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

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

The 20 pesos coin

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

Date on the gold pesos coins

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

What is the interest in Mexican gold pesos coins?

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

In last nights website update resistance was listed at 1438-1445 and the high so far today is 1438. Support was listed at 1418-1423 and the low so far is 1430.50

London Gold Fix $1434.00 -$8.25

In the early action today, April gold prices are sitting roughly $10-12 below the Thursday highs. A large portion of the corrective action was seen at the end of the prior trading session and prices this morning are trading in the mid to upper 1430’s. A margin rate increase in silver was probably the catalyst for the sell off on yesterday….. but it was certainly coincidental that we mentioned if a sell off into options expiration on Monday for Gold was in play that Thursday would be the most likely day.

Many gold players continue to think that the Euro zone crisis will provide support to gold prices going forward, as the fear of contagion or knock on influences have returned to the forefront.
Others in the trade noted that gold was able to gain in the face of weak US economic readings and that is considered a change of pace from the pattern that was seen in the beginning of March. In other words, some traders think that a series of weak US data points are capable of extending US QE and that in turn might give rise to a future inflation problem.

The Dollar is holding against most of the major currencies but is still fighting to get back above 76 and still remains in trouble on the charts as we close out the week.

Japanese authorities have suggested that one of the Fukushima reactors was leaking due to a broken core has increased an already dangerous condition.

Syria protests have been escalating as demonstrations are being driven by political demands. Economic issues and inflation concerns are behind the unrest. There are scheduled protests in UK also this weekend.

In today’s gold action, price is in a trading range and is very choppy. With the weekend approaching, yesterday’s downdraft, options expiration on Monday, the middle east and Japan situation, and traders moving from the April contract into June–it has created a lot of cross currents in today’s trade. Support for the remainder of the day is the 1420-1425 area and resistance is the 1438-1444 area. A close above this area would tend to favor the upside going into next week.

I cut my short term position in gold in half last night so as to lighten up for the weekend. Should there be a pullback into options expiration on Monday — I’ll look at adding it back in the 1415-1420 area or at the lower purple trend line on the chart.

In summary — yesterday’s pullback seems more manipulative action — and price should remaining choppy and range bound for the remainder of the day. The charts and the trends still look up into the first week of April. If there is a pullback early next week we’ll look at the price patterns and see if there is a good setup.

by Bill Downey

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In last nights website update resistance was listed at 1434-1444 and the high so far today is 1434.50 —- support was listed at 1419-1424 and the low so far today is 1425.50 —

London Gold Fix $1433.00

In the early action today, April gold has managed a rise above the prior session’s high but has reached the key 1435-1444 price area of resistance this week. This is the key area to watch this week. A close above 1435 would add to the bulllish potential towards 1460.

Reports that the Japanese disaster might end up costing as much as $300 billion. However, the upward track in gold and other commodity prices might be held back because of fears that containment of the #3 reactor at Fukushima has seen a setback overnight as commodities generally don’t like to see developments that could end up slowing the economy.

Talk that a Chinese gold company might be looking to acquire gold mines in other countries was viewed as favorable in today’s trade.

The Fed’s Fisher is a scheduled to speak today and yesterday he generally sounded a hawkish tone. The US Fed Chairman BERNANKE is also scheduled to speak just ahead of mid session today and some traders think he will largely countervail the dialogue from Fisher.

Gold will garner some support from a bullish price forecast from a gold company executive, who suggested that gold might have a “couple” more years of upside action before a top is formed.

While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally weaker this morning and the US stock market is a bit lower this morning. Home sales plummeted in USA — down 175 from January.

The Dollar is stronger against most of the major currencies during overnight trading, although posting a loss against the Yen. With the US dollar on the brink of NEW LOWS for the year and at a key chart point, we couldn’t help noticing that Portugal is in the NEWS headlines and the “spin” is that Portugal may be the third country that will ask for a Euro bailout. This has caused a Euro pullback and a BID for the US Dollar today. Coincidence ? Who knows anymore, but the US Dollar is higher in trading today. The Prime Misister of Greece also stated that any restructuring of Greek debt would bring on collapse of banks in his country.

Coalition air strikes have grounded the Libyan air force, but rebel forces have been unable to take advantage as fighting has reached a stalemate.

Going to the chart – Gold is up against key resistance today at the 1435 area — and this is probably the most important area for this week. A close above 1435 will favor higher towards 1444. Gold has attempted to move above this 1435-1445 area since Feb 28th so it is approaching decision time. The price pattern continues to show “capping” as Darth likes to call it —- but they can only hold it for so long and it looks like a decision point is coming in on the short term today or tomorrow. The upside still has the advantage but keep in mind that BERNANKE is scheduled to speak today and that can cause some choppy action.

Resistance for the remainder of the day is 1435-1444 and support is 1422-1426. The trend remains up.

In summary — but gold and silver are at key price points —and a close above these levels will keep the favored short term uptrend in place.

by Bill Downey

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Last nights website update listed 1434-1444 as resistance and the high so far is 1432. Support was listed at 1417-1421 and the low so far is 1420.

London Gold Fix $1425.50 -$2.25 LME

Overnight trading does not seem to have undermined gold prices on Tuesday.
In fact, certain Asian equity prices have returned to pre-quake levels and that in turn has tamped down deflationary concerns and might be under pinning support to gold prices. The Dollar is a touch weaker this morning on ideas that the US is set to remain in an easing posture.

Trade “risk on” has a bit of support as news that a Spanish debt auction saw good demand overnight and that the EU managed to step up their financial bailout capacity again.

News that Gold Fields is in the market for some Peru holdings, suggests that the gold mining industry remains bullish toward gold price prospects and that angle was given some addition credence overnight by predictions from the Anglogold Ashanti CEO who predicted that gold prices could reach $1,600 in the coming months.

While equity markets in Asia and Europe were generally higher this morning, early indications in the US stock market shows a much more toned down market at the open. Traders are looking at the 1300-1304 area as a pivot point. Traders are trying to short near that area —– but a move above 1306 —would have them looking to the long side.

The Dollar is slightly weaker against most of the major currencies during overnight trading, although posting a small gain against the Yen. Although air strikes have continued for a third day, Libyan forces allied with Muammar Gaddafi continue to seek out rebel strongholds.

Steam has been rising from two of the stricken nuclear reactors at the Fukushima power plant, indicating a greater likelihood that fallout may spread beyond the complex again.

From a chart perspective — gold reached daily resistance and has pulled back to the 1420 area to fill the Monday gap. Today’s zoom in shows the 1417-1420 area as support —-and additional at 1408-1412. Resistance is the key 1432-1436 area — and a close above 1436 would be suggestive towards 1460.

In summary — the gold market remains in a short term uptrend and higher prices are favored. A close above 1436 would indicate higher towards 1460.

by Bill Downey

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Banks outside the law?

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

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

Do you trust your bank?

Do you know what they do with your money?

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

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

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

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

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

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

Stop bailing out incompetence – Let them fail!

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

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

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

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

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

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

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

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

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

Don’t invest in “paper promises”.

Get Physical!

Own gold and gold coins.

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

People also perished – because they didn’t!

What would you rather do? Survive or Perish?

Make your choice!

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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The impact of the growing number of recent natural disasters will inevitably provoke a deepening of the global economic crisis.
Our thoughts and hopes are definitely with the people of Japan, New Zealand, Australia, Chile, Sumatra, Brazil, China, Pakistan and all of the other regions affected in recent times by catastrophic natural disasters.

The sheer scale of these events and especially those in Japan reminds us of the fragility of humankind in the face of nature’s wrath. The trauma and tragedy of all these events are beyond comprehension unless you have survived one.
As hope still prevails that survivors may be found, what will the economic impact be of these events?
Profound!
The Nikkei has already dropped over 6% in the first day of trading. The central bank has injected over $180 billion to provide liquidity.
Remember that Japan was already struggling with a debt crisis on an enormous scale. Concerns will be that Japanese foreign interests and reserves will be liquidated to service the rebuild and to try and control the debt. There is over $5 Trillion of Japanese foreign investment and any significant moves to pull out large quantities would have a serious knock-on effect around the world.
Now whole areas of the economy will be affected. Manufacturing production in Japan’s most important industries and major corporations will be hit either directly or indirectly because of suppliers disappearing. This too could have an effect on Japanese industries abroad.
Infrastructure rebuild costs will be huge and the time to undertake this will also be an influencing factor. First guestimates indicate years or even decades will be required for Japan to rebuild and recover after the Japanese Prime Minister declared the disaster as big if not bigger than that suffered during World War II.

Japanese exports will be greatly affected and Japan will have to import much more to cope with deficiencies.

Nuclear Meltdown?

The unknown is now the increasing possibility that a nuclear incident will further worsen the impact and could have environmental issues for other countries.
The human cost, trauma, lack of labour will be another factor.
Many of these factors affect all areas hit by disasters and the pressure on economies is mounting.
But in a world already at odds with itself and unrest spreading through other parts of the world where does this leave us.
Nobody knows the real costs or the real impact of any of these tragedies. Experts make a best guess.
One thing can be sure is that collectively they present the global economic picture with additional demands for investment that it simply cannot meet.
Maybe Bernanke can introduce QE3 and print more dollars for US efforts to help their neighbours but as we know this if anything is compounding the world’s problems and bits of paper are not real money or wealth.

Financial Meltdown

What will happen to the large insurance groups who will be hit for claims on a colossal basis? Will they be able to pay? Will they indeed survive?
Are they not part of the global cycle for investing, hedging, banking etc?
Their pain will be shared and passed on but in doing so we will finally see the world wide web of debt come undone.
The fact is there is not enough money on the planet to repay all the hedges, spreads, bonds and loans.

This latest natural disaster is a forerunner of the man-made one to follow. The world is heading for financial meltdown and we are powerless to stop it.

The only thing you can do now is start to plan for the inevitable.
Ditch toxic assets, currencies and investments.

Click here to view a Special MoneyWeek presentation.

Get out of “paper promises” and get into tangible & real.
Look for a safe refuge or haven to park some “money” or wealth that may see you through the hardest times.
Don’t wait too long as hindsight is not an option.
Your insurance now rests with gold as the safest way to preserve your wealth and to survive the crisis we are facing.
Be safe, be prepared and buy now.

In last nights web update resistance was listed at 1417 – 1425 and the high so far is 1419. Support was listed at 1398-1405 and the low is 1404.50

London Gold fix 1409.75

CME NEWS

Gold waffled around both sides of unchanged overnight as economic and financial uncertainty by the massive Japan quake overnight.

The gold market will probably turn its attention to tensions in the Middle East, as the day of protest in Saudi Arabia yields some headlines.

While the market is likely to discount supply side news in the trade today, some news agencies overnight pointed out a noted decline in Chinese gold production for the month of February and that could lend some passing support to gold prices.

From a chart standpoint — the lows fom yesterday are holding as they have been tested a number of times overnight. The dotted trend line has provided support for the second day in a row. Support for the remainder of the day is 1398-1405 and resistance remains at 1417-1425. In summary prices should trade in the 1405-1420 range today. We’ll pick it back up next week. Have a great weekend.

by Bill Downey

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Currency diversification will support gold and gold is such a tiny market that a substantial move into it by investors could take it parabolic, gold mining entrepreneur Rob McEwen tells King World News in an interview today. Excerpts from the interview can be found at the King World News blog here:

Gold could go parabolic

Courtesy of
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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

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

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

A Symbolic Act that brings back the Gold Standard?

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

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

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

Malls Witnessing Gold Rush as Shoppers Fear Inflation

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

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

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

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

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

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

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

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

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

By Xu Fan
China Daily, Beijing

and courtesy of Chris Powell and GATA

German philosopher Arthur Schopenhauer once said that “all truth goes through three stages. First it is ridiculed. It then it encounters strong opposition and finally it is considered to have always been obvious”.

Think back to January 2007. All the elements of the crisis were already in place but the prophets were rapidly called “doom-mongerers”, stupid pessimists who were incapable of imagining the power of interventions made by the monetary authorities and the central banks. Countries had relatively little debt. Sovereign debts were therefore on assets held as a priority.

Certainty is illustrated by the expression “Fly to quality”. Each stock market shock leads to massive arbitrage away from equity markets to bonds which are considered to be “invulnerable”.

We were in the first stage which was described by Schopenhauer. The one during which we ridicule those casting doubt on the soundness and financial sustainability of large states.

Then came the great crisis of 2008. The one needing billions of Euros and Dollars of stimulus, monetary creation and social expenditure.

Deficits were dug out quickly and in a way never imagined by all the economic commentators. Caught in the cross fire of sagging tax revenue and massive spending support, the hole could only become quite cavernous. By the end of 2010, the idea of the widespread failure of Western States is now only encountering soft opposition. “No, come off it, a Country does not really go bankrupt; anyway, growth is starting in the United States which is, after all, the World’s largest economy”.

Exactly. Remember the figure of 2.9% which was the growth rate for the U.S. economy in 2010. Remember it well, we’ll come back to it.

Growth does not cure the crisis

Despite this 2.9% (which needs to be borne in mind), unemployment did not fall at all. Some kill-joys who were looking at the real unemployment rate in the United States (the one published by the FED and which also records those looking for work but receiving no benefits) even dared to say that this figure had reached more than 17.4%.

Despite this 2.9% (growth), approximately 43 Americans eat every day thanks to “Food Stamps” which are handed out to the poorest of society to enable them to go stores and buy basic items of food. It is a modern version of the soup kitchen that avoids shocking images of queues of the miserable and hungry unemployed. In short “food stamps” are a cross between ration books and restaurant vouchers.

Let’s turn now to the kingdom of perfidious Albion. Our English friends had the brilliant idea of electing a new “Conservative” Prime Minister, Mr Cameron. He argued that “If you do not deal with the the debt, you will never grow”. His main opponent the “Labour” Ed Miliband replied: “If you do not grow, you will never get out of the debt.”

That’s a neat debate. How can we get out of this crisis? How do we get back to growth? By spending more in stimulus measures to stimulate the economy as argued by our Labour friend? Why not…but with 11% deficit it is difficult to spend more without going immediately bankrupt.

So, the Conservative Prime Minister is exploring the only path which theoretically still holds out some hope…..the one of austerity. We cut all spending. Not a little but very much. Civil Servants are laid off (490 000 less up to 2015). Tuition fees? Tripled, quadrupled or quintupled. Teachers? Laid off. Parents will have to organise themselves to provide teaching for their children. Judging by how things are going over there, there will be no shortage of available parents in the coming months.

Heavy debt + recession = insolvency

Is this good or bad? This is not important in terms of ethics (although the debate is fascinating). But will this work in economic terms? Will the treatment of austerity lead to “healthy” growth?

The answer at this time is clear and unequivocal. No. The United Kingdom has double-dipped back into recession. Not officially, because there needs to be three months of negative growth, as Mrs. Largarde calls it, for an economy to be officially considered to be in recession. We are only talking about one quarter at the moment. The first one. However, a recession also means a fall in tax revenue which, given that this revenue is to be used to pay the debts which have already reached monstrous levels, is not the best of news. In summary therefore heavy debts + recession = insolvency.

Yes, but look! Going back to the United States of America. Remember our figure of 2.9% growth (the one that you must not forget!)? This is indeed a reason for hope. The Americans have decided, unlike the British, to let deficits “spin” in order to stimulate growth. And it works, 2.9% growth! Well, at the risk of shattering a few wonderful hopes, it does not work. Why?

Three figures:
The 2.9% growth represents a total increase in GDP of 541 billion U.S. dollars.
To create these 541 billion dollars of new wealth, the political and monetary authorities have created … 1,700 billion in new debt. To be clear, for every dollar of growth, you need 3.14 dollars of new debt.

Therefore, we can make two observations:
- The debt is growing faster than the wealth created with these new debts.
- The global economy is no longer able to create growth without debt.

Is the “stimulus” the last hope of humanity?

In 2011-2012, we return to the last stage of the truth according to Arthur Schopenhauer. The bankruptcy of countries will be “deemed to have been obvious.” The world will acknowledge the widespread insolvency of the Western nations. This will occur either because the stimulus will have created a debt which is too large … or because austerity measures will have created excessive debt; the end result caused by the austerity plans is essentially the same when adjusted for social and human damage.

Both routes lead us straight into insolvency. The only advantage of austerity measures is that they enable you to save time.

Everyone could see that the stimulus led to disaster. The austerity measures still have another 12 to 24 months to go before they either convince or else show that they will not work any better ….
There is always the French way of course; the one espoused by Mrs. Lagarde.
The path of the “Stimulus”.
Half austerity – half stimulus; half angel, half demon.
The stimulus is the last hope of humanity. A bit thin isn’t it?

Translation of an article by
Charles SANNAT
Chargé d’affaires BNP Paribas

The remarks did not reflect the opinion of BNP Paribas and in no case constitute an incitement to invest.

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

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

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

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

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

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

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

After 21 years Central Banks are Net Purchasers

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

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

Paper Gold or Physical Gold?

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

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

Act now or do nothing?

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

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

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

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

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

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

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

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

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

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

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

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

Disclose.tv – “the american dream” Video

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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