It is now getting more and more the clear that the strength of the dollar is not what it used to be. The US dollar has existed for around 100 years but as you look at the history of fiat currency, the US dollar as a fiat currency has already existed 39 years out of an average 80 years. Looking from this angle, it would seem that the US dollar is on its exit path. There are many reasons to indicate so.
The main reason
US dollar has evolved from being an asset-based currency into the currently debt based status. A few hundred centuries ago, money was strictly asset based through gold or silver with an intrinsic worth that you had it close with you all the time; you would be a case of ‘you are what you are worth’ quite literally.
We have had famous explorers such as Marco Polo who traveled around the world using European silver and gold to trade for Asian products like silk and spices, making gold and silver the widely acceptable monetary unit then until now, where daily commerce is performed via coin money. Coin money was also used in trade before the Civil War came on. Time and again in history, gold and silver were the preferred choices of trade, especially when the California gold rush saw a great natural supply to fuel the US economy.
Federal Reserve
The US Federal Reserve came on in early 1900s to streamline and regulate the banking processes. Silver and gold coins were the major form of currency but these were heavy and hard to carry and store. Hence, the Fed came up with certificates to replace the bulk of gold and silver which could be exchanged back to the precious metals. It put up a market value of $20 for every ounce of gold with a switch to paper money as the standard currency based on the gold exchange rate.
Gold and silver coins were considered real money; meaning, you are only as rich as the amount of these precious metals in your possession. This is called asset based money or currency which limited the amount of money in circulation in relation to the amount of gold and silver available. When you have such a currency that is controlled, there is no debt.
Simplicity
When paper money was introduced and became the standard currency form, its worth was based on the amount of gold and silver the nation had; meaning, you could only print one piece of paper money if the Fed had only one piece of gold of that worth.
It was all so simple until President Nixon came on the scene and took the US off of the gold standard.
Sunday, December 5, 2010
CHOOSING A GOLD TRADING COMPANY
Factors to take into consideration
There are many factors to take into consideration while seeking the most appropriate company for gold trading; the offers, safety and security are only some of the most important. There are many such companies waiting to be chosen, especially in the United States. With all these factors to consider, one has to be sure of the choice he or she makes.
One of the most important associations is called the BBB, or Better Business Bureau. Many important companies are part of this association, as it is safe and reliable. Check the background of the company; it is reliable only if it receives a high rating from former clients. So, the first question to ask is whether the company is a member of the BBB or not.
Although the longevity of a company is not important in terms of the services it provides, it is not advisable to deal with very new trading companies. After the gold industry rose on the market, the numbers of this type of company rose significantly. Try to do business with a company that survived both the good and the bad periods.
Connecting with a trading company
When you try to create a connection with a trading company, it is advisable to choose the company that has the education of its clients as its top priority. If you want to start doing business in the gold industry, don’t hesitate to ask for help from those who already have some experience in the field. If a company doesn’t meet your needs and expectations, you should look for another one.
Another important aspect about a trading company is the efficiency of its methods. Being in touch with the latest news and information from the field is very important, especially for a company that deals with the gold industry. In order to make the right choice, pay attention to the company’s way of improving its services. Since we live in a world full of unreliable people, we all look for safety, especially when doing business. A company that uses gold as its tool of doing business should also have a legal department as a component. When a company doesn’t have relations with certain banks and legal institutions, it surely has problems, so it is better for you not to choose it in order to help you with your business idea. Regardless of the trading company you choose, keep in mind that the gold industry is a harsh one. You need to inform yourself in detail before taking the next step.
There are many factors to take into consideration while seeking the most appropriate company for gold trading; the offers, safety and security are only some of the most important. There are many such companies waiting to be chosen, especially in the United States. With all these factors to consider, one has to be sure of the choice he or she makes.
One of the most important associations is called the BBB, or Better Business Bureau. Many important companies are part of this association, as it is safe and reliable. Check the background of the company; it is reliable only if it receives a high rating from former clients. So, the first question to ask is whether the company is a member of the BBB or not.
Although the longevity of a company is not important in terms of the services it provides, it is not advisable to deal with very new trading companies. After the gold industry rose on the market, the numbers of this type of company rose significantly. Try to do business with a company that survived both the good and the bad periods.
Connecting with a trading company
When you try to create a connection with a trading company, it is advisable to choose the company that has the education of its clients as its top priority. If you want to start doing business in the gold industry, don’t hesitate to ask for help from those who already have some experience in the field. If a company doesn’t meet your needs and expectations, you should look for another one.
Another important aspect about a trading company is the efficiency of its methods. Being in touch with the latest news and information from the field is very important, especially for a company that deals with the gold industry. In order to make the right choice, pay attention to the company’s way of improving its services. Since we live in a world full of unreliable people, we all look for safety, especially when doing business. A company that uses gold as its tool of doing business should also have a legal department as a component. When a company doesn’t have relations with certain banks and legal institutions, it surely has problems, so it is better for you not to choose it in order to help you with your business idea. Regardless of the trading company you choose, keep in mind that the gold industry is a harsh one. You need to inform yourself in detail before taking the next step.
A QUICK GUIDE TO Gold Bullion Coins
It is one of those special hobbies in which not everyone would indulge although there are no bounds for anyone who is interested in buying gold coins. However, there are many different types of gold coins on the market for you to consider including in your new or current collection. Others may want these gold coins for investment purposes.
The More Popular Gold Coins
The following lists some of the preferred gold coins by the public. They are:
American Gold Eagle
This gold coin began minting in 1986 by law with a specification of copper-silver alloy for a more sturdy appearance to endure against wear and tear. This gold coin of the American Gold Eagle became the nation’s official bullion gold with Lady Liberty carrying the torch on the front side. The American Eagle gold coins are available in 1/10oz, 1/4oz, 1/2oz and 1 full ounce weights.
South Africa Krugerrand
This gold coin is the product of South Africa where it is minted from a durable gold alloy. The image of the previous President of South Africa, Paul Kruger, is imprinted on one side with Springbok on the other side.
Chevronets
The gold Chevronets was introduced by Russia in 1701 to replace the nation’s Ruble in 1757. However, the Russian Revolution caused a temporary halt of the Chevronets’ minting until the revolution ended. The authorities resumed Chevronets production in an attempt to ease out the devaluing Ruble; however, production of the Chevronets halted again in 1926. The Moscow Olympics in 1980 saw the revival of the 1925 Chevronets as a commemoration of the grand and prestigious event.
Britannia Gold
Britannia gold is Britain’s pride and joy with 22 carat and a mixture of 91.7% gold and silver or copper. The Britannia became the British’s official coin amongst its gold bullion collection. Britannia gold coins are available in ten pound denomination of 1/10 ounce troy gold, twenty-five pound denomination of ¼ ounce troy gold and fifty pound denomination of ½ ounce troy gold.
Gold Panda
The Gold Panda was minted with 99.9% gold by the Chinese with the Temple of Heaven imprinted on one of its sides. Though minting was frozen in 2002, it was resumed after much popular demand by coin collectors.
Islamic Gold Dinar
Malaysia also produced its own Kelantanese Dinar in September 2006 where these gold dinars were to be used in that state alone for paying dowries in accordance with the state’s Islamic Law, purchase of merchandise and even savings.
Gold Maple Leaf
The Royal Canadian Mint produced this Gold Maple Leaf gold coin from its locally mined gold that is 99.9% pure gold. There are two versions of the Gold Maple Leaf: normal and deluxe standard. This Maple Leaf gold coin can fetch $1,000,000 on the market with its 100kg weight at 3cm thick and 55cm wide in 2007.
The More Popular Gold Coins
The following lists some of the preferred gold coins by the public. They are:
American Gold Eagle
This gold coin began minting in 1986 by law with a specification of copper-silver alloy for a more sturdy appearance to endure against wear and tear. This gold coin of the American Gold Eagle became the nation’s official bullion gold with Lady Liberty carrying the torch on the front side. The American Eagle gold coins are available in 1/10oz, 1/4oz, 1/2oz and 1 full ounce weights.
South Africa Krugerrand
This gold coin is the product of South Africa where it is minted from a durable gold alloy. The image of the previous President of South Africa, Paul Kruger, is imprinted on one side with Springbok on the other side.
Chevronets
The gold Chevronets was introduced by Russia in 1701 to replace the nation’s Ruble in 1757. However, the Russian Revolution caused a temporary halt of the Chevronets’ minting until the revolution ended. The authorities resumed Chevronets production in an attempt to ease out the devaluing Ruble; however, production of the Chevronets halted again in 1926. The Moscow Olympics in 1980 saw the revival of the 1925 Chevronets as a commemoration of the grand and prestigious event.
Britannia Gold
Britannia gold is Britain’s pride and joy with 22 carat and a mixture of 91.7% gold and silver or copper. The Britannia became the British’s official coin amongst its gold bullion collection. Britannia gold coins are available in ten pound denomination of 1/10 ounce troy gold, twenty-five pound denomination of ¼ ounce troy gold and fifty pound denomination of ½ ounce troy gold.
Gold Panda
The Gold Panda was minted with 99.9% gold by the Chinese with the Temple of Heaven imprinted on one of its sides. Though minting was frozen in 2002, it was resumed after much popular demand by coin collectors.
Islamic Gold Dinar
Malaysia also produced its own Kelantanese Dinar in September 2006 where these gold dinars were to be used in that state alone for paying dowries in accordance with the state’s Islamic Law, purchase of merchandise and even savings.
Gold Maple Leaf
The Royal Canadian Mint produced this Gold Maple Leaf gold coin from its locally mined gold that is 99.9% pure gold. There are two versions of the Gold Maple Leaf: normal and deluxe standard. This Maple Leaf gold coin can fetch $1,000,000 on the market with its 100kg weight at 3cm thick and 55cm wide in 2007.
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