History of the U.S. Gold Standard

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In the Beginning, The Gold Standard

The monetary system the United States utilized for countless years was entirely based on precious metals. In 1787, the Constitution of the United States declared that gold and silver were the official currency of the U.S. United States coins were struck in gold and silver. Within the rich and decadent history of the U.S, the country also initially had gold to back all of the paper money printed. The entire system is called the gold standard.” From 1879 to 1933, the U.S. backed all of its paper money with gold.  The only break in the gold standard came during World War 1 where there was an embargo on gold exports. Most agree that the U.S. should have continued backing all of their fiat currency with gold. Many believe its function must be restored if we want to truly preserve the integrity of U.S. currency and how the society operates as a result.

The Integration of the Bimetallic System

The very beginning of the United States financial system integrated the bimetallic system. The idea is that gold and silver are considered legal tender. There is no limit to the amount of gold or silver. This bimetallic system used the weights of silver and gold to determine the value of any monetary unit, such as the U.S. Dollar. Of course the heavier the physical metal and the purity of the , the precious metal are taken into account when valuing it as well. In 1792, Alexander Hamilton proposed a fixed rate of 15:1. The world’s market typically hovers around 15  to 1 but in some places the existence of gold is low, so they fully look to silver as the bearer of that specific ratio.

It was later, during the time of the Civil War that the gold standard saw changes when precious metal resources had become low and they decided to issue paper money in place of it. The system was called the “Fiat Paper System”. It took awhile for the country to grow used to using paper money, but the ease of use means it has enabled the people.

Hand in Your Gold

Britain decided to drop their gold standard in 1931 and with the problems the U.S. was facing at the time, the President decided to take action. June 5, 1933, President FDR enacting steps that would lead to the end of the gold standard. Congress took action saying that their creditors no longer had the right to be paid in gold. The public had begun to hoard gold because of the Great Depression. Since the people were hoarding all of the gold, the gold standard was unable to be maintained. In March of 1933, Roosevelt wouldn’t allow the banks to give out gold or export gold anywhere.

FDR believed that by storing up gold in the Federal Reserve, he could force inflation. This is based on the Keynesian Economic theory. On April 5, 1933, FDR made it mandatory that any U.S. citizen in possession of gold had to turn in their gold and take fiat currency instead. It was basically illegal for U.S. citizens to own any gold. If the gold was worth less than $100, citizens could keep it. FDR was trying to save the U.S. economy. Gold coins, gold bullion, and gold certificates were turned into the Federal Reserve by May 1, 1933 and citizens were given just over $20 an ounce. $770 million in gold coins and gold certificates were collected. Congress then repealed clauses requiring payment in gold to creditors.

In 1934, gold went up to $35 per ounce. This made the total assets in the Federal Reserve worth almost 70% more than they initially took in. Inflation was occurring and the plan had worked. The price of gold stayed at $35 an ounce for thirty-seven years.

Abandoning the Gold Standard

On August 15, 1971 President Nixon declared that the U.S. was completely vacating the gold standard. This meant that the U.S. was no longer valuing gold at the fixed rate of $35 per ounce. Then, President Gerald Ford signed the law saying that U.S. citizens could own gold if they wanted to.

It’s easy to see why a government would want to base their monetary system on a precious metal like gold. The various benefits and the longevity factor of precious metals has been around for so long and their value is not hurt by the economic state or the time period. The economic benefits of precious metals are undeniable and honestly timeless for that matter. It is not only Congress who initially felt the overall favor of what it precious metals could do for the U.S. financial system but the public stood by it as well.

Calling for the Return of the Gold Standard

Many groups in the U.S. have called for the return of the gold standard. There’s no denying its value and that it makes a country’s monetary system strong. Since the U.S. Constitution declared that U.S. money be gold or silver, some Americans believe it’s actually illegal that we are using fiat currency at all.  Article I, Section 10 states that “[No State shall] make any Thing but gold and silver Coin a Tender in Payment of Debts;” Now some people will argue about what that means all day and night. The truth is that U.S. currency has never been as strong as it was since the gold standard. This fact cannot be denied.

To purchase your own gold or silver currency, contact Capital Gold Group at 1(800)510-9595, or visit them online at startwithgold.com.

 

 

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HSBC, Goldman Sachs Snapping Up Physical Gold

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Although it may seem impossible to believe, because of the amounts of gold being reported,  but no errors have been made. Far from electronic paper claims, the 7.1 tons of physical gold that were delivered to Goldman Sachs and HSBC on 6 August 2015 is a reality. This huge precious metals purchase was initiated for these banking giants while they reported a bear market in gold. Instead of bank clients being the buyers, the banks were storing the gold in their own corporate accounts. This confirmation was made by the fact that the bank’s house was the designated recipient as opposed to clients’ accounts.
These purchases seem rather odd due the fact that they advised clients to stay away from gold purchases due to its bleak future. This announcement by Goldman Sachs does not quite make sense as they chose to purchase 3.2 tons of the real metal. The explanation behind this conflicting move is attributed to the bear market approach that the company uses, not only when dealing with physical precious metals, but also when trading other commodities in the market.

Increasing Physical Metal Markets

Even though the paper market may be using numerous tricks to remain attractive, the physical gold market is still gaining popularity as more people want to trade with real metals. Rising demands are expected to surpass the current 1350 ton in 2015. It is expected that these numbers will increase in 2016 although this will not be a reason enough to stop exploitation through cheap paper market acquisitions. Usually, the mysterious dealer in gold bars will fix the physical demand problem temporarily regardless of other supplies and gold prices in the market.

Changing Tides

HSBC made a statement that drifting towards Fed tightening and strengthening of the US dollar and low global inflation pressure weakens gold demand across the world. This statement was released after the realization that here was a 61% increase of gold bars being exported to India from April to May. It is surprising how HSBC failed to realize this fact, when India is a major export destination. The truth is that the bank’s executives were well informed hence the sanction of purchasing a huge amount of physical gold for their reserves.

HSBC purchased of 3.6 metric tons of gold from COMEX at very low prices. The gold was delivered to the bank’s house for storage. The gold in this article refers to gold bars and not paper gold or its equivalent. According to the trend being established, it is clear that bank executives are gold hungry. There is little to no belief in gold trusts. There is also the reluctance to use existing trusts as an alternative for raw metal gold.

The approach used by the banks is to acquire gold while advising clients of how bad of an investment purchasing physical gold would be, is a bit questionable. The reluctance by arbitrageurs to sell gold,  regardless of gold prices, demonstrates a high level of tightness in the market. The logical conclusion would be that the large banks might be trying to control the price of gold.

In summary, COMEX design is a US-based financial market utility, a financial stability council creation. The Treasury is willing and able to drain stored gold from is reserves to salvage the situation. Despite the government’s effort, it is still difficult to understand why the two banks are doing major investments in physical gold. Perhaps these banks know something we do not? Whatever the case, when the largest banks in the world like JP Morgan, HSBC, and Goldman Sachs, start taking large deliveries of physical precious metals, people should take notice.

Many believe there will be another recession or financial crisis. Perhaps the banks are buying physical gold and silver to ensure they won’t collapse? Whatever the reason, the banks are not investing in ETF’s or futures. They are taking possession of physical precious metals. If these large banks believe precious metals will protect them financially, don’t you think you should do the same?

To start investing in gold or silver today, contact Capital Gold Group online at startwithgold.com, or call 1(800)510-9594.

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University of Buffalo Produces Priceless Coins

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The world is full of surprises, with another one sent our way upon the revelation of priceless coins at the University of Buffalo. Though there was no digging or any of the Indiana Jones action since it wasn’t actually buried, the treasure was perfectly laid amidst treasured books of renowned poets, authors, and playwrights. The timeless pieces were recently revealed from where they were gloriously hidden for many years. The magnificent coins sat right within the college library and have been untouched for over 40 years! Philip Kiernan, assistant professor of classics and expert on ancient coins, made this discovery of a lifetime and claimed he’s probably the first one to touch them after all those years. He investigated and initiated the treasure hunt with the help of Michael Basinski, curator of special collections, and they uncovered history with coins over 2,500 years old. The precious coins were contained in a small gray box on a metal shelf left unnoticed, and this only proves that one must not judge a book by its cover!

The school stated that the rare coins came along with rare books and were initially donated to University of Buffalo by prominent Buffalo attorney Thomas B. Lockwood. The Greek silver coins and Roman coins, also known as tetradrachm and aurei respectively, were found to be part of a coin collection that dates back to 1935. To be exact, the University conveyed that they amount to 40 silver Greek coins, three gold Greek coins, and 12 gold Roman coins.

Each glittering gold coin corresponds to an era of each of the 12 Roman emperors, from the rule of Julius Caesar up to the reign of Emperor Domitian. The utterly beautiful pieces included a remarkably rare coin that features Emperor Otho, who ruled for only three short months, that was not that much of time to strike an abundance of coins. Another Roman coin exhibits the image of Emperor Nero. On one Greek coin, Alexander the Great is portrayed as Herakles, and another large coin bears the astounding image of Egyptian Queen Arsinoe II. The age of the coins altogether ranges from the 5th century BC to the late 1st century AD. Despite being this old, the coins were in excellent condition, mainly because they were not used for spending nor circulated as currency. Instead, the impeccable coins were kept as a store of wealth by prestigious aristocrats in Greece and Rome.

The authenticity of the coins has been verified by numismatists beyond any question. This makes each piece even more special, being enveloped in both historical value and tens of thousands of dollars in market value. Currently housed in 80-year-old wood and glass cases, each coin will be separated into its own plastic containers that will allow graduate course students to study each silver and golden piece closely. What better way is there to learn but through physical things that can magically connect you to the past?! This makes a big difference in today’s modern world with everything going digital. The University of Buffalo library will also open its doors to local communities who wish to view the cultural artifacts for pursuing relevant research.

To purchase some of your own rare coins, contact Capital Gold Group today at 1(800)510-9594 or visit them online at startwithgold.com.

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The Timeless Legends or Myths Surrounding Gold

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Myths, Fables, Legends About Gold

 

Throughout the course of our wonderful history as a civilization, gold and it’s endearing beauty have always been an inspiration to us. Due to the undeniable charm we feel from it, even just the thought of it, legends and myths have blossomed accordingly. It’s value is so prominent to the human race that there are some cultures out there who feel that precious metals actually contain power. Some believe that those who possess it will garner that power in the process. It is, of course, the definitive symbol of wealth and control. Unique stories that surround gold in a classic fable, with characters like leprechauns and other fascinating legends, that will be enchanting us until the end of time.

The Legend of Blackbeard’s Treasure

One might be lead to believe the infamous myth behind the pirate “Blackbeard”. He will always be regarded as being one of the most wicked pirate captains of all-time. Between the years of 1716 and 1718, Edward “Blackbeard” Teach, constructed a downright powerfully evil persona on the high seas. These two different years saw Blackbeard robbing numerous individuals and families of their riches, throughout the Caribbean and the coasts of the Atlantic. He would ambush them as they slept and steal all of their gold and treasure from their possession.

Through Blackbeard‘s dastardly deeds, he acquired fortunes, which turned out to be quite a collection of treasure. As he continued his harassment of the innocent, the myth says he placed all of his treasure in one place. Eventually, his treacherous ways had finally caught up to him, and he was killed as soon as he was captured. However, before Blackbeard met his demise, the legend says he had buried his infamous treasure in a location unknown to this day. The legend has never wavered, and the hunt for the treasure never ceases, drawing more myths and legends in its wake.

El Dorado

When South America had welcomed it’s very first Spanish explorers, they were fascinated by the legend of “El Dorado”, also known as the “Gilded One”. El Dorado was a very young king who was said to always be completely shrouded in gold from head-to-toe. He was said to have even bathed in his riches as an everyday ritual of sorts. While he bathed, people would throw in more gold as an offering of their respect.

As of today, several people believe that the spirit of El Dorado spawns from the mountains and bathes the people who happen to witness him, in gold and other riches. This legend has given way to various films and cartoons throughout the years, and it has always been considered a legend that will never die.

Leprechauns

The legend of leprechauns is very well-celebrated myth and is recognized to a certain degree in just about every culture under the sun. It is especially popular in their homeland, Ireland. Leprechauns are cobblers who are short in stature and said to be actual “Sprites”. They are typically males who smoke a pipe and on the exterior are charming little buggers, wearing all green attire. Make no mistake, though, these little guys will do what they can to swindle you at the blink of an eye if they can.

Leprechauns are said to be guides who will help individuals look for treasure at a price. The treasure is usually a pot of gold at the end of the rainbow or similar. However, if the person in which they are helping becomes lackadaisical and a little careless, they can rip that gold right from beneath them and leave them stranded where they stand. Almost always, the good guy prevails, and these little tricksters are left with just a few pieces of gold for their time and effort.

Myths and fables about gold and other precious metals have lasted through the ages due to the enticing nature of the metals themselves. Today, people don’t have to rely on hunting around for “buried treasure“. Precious metals are readily available to those looking to amass their own store of wealth.

Contact Capital Gold Group at 1(800)510-9495 or visit them online at startwithgold.com to purchase gold, silver, platinum, or palladium.

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Controversial History of “In God We Trust”

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Origins of “In God We Trust”

As the presence of religion became more prominent around the time of the Civil War, the U.S. decided it best to incorporate the soon-to-be legendary motto, “In God We Trust” onto each piece of currency. There, of course, were several folks out there who appealed the usage of the legendary phrase when it was used. However, Secretary of the Treasury at the time, Salmon P. Chase, felt in his heart that the deity and meaningful motto should grace itself on all United States coins.

The first appeal came in November of 1861 and continued but it wasn’t just Secretary Chase who felt that it belonged on our currency, as a matter of fact, countless other Americans felt the exact same sentiment right along with him. Through several various ideas were thrown out and different objections came from all areas, the motto was officially placed on all silver and gold currency pieces on March 3, 1865. From that point, the government “shall admit the inscription thereon” and to this very day, it is seen as a true and heartfelt symbol of our beloved America.

“In God We Trust” Will Likely Always Remain

The motto was inscribed on the always beautifully rendered Gold Double-Eagle, the Gold Half-Eagle and, of course, the Gold Eagle Coins. It also became inscribed on the Silver Dollar, the Silver Half-Dollar and the Quarter, as we know it. Even the Three- Cent Nickel got the treatment, and as it stood, 1866 saw a lot of great changes take place among currency. Many of those changes still stand today. The usage of “In God We Trust” the entire time since its inception has never been disturbed, even in the slightest, and it likely will remain that way. Many Americans believe this is a really great thing.

In 1909, the motto landed on the penny, and it has never ceased to exist since that time. The same goes for the dime as well, which began the inscription in 1916. All silver and gold coins, quarter-dollar and half-dollar coins have since engaged the motto and continue the tradition with only the utmost pride, since 1908. The next year, the public were firmly aware that the motto was not utilized on the $20 coin and made sure, through the right steps, of course, to see to it that it did.

In and around the year of 1956, America has been feeling the vibes of the Cold War. Due to the need for an identity and belief system, the states decided to incorporate the motto of “In God We Trust” as the national motto for the era. This motto will always be the definitive four words that describe the land of the free and home of the brave.

A Motto We Can Always Trust and Believe In

In the early 2000’s, CNN underwent a poll asking Americans if they backed up the famous motto. When the results had finally piled in, they had found that 90% of the entire country firmly stands by those words. They also mentioned that if we had to choose another motto in place of that particular one, would we? You better believe that the American people were staying put regarding what they wanted, and no changes were made accordingly as you would ultimately guess. “In God We Trust” Remains as strong now as it did the day we created it, and that trend looks to continue indefinitely.

To purchase your own silver coins and gold coins that contain the “In God We Trust” motto, contact Capital Gold Group today at 1(800)510-9594, or visit them online at startwithgold.com.

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Cracking Down on Coin Counterfeiting

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Cracking Down on Coin Counterfeiting

As astonishing as it sounds, even though today’s currency is designed and created with the very best anti-counterfeiting technology, faux currency is alive and well. Raised, 3D prints and holograms aren’t enough to keep the reality of counterfeiting in check. It is worth a great amount of concern to the government and to everyday citizens. Nowadays, collectible coins are in danger of becoming counterfeited, so that leaves the question…Is anything sacred?

Just recently, a couple in the state of Texas were caught allegedly actually trying to scam people with precious metals online. The Texas couple was selling synthetic bars of silver on Craigslist. What the couple had been doing is they were preying on innocent folk to purchase metal that was only silver lined. However, once a weary and highly skeptical customer put the metal to the acid-test, they quickly discovered that they were the victim of an all-too-familiar Craigslist scam.

Sadly, this slowly rising epidemic of counterfeiting isn’t only reserved to the people who shop on Craigslist. Rare silver coins and gold coins are roughly being sold through just about every form of outlet through the black market there is. This entire situation is beginning to alarm the government and as of late, they are beginning to crack down hard to slow the progress down.

Earlier in the year, Congress thought it best to create and pass a law that swiftly criminalizes any sale of counterfeit coins and precious metals which are without info stating that they are fake. There have been so many different cases, especially out of China as of late, regarding imitation silver and gold coins that it leaves them without any other choice but to crack down.

One particular issue that stands out is that these specific coins are very deceptive, and there are copycats of even the rarest coins in existence. The truth is, there probably isn’t one type of bullion out there in the world that doesn’t have a counterfeit replica coming out of China. There are two specific types of methods to produce counterfeit precious metals and below are their descriptions:

1. Hollowed out silver and gold bullion with covers that are on the thicker-side are being sold. They are then filled with lead, copper, tungsten and nickel.

2. Deceptively masking bars and coins created with metals that are alloyed-based, then a very thin layer of silver and gold are applied as the very outer service.

What to Look For in Fake Coins

Counterfeit coins are rather tough to spot if you do not have any experience in the coin industry, but there are reliable techniques that can be done to find out their true identity. Occasionally, a fake may squeak by the test, so that is why it is best to do a second test to make certain. These test below are the ones most commonly done:

Ice Test – Fill a cup with ice, throw the coin in and if the ice starts to melt, it is most likely a real coin. This particular test is great for silver, simply due to the fact that silver radiates heat.

Magnetic TestSilver and gold coins are both non-magnetic elements, so if you apply a magnet to bullion or coins, and they stick, it is most likely that you are holding a fake. For a second opinion, utilize the ice test and see what happens.

Remember, if a deal sounds too good to be true, it probably is. In order to eliminate the risk of being sold counterfeit coins or precious metals, always work with a reputable precious metals dealer like Capital Gold Group. Capital Gold Group only deals in graded, authentic coins and precious metals.

Contact Capital Gold Group today at 1(800)510-9594 or visit them online at startwithgold.com. Your future is too important to leave to chance.

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Silver Fillings – Is the Precious Metal Bad in Your Teeth?

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ADA and FDA Deem Amalgams Safe for Dental Procedures

Although tooth decay is easily preventable, it currently is the most common chronic disease of children aged 5 to 17 years old. This is four times greater than the prevalence of asthma. The treatment for this tooth decay has been around for hundreds of years and is known as an amalgam. The word amalgam means mixture or blend. Amalgams are an alloy that consists of silver mixed with mercury and variable amounts of other metals and are used as a dental filling.

Amalgam restorations have been used in the mouth of millions, and it is likely that many more millions of people will continue to receive this as a treatment for tooth decay. However, there are some health advocacy groups, such as the Consumers for Dental Choice, who claim these fillings are dangerous related to the levels of mercury that are released with the procedure.

Amalgams have been used without any evidence of major health problems and newly developed techniques have proven that only minute levels of mercury are released from these restorations. With silver and mercury fillings, no health consequences from the exposure to such low levels of mercury have been demonstrated.

The American Dental Association along with the Food and Drug Administration all agree that the mercury in these silver fillings is at safe levels; however, studies on this topic are continuing to verify this fact. So far, however, given the scientific information available considering the demonstrated benefits of dental amalgams, currently there appears to be no justification for the discontinuing of silver fillings containing mercury.

Some believe that the toxic substance, mercury, is responsible for causing diseases such as Alzheimer’s disease, autism, and multiple sclerosis. Again, the ADA and the FDA, along with numerous public health agencies say amalgams are safe and that any link between these mercury dental fillings and the above diseases is unfounded.

In 2006, the National Institutes of Health conducted several studies that were large-scale and concluded these silver fillings are indeed safe. This was reconfirmed again in 2009 by the FDA. In addition, there is no evidence that the small amount of mercury vapor from these fillings results in any adverse health effects.

A Doctor’s View on Amalgams

For almost 15 years, Dr. Steven Marsh has stopped using silver fillings. His main concern was for the possibility of exposure to his staff when mixing the silver and mercury. Believing the real danger is in the manufacturing and disposing of used capsules, Marsh doesn’t think they are a danger to one’s health, as long as they are intact. He feels the bigger risk is when the silver begins to break down which allows bacteria to enter the gaps and cause more tooth decay. However, others dispute this because silver is also an antimicrobial agent, meaning it has anti-bacterial properties.

There is a new replacement called composites. It is stated they look more natural and bond better, making the tooth stronger. The problem is they are much more expensive. The FDA has recommended that these silver fillings not be used in patients with an allergy to mercury and that dentists must have the proper ventilation when handling the material.

In conclusion, precious metals are so versatile, they are used in places we rarely think about. Silver has several industrial uses and a gold coating is used in astronaut helmets. Since precious metals are so useful and desirable, it makes sense to invest in gold or silver. Capital Gold Group can help you open a Precious Metals IRA.

Contact Capital Gold Group at 1(800)510-9594 or visit startwithgold.com today!

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Belgium Mints Battle of Waterloo Coin Causing Controversy

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One of the challenges facing the relationship between Belgium and France is the issue of the Battle of Waterloo Coin. The Belgian Mint had produced a special commemorative €2 coin to honor the victory at Waterloo on July 18, 1815. However, France felt aggrieved. It felt that this coin might serve to stoke old rivalries and works against the European Union’s vision of a peaceful Europe.

Belgium Temporarily Withdraws

In expressing their displeasure, the French had moved to the European headquarters in Brussel to have a vote on the issue. However, Belgium surprisingly chose not to challenge its powerful southern neighbor. The country agreed to stop any further minting of the controversial €2 coin. After the move by Belgium, France did not make any comments on the issue.

Initially Belgium chose to commemorate the event with a festival of the re-enactment at the site of the Battle of Waterloo. Due to the coin controversy, the event organizers expected a bump in the number of people who would be attending the celebrations this year. In addition to that, the battlefield of Waterloo, just outside Brussels was renovated. However, the Belgian Mint had already made about a hundred and seventy-five thousand of the €2 coins. The country does not plan to distribute these coins into circulation; they were forced to scrap them.

 €2.50 Battle of Waterloo Coins

Surprisingly, just when everyone thought the matter was settled, Belgium has decided to go ahead with a €2.50 version of the Battle of Waterloo Coins. They were able to accomplish the feat because Eurozone countries can issue their own coins if they are in an irregular denomination. That being said, while Belgium was forced to get rid of the €2 coins, the €2.50 coins will be allowed. Approximately 70,000 are being minted. The €2.50 Battle of Waterloo Coins can be spent in Belgium, but as they are being sold for €6, they will be collectible coins.

The €2.50 coins feature the battlefield with the Lion’s Mound monument. The placement of the troops is also shown on the coin. A silver coin is also going to be minted in the thousands of copies. The coin will be a €10 coin, but will be sold as a collectible coin for €40.

Euro coins have caused controversy in the past. To the displeasure of Germany, France went to mint coins marking the landing of Normandy. This battle marked the end for German Nazi rule in Europe. This latest move highlights just how sensitive historical events are in Europe, which has had many conflicts before. Each country in the EU has the privilege of issuing unique designs on one side of the coins. However, bank notes must remain the same throughout the members of the EU that use the euro. All coins minted must, however, seek approval of the European Commission before going into circulation.

Rare Opportunity for Coin Collectors

This latest controversy on coinage represents a rare opportunity for coin collectors. Only a very limited amount of these Belgian €2.50 coins have been produced. Also, the coins themselves have generated some transnational controversy. What is even more interesting is that the controversy is over a historical event of great significance that might have possibly shaped the geopolitics of the last two centuries. These coins are definitely going to be highly sought after by coin collectors; thanks to all the history and controversy hovering over their minting.

For those seeking for a piece of the Battle of Waterloo, the Royal British mints will be minting 5-pound coins with a depiction of the fall of Napoleon at Waterloo. Belgium did not mint the coins to cause controversy, but rather to celebrate history. Significant historical wars and battles always have a winning side and a losing side. For this reason, these types of collectible coins will always have controversy surrounding them. However, it’s this controversy that usually limits the number of coins minted and makes these coins rare, desirable, and valuable.

To purchase collectible coins today, contact Capital Gold Group at 1(800)510-9594 or visit them online at startwithgold.com !

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A Look at the North Carolina Gold Rush

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The North Carolina Gold Rush

Most people imagine the American Gold Rush began in California. However, this is not the case. The first Gold Rush in American began in 1799, almost fifty years before the California Gold Rush. The first American Gold Rush began when Conrad, the son to John Reed found a seventeen-pound gold nugget on their farm. For the next three years, the family used the gold nugget as a doorstop. However, one day a jeweler discovered it was a gold nugget and took it to the local jeweler. It was only later that John Reed discovered he had been duped. This was after the jeweler sold the nugget for a small fortune, which John Reed sold to him for $3.5.

Significance of the Gold Rush

At the time of the North Carolina Gold Rush, gold mining was only second to farming in the North Carolina economy. In 1923, the state government recognized the importance of gold mining. Consequently, it commissioned a state geologist, the first ever. Mr. Denison Olmsted was tasked with conducting a comprehensive survey to determine where the gold deposits were located. Later, the state commissioned a German engineer and afterward a professor from the University of North Caroline, Elisa Mitchell. Reports made for the American Journal, and the North Carolina state legislature helped to further fuel interest in gold mining.

Hurdles Faced in Gold Mining

During the initial stages of the gold mining, most of the farmers used crude methods. Most of the gold was located on the surface, and the main method of extraction was through panning. For this, only a few rudimentary instruments were required. However, most of the mining was very efficient. Researchers and historians estimate that over two- thirds of all gold extracted from these mines went to waste. Another common problem at the time was a lack of a dependable market for the gold. In most cases, farmers and minor miners had to make long treks to Philadelphia to sell their gold. Besides being very time- consuming, there was also the danger of being attacked by bandits if they suspected one was going to sell gold.

From 1825, investment in gold mining equipment began to grow. This was in part because most of the surface gold had already been exhausted. For example, the Barringer Company began to import equipment and experienced gold miners form South America. This was after Mathias Barringer discovered that there were larger gold deposits in underground veins. Other gold experienced miners from Europe also came to North Carolina. Of great significance were Cornish miners. They had a wealth of experience in efficient vein and lode mining after years of experience mining copper and tin in England. Their unique knowledge in mining commerce helped to spur growth in the state for many years to come.

The North Carolina Gold Rush did not last long. In 1849, gold was discovered in California and miners began to move away. However, the North Carolina Gold Rush had a lasting effect on the economy of North Carolina. European miners brought with them new technology such as steam technology that found many uses in different industries such textile industry, long after the gold miners had left. It also greatly contributed to the establishment of the first US Mint in the South.

 

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Gold/Silver Ratio May Stay at Elevated Levels, According to Experts/Analysts

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Analysts have been saying lately that until the global economic growth picks up, the gold to silver ratio may remain at elevated levels. This ratio is used for measuring the amount or ounces of silver needed to buy an ounce of gold. A high number usually indicates gold or even silver’s out performance and vice-versa. The current gold/silver ratio is 75:1, but analysts predict the ratio may change to a range of 70:1 to 76:1. This is a prediction that we may expect in the next few months.

According to RBC Capital Markets, the ratio has traditionally been around 60:1, but in recent years it fell at around 32 in ratio before it climbed up to its current level.

If you look at RBC Capital Markets’ view, they believe that silver may benefit from the continued economic recovery of the U.S., but the ratio may remain at elevated levels if the global economic growth will not pick-up. They also added that the gold: silver ratio usually rises during a recession, also known as a period of economic uncertainty.

The Canadian Bank also believes that if there is an improvement in the global economy, it will provide positive outcomes for silver relative to gold. Moreover, Metal Focus said that they do not envision the ratio to be falling dramatically even if lately, there is a stronger retail demand for U.S. Silver Eagle Bullion Coins. There is actually a 26% rise in the first-half of silver bullion coins that are imported to India.

The firm also indicated that the question of whether a wider group of investors will return as buyers will be a challenge for silver. Metals Focus supported this idea by stating that silver’s immediate upside prospects is perceived as less convincing for institutional investors. Metals focus also mentioned that another major drag on investor sentiment is the uncertain industrial outlook, which brings down silver’s industrial credentials. Several factors are in turn reflected through the uncertain industrial outlook, most relating to China.

These factors are:

1) The heightened concerns regarding the global economy’s prospects, which was brought upon by the Chinese equities slump and what’s happening in Europe, in spite of having an apparent deal with Greece.

2) A key consumer of silver components in China, light vehicles, has already been affected by the slowdown in China.

3) The possibility of China’s massive photovoltaic capacity program being undermined if the country’s economic uncertainty is protracted.

4) The last factor is the continuous thrifting in the silver content of PV pastes and its impact.

For more updated information on the gold to silver ratio or other precious metals concerns for your retirement and life planning needs, contact us at Capital Gold Group.

To secure your investment in gold or silver, contact Capital Gold Group at 1(800)510-9594 or visit startwithgold.com.

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