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Archive for January, 2014

Alternative Currencies are not new

Monday, January 27th, 2014

Around the world there are numerous examples of local currencies which have been introduced to promote local business, local produce, customer loyalty and awareness to trade issues and climate control. They all tend to be run in parallel to the national currency but are based on creating a thriving local, fully functioning economy incentivised by promotions and discounts. In recent years they have been launched in the UK as part of the Transitions Towns initiative and these include the Totnes Pound, The Brixton Pound, The Stroud Pound and the Lewes Pound. Lewes had previously introduced its own currency in 1789 which lasted until 1895. These pounds are obtained by exchanging pounds sterling for equivalent face value “local” pounds. Various denominations have evolved such as the 5, 10 and 21 Lewes pounds issued in 2009. There have also been schemes in the US such as the BerksShares in Massachusetts which are bought for 95 cents yet are worth $1. These are available in 1, 5, 10, 20 and 50 denominations. Similarly there have been examples in Canada with the Toronto Dollar, the Calgary Dollar and also in Australia with the Baroon Dollar. Most of these initiatives have been launched since 2006 or later and may well be a local solution in the fightback against the worldwide economic problems. They are viewed as trustworthy currency with real value to the local economy and in certain cases well-meaning because of the positive impact they have on local services and prosperity. Although these models function locally they do demonstrate a widening appeal for taking control of currency and introducing stability to the functioning of an economy.
Are National Economies really functioning?
If they are then for who are they functioning- surely not the majority? What’s happened to the Utopia of Globalisation? One has to ask where we are heading with the daily drivel of mixed messages to suit the media’s demand for sound bites and politician’s short term ambitions for themselves far outweighing the long term requirements of the National interest (daily or decades of proof – take your pick!).
What can be said of today’s global currencies which are currently being prostituted by their governments in a global exchange war to meet their “protectionism” objectives by stealth. Who is controlling their value and to what end?
The “trust” in these currencies is gradually being eroded to the point that Central Banks and the big “clever” money of investors are seeking sanctuary in what may be the only true trustworthy currency – physical gold.
This is fine for the multi-billionaires of this world like George Soros who can afford vaults of the stuff but what about the smaller investor.
Is it time to think that Gold may well become the only currency we can truly rely on? It may also be time to consider exactly what is a trustworthy currency for the future and will it be issued by central banks? There is definite interest in creating a currency of confidence at a time when traditional currencies lose appeal on a daily basis in the unpredictability of an unstable economy and the ever fluctuating foreign exchanges around the world.
This theme is even more current if one observes the trend in the US where Gold is being adopted in Utah and possibly other states as a more reliable store of value and wealth. The website for the Utah Gold and Silver Depository, set up as the means of this remonetization, states:
“On March 25, 2011 history was made when Utah Governor Gary Herbert signed into law Utah HB317 [The Utah Sound Money Act] thereby monetizing precious metals in the form of Gold and Silver American Eagles and United States numismatics (rare coins dated 1792 to 1964) in the state of Utah. The Utah Gold & Silver Depository was founded on the belief that every citizen of the global community has the fundamental right to legally create, preserve and store wealth. To meet the global demand for safe, secure transactions and storage, UGSD has developed a number of depository account options from which a customer can choose and tailor to best meet that customer’s needs and goals.”
The idea is that citizens who wish to monetize their gold and silver will lodge it in an account with the Depository which will then issue them with electronic money in the form of a debit card, which stores the dollar equivalent which is debited against the gold and silver which backs it. The beauty of the Utah scheme is that the “gold debit card” is so clearly linked to the actual gold and silver, the value of which is constantly audited: the card represents the actual gold, which is also personally yours. The technology cannot trump the value or manipulate it. The gold backed debit card is analogous to the old promise printed on, say, Bank of England notes, whereby the possessor of the note was entitled to redeem the face value of the note in gold specie if he produced the note at the bank.
So, this example shows that it is desirable and possible, using modern technologies, to monetize gold making it an alternative to the so called real currencies. A Currency of Confidence with ongoing real lasting and meaningful value. A dream or reality? We shall see… when the austerity measures around Europe are judged, deficits reduced or not and belief in the status quo currency and its current custodians is ultimately maintained or evaporated.

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

Buying a Vera Silver 1 ounce is possible now …

Friday, January 10th, 2014

VERA SILVER 1 OUNCE

VERA SILVER 1 OUNCE

It is all ours and it is all nice, coming from the same Mint as our Vera Valor 1 ounce but the difference is, it is made of 999,7‰ pure silver, with the same DNA as the Vera Valor. It is also QR coded on the observe as a guaranty of high security.


Unlike other coins which are legal tender such as the Philharmonic Vienna and the Maple Leaf, the Vera Silver does not depend on any arbitrary decisions coming from markets or states. Therefore, the Vera Silver protects you from any risk of lack of supply that causes higher prices.


Part of the LSP range, the Vera Silver 1 ounce is available in pack of 10, 100 and 1000.


Stored in our free zone in Geneva (Switzerland), exempted from VAT, it is actually on sale from the very beginning of January 2014.


Rather good news : why paying more money when mints are actually running out of Philharmonic Vienna or Maple Leaf silver coins ?

Silver just like gold is a safe value and just like diamonds are. These are different means to diversify your wealth.

The Vera Family is extending so please yourself by buying one Vera Silver 1 ounce.



Buying gold coins as a safe haven

Wednesday, January 8th, 2014

Gold coins struck for liberty

Gold is an asset able to provide real freedom of action. It has had an inherent value for over 6000 years and is still going strong. It provides the reassurance to your savings and wealth that allow you to sleep easy at night – real freedom. This concept of freedom should increase with the value of our assets but today it is so often used as just a lure of clever marketing that distorts the truth about your savings and investments without the reassurance.

The culprits? Banks, once again. Indeed, our bankers have long forgotten the fundamentals of their activity and prefer to sell us complex financial products or random diversifications like mobile phone contracts. Many contracts tie us to them day after day. They have forgotten that they were to be the guarantors of our freedom by means of the values and valuables that we entrusted to them and included the right for our investments to remain our property.

We became completely dependant on these same banks: obligatory bank accounts to cash our wages, money blocked on accounts which pay hardly more than inflation (and sometimes less), credit, risky investments, etc. With gold coins it is quite the reverse.

Gold coins as an investment

Gold coins as an investment

Today in France, as in many other countries, their holding, their transport, their purchase and their sale are free. But that was not always the case. During the Second World War, Germans prohibited the French from having more than 6 g of gold, not even a 20F Napoleon coin. To deprive the French of their gold, was also to deprive them of their freedom. Very happy were those who could rely on their treasure being locked up in vaults

in Switzerland, able to convert it into cash on the local market and return to France with the revenue of the resale. Those who could not travel abroad could obviously buy or sell some in France, but they were exposed to the risks, including theft, blackmail and denunciation. Feeling confident with this assessment, many sought to shelter their treasure in Switzerland but not having anticipated the war, they subsequently had to take enormous risks in order to

smuggle their coins across the border by using secret compartments in their walking sticks that would be stacked full of Napoleon gold coins.

Another example: between 1933 and 1975, the possession of gold was prohibited in the USA. That did not prevent Americans from being among the largest hoarders of gold currency. The Swiss vaults were then filled with Eagles, Double Eagles and Sovereigns which reappeared at the end of the prohibition on gold or which were directly converted into cash in Europe.

During the Cold War, the Americans were right and gave their pilots (or their spies) gold coins so that they could have the possibility to buy their freedom in certain countries. Proof that even the king dollar would be insufficient in some cases. In the eyes of the Vietcong soldiers for example, it was just a vulgar piece of green paper bearing the marks of an enemy culture.

A gold coin, even struck by the American administration, remains above all gold with universally recognized and accepted values.

Contrary to bank notes, gold does not preach politics or try to impose any lifestyle. Gold does not have a nationality, it is neutral, and does not preach a doctrinaire approach. Gold coins are thus the last obstacle against attacks on our freedom and they will always be recognized at their rightful value. This is not the case with the fiduciary currencies in the form of banknotes, coins, and today of electronic currencies, which are sometimes so difficult to get accepted from one country to another.

Geographical locations

Gold coins are not in demand in the same way in all countries. Thus, in China or in the USA, Napoleon gold coins are not so well known and investors prefer to buy local coins or Krugerrands and Sovereigns which have an international appeal. In France it would be the reverse: in a period of crisis, the Napoleon national coin will tend to see its price shoot up beyond the value of the metal content whilst coins from other countries will maintain a steady premium.

Ideally, one would want to buy coins that are less in demand in a certain country and sell them to a market with a high demand for that particular coin.

This is possible today using systems like LinGOLD.com, AuCOFFRE.com and LingORO.com which unite French, Spanish and English speaking gold investors around the world, providing opportunities for a Chinese Member to buy Pandas from a UK Member for example.

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

The gold buyer is a contrarian

Monday, January 6th, 2014
contrarian-etfs

Contrarian mind, are you ???

A contrarian is a person who buys or sells his position against the opinion of the market and which is wary of the majority opinion while intervening in the contrary direction. The most famous contrarian is none other than Warren Buffet… the richest man on the planet. One of his best pieces of advice is not to follow the herd. His secrecy lies in a sentence typical of a contrarian: “The average is what everyone else is doing; if you want your shares to perform above the average, you must do something else”.

Among the politically incorrect followers of gold, one finds visionaries like William Bonner, historian and specialist in the US economy, who warns his compatriots living on credit:

“Imagine a shopkeeper whose biggest customer was having a hard time paying his bills. The shopkeeper extends credit, hoping the man will get his finances in order. But the more credit he gives him, the worse the man’s finances are. It would be very nice if that could work out. But it rarely does. Instead, it eventually blows up. The customer has to stop buying and the shopkeeper has to stop lending. There’s going to be hell to pay, in other words.”

“What should an investor do to protect himself,” our friend asked.

“Buy gold.”

“Gold? What a strange idea. I haven’t heard anyone mention gold in many years. It seems so out-of-date. I didn’t think anyone bought gold anymore.”

“That’s why you should buy it.”

And that is the person who is currently buying gold.**Extract from the book by William Bonner Empire of Debt : The Rise of an epic financial crisis(published by John Wiley & Sons, 2005).

To put an end to the generally accepted idea according to which gold savings is the act of nostalgic older men, one only needs to go onto some specialized forums to realise that this type of saver is not only younger than the average but that he or she also has a very informed view on the global economic system. From his profile one would say above all that he or she is a careful saver with a different vision of value in the future. This new generation of gold investors is logical, practical and in search of a different type of security than that offered with traditional investment or savings instruments. They have witnessed the demise of their parents “trusted” plans and they are not keen to

repeat the mistake. They may share the perfectly normal aspiration to save for their future but they are looking for security, reliability and protection of the

purchasing power stored up in their savings.

Given the current high street offerings with returns on investment equivalent to a net loss due to the effects of inflation, it is no surprise that savers and investors are turning to something tangible and an asset they can own.


Gold, an alternative Currency of Confidence?


Where would we turn to if the known currencies of the world suddenly devalued and became worthless in real terms?

Throughout history there have been instances when all faith has been lost in the official currency usually because it has become worthless and therefore all confidence has been lost. However, people have always looked for an alternative to maintain commerce and everyday survival. This has sometimes taken the form of bartering but it is limited by the difficulty of assigning recognisable value to a wide range of goods and services. There has to be some common denominator and unit value that is commonly recognised and therefore allows the cycle of trade to turn.

During the French revolution the state coffers were completely empty and so the emerging Constitutional Assembly created a system based on “assignats” which gained their value through selling off the assets of the church. These “assignats” would be guaranteed by the state and the objective was to reconstruct a functioning economy. However, they became greatly over subscribed to the tune of 47 billion causing inflation, zero rates of interest and

ultimately ended in collapse.

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

The Australian Gold Nugget

Wednesday, January 1st, 2014
Nugget reverse

Nugget Reverse from which the coin got its name

The 24 carat Gold Nugget series was introduced in 1986 by the Gold Corporation, a company wholly owned by the government of Western Australia and minted by the Perth Mint. The coins enjoy legal tender status and are composed of 99.99% pure gold. This issue of coins had two unique features: a “two-tone” frosted design effect, and individual hard plastic encapsulation of each coin. These features were unusual for a standard bullion coin and gave the Nugget a unique market niche.

The coins have been minted in eight different denominations of 1/20 oz1/10 oz1/4 oz1/2 oz1 oz2 oz10 oz, and 1 kg of 24 carat gold and have legal tender status in Australia.

nugget obv

$100 Nugget/Kangaroo obverse designed by Ian Rank Broadley

The obverse of the coin features a profile view of the face of Queen Elizabeth II, as designed by Ian Rank Broadley. She is surrounded by her name, the denomination of the coin, and the word “AUSTRALIA”. From 1986 to 1989, the reverse of these coins pictured various Australian gold nuggets, hence they were referred to as nuggets. With the 1989 proof edition, the design was changed to feature different Kangaroos, a more world-recognized symbol of Australia. The coins are today sometimes referred to as “gold kangaroos”.

The Australian Gold Nugget is one of the few legal tender bullion gold coins to change their design every year, another being the Chinese Gold Panda This and their limited annual mintage may, unlike for many other bullion coins, raise their numismatic value over the value of gold used.Each size from 1/20th-oz. to 1-oz. receives a new design each year. New designs are introduced to the proof coins each year for sizes of 1/20th-oz to 1-oz, these designs are then used for striking the bullion coins the following year.

Kangaroo revIn 1991, 2 oz, 10 oz, and 1 kilogram sizes were introduced. These were created with the intention of using economies of scale to keep premiums low, and are some of the largest gold coins ever minted. In 1992, the face values on these large coins were lowered to keep them proportional to the 1 oz coin. The reverse of these coins does not change annually like the lower denominations; the same “red kangaroo” design is used every year.

Nugget spec

FRANCAIS ESPANOL ITALIANO CHINESE

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Thoughts
"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."