem with the creation and expansion of the Welfare State, the political entity that is utterly bankrupt and is the prime cause of the financial crisis.

So, yes indeed gold, whether in the form of collectable coins or other types of investment, is very political indeed, but not just because it is seen as a store of selfish wealth, or, as its enemies derisorily call it, “hoarding”.

Ray Vicker in The Realms of Gold (published by Robert Hale, London, 1975) makes this very important point:

“The deeper one gets into monetary matters, the more one realizes that the whole argument about gold’s monetary role, or its inability to perform it, involves fundamental emotional attitudes toward man and his environment.

“Not only technical monetary systems are at odds when the chrysophilites and the chrysophobes argue money. This is cash versus credit. Sound versus easy money. A balanced federal budget versus deficit spending. Rugged free enterprise versus government economic management. A black-and-gray world versus utopia. The belief in sinful man meeting the conviction that man is essentially good. The idea that progress only comes through individual gain clashing with the contention that communal efforts spell forward movement.”

Gold, therefore, is not only a measure of prudence, it is also the summation of the political arguments of the last century – and even a repository of some of the profoundest truths of human existence.

Those who invest in gold are, in the long run, realists, as the following account by Vicker of what happened in the 1960s and 70s makes clear:

“When sense and nonsense are being evaluated the chrysophobes must explain how come they erred so much in the 1960s when they were denigrating gold and claiming that it was on the way out. It was in the 1960s and early 1970s that the great monetary battles involving gold were fought, with few people in the United States realizing what was happening even after the dollar experienced two devaluations. Briefly, the dollar, which had been ‘as good as gold’ for so long, no longer was as good as a thirty-fifth of an ounce of gold. And many people were discovering this fact.

“These people were termed ‘speculators’ through the monetary cyclones which erupted. Actually, they were ordinary businessmen, bankers and others who had sense enough to protect their assets. In politics, whenever anyone disrupts a pet project of the party in power, it is customary to tack some derogatory term onto the disrupters. The word ‘speculator’ has enough of an unsavoury connotation that it appealed to those in government who saw themselves as ‘defenders of the dollar’, though they couldn’t see the easiest method of preserving the whole system – a doubling of the monetary price of gold.”

Therefore, however unlikely it may seem on the surface that a numismatic website should feature regular political commentary, the central role that gold plays in human affairs means that its political and economic aspects need constant analysis.

The Angel of Independence – Mexico

We will now deal with one of the highest sold investment coins in the world, manufactured on Mexican territory. It is called the Ounce or Libertad.
Its origin dates back to 1981, and coming to enrich the gold investment market where hitherto only the Krugerrand had existed since 1960 with the Maple Leaf in 1979. At the beginning, this Mexican gold coin was called `Once’ but a few years later, its name was changed to that of `Libertad’.
It is a coin used as legal tender in Mexico (the silver coin is not considered legal tender, only that made out of gold), classified Type I and as opposed to other gold coins, this one does not have any face value. Thus, its value has to be measured in weight. If we want to calculate its face value, we can obtain it by converting its weight according to the current rate of exchange for gold’.

Origins

In the Seventies, while we were going through a serious oil crisis, it was necessary to develop new products which were going to make it possible to get out of the crisis. It was then that the Bank of Mexico, under the leadership of Gustavo Romero Kolbeck, entrusted the project to the Museum of Currency to manufacture a gold coin with the weight of one ounce, and who would be historically-speaking linked to the famous coin of `50 pesos Centenario’ (about which we wrote in another article), and which represented the centenary of Mexican Independence.

Features

Its weight is of 34.55gr, 900 thousandth of gold (of those struck between 1981 and 1991), with a diameter of 34.50 mm, 2.50mm in thickness, that is to say a total weight of 31.03gr. of gold with the remainder in pure silver.
At the time of the first run between the years 1981 and 1991, the coin was struck in 3 distinct weights, namely: 1 ounce, ½ ounce and ¼ of an ounce.
Between 1989 and 1991, the run of the Libertad was stopped then restarted in 1991 by supplementing the range with two new weights: 1/10th of an ounce and 1/20th of an ounce. Which meant that the coin was offered in 5 different weights.
In 1991, the purity of gold was also reviewed for this coin since it moved to 99.9 (0.999) – as well as the weight of an Ounce to 31.10gr.
These changes were from now on classified under Type II.

1 Ounce

1/2 Ounce

1/4 Ounce

1/10 Ounce

1/20 Ounce

Obverse and Reverse

Libertad' gold coin of 1981

The obverse of these coins bears the coat of arms of Mexico while the reverse `the Alada Victory’ – the same as on the coins of 50 pesos Centenario. In its right hand, it bears a laurel wreath which represents victory and in the left hand a broken chain which represents freedom – in the background, the Popocatepelt and Iztaccihualt volcanos, the first considered as a divinity during pre-Hispanic times and venerated by the Aztecs.

Overlooking the volcanoes and inserted next to the Alada Victory is written `1 Ounce of Pure Gold’ (on the left side), the year 1981 (on the right-side) and below: Mexico City (this was for the coin of the year 1981).

On the coin of 1994, appears `1 Ounce’ on the left side, `Pure Gold” on the right-side, and, on the edges of the lower part, we see the year, Mexico City and the law.

Libertad' gold coin of 1994

The Eagle takes up the middle part of the obverse, left profile outlined, with raised wings, in position of combat, inserted on a prickly pear cactus (national symbol of Mexico), holding a snake in its beak. Across the whole coin is written Estados Unidos Mexicanos (United States of Mexico).

In 1996, the appearance of this coin underwent a few changes. The Bank of Mexico decided to apply these changes in order to make this coin more attractive to the public. In this way, the obverse now bears in addition to the central eagle of the Mendocino Codex, the letters of 10 escudos all around as well as various types of eagles belonging to the succession of governments of the Mexican State, including the First Empire of Iturbide, Porfirio Díaz, the Aztec Eagle, etc…

On the reverse, the Alada Victoiry, today regarded in a very different way, highlights the column which supports it.
The layout of the letters also changes and these can now be seen on the top part, on the edge. The order of the inset appears thus – first: 1 ounce of Pure Gold, then the year of striking and the law.

Libertad' gold coin of 1996

Through its beauty, its purity, its quality and its fame over so many years, this coin is a coin of excellence, a reference for investment purposes at global level

100 Peruvian Soles - Reverse

At the time of the ancient Peruvian pre-Hispanic culture, gold and silver did not have the same meaning as today – it did not have any economic if not religious value and represented the authority of a race or people. To trade, people ‘ bartered’ food such as hot red pepper, for example, or if not copper coins for trading in goods.

On the arrival of the Spaniards in Peru, a system of currency was established then the building of the Museum of Currency of Lima, which was inaugurated 22 years after the foundation of the city, on the order of King Felipe II. At the beginning, the striking of gold coins was limited by royal decree – thus, the first coins which were struck in Peru were those out of silver in 1568, resembling the coins struck in Mexico at the time of the reign of Charles 1st.

These coins were given the name of ” Rincones ” – in honour of its engraver Alonso de Rincón. The Museum of Currency of Lima underwent several closings and was finally closed in 1588. Prohibition to strike gold coins was lifted during the time of the viceroyalty, at the time when a bi-metallic system was founded, in which both silver and gold were used. The gilded metal coins were named ‘ escudos’.

At the beginning, the metal used for the manufacture of these coins was rather rudimentary (with an anvil and a hammer). The coins obtained were rather uneven in shape, to which they were given the name of Macuquinas (makkakuna = struck).

In 1752, new coins were manufactured with the edges bound in cord, thus the shapes of the coins became round. The first gold coins to be struck had on the obverse the King of Spain of the time wearing a wig (known for having a large number of wigs) and on the reverse the crowned shield. The rich history of Peruvian coins knew many changes following the succession of royalties and mandates in the country. Let us make an interesting leap back into the past, to the time of ‘Peruvian dimes’: the Soles. The One Hundred Peruvian Soles out of gold, the arrival of Simon Bolivar, great liberator of Latin America, caused a certain number of changes at monetary level.

100 Soles of Peru – Obverse (Source LinGOLD.com)

The appearance of a new escudo, symbol of freedom of Peru, bore an obverse with the new emblem and on the reverse a feminine character standing upright (Libertad Parada) who represents the Republic. In the early days of the Republic, Peru went through difficult times. The country was divided into two: the Republic of the Peru of the north (having Lima as a capital) and the Peru of the south (having Cuzco as capital) – the first republic kept the obverse of Libertad Parada and the second republic created a new coin showing the new departments which formed the Peru of the south. In parallel at the same time, new alliances were created between the Peru of the north and Bolivia – thus appeared the weak currency of Bolivia which made the Peruvian currency fall. This system did not function and following the law of 1863, ‘ The Sole’ was created as the single currency of Peru. The obverse was changed – from Libertad Parada to the seated Libertad. Struck in gold, silver and made out of copper, but more specifically in this article, we will deal with the 100 soles of gold since it concerns one of the most important Latin coins in the field of numismatics.

Reverse

The reverse of this elegant and precious coin takes up again the seated Libertad, inserted with the shield and the column. On the lower part of the coin, just below the feet of Libertad, appears the year of striking whereas on the edge of the coin, on the far-right of the character, one reads CIEN SOLES ORO (ONE HUNDRED GOLD SOLES), and on the far-left: GRS.42.1264 OF FINE GOLD

Obverse

The obverse shows the Coats of Arms of Peru with in the top part its laurel wreath, and, in its lower part:

- In the first part: a vicuna (sacred animal for the Incas).

- In the second part: a quiquina (whose peel, which contains quinine, has recognized medicinal properties)

- In the third part: a cornucopia in gold – which refers to the natural richness of the country.

This crown is surrounded by a branch of palm tree and is covered by a laurel wreath – interlaced with a two-tone belt. One reads on the coin: PESO (WEIGHT) GRS.46.8071- REPUBLICA PERUANA (PERUVIAN REPUBLIC) – NUEVE DECIMOS FINO (NINE TENTH FINE) – LIMA. Weight and Purity 46.8071grs y 0.9000 Gold 1.3544 OZ

The coin in figures

Minting of the 100 Peruvian Pesos. Year and number of coins struck

To acquire one of these coins is a wise decision if you wish to combine security with the pleasure of owning a beautiful coin, which will acquire more value in time since it has not been struck since then.

Amadeo I of Savoy

Son of the Italian king Victor Emmanuel II, Amadeo I was proclaimed King of Spain on the 2nd of January, 1871. Hitherto, the influence exerted by the Spanish government sought to found a constitutional monarchy – hence they selected a foreign king and put in place a system of mandates, namely: the people for the king, through Parliament.
Amadeo I was the first king of Spain to be selected by Parliament. He was not recognised by certain parliamentarians, including; Carlists, Bourbons, the church and by the people; who judged him as being unpleasant and reticent towards learning the Spanish language.
Upon the death of General Prim, the political alliance which had placed Amadeo I on the throne began to dissolve little by little. The pressures brought by the federalist revolts, the loss of support from capitalists and the Carlists war pushed the Italian monarch to renounce the throne on the 11th of February, 1873.
From his 2 years of rule, hallmarks bearing his effigy were designed for the 5 Peseta coins as well as the 25 and 100 Peseta gold coins – some were struck as trials.
In 1868, a new parameter was integrated into the Spanish monetary system. Unique to the world, two dates were to be inscribed on the coins: the approval date of the coin type and when it was struck. Nevertheless, this initiative was not correctly followed between 1871 and 1875, partly covering the rule of Amadeo I. According to information collected in el Catálogo de la Peseta, it appears that the number of coins issued with the year (between the stars) 18-71 are more common than those of 18-73, those of 18-74 appear in only 20% of cases while those of 18-75 appear in only 10% of cases, approximately.
It was only during the 1st republic, i.e. not before the end of the year 1873 that the process of the two dates began to function better, inscribing the correct date between the stars of the coins.
But this accuracy of dating came at a time when the currency did not reflect reality since Amadeo I renounced the throne in February 1873. The republic followed and thereafter, in 1875, came the rule of Alfonso XII, although the currency with Amadeo I’s effigy continued to be struck until mid-1875.

Marks of guarantee of the Amadeo I coins

Five people were charged with assuming the guarantee of these coins. On the obverse side are affixed the first name and surname initials of the engraver – on the reverse, the surname initials of the two Testers and Beam Balancers:

Engraver: L.M.: Luis Marchionni

Testers and Beam Balancers:

SD M: Donato Álvarez Santullano, Eduardo Díaz Pimienta y Ángel Mendoza Ordóñez.

DE M: Eduardo Díaz Pimienta, Julio de Escosura Tablares y Ángel Mendoza Ordoñez.

25 Peseta gold coin

Amadeo I 25 Peseta coin

Characteristics:

Fineness: 900 Thousandths.

Diameter: 24mm.

Weight: 8.0645g.

Workshop: Madrid.

Edge of the first coins: Relief engraving of 27 six-ray stars, using the hoop system open to three points.

Edge of the coins struck later out of reddish gold: JUSTICIA Y LIBERTAD (JUSTICE AND FREEDOM) separated by three groups of two six-ray stars.

Obverse: AMADEO I REY DE ESPAÑA *1871* (AMADEO I KING Of SPAIN *1871*) - portrait of the king facing right.

Reverse: Ley 900 Milésimas (Title 900 thousandths) – 124 piezas in Kilog. (124 coins in Kilog.) SD 25 PESETAS M, around the Spanish armouries carrying the coat of arms of Savoy, surrounded by the coat and fleece.

Number of strikes: 1871 (75) SD M = 25

<The first strikes were made with an alloy containing 10% silver and conferred a bright yellow tone to the gold of these coins, which differentiates them from the other coins struck later, these latter ones displaying a more reddish tone of gold.

These coins, as well as the 100 Peseta coins of the same year were the first gold coins displaying a face value in Pesetas, emanating from the Reform of October 19^th 1868. Struck under the Order of the General Directorate of the Treasury of August 22^nd 1871, “as tests, and it is impossible to specify the quantity of coins manufactured in 71”>

(Information extracted from the Catálogo de la Peseta by J.Aledón & Modern World Gold Coins).

In general, the 25 Peseta coins began to be struck under the Royal Decree of March 15^th 1871. Previously, the reform of the Peseta did not integrate in the values struck out of gold the 25 Peseta coins, omitting the 8 gram model so well-known in Spain, Germany, Holland, etc…

Of these coins, only some were struck as tests. It is under the reign of Alfonso XII that they started to be manufactured in series.

100 Peseta gold coin

Amadeo I 100 Peseta coin

Characteristics:

Fineness: 900 Thousandths

Diameter: 35mm.

Weight: 32.25g.

Workshop: Madrid.

Edge: Relief engraving using the hoop system open to three points with the words JUSTICIA Y LIBERTAD (JUSTICE AND FREEDOM), separated by three groups of two six-ray stars.

Obverse: AMADEO I REY DE ESPAÑA *1871* (AMADEO I KING OF SPAIN *1871*) – portrait of the king facing right.

Reverse: Ley 900 Milésimas (Title 900 thousandths) – 31 piezas in Kilog. (31 coins in kilog.) SD 100 PESETAS M, around the Spanish armouries bearing the coat of arms of Savoy, surrounded by the coat and fleece.

Number of strikes in Yellow gold: 1871 (71) = 25

Number of strikes in Red gold: 1871 (71) = 50

> An auction was held in Madrid on March 16^th 1995, selling one of these coins at the starting price of 15 million pesetas (€ 90,151.82)

(Information extracted from Catálogo de la Peseta by J.Aledón & Modern World Gold Coins)

Re-striking of these coins

Unable to gain possession of the original specimens of the said coins, King Alfonso XIII commissioned the re-striking of specific ones in order to honour certain obligations. Thereafter, it was discovered that these coins appeared in 1963 coming from Switzerland.

The Decree of March 21^st 1871, which enacted the creation of the 25 Peseta gold coin, stipulated that it would contain any caption on the edge, and if possible that the smooth part of the corners would contain differences to distinguish these coins from those emanating from other countries.

But the coins re-struck out of reddish gold display on their edge: Justicia y Libertad (Justice and Freedom), separated by three groups of two six-ray stars, similar to the engraving on the edge of the 100 Peseta coins.

Thus, these two coins of reddish gold were a re-striking produced in an unofficial way with the original coins, and to purely profit-driven ends.

As these are very unusual and rare coins, to possess or decide to purchase some is a true luxury – a great treasure!

Numismatic Gold coins

The profession of numismatists has changed in the past 30 years. Lovers of beautiful and rare gold coins have been gradually replaced by amateur investors.

Pierre-Yves Lathoumetie in “Avers et revers de la numismatique (1973)” makes a distinction between the humanist collector and the speculator.
The former may make some honest investments guided by his passion for rare or unusual Gold, silver or bronze coins. The latter, instead, will fail unless he is able to appreciate the true historical value of the coins.

Why consult a numismatist?

Both need to consult an expert: the numismatist, who will be able to advice them on price and history of a Gold, silver or bronze coin. Consultation with a numismatist and trust in him does not prevent the collector or speculator from comparing prices or obtaining information from other sources.

Roughly speaking, this is basically what awaits those who want to get involved in the numismatic world. Experts and novices run the risk of finding themselves lost in a market that has changed considerably in 30 years and which is subject to fluctuations and uncertainties.

A market without rules

It is important to know that there are no rules governing the rare coin market. The price on a piece may differ greatly within the same category, from one country to another, depending on demand. There is no fixed price. Two identical coins may have two different prices with the same exhibitor. What this tells us is that the market of extremely rare pieces has no uniformity, in contrast to the market of gold bars or investment coins which is structured and organized. These changes, obviously, have an impact on the profession of numismatist.

Numismatic influences of the Art market

After 30 years, we are witnessing a type of negotiation between vendors and purchasers where any price is possible, within the higher band. We are also witnessing an extremely sensitive market where the most insignificant event may shoot up the price of some particular coin: public sale, archaeological discovery.

From collector, the numismatist has become speculator, ignoring in most cases the past of the coins, the art and archaeology.

Varied consequences

-Perfect coins are being sought after due to their premium, and because those that are damaged or deteriorated lose their charm. There have been cases when extremely rare pieces have been sold for very little money and others less unusual have been sold at gold price because they are intact.

-Investors grab Gold coins which are easily recognizable (newer pieces from the 19th and 20th centuries) the prices of which increase rapidly, in detriment of rarer pieces which are not so popular among the public.

- The price of a coin may differ from one country to another as the demand is not the same (usually national pieces are more valued in their own country).

To summarize, the rare coins market has nothing in common with the common coins market reserved for investment. But as is the case with works of art and fine wines, the truly rare coins are the ones that in the long term are a good investment, because a rare piece has a “long life” and never depreciates. Its value is based on its rarity and not the gold price.

The Chinese have 3 Trillion dollars to help out the troubled western economies if it chooses. But then the Chinese are a nation of savers, hard earned cash they earn from long days of toil, often in self-enterprise ventures, is regularly put aside as investment for their future. On average the Chinese put aside 25% of monthly income for a rainy day. However their view of our crisis is somewhat different as one guy likened it to “ a bankrupt wealthy old man asking a poor man for money”. Some Chinese also remember the past experiences of decadent Western capitalism and imperialism. As Holly Williams from Sky News said “They don’t see why they should invest their hard-earned savings to help out economies and people to continue to have much more than they ever have had or ever will.

It is worth remembering that the average Chinese citizen lives below the poverty line and the new found wealth and middle class does not benefit the majority of China’s population – just like every other country you may care to analyse. The distribution of wealth always remains top heavy to keep our governing powers in the manner they’re accustomed and the bankers with enough profits to pay for it as well as their own hefty bonuses.

If you want to know to whom all the “money” has been paid that has resulted in this planet-sized debt then look no further than Goldman Sachs, their lawyers, all ex-heads of state and the personal fortunes of other prominent world politicians over the last 40 years, the Federal Reserve, the history of the Rothschild fortune and the IMF.

Will this debt ever be properly accounted for or ever paid back? No and No.

That’s why China does not want to lose value of its accrued wealth to the whims of US or European debt. Both lack a credible and coherent plan. Obama and Sarkozy have both got one eye firmly on domestic matters as they prepare for re-election next year.

Greek Tragedy?

The joke is they were all so smug thinking they’d sorted out a plan to buy time with Greece and then Papendréou goes and drops a bombshell with his referendum offer as a democratic gesture to the Greek people – oh yeah!
Trouble is he doesn’t actually care because he has nothing to lose and he knows what is coming as we wrote in “Greeks prepare a coup d’état ?”

He has taken this opportunity, his last on the European and G20 stage, covered by the world’s media, to play centre stage and enjoy his moment. He was called before the Headmaster and Headmistress of the Franco-German alliance, to explain his unilateral approach to life and to discuss the question that will be put on the referendum.
He indicated that sovereignty of Greek affairs remained the jurisdiction of the Greek parliament and its decisions are binding before all others and not open to outside interference. So not your average pro-European stance!! As I’ve said he’s got nothing to lose and knows what is coming.

US upgrades priority on plans for Iran airstrike

I also heard that the US and therefore by default the UK as well are bringing forward their plans to conduct air strikes on Iran. Seems they’re centrifuges are back in business as is the possibility of producing weapons grade nuclear material. Looks like they’ll hit their not-so-secret secret mountain production facilities. Intelligence reports backed up by International Atomic Energy Agency gives this story more than usual credibility. The word on the street is that Obama is nervous.
Israel says report proves “we told you so” for years that Iran posed a significant threat to its existence.

UK General strike will paralyse a nation

In the UK a massive general strike looks set to take place at the end of the month over public sector pension reform plans. The nation could be brought to a standstill with a 3 Million walkout planned. Negotiations between the Government and Trade Union leaders are not making any progress even if there is an improved offer on the table. The taste of austerity is always bitter.

Silvio doesn’t want to spoil a party

Finally Italy rushed out a message on the eve of the G20 to announce a package of austerity measures no doubt to comply with some previous handshake and just to make sure drinks with the others went well in Cannes! We’ll believe them when they’re implemented, successful and have brought about the desired effect.

Ever wondered why the announcements of “new improved measures and offerings to us all” from politicians always get great airtime but we rarely see a “results show” – then again fixing figures is a way of life for some so don’t settle for less than “seeing is believing” proof.

Crisis, what crisis?

So the world, its economies, all nations and globalization are working fine and there’s nothing to worry about – fine – and remember in this case do nothing, just enjoy every moment of a beautiful daily life.

If you thought for one minute this may be in jeopardy would you insure against it? Just like you would a car against an accident so you can afford to replace it if necessary, or against a fire so you could rebuild your home?

How do you insure yourself against a crisis?