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Gold is going higher

Tuesday, July 23rd, 2013

You are reading several articles here indicating that it is a good time to buy Gold. Here is a respected commentator, Dennis Gartman, with his view that the price of Gold is set to go several hundred dollars higher. Now, wouldn’t it be a good idea to buy some now while it is cheap, then have some to sell when the price is high? Think what you could do with the profits. Here is a link to the CNBC with our thanks. To go to the site, click here

Gold at £1600 an ounce?

Thursday, March 21st, 2013

Here at Goldcoin.org we try to provide a cross section of views from different sources to keep track of unfolding events and clues as to what might happen next.

The articles may help give an insight as to how gold fits into to the current picture and as the first one illustrates so well, countries hit by economic crisis and its effects often have internal sanctions imposed by the Government to restrict monetary flow and also show how ordinary people turn to gold as a protection of their wealth.

Many thanks to each of the authors for their insight and please do let us know if you have any suggestions of interesting articles.

Argentina Turns To Gold As Inflation Tops 26%

Argentines are buying more gold than ever to protect their savings from the Western Hemisphere’s fastest inflation reported Bloomberg.”

“Argentines are utilizing gold to hedge their savings as economists forecast the peso will lose more value than any currency in the world, and President Cristina Fernandez de Kirchner forbids dollar purchases.

The nation’s inflation rate of 26% is also eroding Argentina’s peso- denominated bonds to fall 5.5% ytd.

“I’m buying gold every chance I get,” Guillermo Acosta, a 27-year-old security guard, said inside a branch of Banco Ciudad in downtown Buenos Aires. “With this inflation, I feel like my savings will evaporate if I keep them in pesos.”

Gold Holds Above $1,600 as Fed Keeps Printing $85 Billion Monthly

By Eric McWhinnie

“Both precious metals held steady as the Federal Open Market Committee decided to keep its current quantitative easing programs in place. The central bank will continue to purchase $40 billion in agency mortgage-backed securities and $45 billion in longer-term Treasury securities each month.

With high unemployment levels, and low inflation according to the Federal Reserve, the central bank believes the benefits of QE still outweigh the risks.”

I’m betting that gold will hit £1,600 an ounce by the end of next year

Says Dominic Frisby

“I’m saying all this for a reason. I am getting increasingly excited about gold’s prospects against the pound.

‘The bigger the base, the higher in space’, runs an old stock market saying. Another version is, ‘the longer the wait, the bigger the break’.

As we know, gold has been trading in a range for some 18 months now since its high in September 2011 at $1,920 – or £1,206 – an ounce.

The wait is getting longer and longer – and the base is getting bigger and bigger. $1,520 to $1,550 – or £960 to £990 – marks the bottom of the range; $1,800, or just below £1,140, the top.

When a market is making a sustained move in a certain direction, you tend to see the moving averages – the average price over a previous period – aligned in a certain way. If a market is trending up, you will see the price sitting above the 20-day moving average (the average price of the previous 20 days). This in turn is above the 50-day, which is above the 200-day.”

We speak often about the continuing crisis and that contrary to the general media and politicians we believe that we have never left a state of global crisis. Governments try to push issues under the carpet but eventually it becomes too big and they lose control.

A snippet from the news in France today reveals that 3 million less people will take a holiday this year and medical supplies are out of stock in certain areas. These are symptoms of a deepening crisis as the squeeze bites hard across households. Also it shows business is running on lower and lower stock because of cash flow issues and this in turn can lead to shortages of necessities.

We do not try to be alarmist here – we are interested in the reality which so often escapes comment or reporting.

The crisis is long from over and the  year ahead will be difficult for increasing numbers of people. When the reality of Greece, Cyprus, Spain etc arrives in the UK, France, Germany maybe more people will take notice and believe that reality is not rose tinted.

Prepare to protect your savings and preserve your wealth by buying gold as this will hold value while currencies and economies collapse.

Collusion, Corruption, Governments and Banks

Wednesday, March 20th, 2013

Hardly a surprise to find these four words together in the same phrase and the evidence to support this keeps arriving.
They seem indelibly linked together but then again they are as the politicians need the financial giants to get into power in the first place. No surprise that the politicians will repay the favour whenever they can.
Gordon Brown rescued the banks RBS, Northern Rock and Lloyds TSB by using taxpayers money that they had no opportunity to agree or disagree to.

What’s different to that and the current crisis in Cyprus?

Stealing honest citizens money by stealth or plain in your face – it’s still stealing our money to pay for the mistakes of casino bankers, traders, hedgers and of course the completely incompetent politicians.

Take George Osbourne (preferably far away) who by his own Bertie Wooster proclamations has been a complete and utter failure? He hasn’t managed the economy. He is doubling the UK debt. He is talking austerity but spending more than the previous Government. He will try to hoodwink us all again today with his carefully choreographed Budget speech.
Before announcing any new words of wisdom he may well explain how it is that all his GDP forecasts were wrong (artificially high to fit his story but in reality all rounded down) –his forecast for this year has just been revised down by 50%.
In fact none of the previous Budget forecasts have ever been correct or even near. They are always rounded down. This begs the question what is the point of guessing the initial figure anyway.
It also proves how incompetent the Minister and his department of “experts” are at running our economy.
However, like all his predecessors he doesn’t have to worry as none of this affects him personally and often by the time we have assessed the real damage at some point in the future he will be long gone and still living like a millionaire without a care in the world. No accountability for total incompetence – just a seat in the House of Lords for another twerp posh boy who has the audacity to lecture us when he has no idea about real life, real hardship, real people and quite obviously real economics.

Wake up before it’s too late!

When will we wake up to career politicians hijacking our country, our prosperity, our children’s education, our relatives’ health, our future and our hope for a brighter future? We pay for their mistakes and often through generations.
If our politicians are so worthy why will they never answer a direct question from a member of the public such as on Question Time? After all us members of the public are the electorate, we are taxpayers & voters, we keep them in a cushy job and they treat us like economic morons – constantly talking down and lying to us.
Enough of this insulting behavior.
Just look at politicians recent record and we’ll see there aren’t so many upstanding members of society. A former Minister Chris Hulme blatantly lied consistently on TV to protect himself. He is not alone as we have seen over recent years when scandal after scandal surrounding MPs emerges.

It’s about time the public took the power back from a jumped up Illuminati who think that they are beyond the law and beyond reproach for failure.

How about performance related pay for politicians?

Penalties for ruining our economy, education, energy revenues etc etc?
Politicians act with impunity and that in other countries is labeled corruption.
Remember when Gordon Brown deliberately sold off UK gold at a loss and weakened price losing millions of value for taxpayers? Well not to worry we still won’t get it back but he did it as a favour for the ECB in order to support banks that had overplayed the derivatives market and were hedging too far. The gold price needed to drop in order to arrange these banks’ balance sheets and so Uncle Gordon duly obliged. The banks got off once again from casino activities and the taxpayers paid with the countries gold.

When we realise that this happened before any of the bailouts for RBS, Lloyds etc we can see there is a cosy pattern of politicians looking out for the bankers. This ensures a cosy retirement of bank directorships for politicians all paid for by us.
It is also worth noting that in the current context of the Cyprus crisis, Governments will stop at nothing and are capable of anything just to save their own face and certainly to save their buddies in the banks.
Gordon Brown should stand trial for his mismanagement of our economy and for bankrupting the country.
He never will as he is too protected but one day we may revert to the good old days of putting incompetent politicians heads on stakes across the bridges of the Thames – then at least we would need a bridge building programme to restart the economy as we’d need more to create enough space for all the crooked politicrats.

Pound weakens further

Tuesday, March 12th, 2013

The UK faces mounting problems as data and analysts agree that the pound will remain under pressure due to poor economic data and forecasts look bleak for the UK economy.
The pound has already lost 6.7% of value since New Year’s day 2013.

According to Bloomberg sorces Derek Halpenny, European head of global-markets research at Bank of Tokyo-Mitsubishi UFJ in London, said :

“Momentum is clearly against the pound and, if anything, that serves as an excuse to carry on the market takes it.” He continued, “The weak data backup renewed quantitative easing and it’s a clear recipe for further pound weakness.”

Further eveidence from Bloomberg shows that
“The pound has depreciated 6.7 percent this year, the second-worst performer after the yen among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro rose 1.6 percent and the dollar gained 3.2 percent.

U.K. government bonds lost 1.3 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bunds dropped 0.9 percent and Treasuries fell 1.1 percent.”

Investors are increasingly weary of attaching their portfolios to anything currency related as well as risky “bets” on a volatile stock market. Similarly, the decline in the house market and falling prices means that property is not an attractive option either because the costs associated with starting and maintaining this investment are also growing with inflation. Taxation of second homes may also be an issue and as times get harder for Governments they are likely to change rules in order to claw in any tax.

A recent interview with our friends at LinGOLD.com also backed up this theory as Directeur Général Paul McGowan stated:
“UK investors are growing frustrated with the traditional investment vehicles as they are at a greater risk of failing or at best performing badly. Investments held in currency, especially Sterling are losing money because of the devaluing pound and real inflation being greater than interest rates. We have seen a growing number of investors turning to gold as a safe haven for storing their value. Feedback from new Members suggests they have had enough propaganda and spin from politicians and now they are taking matters into their own hands by investing in something that is real, that they own, that cannot fall to zero, that cannot be used as collateral for third party investments, that will be there at term and that will store value for the future – physical Gold”.

As we here at Goldcoin.org have often echoed, gold cannot be printed or made out of nothing like paper fiat currencies that are so easily produced yet backed by no real value. Gold has an intrinsic value which it has stored through the ages and in the 21st Century represents the path back to real money that is worth more than the paper it is printed on.

Morgan Stanley favour Gold

Wednesday, March 6th, 2013

We here at Goldcoin.org always advise investors to inform themselves as much as possible before making important choices that could be very positive for the future or a gamble too far.

To that end a wide perspective of opinion should be sought amongst other professionals such as those at Business Insider who have an insight into the current mindset of Morgan Stanley and their positive endorsement of gold as an investment and store of value  to preserve wealth.

MORGAN STANLEY: The Gold Bull Market Isn’t Over, And The Reasons To Own It Are ‘Evolving’

A notable feature of the investment landscape over the past few months has been the 12 percent drop in the price of gold since September.During that time, we’ve heard some incredibly bearish calls on gold from strategists at Goldman Sachs and Credit Suisse, among other shops. Rising real interest rates are said to be the death knell for gold.

Morgan Stanley, which for a while has touted gold as its number-one investment idea in the commodity space, isn’t ready to throw in the towel just yet.

In fact, according to the bank’s Chief Metals Economist, Peter Richardson, “The reasons for owning gold may be evolving.”

What does that mean, exactly? Richardson argues that over the past 10 years, gold has actually undergone numerous evolutions in this manner.

From 2001 to 2008, Richardson writes, gold went up because of “1) a persistent increase in investment demand, 2) acceleration in producer de-hedging, 3) a decline in net official sector sales, and 4) a persistent failure on the part of the mining companies to respond to the incentive of a steadily rising price and materially lift production.”

Then, from 2008 to 2012, gold was driven higher by “investors’ waning confidence in the stability of the global financial system and an unprecedented monetary easing by central banks.”

Buy Gold Now says MoneyWeek

Tuesday, March 5th, 2013

Wealth Preservation is what it is all about. Right now there is too much uncertainty and volatility in currencies and markets to find investments that will still be worth something come the next storm.

And according to MoneyWeek there is quite a storm brewing.

They take an indepth look at the effects of the Welfare State and the ever-increasing burden it places on the economy and Government. It is true to say that the British government does not collect enough tax to pay its own bills.

Therefore every year there is a whole in their budget to pay for schools, the police , army etc.

However, this just adds to their debt.

Given there is zero or neagtive growth in the economy, the working population is decreasing with lay-offs and therefore the net increase in taxation revenues is also negative.

This cannot continue forever and the system is at breaking point.

Britain is now the 3rd largest debt in the world after Ireland and Japan.

The collective debt of the UK including private, corporate and government is close to 900% GDP.

The past provides a stark reminder often cited here and elsewhere.

The Weimar republic of pre-Nazi Germany had debts of 913% when it imploded.

If you want to read some more I would like to suggest the following :

The MoneyWeek Wealth Preservation Report written by their editor John Stepek

MoneyWeek’s  End of Britain essay.

Interesting for readers is John Stepek’s quote on what to do in order to preserve your wealth at this time:

“Step one: Protect yourself from collapsing currencies with
precious metals”

“Given that every major central bank is printing money, fiat currency in general can only lose
value compared to gold. Daniel Brebner and Xiao Fu at Deutsche Bank note this is likely to
continue.”

“The Deutsche analysts value gold according to Gresham’s Law, by which “bad money drives
out good”. “Gold’s value depends in large part on the degree of ‘badness’ of bad money.”
When “bad money” or paper money is being devalued, as it is now, you would expect people’s
inclination to hoard gold to rise, along with the price of the yellow metal. “This is why the
gold price has been appreciating over the past 10 years.”

Should you buy coins or bars?
You can buy bullion in two main forms: coins or ingots (bars). The advantage of gold coins
over gold bars is that they allow you to be more flexible. After all, it’s easier to sell 20% of
your gold if you own 10 gold coins rather than if your whole investment is in one gold bar. By
the same token, given this flexibility, you’ll probably find that coins are that bit more liquid
(easy to sell) than big bars.”

It is clear for those wishing to see that the best researched advice echoes the same message as that championed on Goldcoin.org

Gold coins are an excellent investment if you take a moment to examine what’s on offer these days.

Vault stored investment quality coins are the best method especially if you can trade them online without having to take possession and run the risks of losing them or of theft.

Peace of mind is a prequisite of a sound investment and if your physical gold is safely tucked up behind thick armour-proof walls of concrete and steel, with electronic high secirity devices and outside of the banking system then you’ll sleep easy tonight.

Inform yourself about gold before it is too late.

Buy Gold – AAA rated for 6000 years

Monday, February 25th, 2013

The UK has now joined other developed economies, like the US and France, and has lost its precious AAA credit rating.

George Osborne promised in 2009 that it would his top priority if he became The Chancellor.

Obviously not true then or he’s incompetent.

Similar to every budget statement ever given which make wild predictions of growth, inflation targets and unemployment targets – none are ever right, all are revised down consistently. This is seldom reported in the media who play the game of making a noise around Budget Day but never following up with what actually happens, analyzing the figures and revealing if the budget was right. Is the Chancellor any good at his job? Are his panel of celebrity economists and advisors right? They all share the same path of being posh twits with an expensive education but none of them seem to be effective as they are consistently wrong.

It begs the question why on earth are we still trusting these political prostitutes.
We are expected to pay for a mess they continuously keep creating.
They are never affected personally as they have the means to live away from reality and hardship.
They are never wrong or culpable either – a by-product of political class immunity.

Politicians would act differently if they were on performance related pay as would greedy civil servants.
But they’re not and so they keep on making a mess and people keep closing their minds and eyes to it.

If losing AAA status is not the Chancellor’s fault as he stated clearly on TV then who is responsible?
When will these parasites who suck large salaries out of our economy for being incompetent be brought to justice. Never, they are given huge lump sum pay-offs (paid for by taxes).
The truth is Governments don’t care about AAA ratings really -they only care about their own personal plans which is to get re-elected or ensure a cushy well-paid, Directorship & speaking tour post-politics

The UK economy will suffer from the increased borrowing costs and impact on Sterling.

£ Sterling has been downgraded as a result.

The problem with paper currency is that you can print more of it by just having paper and a printing press. The pool of paper is increased but no value is added so the overall value remains the same thus each part is reduced by a diluting effect. If you print the same amount of dollars already in existence again each dollar bill would be worth an equivalence of 50c because there would be twice as many bills in circulation.

I am no great economist by far but I do confess to being logical and possessing a modicum of common sense.
Treasury departments with their great plethora of economic advisors the world over produce budgets like clockwork and they always produce a great huh Ha in the media. However, what is sorely missing is an evaluation of their worth as they are always wrong and often wide of the mark.

The good news is that since Basle III Gold has been reclassified from atier 3 to a tier 1 asset, effectively allowing it to be used as money.

This is no surprise as Gold has had a AAA rating for 6000 years.

Gold has stored value, created trade routes and whole economies because it has something paper money never will have – Integrity of value.
Remember Gold can never fall to zero value but most other investments can – paper deals and promises are no match for a real tangible physical asset that is recognised the world over.

Buying gold is a vote against further control by banks and central banks.
Buying gold is an act for freedom.

Right now is an excellent time to enter the market since the price consolidation.
The Global economy is still sorely damaged and there is no supposed recovery happening soon so don’t be fooled and protect yourself before it’s too late.

An Olympian Task at the Trial of the Pyx – 2012

Thursday, February 14th, 2013

The Trial of the Pyx is an ancient custom, and indeed a trial, dating back many centuries. You can read a previous article here. The 2012 trial may have had an added dimension. The jury would have literally had an Olympian task added to their duties this year.

A 1kg Gold coin was created to commemorate London hosting the 2012 Olympic Games. The coin is legal tender, having a face value of £1,000 and retailed for £100,000. Since the price of 1kg of Gold is, at the time of writing, just below £40,000, this represents a premium of 250%!! We know that one of the main premium drivers in investment Gold coins is rarity and that must explain this enormous markup. Only 60 have been minted and all are sold and in the hands of private collectors. Normally, the 1971 Coinage Act would limit the weight but it was specially amended to allow this coin to be made. It was produced by renowned sculptor Sir Anthony Caro.

There is an interesting video which originally appeared on The Daily Telegraph website.

French coins: The Cérès Family

Friday, May 25th, 2012
20F Napoleon Cérès Reverse

20F Napoleon Cérès Reverse

The Cérès are among the most unusual of gold coins in light of their history. Though certain types are somewhat mundane, others are extremely rare and make the Cérès one of the most sought-after coins for numismatists.  Here is an introduction to these small coins which have all the markings of a great one!

Brief introduction to the coin

The Cérès, as the name suggests, displays the head of Ceres on its obverse, the Roman Goddess of agriculture, harvests and fertility and a symbol of the Republic.  She is represented from her right profile, wearing an earring, a pearl necklace and a braided chignon in her hair attached with a ribbon and in which seeds, acorns and oak leaves are placed.  This face is framed by fasces lictoriae featuring the hand of Justice on the left, behind the nape of the neck, and a laurel branch on the right, under the chin.  A 6-sided star is above her head.  The title is “Republique Française” (French Republic).

On the reverse, which comprises the words “Liberté, égalité, fraternité” (Liberty, equality, fraternity), the value of the coin is displayed (5, 10 or 20 Francs), between an olive branch (on the left) and an oak branch (on the right) linked at their base by a ribbon.

The 5 Franc Cérès: an extremely rare type!

The numismatists who have the immense privilege of coming across a 5 Franc Cérès can die happy: they hold in their hands one of, if not the rarest gold coins in the world!  Unobtainable in B, TB or TTB condition, it can be found in SUP, SPL or FDC.  There exist only 30 specimens in all for the year 1878 and 40 for the year 1889.

The reason for this extreme scarcity?  A coin which was destroyed as it contravened the Latin Union convention – a convention dating from 1865 aimed at unifying the currencies of France, Belgium, Italy, Switzerland and later Greece in 1868 – which prescribed that, among other things, 5 Franc coins be made of silver and not gold!  Indeed, at that time, as astonishing as it may seem, the “gold of the poor” took precedence over gold before being heavily devalued in 1871.

The 10 Franc Cérès: a little gem for numismatists

With just over 3.7 million specimens minted, the 10 Franc Cérès is a little less rare than the 5 Franc Cérès.  Since one can easily find it in B, TB and with more difficulty in TTB condition, anyone who finds it in SUP or SPL condition should be pleased.  As for the FDC, it is unobtainable for the 10 Franc Cérès of 1850.  To give you an idea: the 1850 10 Franc B sells for approximately 70 €, whereas the fleur de coin can reach €3,000.

The 20 Franc Cérès: quintessence of the IInd Republic

More than 17 million 20 Franc coins were struck between 1949 and 1951.  The quality of strike is quite exceptional.  On the other hand, this coin is difficult to authenticate.  It is the condition of its preservation that dictates its authentification.  One must concentrate on the last leaf on the right of the crown and the cheek of the face to differentiate the SPL from the FDC.  Like all gold coins from this period which were in circulation, this series has three different surfaces between the obverse and the reverse: glossy, matt and cameo.

The Cérès: collector’s item or great investment?

Both!  The 5 Franc Cérès, in spite of its extreme rarity which classes it amongst the great coins of true numismatics, as in the case of the 10 Franc FDC, can nevertheless be a good object for investment for those who have the means and the immense privilege of being able to purchase it!  Indeed, like a work of art, it maintains a quite stable price, hence protected from fluctuations in the market price of gold.

As for the 20 Franc Cérès TTB in particular, like the Napoleon III or the 20 Franc Marianne Coq, it is an ideal gold coin for investing in physical gold, its price being around €170.

Gold Investment in Spain

Thursday, April 19th, 2012

We here at Goldcoin.org have had the pleasure to interview Señora Lizette Paternina, the editor of LingORO.info, a blog dedicated to gold investment, gold coins and the unstable economics of our time. Her story has an interesting evolution based on the response she had to her blog articles. The popularity of her blog has paved the way for the launch of a commercial website, LingORO.com, which enables the Spanish speaking market to have access to a proven, reliable method of gold investment.

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.

We also have the VERA VALOR which is the first Clean Extraction product in the world .

We also have a savings product called LSP – Libreta de Salvaguarda del Patrimonio – which operates on a simple plan to make a minimum purchase of 1g of pure gold per mont. In doing so there are no vault storage charges and this product means investors of all budgets can participate. This is an excellent alternative to a traditional savings account with the advantage of being in physical gold and without the contracts and restrictions. The LSP is totally flexible and a Member can buy as much as they wish without storage charges (as long as they buy a gram a month).
The big difference for investors is that they own outright everything they buy and are in complete control of when they buy and sell as well as the prices they wish to sell at. This is really important when you need to sell your gold because our system allows Members to sell at the best price of the market rather than at the mercy of over-the counter dealers who are obliged to offer below spot buy back prices to make their margins.

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.

UNCLEAN GOLD

Monday, January 16th, 2012

In the poorest parts of the world, gold is extracted in lawless and unclean ways: an earlier article on this site gives an example in the Peruvian Amazon Forest (The other side of Gold mines in Peru).

Open mine in Madre de Dios

Open mine in Madre de Dios

The mines lack proper extraction tools and machinery; far from public gaze and legal regulation, they are hazardous, not only at their hidden locations, but to towns and villages exposed to toxic waste in the water supply. To protect their interests, the miners engage in arms smuggling. Those who work in these conditions are exposing themselves to extreme danger, with no certainty that they will reap the long-term benefits for which they hope.

So why do they do it?

The clue is the word “lawless”. Hernando de Soto’s remarkable book “The Mystery of Capital”, first published in 2000, was the result of him and his researchers from the Institute for Liberty and Democracy in Peru (www.ild.org.pe) asking: why has capitalism worked in the west, but not in the developing and ex-communist world?
The usual answer is that capitalism shouldn’t work in the west and shouldn’t be fostered in the developing world, but after the failure in the twentieth century of all variants of socialism and state direction of economic planning, capitalism is “the only game in town”.

Yet looking at the shocking conditions that prevail in these illegal mines the typical response is an anti-western moralism that regards “capitalism” and “rapacious greed” as synonymous: all one has to do to “understand” poverty is rail against the rich.

This attitude of campaigners of the traditional sort, fair-traders, charities and NGOs, churches and environmentalists is unhelpful: it is misleading to demonise the alleged capitalist forces behind the miners, misleading because the miners are themselves capitalists of a sort, and therefore should presumably also be demonised, unless one sees them as mere helpless puppets – but that is simply another way to dehumanize them.

The problem that de Soto identifies throughout the developing economies is that the overwhelming majority of the world’s poor work completely outside any legal system: the businesses and buildings they create therefore operate without title, which means that the assets they “own” are dead capital. In such an environment, unprotected by clear rules, poor people’s only guarantee of prosperity rests with themselves. Wherever there is potential value and a market for it, with gold just as with any other commodity, they will exploit and protect it without any legal roots to sustain them.
The problems of these unclean gold mines, the use of dangerous chemicals in unsupervised environments, the use of child labour in dangerous places, water tables filled with toxic waste, are the result of there being no clear title to the mines or their products and no legally defined responsibilities. Even the violence is explicable: in the absence of legal title, there is no other way to defend what might anyway turn out to be a temporary interest, rather than a clear and justiciable and therefore legally marketable property right.

In the light of these observations, it should be obvious that what needs to be done is to recognize the “illegal” gold miners as the entrepreneurs they are and co-opt them, bringing them into the legal fold.

In contrast, there is hope regarding the improvement of mining conditions and extraction methods.

The first commercial product exclusively made from “Clean Extraction” gold has been launched.  The Vera Valor is a 1 oz “Bullion” bar-coin, 999.9, Good Delivery and it is made from pure gold from “Clean Extraction”.

The “Clean Extraction” initiative encourages mining companies to behave properly towards their workers, the environment and the lasting aftermath of their activities.

Our friends at Cleanextraction.org have produced the “Clean Extraction” charter which you can consult from their website.

It just shows that “there’s nothing wrong with doing things right” and proves that it is possible for some Gold to have a conscience.

by Mark Rogers

The 50 pesos is not the only Mexican gold coin

Monday, March 28th, 2011

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.

20 PESOS OBVERSE

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.

20 PESOS REVERSE

20 PESOS REVERSE

– 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

CaptureNew Pesos Family

• 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.

Gold Trends Intra Day Gold Update – Mar 24th

Thursday, March 24th, 2011

In last nighs website update resistance in gold was listed at 1444-1452 and the high so far is 1442.60—-support was listed at 1425-1431 and the low so far is 1436.

London Gold Fix $1441.25 +$8.25 LME

After a fresh contract high yesterday, gold reached the 1442 area and sits roughly in the upper 1430’s in this mornings early trade. A warning from 10 former White House economic advisors, that Congress needs to address the US debt situation before the Bond market forces the US to ac is providing some support to the gold market.

The turmoil continues in the Middle East, but there wasn’t any major developments overnight for the market to digest. The situation remains precarious. Japan evacuated again as 3 workers were exposed, and the overall situation also remains far from a distinct resolution.

Adding uncertainty to the markets is the political/debt situation in Portugal. The market considers the size of the bailout for Portugal might be as much as $80 billion and that in turn casts some doubt on the capacity of the Euro zone stabilization fund to handle upcoming demands. The Prime Minister of Portugal resigned after that nation’s parliament rejected a series of new austerity measures. The meeting starts at 5 PM their time to see if they are going to ask for a bailout. There is still a debate as to whether the bailouts are stabilizing Ireland or Greece.

Going to today’s session, the options expiration in metals ends on the 28th — and if there is to be a pullback at all in the metals — the most likely time for it to begin would be today.

On the gold chart it comes down to the 1444 area and whether gold can climb above that area. This area has held since the February high and price is now on its third attempt to move above it. This is the area where the shorts have tried to “cap” price. Yesterday’s attempt around this time frame got to 1441 — and there have been two attempts so far today where price got to 1442 just before the New York open and then fell back to just above 1435. A second atttempt on the open was again rejected near the same area and a pullback.

Price has been in a very tight range since London — and gold is now attempting to get above 1440 again. So far it is still meeting with selling above 1440. It seems like desperation on the shorts —– and the bulls keep pushing it back to 1440 on every sell attempt by the bears.

In summmary — THE TREND REMAINS UP — and the bulls seem to have the advantage still. A break above 1444 should lead towards 1450-1460.

by Bill Downey

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Gold Trends Intra Day Gold Update – Mar 17th

Thursday, March 17th, 2011

In last nights website update resistance was listed at 1399-1409 and the high so far is 1403.60 — initial support was listed at 1376-1388 and the low so far is 1387.

London Gold Fix $1403.50 +$5.00 LME

While gold prices were somewhat weaker in early Asian trade, sentiment toward gold has improved in early US Thursday trade. Support from the aggressive rise in the Yen overnight and a much lower US Dollar across the board has firmed gold support near 1400.

News of a G7 conference call for a discussion in how to calm markets is sparking hope of more liquidity in the marketplace. While energy prices and other commodities are showing initial strength today, the gold market might be hesitating a bit until the G-7 meeting and for a sign that conditions are attempting to return to normal to get out from under the periodic selling pressure that has dominating gold this week.

Therefore, US data might be discounted in the face of the highly uncertain flow of events from Japan and the G-7 meeting. Weakness in the Dollar is providing some support to gold today, as very strong flows toward the Yen have seemingly prompted some move to quality buying interest in gold.

Workers at the Fukushima power plant are still attempting to contain leakage from reactors and are attempting to get power back to generators. Libyan government soldiers are preparing to engage the rebel stronghold of Benghazi.

Lets go to the chart

The the intersection of the dotted trend lines has price in between both lines for the second day running. This is adding to the potential that a short term low might be developing in gold. The Asian market pull back to 1387 supported right at the dotted line. Currently the market is testing the 1403 area — right where the top dotted line is at. A CLOSE above this area would be the first indication that favors price bottoming on the short term —and a bounce attempt into Friday’s close. Gold might remain subdued going into the G-7 meeting –and traders will have to decide on Friday if they want to be holding positions over the weekend.

Since the sell off to 1380 —gold has bounced back to the 1403-1406 area on three separate occaisions — and is testing that area again today. The current range of 1385-1405 is trying to carve out a bottom and a close above 1408 will add to the potential that the short term trend is about to turn up. From a timing perspective — prices are due to turn up near this time frame. Buttonwood has March 16th as a potential turn date and the seasonal calls for a mid month bounce. The short term trends we watch are also due to turn up beween now and next Tuesday. This tends to favor a low and bounce attempt soon. With oil higher on mid east unrest, it is putting a floor on commodities today.

With G-7 scheduled for after today’s market close, gold could remain its trade at the dotted lines for one more day. Any improvement in the Japan situation —ie; if power gets restored at the plants for the generators could also lend support to higher price trade today. In summary — the gold marke seems FIRMER at the moment and tends to favor a higher price going into the latter part of the day. The key is getting price to move above the 1408-1410 area.

Resistance for the remainder of the day is the 1406-1410 area and support a 1393-1398. In summary — prices seem firmer today — but traders are a bit cautious of the scheduled G-7 conference call later today. WATCH the 1406-1410 area —- If price can close above 1408 — it should increase the bounce potential in metals.

by Bill Downey

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GoldTrends Intra Day Gold Update – Mar 16th

Wednesday, March 16th, 2011

In last nights website update — resistance for gold was listed at 1399-1409 and the high so far is 1406. Support was listed at 1375-1385 and the low so far is 1393.

London Gold Fix $1398.50 -$8.50

With events in Japan capturing the news, the gold market will soon be turning to the beginning of the Indian Wedding seasonal and the market focus on big picture geopolitical conditions in the middle east. The Indian seasonal usually spurs gold buying and forms a seasonal low near this timeframe.

So far gold prices this week seem to be tied to the action in global equity markets and the uncertainty in Japan. Gold overnight did gain some minor support from reports of fresh unrest in Bahrain and oil prices have managed to rebound. Gold and other commodity markets are likely to be watching the quickly changing macro economic cross currents. US Housing Starts and Permits data came out with terrible data this morning but the pullback in gold on the news lasted a short amount of time and gold continues to trade around the 1400 area. PPI data was up 1.6% —- as food and energy led the way. That seemed to have put a floor on gold so far this morning.

While equity markets in Asia and Europe are generally higher this morning, the US stock market opened with moderate losses bu is so far stable today. The Dollar is stronger against most of the major currencies during overnight trading but it does not seem to be affecting gold.

Workers are still attempting to bring nuclear reactors at the Fukushima power plant in Japan under control and continued aftershocks in Japan continue into today. Forces allied with Muammar Gaddafi have succeeded in retaking several towns that were under rebel control. A credit rating downgrade of the sovereign debt of Portugal by two levels. UK Unemployment during January was 8.0%, higher than market forecasts.

Gold seems to be taking more notice of the Bahrain situation as the unrest is escalating there and the people have yet to be quelled by the Saudi forces and the “martial law” that has been announced. The 1000 Saudi forces on the ground has escalated the UNREST and anger.

As soon as the Japan thing quells down — gold will return to focus on the middle east and the Indian wedding seasonal — both of which should lend to increased gold demand at a time when the seasonal weakness is nearing an end. The gold seasonal chart usually shows a mid March low —-and short term trends do favor a low to develop by weeks end.
Going to the chart — we’ve expanded the view today. Observe the two dotted trend lines that are meeting up at the 1395-1405 area. This is where most of the price action has taken place and was basically the focus we discussed on last nights website. THE KEY SEEMS TO BE IF GOLD CAN CLOSE BACK ABOVE THE downtrending dotted line near in the 1406-1412 area. A close above that area would neutralize the sell off and would leave yesterdays LOWS as a CLEARING OF THE STOPS below two key short term trendlines. Should the market close above the dotted line area, it will add to a bottoming potential and will have us looking for a potential trade set up.

In summary — gold is testing its key support area —trying to get back and close above the dotted lines. Resistance for the remainder of the day is the 1408-1412 area and support is the 1390-1396 zone. The day is turning out to be a consolidation day. Watch the action at the dotted trend lines. Favor most of the action and a close near that area today.

by Bill Downey

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