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Posts Tagged ‘Gold’

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 It seems so out-of-date.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

The Chinese Gold Panda

Tuesday, December 31st, 2013
Panda100Yuanrev

The Giant Panda whose design changes annually

The Chinese Gold Panda is a popular series of gold bullion coins issued by the People’s Republic of China in proof like, brilliant uncirculated quality. The official mint introduced the Panda gold bullion coins in 1982. The Panda coins come in different sizes and denominations, ranging from 1/20 troy oz. to 1 troy oz with 5 and 12oz . The Gold Chinese Panda has long been a favorite of coin collectors and jewelry designers the world over as the symbolic and cutely designed Panda is changed every year, with one exception. A freeze of the design was announced with the 2001 issues and thus the 2002 Pandas were identical to 2001. But collectors were unhappy and preferred the  annual changes, and China reverted to their original policy. At one time this gold coin was minted in seven different sizes, second only to the eight sizes of the Australian Nugget. The 5- and 12-oz. sizes were discontinued over a decade ago.

Panda100Yuan Obv

The Temple of Heaven

The main obverse design of the panda never changes. It features Beijing’s famous Temple of Heaven (Tien Tien) in the centre,  with Chinese characters on top saying “Zhonghua Renmin Gongheguo” meaning People’s Republic of China and at the bottom the year of issue. If it is is a commemorative issue, the theme will also be marked here.

The design on the reverse changes annually, but it always features the endangered Giant Panda. The reverse of the coin also features the size, gold fineness, and monetary amount.

From 1982-2000, the face values of the 1/20- through 1-oz. Gold Pandas were 5, 10, 25, 50, and 100 Yuan, respectively. Since that time, the face values of these gold coins have been raised to the denominations listed in the Coin Information shown below.

Chinese mints usually do not employ mintmarks. In certain years there are minor variations in the size of the date, style of the temple, etc. in the coin design that allow the originating mint to be determined. In some years but not all Marks and Proof Marks (signified by a ‘P’) have been added.

panda spec

Gold Trends Analysis

Tuesday, December 24th, 2013

Gold Medium Term and Resistance Line
Long Term Trend ~ Neutral since 4/12/13 @ 1501 ~ Moving averages 1560 – 1561
Medium Term Trend ~ Bearish since 4/5/13 @ 1575 ~ Moving averages 1321 – 1370

From a medium term perspective, as long as price is below the UPPER RED LINE near and below the moving averages, the overall medium term trend is still down. We need a close above the moving averages in order to neutralize the downtrend and take it out of bearish mode. The moving averages have now come down to 1321-1370 as we enter this week.

The potential for the year end to be another low cycle has not been eliminated.   We’ve got to get above the averages and the red line in order to become more favorable towards the medium term.  Last week we lost the 1220-1222 area and came within 8 dollars of our target (1180) if broken.

If you look at the end of 2008 you see that the green channel line was broken right at the crash low.

If the lines do break the June lows on the downside the next support is the dotted line near 1100 and then the 1000-1040 area where the white line crosses.   The key for gold is for price to get back above 1370 on a weekly basis for the medium term trend to get out of this bearish mode.  Support is getting thin as we’re at the weekly trend lines.  The June lows can still be taken out if those lines give way but there is a weekly support at 1172 on a Friday close basis that would be the next point to watch for support before the line near 1000 on the chart comes into play.


Gold Trends Analysis

Gold Trends Analysis

Ext : http://www.goldtrends.net

The Australian Nugget 1 ounce

Monday, December 16th, 2013

The Australian Gold Nugget is a popular series of Gold bullion coins issued by the Perth Mint. They
have legal tender status in Australia and are one of the few legal tender bullion coins to change
their design every year, the most notable other being the Chinese Panda.

Details

Australian Nugget 1 ounce

Australian Nugget 1 ounce

Australia issued its first Gold Nugget coins in 1986. From 1986 to 1988, the reverse of  these coins featured images of various Australian Gold nuggets, hence the name. From 1989, the design changed to feature different Kangaroos, a more world-recognised symbol of Australia. The coins are sometimes referred to as Kangaroos but the name

Nugget seems to have stuck. The coins up to 1 Toz change design each year. Each year, a Proof edition is issued and that design becomes the bullion coin design for the following year.

The coins have a unique market niche for two reasons; a “two-tone” frosted design effect and individual hard plastic encapsulation of each coin. Provided they remain as they came from the mint, the quality is maintained and thus premium.

The initial sizes offered were 1/20 Toz, 1/10 Toz, 1/4 Toz, 1/2 Toz and 1 Toz. In 1991, the 2 Toz, 10 Toz and 1 Kg sizes were added. These were created with the intention of using economies of scale to keep premiums low. The face values of the two larger coins were lowered in 1992 in order to bring them more in line with the smaller sizes.

In October 2011, the Perth Mint created a one tonne Gold coin to break the record for the biggest and most valuable, previously held by the Royal Canadian Mint. It is approximately 80 cms diameter and 12 cms thick. The face value is A$1 million but at the time of minting, the Gold price made it worth over A$53 million.

As mentioned, the reverse of the coin features in the early years a Gold nugget and thereafter a Kangaroo. It states the year of the coin, the weight and Gold fineness.

There is also a mintmark ‘P’ which signifies the Perth Mint.

The obverse features a profile view of Queen Elizabeth II designed by Ian Rank-Broadley. The portrait is surrounded by her name, the denomination of the coin and the word AUSTRALIA.

The Australian Gold Nugget coins should not be mistaken for the Australian Lunar Gold Bullion coins. Both coins are minted by Perth Mint and have 999.9‰ fineness but Lunar coins use different animals from the Chinese calendar instead of the Kangaroo.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows:

All Nugget coins are issued as pure Gold finewness, 999.9‰ and in theory have a low premium just above the value of the Gold.

However, their intrinsic beauty makes them very collectable and they attract good premiums.

As with any coin, the best quality grades will attract the best premiums. The three early years in particular will be those with the highest premium. Although the coins

were issued in Proof form, many were unpacked and have thus been damaged and are at lower gradings. The mintage figures for all sizes of Nuggets are in general quite low, thus every coin will have numismatic premium value also. All round, the Nugget is both a collectable and investable product.

Specs

Tax Free Savings

Wednesday, December 11th, 2013

A Tax Free Savings Account in physical gold that you own

UK Taxpayers have a unique opportunity to save in pure gold, a real tangible asset, without paying VAT or Capital Gains Tax. Start from just 1 gram a month.

Gold Britannia and Sovereign investment quality coins offer a unique advantage to investors because they offer between 18% -28% additional benefits over other investments. Why? … because they are completely exempt from Capital Gains Tax. Furthermore, they are exempt from VAT.

Britannia 1 ounce_averse

Britannia 1 ounce averse

Gold Britannia 1 ounce coin

Britannia 1 ounce obverse

Britannia 1 ounce obverse

A beautifully struck gold bullion coin that has UK legal tender status and a face value of £100 – although its actual value is many times greater. The Gold Britannia coin was originally alloyed with Copper, but from 1990 the decision was made to alloy with Silver. This is why the earlier Gold Britannia’s have the deep Gold colour, as opposed to the lighter yellow gold colour of the Britannia since 1990. The latest 2013 coins have no alloy and are pure gold and 999.9°/oo fineness.

Sovereign Elizabeth II_averse

Sovereign Elizabeth II averse

British Gold Sovereign coin

Sovereign Elizabeth II obverse

Sovereign Elizabeth II obverse

The full British Sovereign is one of the most recognised gold coins in the world, with UK legal tender status and it can attract a healthy premium as it is always in demand, at home and abroad. Their legendary reputation comes from their use in a pilot’s survival kit by many air forces, being sewn into their jackets and used to negotiate their safe passage home if downed during a mission. The attraction was the integrity of their British origin which provided the utmost trust to their owners.

Capital Gains Tax (CGT)

Coins which are legal tender in the UK are exempt from CGT. The Britannia and Sovereign investment coins fall into this category. The UK Customs authority has issued a notice to accountants and financial advisors numbered CG12602 which deals with exemptions and in particular currency in sterling. It refers to:
– TCGA92/S21 (1)(b) which states “Currency in sterling is not an asset for capital gains purposes”. >Learn more
– Further notice from HMRC is given in CG78308 which states “Sovereigns minted in 1837 and later years and Britannia Gold coins are currency but, like all sterling currency, are exempt because of TCGA92/S21 (1)(b) >Learn more Value Added Tax (VAT)
Coins which are of investment quality do not attract VAT. Investment quality is defined as coins which contain a minimum of 900 one thousandths Gold. (900.000 ‰). Rather than being a specifically British rule, it is in fact from the European Union. See notice number 2011/C 351/07. The notice refers to all coins from various countries which would fulfill the investment quality criteria. >Learn more


Confidence in physical gold

Tuesday, December 10th, 2013

According to kingworldnews.com and also confirmed on jsmineset.com, the Shanghai Stock Exchange would have delivered more gold than Fort Knox in the States. Needless to say the strong impact that would have on the gold price in the forthcoming future.
Some people even expect tapering to happen again or at least at some point.

Shanghai stock exchange
Shanghai Stock Exchange

The dollar is being printed on such a large scale that it leads to a complete devaluation of the US currency. That may be a satisfaction to the American to have more bank notes printed out but on the other side this does not help other countries like China who is presently sitting with some $3.7 trillion of foreign exchange reserves – other countries are actually in a pretty similar case with lesser quantities but still the concern remains …

Kingworldnews visited the Shanghai Stock Exchange in 2009 and said that they had delivered some 8655 tons of gold since 2009. The Chinese bought something like 1.700 tons of gold in the first eight months of this year. It means that gold is actually feeding the Chinese’ foreign exchange reserves. We know that the renminbi is already the second largest currency used in global trade … How long before the dollar becomes fully obsolete ?

Let’s have a closer look at the dollar :

Well, one should be scared when looking at that 14 year perspective published on jsmineset.com

a 14 year perspective for the de-dollarization

a 14 year perspective for the de-dollarization

In our article published on Nov 19th 2013 – China remains the world’s largest gold consumer in Q3’13 – we were actually talking about the lack of confidence in the global financial market and systems altogether. As Jim Sinclair was saying ‘Credibility speaks to Confidence and Confidence speaks to Gold’.

Soon we may have part of our savings confiscated. How trustworthy are the banks? 

Investing in physical gold has never been so important. Making it affordable to everybody is our main concern and feasible thanks to our LSP.

For further information with regards to the confiscation in the USA, please read our article The Great Confiscation : Gold ownership was illegal in the USA from 1933 to 1975.

The Krugerrand 1 once

Monday, December 9th, 2013

The Krugerrand is probably the original Gold bullion coin. It was introduced in 1967 as a vehicle for private ownership of Gold whilst also being circulated as currency, hence being minted in a durable alloy. From 1980, further sizes were introduced. See specification table overleaf.

Details

pict krugerrand 1 ONCE The history of the Krugerrand begins with the South African Chamber of Mines which had the inspired idea to market South African Gold by producing a one Troy ounce bullion coin to be sold at a very low premium over the intrinsic Gold value. It was intended to be circulated as currency, hence it was minted in a more durable alloy and contained 2.826g copper to resist scratching and thus giving the coin its golden hue. At the time of launch, the Krugerrand was the only accessible Gold investment opportunity for the everyday buyer and this thought came through from the inception. It was the fi rst coin to contain exactly 1 Troy ounce of Gold.
Despite the coin’s legal tender status, economic sanctions against South Africa made the
Krugerrand an illegal import in many Western countries during the 1970s and 1980s. These sanctions ended when South Africa abandoned apartheid in 1994 and the Krugerrand once again regained its status as one of the worlds’ leading bullion coins.
In 1967, only the one ounce coin was available. From 1980, the fractions were available, namely, one half ounce, one quarter ounce and one tenth ounce. The name is derived from a combination of Paul Kruger, a well-known Boer leader and later President of the Republic and the Rand, the monetary unit of South Africa. The obverse side features the Otto Schultz image of Kruger along with the name of the country “South Africa” in the two languages, English and Afrikaans. The reverse side, designed by Coert Steynberg features the image of a Springbok Antelope, one of the national symbols of South Africa.
By 1980, the
Krugerrand accounted for 90% of the Gold investment coin market. For example, it is estimated that between 1974 and 1985, some 22 million coins were imported into the United States alone. Although it is not a beautiful coin, many millions have been sold since its introduction due to the policy of selling with a very low premium. The success of the Krugerrand led to many other Gold-producing nations minting their own bullion coins, such as the Canadian Maple Leaf in 1979, the Australian Nugget in 1981, the Chinese Panda in 1982, the US Eagle in 1987 and the British Britannia in 1987.
The
Krugerrand is interesting in that the government of South Africa has classed the coin as legal tender although it has no face value. It therefore fulfills VAT-free criteria for investment coins.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows:

investment advice krug
Essentially, the bulk of
Krugerrands are produced in a non-proof form although the South African Mint produces limited edition Proof quality Krugerrands as collector’s items. These coins in particular attract a healthy premium and are priced well above the value of the bullion alone. However, non-Proof coins also have a premium above the value of the bullion.
The Proof and non-Proof coins can be distinguished by the reeding, that is, the number of serration on the edge of the coin. Proof coins have 220, non-Proof have 180.

key facts krugerrand

Krugerrands are made of an alloy of Gold and Copper – this effect also being known as Crown Gold as it has long been used for the British Sovereign coins. Due to the popularity of the Krugerrand, there are also many fakes in existence and the investor should be wary. Copper alloy gives a much more orange appearance than silver alloy. Likewise copper is very durable and coins should be in good condition always.
The best marker of authenticity is the weight and this should be checked carefully using the table below since the Gold weight and total weight are known. Check also the reeding.

Specs

specs krugerrand
All investment coins sold by LinGOLD.com are EF quality or above.

For further information: +44 (0)203 318 5612
info@lingold.com


The Panda 1 ounce

Wednesday, December 4th, 2013

The Chinese Gold Panda is a popular series of Gold bullion coins issued by the People’s Republic
of China in Proof-like, brilliant uncirculated quality. They are issued in a range of sizes between
1/20 Oz and 1 Oz with larger 2 and 5 Oz coins being additionally issued in some years.

Details
panda 1 onceChina issued its first Gold coins bearing the Panda design in 1982. These were limited
to sizes of 1/10 Troy ounce along with 1/4 Toz, 1/2 Toz and 1 Toz. From 1983, the 1/20 Toz size was added and additionally a 2 Toz and 5 Toz coin is sometimes issued.
These strikingly beautiful coins are always issued in Proof-like brilliant uncirculated quality and prove very popular.
A different design was issued each year until the 2000. When the 2001 edition was announced, so too was a freeze of the design and thus the 2002 Panda is identical to the 2001. Collectors spoke up on behalf of the annual change and China responded by reversing their policy so that from 2003 onwards, the designs again change each year.
However, on the reverse side, it always features the endangered Giant Panda. It also features the size, Gold fi newness and monetary value.
The main design on the obverse of the coin has hardly changed, save for minor detail changes in the image. It features Beijing’s famous Temple of Heaven (Tien Tien) in the centre with Chinese characters on the top saying “Zhonghua Renmin Gongheguo” meaning People’s Republic of China and at

the bottom the year of issue. If it is a commerative issue, the theme will also be marked here.
There was an adjustment of the face values of the coins in 2000/2001 – please see
the table overleaf for details.
The Chinese mints usually do not employ mintmarks. In certain years, there have
been minor variations in items like the size of the date, the style of the temple and
so on. These allow the numismatist to identify the originating mint. In some years,
but not all, other marks and Proof marks (signifi ed by a ‘P’) have been added. The
four mints involved in the production of the Panda are Beijing, Shanghai, Shengyang
and Shenzhen.

Investment Advice

INVESTMENT ADVICE

All Panda coins are issued as pure Gold fineness, 999.9‰ and in theory have a low premium just above the value of the Gold.
However, their intrinsic beauty makes them very collectable and they attract good premiums.
As with any coin, the best quality grades will attract the best premiums. The early years in particular will be those with the highest premium. Although the coins were issued in Proof form, many were unpacked and have thus been damaged and are at lower gradings. The mintage figures should be carefully examined – the number originally minted is quoted but it has been found that production continues for various years, hence the total mintage may be quite a bit higher some years after.

SPECS

SPECS

KEY FACTS

All investment coins sold by LinGOLD.com

are EF quality or above.

For further information: +44 (0)203 318 5612
info@lingold.com

The Maple Leaf 1 once

Sunday, December 1st, 2013

The Canadian Gold Maple Leaf is one of the oldest bullion coins alongside the Krugerrand. It is a classically beautiful coin, internationally recognised and provides investors with a secure, quality addition to a portfolio.

Details

The Royal Canadian Mint introduced the Maple Leaf in 1979. Along with the Krugerrand, it has been in continuous production ever since. It came about because of the Krugerrand – at the time, there was an economic boycott of South Africa so Krugerrands were not widely available – and thus the Maple Leaf fi lled a gap in the market. It contains virtually no base metals at all and uses Gold exclusively mined in Canada.

MAPLE LEAF 1 ONCE GOLD COIN

The earliest years between 1979 and 1981 had a Gold fineness of 999.0‰ but 1982 onwards is 999.9‰. For those same fi rst years, only a 1 Toz coin was produced. Between 1982 and 1985, the 1/4 Toz and 1/10 Toz sizes were added. Then in 1986 the 1/2 Toz was added and in 1993 a 1/20 Toz coin joined the group. It has remained thus to date except 1994 when a 1/15 Toz coin was produced for that year only. That year, a Platinum 1/15 Toz coin was also produced, possibly for jewellery, but both the Gold and Platinum 1/15 Toz coins were not a success and were dropped. The Maple Leaf is also available in Silver and Palladium.

Each coin features the image of Queen Elizabeth II by Ian Rank-Broadley on the obverse side. It also has the denomination and year of issue. On the reverse is an image of Canada’s national symbol, the maple leaf along with the word CANADA and the Gold fi neness in both English and French. Every coin is guaranteed to contain the stated amount in Troy ounces of fi ne Gold. The coins are identical in design except for the obvious items such as weight.

All Maple Leaf coins are legal tender in Canada although are categorised as “non-circulating bullion coins”. Their Gold fi neness easily puts them into the general category of being VAT-exempt.

On 3rd May 2007, the Royal Canadian Mint unveiled a 100 Kg Gold Maple Leaf with a face value of C$ 1 million although the Gold content makes it worth much more. The coin was produced as a promotional product to give the mint a higher international profi le. However, several interested buyers came forward so the mint announced it would manufacture to order. There are believed to be five confirmed orders and/or deliveries. It held the record for the largest coin until 2011 when an Australian coin superseded it.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows:

INVEST ADVICE

All Maple Leaf coins are issued as pure Gold finewness, 999.9‰ and in theory have a low premium just above the value of the Gold.

KEY FACTS 1

However, the reality is that a 5% premium should be achieved for a quantity of coins

with higher values for individual coins. As always, the smaller value coins will have higher premiums.
The coins were never really designed to be handled due to the softness of 24 carat Gold, the milled edge and clear fi eld around the image of the Queen. With some coins supplied in tubes, this makes them susceptible to handling marks and other damage. So careful examination of coins is highly recommended.

Specs

SPECS 2

The British Sovereign

Friday, November 29th, 2013

The Gold Sovereign is a highly collectable investment coin first introduced in Great Britain in 1489 at the request of King Henry VII. In 1816, there was a major reform of coins in Great Britain which resulted in The Coin Act. This laid down in law, amongst other things, the specifi cations and dimensions of Gold Sovereigns produced from 1817 onwards which have remained in place to this day. The Sovereign weighs 7.99g and is 22 carat Gold (or 916.667‰ fineness).

SOVEREIGN AVERSE AND OBVERSE

Details

The first Gold Sovereign was struck in 1489 for King Henry VII. Sovereigns continued to be issued by monarchs up until the end of the reign of Elizabeth I in 1603. As part of the coin reform of 1816/1817, the Sovereign was re-introduced. A young Italian engraver, Benedetto Pistrucci, was appointed to create the reverse design coming up with the beautiful image of St George slaying the dragon. This design saw many alterations over the years but is essentially the same. As a testament to the design, it still appears on the very latest 2013 edition. Other reverse designs have at times been used during the reigns of William IV, Victoria, George IV and Elizabeth II. The obverse of the Sovereign followed the trend established by the original and portrays an image of the reigning monarch, which remains the case up to the present.

Gold Sovereigns were withdrawn from circulation at the start of World War I in 1914 although production continued at the Royal Mint until 1917. They continued to be produced at other mints of the then British Empire but at lower quantities than before. Sovereigns which were not produced at the Royal Mint carry a mintmark showing their provenance, hence one finds coins referred to as Australian Sovereigns or South African Sovereigns. This “foreign” production stopped in 1932.

In 1957, the Royal Mint began again producing Sovereigns in order to meet world demand and to stop the booming counterfeit production which had become rife since the Royal Mint stopped producing in 1917. They were not however reintroduced into everyday circulation. Prior to 1979 only Gold bullion coins had been issued and it was this year that the fi rst Gold proof Sovereigns were issued. Between 1983 and 1999 the Royal Mint ceased producing Gold bullion Sovereigns and only minted proof Sovereigns. Gold bullion Sovereigns were re-introduced in 2000. There are several special designs but essentially, the George & Dragon design remains with the wheel turning full circle where Pistrucci’s design (which was on the Sovereign when the current monarch was crowned) has been re-introduced for the 2013 edition to mark the 60 years reign of Elizabeth II.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows :

SOVEREIGN 1

Whilst older Sovereigns were produced in much larger quantities than those produced today, it is much more diffi cult to source a good quality Sovereign from those times. Sovereigns from the reigns of George III, George IV and William IV are extremely rare in good quality and thus command high premiums. EF quality can be found but are still quite rare. For example, a UNC George IV Sovereign from 1825 made £14,950 at a sale in March 2004! Early Victorian shield Sovereigns are highly sought and therefore an EF quality coin would fetch a high premium. Indeed anything UNC or FDC from the reign of Victoria is a high premium coin.

Edward VII and George V are fairly easy to obtain in EF quality as they were produced in very large numbers. As with Victoria Sovereigns, any UNC or FDC coins would attract a high premium.

The majority of coins on the market is from the reign of Elizabeth II and has lower premiums than earlier editions. However, the quality again affects the premium and the investor should look for the highest grades. Any coin will always fetch a higher premium anyway than the price of Gold and can only become more sought after in the future. There follows a list of certain rare Sovereigns to seek out if possible – finding one of these will command an excellent premium:

SOVEREIGN 2

– 1817, the first year of the modern Sovereign

– 1838, the first Victoria Sovereign

– 1841, the rarest Victoria Sovereign

– 1917, London-minted Sovereigns, not Australian or South African

– 1989, 500th anniversary of the Sovereign edition

– Anything from George II, George III and William IV – FDC, UNC and even EF grades

Specs

SOVEREIGN 3

Detailed reading: http://goldcoin.org/numismatics/the-british-gold-sovereign-the-world’s-most-sought-after-gold-coin/4103/All investment coins sold by LinGOLD.com are EF quality or above.

For further information:   +44 (0)203 318 5612     or email : info@lingold.com

How much does 1 gram of pure gold cost ?

Thursday, November 28th, 2013

Who said that only wealthy people could afford buying gold ?

  • Save from 1 gram of gold per month
  • Secure storage in Swiss vaults – FREE*
  • No administration or signup fee
Sign up for the LSP for free

Gradually build your wealth by simply buying each month a minimum of 1 gram of physical gold, for your LinGOLD Savings Plan (LSP) and benefit from freestorage in Swiss vaults outside the banking system.

How to save with the LSP?

  • Connect to your LinGOLD account or create a new account
  • Signup free to the LSP programme
  • Buy each month a minimum of 1 gram of pure gold
  • The gold you have bought is fully referenced : bar code, photograph, certificate of ownership
  • The gold is stored in a Swiss vault outside the banking system
  • You are free at any time to increase or reduce the amount of your savings, or you can unsubscribe from the LSP with no charge or prior notice.
Minimum Purchase 1g pure gold per month*
Maximum Threshold Unlimited
Storage Charges Free*
Signup Fee None
Availability Immediate Resale
Minimum Engagement None

*The storage charges levied on your gold stored in the LSP are FREE, on the condition that you buy a minimum of 1 gram of pure gold per calendar month, before the last day of each month. If the minimum monthly purchase is not made, storage charges will be applied, currently £4 per month per 200g total weight stored.

What are the products that fall within the LSP?

  • All the fractions of pure gold (1 g, 10 g, 100 g) issued from bars or gold investment coins (Britannia, Sovereign, Napoleon 20F, Napoleon 10F, Panda, Vera Valor, etc)
  • A whole coin : Vera Valor 1 ounce
  • A 1kg bar of pure gold

For further information on the LSP.

Manipulation of financial markets ?

Wednesday, November 27th, 2013

What’s happening with the London gold fixing ?

First, Bloomberg reported that the U.K.Financial Conduct Authority (FCA) was investigating over the way gold prices were set every day in London, as the main bullion-trading centre in the world based on information from the LBMA.

Now it is the BaFin, German’s financial supervisory authority, who is actually investigating into suspected price-fixing of benchmark gold and silver prices.

images-2

One should ask ?

The facts :
It would seem that the London fix, benchmark rate used by mining companies, central banks and other companies to buy, sell and value gold, may have been subject to manipulation over the past few months.  According to some traders interviewed by Bloomberg, it seems that ‘insider trading’ around the gold fixing is potentially possible as dealers and customers exchange information. That should lead to a wider investigation into how global rates are being set.
Remember last year when the London interbank offered rate – LIBOR – was being manipulated. Would other financial markets be manipulated ?
Similar investigations would be under way in the Uk and US, no sources

actually confirmed that point.
It wouldn’t be the first time prices are being manipulated.

Ext: Mining.com


Your savings in a safe place

Tuesday, November 26th, 2013

Traditional investments are at risk because they are inextricably linked to the world wide web of paper debt that exists in futures, bonds, hedges and spread bets.

Pension funds, banks, stock markets and even countries are using your investments to pay off their own debts rather than to seek a profit for you.

These paper investments are all at the mercy of the debt cycle and could be lost completely or become worthless at any time. What happens when these massive debts are called in and can’t be repaid ?  This will happen but nobody knows when. How bad will it be ? How long will it last ? Politicians publicly pretend it can’t happen because they couldn’t handle the panic and their main preoccupation is preserving power or surviving their ‘shift’.

Did you know?

– You can still buy a new car today with the same weight of gold as you needed to buy a new car 90 years ago.

– 300 years ago 2 oz of Gold could buy a cow, the same amount as you need today!

– Current devaluations are decreasing your ‘paper’ savings, investments and pension funds

– Since  2000 stock markets have slumped while the price of gold has increased more than 5 times

LinGOLD.com’s commitment to doing things differently is exemplified through its ‘Vera Valor’ gold coin.  The ‘Vera Valor’ is the first ethically produced coin made from “clean extraction” gold, which is 100% traceable from mine-to-mint.

LinGOLD.com’s vault storage facility is based in the highly secured facility of Geneva Freeport and is independently audited to ensure total propriety and counterparty.

investment in lingold

investment in lingold

Britannia 1 ounce Gold Coin

Saturday, November 23rd, 2013

The Gold Britannia is a 1 Troy ounce investment coin. Whilst the figure of Britannia has graced coins since Roman times, it is only since 1987 that the modern Gold Britannia coin has been produced. The Gold Britannia is also available in fractions and the Silver Britannia is 1 Troy ounce of pure Silver.

It is probably Athena, the Greek goddess of wisdom and war who set the pattern for powerful maidens, like Britannia, to personify the characteristics of the nation they represent. It was the Romans who first portrayed Britannia on their coins. However, in the mists of time, it seems Britannia was depicted as resisting the invasion of the Roman Empire paying tribute to the fighting spirit of the island’s inhabitants, the Ancient Britons. In modern times, Britannia remains the universally recognised personification of Britain.

BRITANNIA 1 OUNCE

BRITANNIA 1 OUNCE

The coin history can be traced through Roman coins, those of Charles II and Elizabeth I through to today. Queen Elizabeth II came to the throne in 1952 and by that time, Britannia had been on coinage continuously for the previous 300 years. These coins were made from copper, and later bronze. In 1971, Britain adopted decimal currency and Britannia was chosen for the 50p copper/nickel alloy coin. In 1987, Britannia was finaly “promoted” to grace the Gold bullion coin which is known today as the modern Britannia. Ten years later in 1997, a Silver bullion Britannia was also issued.

In modern times, different aspects of Britannia’s history and character have been interpreted by different artists. The portrait by David Mach is the ninth to appear on both the 2011 Silver and Gold coins of Elizabeth II’s reign. The 2012 and 2013 coins were designed by Philip Nathan with the obverse continuing to show the acclaimed monarch effigy by Ian Rank-Broadley FRBS.The first Gold Britannia coins were produced in 22 carat form.

The 2013 edition is pure Gold, 24 carat. See full specifications below :

Although it is 1 Troy ounce of pure Gold, the Britannia is in fact the highest denomination coin in Britain. So as well as being free from VAT as it is investment-quality Gold, it is also free from Capital Gains Tax on any sale or transfer which is advantageous over other bullion coins and bars as an investment instrument.

There are various grading systems in use around the world. However, the British system is as follows:

BRIT 2

The Gold Britannia is issued in weights of 1 Troy ounce, half-ounce, quarter-ounce and tenth-ounce. The Silver Britannia is produced in a weight of 1 Troy ounce only and has a face value of £2.00. The large coins are those which attract the best premium. The reason for this is the costs of manufacture are approximately the same regardless of size and therefore Gold content.

The premium of Britannia coins is determined by the quality of the coin, design features, mintage and Gold content. From 1987to 1989, the coin was alloyed with Copper. From 1990 to 2012 it was alloyed with Silver. From 2013, it is pure Gold.

BRIT 3

The British Royal Mint has issued Proof editions every year and these should be sought where possible. Generally, the Britannia is not a high mintage coin. The years with the lowest numbers minted are 1990 to 2000. Coins minted in the years 1990, 1991 and 1997 are particularly sought after as their proof mintage was 262, 143 and 164 respectively. There are several design variations of the reverse, notably the year 2003 which featured Britannia’s head only as opposed to the usual full figure.

Silver Britannia tends to be sold in bulk because of the much lower value of Silver. Beware that Silver prices are much more volatile than Gold.

BRIT 4