We have previously reported at Goldcoin.org in Chinese queue at malls to beat Bernanke’s inflation with gold that the a Chinese Gold rush is underway from investors who are looking to beat inflation and devaluing currencies by buying and hoarding gold bullion and gold coins.

In January 2010, China recorded an inflation rate of 1.5%. But just 12 months later, the rate of Chinese inflation has climbed to 4.9%.

Rising inflation has sent food and property prices in China skyrocketing.

The price of food in China has increased 10.3% on an annual basis. The price of grain rose 15.1% and fruit prices were up 34.8% since January of last year.

Chinese inflation has been fuelled by an economic stimulus during the financial crisis two years ago of $585 which has resulted in excesses of liquidity in the economy.

The Chinese Government has tried to curb the inflation with measures such as raising interest rates several times and tightening lending requirements but so far this hasn’t worked. Even worse is the fear sweeping through the Chinese economy that inflation could go out of control and even lead to hyperinflation.

This has already prompted Chinese citizens to buy gold and their appetite for the yellow metal is insatiable.

This trend is not only set to increase but possibly explode into action following recent reports that the People’s Bank of China (PBOC) is actively recommending that over 1 Billion Chinese citizens buy gold as a way of preserving and protecting their wealth against inflation, economic crisis and the falling values of major currencies .

This recommendation was given in the Financial Markets Review from the PBOC and its publication coincided with the decline of several major currencies against the value of gold notably, the Swiss Franc fell 2.5%, The Japanese Yen 2%, The Pound Sterling 2% and of course the US Dollar  which fell 1%.

Chinese buy almost half the Gold produced in the world

According to the gold-specialising Swiss Bank UBS the Chinese demand for gold in the first 2 months of 2011 exceeded  7.05 Million ounces.

This unbelievable demand is the equivalent of 47% of all gold produced in the world during the same period. So the Chinese are buying almost half of the world’s gold production.

If this continues then the Chinese are set to buy in excess of 42.3 Million Ounces of Gold this year!

To put this quantity into context it is more gold than China’s Central Bank officially stores in its reserves.

The Financial Times recently quoted a senior executive at the Industrial and Commercial Bank of China ICBC, who spoke of the “voracious” appetite for gold in China…

China’s largest bank started a physically-backed gold savings account in December with the World Gold Council. Account openings have already surpassed 1 million, with more than 12 tonnes of gold already stored on behalf of investors.

Zhou Ming, deputy head of ICBC’s precious metals department, said the nation’s largest bank sold nearly 250,000 ounces of physical gold in January — the equivalent of 50% of all the bullion ICBC sold last year.

Added to this is the continuing diversification out of Forex by the People’s Bank of China into gold and other precious metals. They have around $3 Trillion which they would like to change because the weakening dollar is eroding its real value. How much gold will they need for $3 Trillion?

We know that China has been accumulating gold surreptitiously by buying up its own domestic production.

This suggests that increasing gold production was part of a long-term strategic plan to become a global leader in gold investments among governments.

The World Gold Council even reported:

Some market participants believe that China may also be continuing to buy local mine production, which it has done regularly in the past. There is certainly no shortage of experts, both domestic and from overseas, advising China to do so.

The World Gold Council estimates China’s gold demand could double in 10 years as more investors embrace precious metals.

But even in the short term, the expected demand for gold in China over the coming month will be enough to put significant strain on global supplies.

According to Tom Bulford  “China has spent the last decade buying every ounce of gold it can lay its hands on.

In fact, the Chinese have increased their deposits by 1,054 tonnes since 2001.

That’s 76% more than it was buying just a decade ago!

And it’s not just the Government we’re talking about here.

Ever since private gold ownership was legalised in China…and the Shanghai Gold Exchange opened – regular Chinese citizens have also started buying up gold in a BIG way”.

Quite simply, the Chinese seem to want to buy ANYTHING gold…

…gold coins…gold bullion…even foreign gold miners.

In fact, according to Want China Times…

“Chinese state-owned gold miner China National Gold Group announced… that it will step up overseas mergers and acquisitions in an effort to increase its gold stockpiles by 100 tonnes this year.”

Chinese production figures

China Produced $35 Billion in Gold in 2010

According to China’s Ministry of Industry and Information Technology, gross output from domestic production increased 67% to 230 billion yuan ($35 billion) in 2010.

Of this, China’s gold industry earned 5 billion yuan ($3.8 billion) in profit — 78% more than in the previous year.

China’s gold mines produced 9.9 million ounces of gold in 2010 — an increase of 7% over 2009.

Meanwhile, total domestic gold output grew 9% to 12.0 million ounces. (source WGC)

India is also encouraging Gold acquisition

Traditionally there has always been a strong demand for gold in India  with its specific seasonal demands for weddings and a cultural attachment to jewellery. However, they are also strengthening demand in Asia which is fast becoming the most important Continent for gold investment.  Gold is selling extremely well to the ordinary citizens looking for wealth protection and preservation. There are over 460 Post Offices that sell gold direct to the people. India also has public companies that offer credit to anyone wishing to purchase gold – in other words you can get a loan to buy gold!

This incredible demand throughout Asia is sure to impact the price of gold which may not have been factored in to the so-called expert calculations/ predictions/guesses.

Gold Price set to go skyward with Asian demand and World events

Similarly there are other significant factors that cannot have previously been factored in to annual gold price predictions such as;

• The continuing European Sovereign debt crisis with Portugal the latest Eurozone country in difficulty,
• The on-going Japanese catastrophe following the Earthquake, Tsunami and nuclear crisis,
• The popular uprisings in North Africa and around the Middle East with Syria and Yemen on the brink and the conflict in Libya worsening by the day. This has drawn military (and therefore financial)  resources from France, the UK and the US which have their own deficit problems and now has involved NATO countries.

It is becoming increasingly difficult to see how all of this can be paid for or accommodated in a World Economy already faltering.

It is no wonder that the Chinese are hedging against another crisis and with their ever increasing hoards of gold they are aiming to back the Yuan with gold and ultimately replace the Dollar as the world’s reserve currency.

We are heading for a spot of $1500 within weeks – and then…..$3000+

In view of the colossal demands for gold already discussed, the possible collapse of the dollar and the unknown outcomes of other world events a crisis bigger than 2008 looms large and we cannot predict which event will trigger it but be sure that it will happen. When it does make sure you have copied the Chinese and secured your wealth in the only safe haven for the crisis ahead. Buy Gold and buy now before the price takes off exponentially surpassing $2000 and even £3000 an ounce before the end of the year. The worthless dollar, hyperinflation, extraordinary demand and debt crisis dictate the course of gold to re-establish itself as the only real measure of currency and wealth. When the dust settles and re-evaluations have been made just pray you have gold as it will be worth upwards of $3000 an ounce.

We have already spoken about the 50 pesos coin on Goldcoin.org. This coin remains a very good choice for buyers looking to invest over the long term. But the 50 pesos coin is not the only Mexican gold coin to have in your money bag! In the following article you will discover the smaller family members of the 50 pesos coin and their characteristics.

Description of the gold pesos coins.

The 2, 2.5, 5 and 10 pesos coins all bear the same inscriptions and engravings:
-  The obverse of the coin has the inscription “ESTADOS UNIDOS MEXICANOS” (United States of Mexico) which straddles an eagle that is standing and grasping a serpent in its mouth. The eagle is standing on a crown made from an oak branch and an olive branch. The eagle is the National symbol of Mexico: for Mexicans it is the representation of the duality between the earth and the sky. It also symbolises the conflict that delivers Good over Evil. There is a legend which surrounds this eagle: the old city of Tenochtitlan, today Mexico City, was built in the place where the Aztecs once saw an eagle flying off carrying a serpent in its beak.

- the reverse of the coin shows the value of the coin and the year in which it was minted. The coin is the effigy of Michel Hidalgo, a revolutionary and abolitionist. Michel Hidalgo is an emblematic figure of Mexico: a priest, a rebel and a revolutionary whose insurrection triggered the country’s process of independence. He first proclaimed independence on 16 September 1810 and then abolished slavery on 6 December. On 30 July 1811 the Inquisition had him shot for his crimes.

The 20 pesos coin

The obverse of the coin has a motif which represents the eagle striking down the serpent. The reverse of the coin shows a representation of the Aztec calendar from the Tiahuanaco Sun Gate. The Sun Gate is one of the vestiges of the Aztec civilization and is considered by several researchers as a astronomic sign.

Date on the gold pesos coins

• Note on the 10 pesos coin: From 1961 to 1972, 954,983 coins were re-minted with essentially the year 1959. In 1996 , matt remints were created.

What is the interest in Mexican gold pesos coins?

Above all the interest in these coins is numismatic. But there is only a small step from numismatic to profitable investment! Why? Because these coins are ever more rare and their value can never fall below that of gold itself under any circumstances. To be clear: buying Mexican pesos in an opportunity to combine asset protection with pleasure.

I am sure it will not come as a shock to learn that there is an on-going investigation into a host of « big banks » who are accused of fixing their inter-bank lending rate (LIBOR) to effectively disguise and downgrade their indebtedness. The period involved reveals this was taking place pre-2008 crisis.

The investigation is well under way and involves the major Financial Service Regulators of the US and UK amongst others.
The scale is breath-taking and the accusations extremely serious as indicated by the issuing of subpoenas to retrieve sensitive documents for the prosecutor’s evidence.

Here are the details as reported by C Powell of GATA following a report in the Financial Times:

Regulators in the United States, Japan, and UK are investigating whether some of the biggest banks conspired to “manipulate” the benchmark interest rate used to calculate the cost of billions of dollars of debt.

The investigation centres on the panel of 16 banks that help the British Bankers’ Association set the London interbank offered rate, or Libor — the estimated cost of borrowing for banks between each other.

In particular, the investigation was looking at how Libor was set for US dollars during 2006 to 2008, immediately before and during the financial crisis, people familiar with the probes said.

The probe came to light on Tuesday when the Swiss bank UBS disclosed in its annual report that it had received subpoenas from three US agencies and an information demand from the Japanese Financial Supervisory Agency.
The bank said the regulators were focusing on “whether there were improper attempts by UBS, either acting on its own or together with others, to manipulate Libor rates at certain times.”
All the panel members are believed to have received at least an informal request for information — an earlier stage in an investigative process before a subpoena.

Witnesses had been interviewed by investigators from the US Securities and Exchange Commission, the Department of Justice, and the UK’s Financial Services Authority, people familiar with the probe said.

The inquiry has been under way for some months. At least one bank received its initial request for information in October, people familiar with the matter said.

The BBA produces Libor rates for 10 currencies using eight to 20 contributor banks. The contributors submit the rates at which they think they could borrow on the open market. Outlying submissions are tossed out and the reported rate is the mean of the middle values.

Critics of the process for setting Libor — which is used as a reference rate for about $350,000 Billion in financial products — have long claimed it is antiquated and lacking in transparency. Commentators complained bitterly during the financial crisis that the rates were distorted because they believed weaker banks were unwilling to admit higher borrowing costs.

UBS declined to comment beyond its disclosure. The regulators declined to comment. The other banks on the panel at the time covered by the probe either declined to comment or spokesmen could not be reached.

They are: Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Lloyds, Rabobank, Royal Bank of Canada, Bank of Tokyo-Mitsubishi, Norinchukin Bank, Royal Bank of Scotland, and West LB.

HBOS, which has since merged with Lloyds, was also a member.

The BBA said: “We are committed to retaining the reputation and integrity of BBA Libor, which continues to be the authoritative benchmark of the wholesale money market. It has a straightforward and unambiguous calculation method, which excludes any rates which are significant outliers. It is fully transparent — all of the data inputted by the contributor banks is publicly available, as is our methodology.”
(By Brooke Masters, Patrick Jenkins, and Justin Baer , Financial Times)

Banks outside the law?

This type of activity is typical of the banking sector who operate amongst themselves as if they are untouchable and above law and regulation.
They believe in their own importance because of their size and apparent power which disregards national boundaries because of their global clout. They play by their own rules and we know where that leads us.

Even then, when they cause misery, mayhem and crisis for the whole world by their own greedy practices and mistakes they still come begging for more money to play with – and the worse thing is that incompetent governments full of over-educated, posh, millionaires who have absolutely no notion of the real world because of a privileged, sheltered, upbringing give them our taxes. I believe this should also be investigated as it stinks of incestuous, undeclared interests by senators and ministers who post politics suddenly appear on boards of directors doing nothing (consultants) for some enormous salary.

Do you trust your bank?

Do you know what they do with your money?

If there’s another crisis where will your money be?

If your bank gets into trouble will they have enough money to pay back all their customers?

Who do you think they will pay first? You? Yeah right!

If you’re not part of the Politocrat & Banking club you’ve got no chance.

I believe that Bankers should be personally responsible for their actions, decisions, judgements and huge mistakes they make and personally bankrupted to repay some of the missing funds. It should be in their contracts and not some huge retirement pay off for complete incompetence like Fred Goodwin (RBS).

Let’s face it they’re quick enough to give themselves performance related bonuses (when there’s the slightest positive news) so why doesn’t it work both ways? When a bank underperforms they should be responsible and pay for it just as they like to cream off their “rewards” for guessing right.

Stop bailing out incompetence – Let them fail!

I also believe that Banks that get themselves into a mess should get themselves out of it or let them go bust like any other business that fails – after all that’s why we have the word Bankrupt isn’t it?

It is two words combined – Bank & Corrupt! That about explains it!

The increasing problems of disasters and political unrest are putting further strains on all these large institutions that are exceptionally nervous because they know they are exposed and overstretched as pre-2008. Another feature is they never learn by experience!
In 2011 we will witness an economic crisis on a scale not yet seen.

The foundations of Countries economic policies and Financial Institutions “Good Practice” have not been prepared for the shock that is gathering strength and they will not withstand the shock and its magnitude.

Can you afford for them to go down with all your savings?

Should you wait until it starts and it’s on the Tele before you do something?

Should you buy fire insurance before or after a fire?
Act now and preserve some of your wealth by investing in tangible assets that will survive a crisis.

Act now to put your money into something that you own, that is not linked to a failing or devalued currency that will be a means of survival when you need it most.

Put your wealth into gold which has been the universal “currency” throughout history.

Don’t invest in “paper promises”.

Get Physical!

Own gold and gold coins.

People survived wars, crises, recession and depression because they owned Gold.

People also perished – because they didn’t!

What would you rather do? Survive or Perish?

Make your choice!

As previously reported on Goldcoin, Gold currency is making a comeback! In Utah, they could soon be buying a hamburger with gold!, the state of Utah has been considering a bill that would allow gold coins to become a new inflation-proof currency that would also be exempt from state capital gains tax.
The bill, HB317, was introduced by Republican Brad Galvez and it passed by 7 to 1 in the Utah House Government Operations Committee on Wednesday.

The bill sets out a framework for the Legislature to explore the possibility of an alternative legal tender system being created but the use of a gold currency would remain voluntary. The timing stipulated is for conclusions to be submitted for the 2012 session.
The “Utah Sound Money Act” was drafted by local attorney Larry Hilton who said that “un-backed money created by the Federal Reserve to stimulate the economy, is hanging over us like the sword of Damocles waiting to just come down in an avalanche and destroy the value of our currency.”

In short it represents the frustration of ordinary people who feel that the “paper dollar” no longer serves their needs. They have simply lost faith in a devalued currency which has eroded their wealth, their incomes and their purchasing power.

A Symbolic Act that brings back the Gold Standard?

Further comments came from Jeffrey Bell who is Policy Director for the American Principles Project based in Washington D.C. He explained that this bill would be viewed as a “symbolic act”. He added “But it sends a signal to Washington that political elites who want to leave the value and staying power of our currency uncertain, indefinite, so that they can at will intervene to do what they think would ameliorate the situation facing the U.S. economy.
The last time we had the system that we are recommending — the  International Gold Standard — it set a record for least inflation”.

It is interesting to note that the US Dollar is under pressure from all sides and its role as a “Global positioning Currency” is severely under threat as is its very existence.
We have previously discussed the possible role of Gold as a future money in Gold Money, a currency of the past…. and the future? And the demise of the Dollar in Financial Armageddon from worthless Paper Money.

Word is not only spreading but people are taking action against worthless fiat currencies and you too can do something now by taking out insurance against a fiat currency collapse – buy gold and gold coins. Remember it is always prudent and advisable to have insurance before the event – in this case an Economic crisis that could happen any time soon.

Malls Witnessing Gold Rush as Shoppers Fear Inflation

Jewelers at shopping malls across the capital are witnessing a gold rush as residents spooked by inflation fears look to protect their money.
Statistics from Beijing Caibai, the city’s largest jewelry store, show sales of gold and other jewelry have totaled about 4 billion yuan so far this year, a 70 percent increase year-on-year.

Wang Chunli, general manager, told METRO that hundreds of customers are lining up outside every day to buy gold accessories, such as necklaces and rings. To cope with demand, the store has even introduced a string-weave service, she said, adding: “We’ve also arranged experienced staff to be on duty and increased the number of security guards.”

After seeing the enthusiasm for gold investment, insiders predict prices will continue to rise this year.
Zhou Xiangrui, deputy general manager of Guo Hua, an established gold and jewelry store, even suggested that the surging demand could set a new record, saying: “The price is estimated to increase by 10 percent this year.”

The price has already reached 338 yuan a gram at Caibai and 375 yuan a gram at Beijing branches of Chow Tai Fook and Chow Tai Seng, according to data from cngold.org, a popular gold investment website.

Concern over the volatile conditions in the Middle East and the debt crises in Europe could also impact gold prices, said Ji Zhiguo, an analyst the Beijing Gold Trade Center.
“This year we might see some investors purchasing more than 10 kilograms of gold bars again,”
he said. “A booming gold market coupled with a stable price increase could prompt more individuals to rush in and invest.”

Gold sales in large shopping malls citywide increased by at least 40 percent year-on-year during the first two months of 2011, Legal Mirror reported.

According to China Central Television, about 40 investors are rushing to purchase gold bars every day at the Wang Feng shopping mall in the Xinjiekou area, with most snapping up several kilograms at a time.

Wang Qiming, 34, who lives in Haidian district, said he has purchased both gold bars in malls and paper gold online.
“The capital has limits on house and car purchases, and it might be hard to preserve the value of my assets if I save cash in a bank account. So I’ve started to focus on gold investment,” he said, explaining that he plans to spend 300,000 yuan on 100 grams of gold bars.

“Stock markets change very fast and are not stable,” said Wang. “Gold investment seems much safer.”
A report released by the World Gold Council at the end of 2010 said China is the strongest market for gold investment and gold accessory purchase.

By Xu Fan
China Daily, Beijing

and courtesy of Chris Powell and GATA

Driven by persistent inflation in China and the worry about the appreciation of money, the demand for gold in the Asian continent remains high and in the first month of 2011 this reached a record. In this context, the “new rich” and those in the higher income segments both in China and India are throwing themselves into gold as a sure way of diversifying their investments.

Only last January, the Commercial Bank of China, one of the main financial institutions in the country, sold a total of 7 tonnes of gold ingots, which is the equivalent of around half of all the sale operations recorded by the bank in 2010. However, the attraction for gold is not limited to the buying of ingots: the growing demand for non-physical investments involving gold, through term deposits, could exceed 5,000 million Yuans by the end of the year.

One of the keys to this growing demand for gold in China is connected with high prices, which increased by 4.9% in January, compared to the same month of the previous year. Even though analysts are projecting a higher figure, around 5.3%, worries over inflationary pressures in the Asian giant could trigger an increase in interest rates by the Central Bank.

Faced with this scenario, a recent report by the World Gold Council (WGC) indicates that it is expected that the demand for gold from China will increase during 2011, as will demand from India for jewellery. According to the WGC, the growing interest in gold is shown in the recovery being enjoyed by the jewellery sector which registered an annual global demand which was some 17% higher than that shown in 2009.

Official figures released recently by the World Gold Council confirmed that demand for gold continues to rise. In 2010 the annual demand for gold rose by 9% equating to 3,812.2 Tonnes which is worth around $150 Billion. This is a ten year high and a strong indicator that the current price is not only sustainable but likely to increase further.
This increasing demand can be attributed to several factors.
First, there is an even higher demand for Jewellery.

Secondly, demand strengthened in key Asian markets, notably in China and India.
The Indian market is based on strong cultural references such as the Wedding Season and 2010 saw a revitalisation of the sector as awareness grows regarding the protection of wealth in gold.

The Chinese demand is backed by a strengthening retail investment by private affluent investors who are looking to gold bars and gold coins as a safe refuge for their newly acquired wealth.
The Chinese market saw the greatest increase in investment demand growth. The annual demand showed a 70% increase year on year and was equivalent to 179.9 tonnes.

After 21 years Central Banks are Net Purchasers

Thirdly and even more significant is the fact that after 21 years of being net sellers of gold the Central Banks became net purchasers of gold. This can be seen as a consolidation of their position in troubled times because they feel exposed to Forex fluctuations due to currency dilution and devaluation. It is also proof that they see gold as a safe haven to protect their reserves of wealth when they are aware of instability and potential crisis ahead. The instability in the Middle East, the soaring oil price and the risks of increasing inflation in developed economies is causing anxiety.
Central Banks are all too aware of the possible Eurozone collapse as Sovereign debt issues, austerity measures and bailouts fail to shake off the looming depression that awaits.

What will happen if Greece, Ireland or any other of the Eurozone Members are unable to abide by their debt resolution measures? Chances are there will be more than one if not all of them. Politicians wrangle with the shackles of increasing debt which they are trying to defer to another generation on a daily basis but fact is they can’t run away fast enough and they WILL get caught out. What then?

Paper Gold or Physical Gold?

It is hardly surprising that real demand is focused on physical gold and this can be illustrated by a drop of 45% for the year in demand for ETFs (or paper gold). Investors know that protecting their wealth ahead of a crisis can only be achieved by owning physical tangible assets.

When a crisis hits hard no-one can guarantee the value or indeed honouring of paper transactions as the financial institutions offering such products are themselves vulnerable to the systemic debt that pollutes all economies and that influences everyday life across the globe. Nobody predicted that an institution such as Lehman Brothers would fail or that RBS and Lloyds Banks would be brought to their knees. Similarly no-one can tell you today who will be the next casualty when economies falter. It could be your bank, your pension provider, your employer.

Act now or do nothing?

If you really like a bet then do nothing and take a chance on life not changing for you.

If you prefer to protect what you have and want to be sure that you are left with something for your future survival then get in to gold now. It is the inflation proof investment that is like fire insurance for your personal wealth. Exactly like fire insurance, do you think you should buy it before or after the event?

There are more and more options for physical gold investment and it has become accessible to everyone.
The most difficult step to take is to start, the rest is logical and reassuring.

Remember that investing in bars is good but investing in gold coins is even better. Click here for a guide to gold coin investment and don’t wait to start.

I’m sure that we all believe that governments control the money supply especially in their own country and their own currency.

I’m sure that when we place our blind faith in the banks for loans, mortgages and everyday banking we trust that they will do their best for us and operate with upstanding principles to protect our assets.

I’m sure that those of us living in a free democracy believe our liberty and rights are being controlled by fairly elected governments representative of the people.

I’m sure that as you watch the daily news about unrest around the world you begin to sympathise with the poor oppressed peoples and hoping that soon they can have the same safe system bestowed upon them that we all apparently enjoy.

I’m sure that you would be horrified to learn that the controlling influence on the largest economy in the world and therefore an influence that stretches right around the world does not actually belong to the US government at all.

Despite its self-appointed name, the US Federal Reserve which controls Quantitative Easing, the printing of the US Dollar and US Economic Policy is actually a private company steeped in mystery with a special status completely outside the control of law.

You don’t believe it? Well just take a few minutes and watch the video for a quick insight into the real world of money laundering and absolute control.

Remaining ignorant could be bliss but then again if your livelihood and survival depends on it sometimes it’s better to be informed.

Disclose.tv – “the american dream” Video

You may now understand why your continued use and enslavement in paper assets is important to those who would seek to control.

When a crisis hits or the bubble bursts you will be left with nothing and no way of reclaiming a cent or a penny of your hard earned cash.

Do you think the politicians, bankers and enormous fortunes of the world will really care?

After all when was the last time you saw a poor politician or a poor banker?

When crisis strikes they remain the great untouched because they have the personal means and wealth to survive wars or economic disaster. They won’t feel hardship or hunger but you will.

During World War II many ordinary French families managed to survive the occupation because they had stashed a few gold Napoleon coins away which they could use to buy food. This is fact and is borne out by many a testimony from the time.

If the monetary system imploded or crashed and your Dollars, Euros, pounds or whatever became worthless, how would you survive?

Gold ownership is like a fire insurance for your personal wealth and is an investment in a physical entity that you own. When a crisis hits it has always proved to be vessel of value irrespective of the currency or era.

The logic for fire insurance is quite simple – should you buy it before or after the event?

Gold investment for the masses has never been encouraged because the Banks prefer you to believe in paper money which they can print, lend to you and make huge profits for themselves in the process.

It has never been in their interest to tempt you or advertise its qualities because they have been “stealing your gold” since money was invented.

In the Age of Austerity we find ourselves, not knowing whether currencies or countries may collapse at any time, what have you done to protect yourself from destitution and desolation?

Maybe you like taking chances and are hoping for the best but that may not be enough to survive and feed yourself.

Maybe you could plan ahead and maybe you should start now?

Remember, after the fire it is too late to buy insurance!

There are many potential investors wondering what all the fuss is about concerning Gold because for the longest time it has been viewed as a past time for millionaires and Countries. The Gold we refer to here is “allocated” gold i.e. a specific, referenced, visible piece of gold bullion or a gold coin that is allocated to and owned by one person. It does not necessarily include quantities of gold held as anonymous parts of anonymous bars in anonymous vaults (“unallocated”) because this type of gold cannot be repatriated to the owners if the need arose as no-one knows which bits of which bar belong to each investor.

1. It is an investment that you own, it is your property and it cannot be lent out to a third party or used to form credit.
2. It has increased in value over 600% in the last 10 years and has shown a healthy return on investment year on year.
3. It is not a paper asset vulnerable to to the performance, viability, stability or existence of an intermediary.
4. It is not an investment in a Bank which cares little about paying you interest and a return on investment because it is preoccupied making money for itself.
5. Historically it is the only “currency” to maintain a real value in purchasing power throughout centuries.
6. It is a debt free investment, not linked to the worldwide black hole of sovereign debt and spiralling deficits.
7. It is THE safe haven for wealth and used by Countries and the largest Private fortunes on the planet as a protection against inflation, currency devaluation, economic instability and ultimately pending crisis.
8. Economic and financial experts the world over recognise and advise that Gold should form part of every investment portfolio.
9. The price of gold has been suppressed and controlled for decades by those who seek to control global finance. Since 2008 the rules have changed and control has been lost. If the gold price was corrected by the same factors as fuel, food and currency it would be worth at least $2100 an ounce today.
10. It is a precious metal available in a finite quantity that is constantly in demand the world over.It is always a good time to invest in gold because demand is extremely high and supply is dwindling. Prices will fluctuate but in the end Gold will continue to rise because it is irreplaceable, a precious metal with unique properties and it cannot be manufactured or printed.

There may well be more good reasons to invest in gold so feel free to leave a comment and add yours because there can never be too many.

The financial elite have guarded the control of Gold for far too long and would prefer that it remained their sole property.

However, in a current day climate of democratic rebellion by the masses against authoritarian elitist control of wealth it is time for everybody to share in the prosperity of gold investment.

After all, your wealth in gold is a lot safer than your wealth in the Banks!

LINGOLD.COM

envoyé par grandzebre

You heard it here first folks, the innovative new website for buying and selling gold in real time, 24/7 has arrived – LinGold.com.

The site offers free Membership and you join a worldwide community of fellow gold investors buying and selling gold to each other. There is “Good Delivery” gold bullion and a large variety of professionally sourced Gold Coins – Bullion Coins like the South African Krugerrand, The Australian Nugget, The American Eagle, The Canadian Maple Leaf, The Chinese Panda and The British Britannia. There are also many semi-numismatic coins like the British Sovereign and the French Napoleon.

There is also the exclusive LinGold Savings Plan (LSP) which is the First Personal Savings Account in Physical Gold in the World. An innovative idea to save regularly and monthly in pure gold (watch out for our article on the LSP).

Here at GoldCoin we appreciate new opportunities to invest in real, physical gold that are extended to a wide audience of investors as the benefits have too long been the reserve of an elite few.

This new venture, LinGold.com, has something for every budget and is very user friendly.

They have plenty of pertinent and interesting information (free to download) on why, how and what to invest such as their LinGold Brochure and of course our favourite the LinGold Gold Coin Guide which helps the novice and expert alike.

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Gold has always fascinated with its attractive, brilliant and glistening appearance but also because of the intrinsic properties of this precious metal. No wonder that it has played an important role in history since its discovery. Thus, for many people, gold has been at the heart of their culture, such as the Inca civilization which referred to gold as the “perspiration of the Sun”. They bestowed gifts in gold, made statues of gold, wore gold and in fact gold was everywhere around them. But in addition to this cultural role, gold very quickly acquired another role: that of Money.
While currency wars and devaluations are very much a thing of today, we have taken a trip back into the past to look at the origins of one of the first real currencies… and who knows, one that may again take its place again in the near future as a trusted, true exchange of value.

Money, a concept born of necessity

Before money existed, goods were traded in a form of exchanges and bartering. Livestock such as oxen, horses and sheep, commodities like wheat, fruit & vegetables, wood, silver and of course gold were all traded against each other depending on needs (demand) and availability (supply). However, there was an obvious difficulty that would arise which was how to equate the value of items to each other. There needed to be a reference value so that prices could be agreed upon and defined as quantities of this “stable” known value. There was also the problem of giving change or what to do if you only had enough to buy half a sheep and we’re hungry!

A popular and plausible hypothesis by Hauser* was that as gold was also being traded against various goods, its weight was used to agree an exchange. Soon people realised that gold could easily be divided into different weights which equated to multiples of its value and therefore the value of other commodities. This led to the concept that of weights of gold were indeed useful “units of value” and quickly prices for oxen, sacks of wheat etc became equivalent to a certain weight of Gold.
Naturally gold started to become a reference point for the exchange of all goods particularly because it was easily divisible and impossible to fake.

The birth of gold coins

In Egypt, gold was exchanged against goods in the form of rings which had fixed weights and therefore different multiples of value could be used for pricing goods. Elsewhere however, gold stayed in the form of ingots for a long time but their weights were often variable and trading was tedious because of these discrepancies. Weight variations meant that trades were seldom a direct equivalent to the goods being traded and so much haggling ensued.
In search of something more convenient, reliable and safe, small gold discs of a fixed weight were made and each one had a value struck on it. They were easier to carry around and allowed trade to be more flexible, retail as well as wholesale.
Thus the first gold coins were born and indeed the first recognisable currency. This took place around 700 BC according to Erik Chanel.

Whilst gold was not the only metal used for coins – silver has been widely used as well- gold, however, was the ideal metal because of its unique combination of properties such as: it is stainless, rustproof, divisible, malleable, ductile and of course rare, which made it from the outset a symbol of riches.

Is Money as good as Gold

We have previously mentioned the Gold Standard on Goldcoin.org which has several meanings depending on the era.
The Gold Specie Standard was a system that associated units of money to gold coins in circulation or when lesser metal coins drew their reference of monetary value from a circulating gold coin.

The Gold Exchange Standard was when circulating coins made of various metals such as silver and copper drew their reference monetary value from a fixed value of gold independent of their own metal value.
Finally, there was the Gold Bullion Standard which did not involve circulating coins. This was when governments had agreed to sell gold bullion at a fixed price in exchange for a quantity of circulating currency. In other words, each unit of currency effectively had a value related to gold. This allowed the mass introduction of paper currency, which was easily transportable and practical for payments.
It was also the mechanism which allowed banks to not only look after your gold deposits as they had previously but led to the credit creation system, fractional reserve banking, loans and mortgages. The problem here was that greed got the better of bankers who realised they could lend more than they had in Gold reserves and print paper money whenever they wanted as long as nobody caught them out. Sound familiar.
If you are interested in the story of money, banking and the credit crisis have a look at this video when you have a chance. It’s very relevant to our current problems.

Without Gold, Money as Debt

Anyway, the Gold Bullion Standard ended in 1971 when Nixon felt the strain of expenditures from the Vietnam War and he effectively untied the value of the dollar to gold. This also effectively untied all the other currencies which had been part of the Bretton Woods Agreement to form the IMF (International Monetary Fund) in 1944.

Paper is worth as much as Paper!

So nowadays currencies are not “covered” by a relationship to gold or a fixed unit of reference so they can be extremely volatile, easily devalued and printed at infinitum. The problem is that today’s money is based on pieces of paper that are printed with a value but there only real value is the piece of paper they are printed on. Currency value comes from economic confidence. When there is none the currency becomes worthless and it is not because the central bank has printed a number on a piece of paper that it becomes meaningful.
What actually counts is whether anybody will accept the paper in return for goods or services or dare I say it an oxen or two. We’re back where we started. The value of currency has to be real and cannot be created otherwise it will not be accepted.
Much of the problems we face today are because an excess of credit has led to an excess of debt. Pressure on currencies causes devaluation which in turn decreases the value of assets, investments and therefore wealth.
This is causing people to look for ways of protecting their wealth outside of paper money. This brings us full circle to gold which has proved through the ages to be the best safe haven for value.
The choices today are to own a physical asset that will always maintain its value i.e. Gold or to invest in the labyrinth of debt ridden, financial institutions whose products are heavily advertised but rarely realised for the poor customer. They spend more on marketing their wares than they do in paying out customers at term. Remember HSBC charging 80% over the 32 year term of a pension fund leaving some poor old retired guy broke. He’s in no position to fight back especially with the expensive legal eagles they can afford with his hard earned money!

Should we return to a Gold Standard?

Unfortunately, that is virtually impossible because there isn’t enough gold to go around. There are only 20m3 in the world and about another 100,000 tonnes in the ground. There would have to be a huge devaluation of currencies to restart the Gold Standard and of course it’s unpopular with Central banks as they would have to behave properly.
We referred recently to the state of Utah and how people are taking the matter into their own hands because they require more certainty about the money they earn and spend. The dollar has failed them and so they are now looking at creating their own Gold currency which will maintain value better than the greenback.
It would seem we have turned full circle and more and more people are turning to Gold because it offers a safe haven for their savings and is an insurance against instability.
Gold coins are an excellent investment vehicle and more and more people are turning to the value of gold. Gold coins are actually worth more than their weight in gold because they have a dual leverage. The gold content of the coin increases in value with the spot price and the premium (added value) of a coin increases with demand. During a crisis or unstable economic conditions the premium of certain coins can rise more than 40% irrespective of the spot price.

Gold as a future currency?

Gold as a currency of the future may seem far-fetched but given the state of paper money and the interest in Gold who knows, it is already being planned as an alternative stable money in certain places. Even if gold coins do not re-enter circulation they are being used as a more certain tangible investment.
Some of the most popular coins for investment are those commonly sought the world over such as the Krugerrand, The British Sovereign, The American Eagle and the French Napoleon.
These are a way of preserving your wealth and savings in something of real, timeless value.

* H. Hauser, Gold, Vuibert & Nony publishers, Paris, p.307.

Regular readers may remember our recent article on “Gold, an alternative Currency of Confidence?”
We discussed that alternative currencies are not a new phenomenon and have taken various forms in countries such as Canada, Australia, USA and the UK.

A common theme for their introduction was that they were local currencies introduced to stimulate local economies by encouraging customers to shop close to home and support local businesses. They were also the product of peoples’ dissatisfaction with Globalisation and its’ impact or even control of National economics and policies.

Alternative currencies reflect the frustration of being “controlled” by Goliath and is”David” saying “I’m taking back control because I don’t trust you, your policies, your strategies, your empty promises, your ability to manage the economy, your concern for regular citizens or your failing, devalued, paper money”.

This is exactly the case in the state of Utah where a proposal in the Legislature has been submitted that would require government agencies to accept gold in transactions. This would effectively create a parallel monetary policy that would fix “currency” values directly to the price of gold for business carried out within the state. It would equate to the introduction of a state-wide Gold Standard.

In fact if the current draft legislation succeeds it would mean that residents of Utah could mint their own gold coins. The logistics required to secure these would include the governor arming and calling on the Utah Defence Force to police stock movements and storage vaults.

The proposal was brought to the attention of Republican John Dougall who opened the bill and he commented “I think it has merit”. He added “Fundamentally, what it comes down to is people’s concern about the fundamentally reckless policies at the federal reserve and what it does long-term to the financial standing of the country and giving folks another choice of monetary tools for their financial transactions”.

Will US Debt and Quantitative Easing see the Dollar fail?

People are genuinely concerned that the soaring National debt, now over $14 Trillion, and the printing of more dollars to buy up the debt, will eventually devalue the dollar too far. Therefore they would like to have an option if things do go pear-shaped.

There is no intention of making this compulsory but at least it provides citizens with a choice to pay their taxes in gold. It seems rather strange that a country whose Government forcibly confiscated gold back in the thirties may now be forced to accept it as payment for taxes. It is also curious that regular people like Larry Hilton, an attorney and insurance salesman who drafted the proposal “Utah Sound Money Act”, are taking the lead in looking to the benefits of gold. Surely Governments should take a lead in restoring confidence for their own currency?

It would appear that “Goliath” is behest of ideas and resigned to fail whereas “David” has an eye on the future and wants to preserve and protect his personal wealth.

It proves that you don’t have to be a financial expert or big city hot-shot to understand the value of gold. Gold’s value has transcended the ages and it always keeps its purchasing power and better than any currency ever created. You can buy a cow today for the same 2 ounces of Gold you needed 300 years ago! No fiat currency can compete with that.

There are of course certain practicalities to address before any new coins are introduced, such as an agreed exchange rate, denominations and how change would be given. Any private minting of coins would be governed by regulatory standards.

However, if the legislation is passed it does mean that one day soon folk could pop down to McDonalds and pay for their hamburger with their own gold coins – then that would bring a whole new meaning to the “Golden Arches” and “McNuggets”!!!

The weakness of the dollar, the instability of the European economies and the volatility of United States bonds has scared investors. India is the principal consumer of gold. China is the principal global gold producer. Is there any link here? Despite this reality, and with gold prices at historic highs, China and India are continuing to buy major quantities of precious metals. In fact, the quantities are so high that they are becoming the pillars which are supporting the upward trend in the value of the troy ounce for 2011.

The gigantic Chinese economy is driving the bullion market, coins and gold assets upwards. Bloomberg obtained a report from Shanghai Gold Exchange in which it states that China moved from purchasing 45 metric tonnes of gold in 2009 to a projected 230 metric tonnes for 2010.

At the same time, China’s Ministry of Industry and Technology reported last December that the exporting and importing of non-ferrous metals for this country grew year on year in the first eleven months of the year and reached 108,480 million dollars.

Individual Investment pushes up demand

The increased demand comes mainly from individual investors who prefer to hold physical gold as a safe haven for their wealth. Shen Xuangrong, Chairman of the Shanghai Gold Exchange, stated a few days ago that this interest was mainly due to the expectations of an increase in inflation in this Asian country.

Between January and October last year, the amount of precious metal traded on the Shanghai Gold Exchange increased by 43%, according to its Chairman, Shen Xuangrong. Approximately 20% of these transactions were made on behalf of individuals.

In August of 2010, the Central Bank of China reported that it was going to authorise more Banks to be able to buy and sell gold. It also stated that it was going to makes the regulations for the gold market more flexible to enable more firms to be able to operate in this segment.

More than a million Indian Weddings this Spring!

India has already demonstrated that it occupies a prominent place in the purchasing of bullion, coins and gold assets due to jewellery being accumulated in March in readiness for the wedding season. This year it is very probably that the trend will be repeated: there are more than a million weddings planned to take place in April and May in India and this triggers a strong demand for precious metals, especially gold.

The growing demand for gold jewellery, together with an increase in the demand for bullion and gold coins, demonstrates the popularity of the metal in India. Moreover, for many Indians it represents a safe investment compared with the volatility of paper money.

India is responsible for one quarter of the global imports of gold. China has made changes to its regulations for importing precious metals. Everything seems to indicate that it will shortly become the new leader in gold imports. And not only that: “In the medium and long term, China will be a decisive factor in determining the price of gold “, said Yuichi Ikemizu, Chief commodities analyst at Standard Bank in Tokyo.

Invest with trepidation because most traditional ways like savings accounts, property, government bonds, shares, hedge funds etc are inevitably taking a risk by sharing someone else’s debt. Your investment helps them create even more credit and therefore fictitious money. This credit enters a worldwide cycle that continues to spiral upwards. World debt is out of control and nobody has an answer to “if” it can ever be paid. The so-called strongest economy in the world, the US, currently has an annual budget requirement of $3.5 Trillion. US Government income is $2 Trillion annually and this could decrease with decreasing tax revenues caused by unemployment. It therefore borrows $1.5 Trillion just to stand still.
Who is lending them this money?
What is it guaranteed against? (is it guaranteed?)
How much interest are they paying?
Can they afford the interest?
Can they ever afford to repay it all back?

Writing the questions is the easy part but finding coherent answers, well…
Truth is the US is fabricating at least $1.5 Trillion a year to balance their books and the money markets are complicit in this deceit as it’s also in their interest to carry on fictitious “credit trading” which is still making them money. One has to also imagine the amount of interest being paid for this level of debt and not forget that this significant amount has to be added to the annual deficit, therefore compounding it’s enormity.

There is not enough money in the world to cover current World debt and it’s increasing daily (as is the interest due on all of it).

World annually budget deficits are estimated at $6 Trillion a year.
Where is or who has this amount of money available to lend?
Historically paper money is created in line with National Gold reserves so all money should have a gold equivalent. This is no longer the case because the world needs $6 Trillion a year to stand still and cover it’s deficits but annual world production of gold only equals $100 Billion.
Every time we “invest”, pay our mortgage or simply put our salaries in the bank we are encouraging this cycle and allowing more debt to be created to apparently pay off the current debt. This is like paying off a credit card bill including interest with another credit card that has even higher interest. The first debt is paid by creating a second even bigger and more costly one.

Why would anyone want to invest in this?

Probably because their choice of options is limited to traditional methods by the very people creating the debt.
What they don’t want you to do is withdraw your money from the cycle because that hurts them. They don’t really care if your investment makes money eventually, just like pensions are eroded with excessive management fees & middle men commissions.
BBC’s Panorama recently revealed how HSBC took £99,900 from a £120,000 pension pot ie. 80%. Obviously their only interest is getting your money now and making excessive amounts themselves. We’ve seen too many examples of their excuses when honest folk realise a lifetime of paying in = heartbreak and “sorry” at term because their investment has evaporated in the system of debt.

Everyone except the Brits are doing it!

So where is the sanctuary for my money?
Well plenty of Central Banks, Corporate investors, Private fortunes and populations across Europe are turning to Gold. Why? Because it’s real, physical gold and at term will still be there and worth something. It is also NOT somebody else’s debt and therefore NOT reliant on some fund or company staying in business for however long. Gold is a real, tangible asset that has been valued by humans for over 6000 years. We can’t invent gold we have to mine it. There is a limited world supply and increasing demand year on year. Industry needs it, Dentists need it, Jewellers need it and Bankers need it to guarantee their currency and circulating money supply.

The truth is the World is bankrupt but nobody wants to admit it!
It’s time to hold on to your valuables to survive the next crisis and Gold has and will always be valuable.

Strangely enough the US has a big problem here because there is $15 Trillion in the banking system and only $0.35 Trillion of gold reserves to back it up.Technically there should obviously be $15 Trillion of gold. This means that if every dollar was taken back to the bank to be cashed in against it’s value in gold $14.65 Trillion would be worthless!!! Do you now see the problem? Even the less mathematically proficient can see this problem is so big it’s maybe impossible to fix – ever!
The economic model for this is simple and is based on GREED.

Gold is not somebody else’s debt!

If you really want to preserve personal wealth in a durable form for the future then the choice is simple:

1. Invest into the Black Hole of World debt?
2. Invest into a debt free, real, physical asset that you control and can manage how you wish?

Don’t be fooled by thinking that you can’t do something because you’ve never done it before or because the option is made difficult by those who wish to profit from you.

Gold is Good
Debt is Bad
Gold will still be real
When the paper debt’s been had!

It is true that the value of Gold can go up and down but remember we live in a different world since the sub-prime and Banking crises. Observe the trends in Gold prices over the last ten years at http://www.kitco.com/charts/livegold.html and judge for yourself!

References:
Thanks to Jason Hommel at

http://www.24hgold.com/english/news-gold-silver-low-inflation–massive-gold-rise-.aspx?article=3160143892G10020&redirect=false&contributor=Jason+Hommel#Commentaires1_tableCom

BBC Panorama “Who took my pension?” 04Oct 2010

http://www.smartmoney.com/compoundcalc/