I created this blog to collect articles related to gold because I'm interested in gold investment. Hopefully this blog is also useful for anyone who wants to invest in gold.
This blog is a translation of the blog version of Indonesia by using google translate

Reference

Writing this interesting reply to my brother's special (God is introduced in a way unique rara avis) .. I have to say all the colleagues as a reference to the additional insight, before stepping / start investing in gold ..

Infections friends, how about the gold in the Earth's surface that have been removed from the belly of Earth, was not much, until now only about 155000-160000 Ton only.

Gold reserves and how the central bank that belongs to us?. also not much only around 73 Ton (Data in Indonesia, seems less valid, because I've read the BI we have only about 38 tons)

The last four years, the world gold stock grew only about 1% or rather average 1.653 tons per year. So if China continues its plan to increase the stock of gold reserves - it is almost certainly China alone could absorb all of this world gold production. And just rumors at the end of October, India went along with China and bought gold 200Ton sold by the IMF, and eventually the bay Negara2 want to trade its oil only if rewarded with gold, not just the American dollar anymore.

Even if we remember in high school economics lesson first, that price was determined supply and demand, trus if supplynya bit and demand a lot, what will happen?. Certainly the price of gold will continue to creep up.

Then if we observe the world gold trade is rewarded with U.S. $, current money supply rose to U.S. $ 500M folding 3kali before the crisis and 2tahun yll currently reaches 1.5 T. and will apply economic laws are also an eye for this price. money supply and gold-segitu segitu aja. Surely U.S. $ will fall in the gold eye out, that in fact the price of gold will rise.

So there are 2 reasons why gold will rise. The first influence of supply and demand, gold supply is small and the large demand, especially by the Government of China, India and the Middle East, who want a little change devisanya reserves from U.S. $ to gold, and the money to appreciate the amount of gold currently 3kali fold. so that the money would also slumped in value of gold tabs on inflation value 0, or remains of all time. (Allohlah the all-knowing)

By: Dadang Farhan's father Facebook Group Gold Investment for the Future Gold

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About Gold

Investing in gold could use some variety of media such as gold bars (bullion), gold coins, gold certificates, gold savings, mutual funds with underlying gold mining companies, as well as commodity futures contracts in gold. I do not dare to categorize e-gold as a form of gold investment (note once again yes, have not dared euyyy ..) because I think e-gold is more functional as a means of payment. In addition, e-gold also began to lose credibility and the more rarely used.

Mmmmmm, because some people feel less "gimana gitu .." gold invest without holding physical form, so I started aja discuss investment in the form of gold bars or coins. Moreover, some people do not just think of gold as an investment, but also collections.

Pros & Cons Gold

Gold values tend to be stable and inflation has no effect (zero inflation effect). Very rare gold prices fell. Gold can also be used for the collection and jewelry (tentu. investment ... there is a difference in value between gold bullion and jewelry). lanjuuut ..

Gold is also good to diversify. Suppose you have invested in stocks, bonds, mutual funds, property, or others; buy gold could be a good alternative. Moreover, in some countries reportedly declining gold production. Because of increasing scarcity of gold, surely the price will always rise (dijelasin have guns jg nie dahh at all smart, so gold loch .. hehehe)

Another advantage, the price of gold was set in USD. If an increase in the value of USD, you get two benefits at once, ie the increase in the dollar and rising gold price itself. However, if the opposite happened, it could be a double-edged sword.

When compared with investing directly in USD currency, gold is more profitable. In Indonesia, money changer is relatively fussy. They appreciate the currency cheap long output or folded currency. Not to mention there is a risk of false serial number. As a result, save the CAD currency must always be updated. Unlike the gold that can be bought and taken any action for a while.

The downside, especially in terms of storage and handling. Save a "hard assets" like gold is relatively risky and expensive. In addition, if the storage is less good, though wrapped in protective cover, allowing the oxidation and discoloration. Special-shaped gold coin, if you fall, dented, or chipped (chipped), difficult to re-treatment and could reduce the price. If I say, gold is less suitable for those who are careless or reckless (fortunately I just wrote a little sloppy ... hahahaha).

Variation Media Gold

Form of gold is mixed. The most common is the bar (gold bar) with levels of brick-like 22-carat (95%) or 24 carat (99%). This type is considered the best because wherever and whenever you sell, the price will always follow the prevailing international prices.

There was also the shape of gold coins. Values and levels similar to gold bars but supposedly limited and difficult to find in the market. There are coins that cost up to more than Rp 50 billion because of the history variables, ownership, and perhaps an important event when the coin is launched. Also, if you want to buy gold coins, it is better to choose well-known producers such as Maples, Krands, or Eagles. They are producers of high quality assets and products in demand the world of international collectors.

There is also a form of gold jewelry. But not right jewelry to invest. First, there is the cost of making jewelry that makes a price to pay is higher. Second, the subjective nature jewelry, depending on individual tastes. It is possible you bought it with expensive but when sold the price fell because the model is no longer up to date. Gold salesperson also must bear ketidakaslian and decreased levels of gold because they have merged again.

There was also gold for the pilgrimage (ONH). In addition to the pilgrimage preparations, gold can also be used to invest. For example if in the 90's to 250-300 grams of gold for the pilgrimage, now only need half of it. Only, this form of gold distribution and nature Localized received less attention of the world.

It may also invest indirectly through the discretionary fund of hedge fund gold or gold - but it's rather difficult if the passing of Indonesia and the need to fund large enough. But there is also offering a gold mutual funds into shares of gold producers. There are also a number of investment managers to make some forward contracts based on gold - like the investment in the futures (derivatives) gold.

In Indonesia there is also offering savings of gold to form long-term investment purposes. For example HSBC Syariah and Bank Syariah Mandiri. There also are offered in the form of futures contracts.

Oiya, there is little special note of white gold. Pure white gold is formed from gold (75%) plus other metals (platinum) that are white. While yellow gold plus gold formed from brass. But there is also white gold "pure" which is made from a bleached yellow gold (chromatised). Pure white gold should not be used to fade after a while.

Buying and Selling Gold

In general, you can buy at the store of gold or Pawnshop (usually stock is not much). Sometimes, money changer who also serves rather bona fide. For gold trend, can be seen in the Kitco website. Also can be checked also on site or UBS Gold Price Gold to see the latest price developments. Payment can usually cash, transfer, or debit card. But the more practical if the payment is made before (after confirmation of the price) with the transfer first and then you take the slip transfer in exchange for gold.

Can also buy at Antam processing unit and the Purification of Metal (highly recommended), Jalan Pemuda, Pulogadung. You can ride busway from Blok M, fell in Hamlet on. Then connect to the Pulo Gadung and get off at stop DUTIES. You can walk about 100 meters or ride motorcycles. Antam complex relatively safe. Before entering you must report this, leave your ID, register the name and address, you can just pass and identification to get into the trade.

Purchase small as 1 gram can also be served. Similar to buying mobile phone, there are some nominal available. Obviously, the more weight of gold that we buy, the price per gram will be cheaper because of manufacturing costs. The cost of 100 grams of gold bars are cheaper than bar 50 grams. There are no other costs. Purchases in large quantities can be delivered using a third party (Securicor).

To sell, you can get it back to Antam, Pawnshops, or to the gold shops with the prices prevailing on the day. Simple procedure, similar to exchange money at the money changer. You take the gold, then check the price, then received the money. If prices are fluctuating, usually at 9:00 (opening hours) and 12:00 there is a change in price and adjustments. In addition, Antam's gold selling can be a little more expensive than selling appreciated in the gold shops. Although certified gold will always be accepted anywhere, try to sell back in place before we buy, especially if there's receipt.

There is also a saying that gold made out (eg Switzerland / Credit Suise) tend to be valued higher. They say heavy foreign-made gold more likely than those written in print. If interested, you can buy direct (cash & carry) or a remote message / through selling agent. There are also suggested to buy via eBay because many sellers / collectors are good and cheap. However, there is usually an additional delivery charge and insurance charge. While taxes are usually not present (or already include the price paid).

What is clear, always carefully certificate (a small paper berhologram) and receipts, and then match with the purchase of physical gold. Generally there is a code like 9999 or 24 carat, serial number and weight of the mold set, and the logo of the manufacturer.
Saving Gold

If the numbers do not how, gold could be stored at home. But if the numbers a bit much, or you often feel less save, you can rent a safe deposit box (SDB) in the bank. Almost every branch of the bank in various cities to provide these services at a rate of about 400 thousand to 1 million for small-medium size. Commonwealth Bank in charge USD 440 thousand to USD 770 thousand per year, tax included. While at BRI rate USD 1 million per year. The measure is sufficient to store certificates, certificates, jewelry, and gold of course.

Security in the SDB is relatively quite good and closely watched. You can also ask for the insured. You'll be given two keys, where the first key bank officers and held the two keys you are holding. To open the SDB, must use two keys simultaneously.

I wrote this information may be, from various sources, especially the info from someone yg udah early gold investing, ...

Successful investing ya sob ...!

By: Dadang Farhan's father in the facebook group Gold Investment for the Future Gold


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Investment Advice and Gold

Quickly use the gold and silver; as currency and investment, and little by little, the sooner the better-exchange Rupiah, Dollar, Yen, Euro, Pound Sterling, Gulden, and so on with gold and silver as real currency, since the other It really just symbols that are intrinsically not have any value.

What we call the current currency, the Dollar, Yen, Rupiah, Pound Sterling, Euro, and so forth, is essentially just a sheet of plain paper (and which also coin-shaped coin ordinary worthless), which only become "money" because there is no guarantee from the bank. Bank itself guarantee that the currency is worthless because it has reserves of gold and silver.

Gold and silver is that until now continue to work on seized and stockpiled by the International Conspiracy of the hands of all people in the world, so gold and silver throughout the world in their hands and the hands who do not know is not worth a piece of paper that is used as a means of transaction. This situation will greatly benefit the International Conspiracy to go around playing the currency exchange rates so that people can be controlled more easily.

So, what is the difference with the gold and silver currency, the currency of the world countries are now in print from a sheet of plain paper?

Greatness Gold and Silver
-------------------------
Since many centuries ago, gold and silver precious metals has become a celebrated by many people. Even gold and silver, precious stones, too, has been used by the kings, sultans, dictators, tyrants, and so on as raw material making their crown.

God created the two precious metals was not just as a measure of value, or to store wealth (investments), but also as a medium of exchange (medium of exchange). "Because of the high position of the gold and silver is so many people consider these two precious metals such as Heaven's Currency (The currency of heaven).

"People are already using the ancient gold, silver, and copper for economic transactions. Gold and silver was chosen because of scarcity (rare) and beautiful color. In human history, no more than 90. 000 tons of gold mined from the earth. While silver and copper to meet the transaction with a lower value than gold. "

Uniquely, the modern world classifies precious metals are in the same column. Periodic Table of placing gold, silver, and copper (with each symbol Au, Ag, and Cu) in the same group of Group of 11. In contrast to most other metals, gold has a very special character.

First, he can not be changed by any chemicals. Archimedes (300 BC) proved that the gold can be detected without any damage and only by using ordinary fresh water. Because not include active metal then the gold is not affected by water and air. Unlike iron or other metals, gold can not rust.
In addition, gold is also included a very soft metal. Can be forged into a super-thin plates and can be forged into wires with a thickness of super-mini. Just imagine, one ounce of gold can be beaten with a large size or 100 square feet made of wire along the 50 miles!

Gold is also known as the precious metals the hardest. One cubic foot of gold weighing up to more than half a ton. That is why in human history there has never been stolen gold in a large scale due to the heavy equipment needed to lift it.

throughout human history, gold mining world from year to year only increased two percent each year. Within a year all over the world gold mining industry produces approximately 2000 tons of gold. Compare with the U.S. steel production since 1995 as released Iron and Steel Institute, based in Washington DC which reaches 10. 500 tons perjamnya. Therefore, real gold metal sanga rare and very stable in value since the beginning of human history until now.

The use of gold and silver as real currency in fact has been used centuries ago. Gold coin made in the history of the first time in the King Croesus of Lydia, an ancient kingdom located in western Anatolia, around the year 560 BC.

Meanwhile, silver coins again made the first 140 years before the first gold coin made, namely in 700 BC, during King Pheidon from Argos, Greece.
Gold coins have been used as a medium of exchange in the Roman Empire. Emperor Julius Caesar introduced aureus (derived from the word 'Aurum' which has a meaning as gold) as a standard of exchange in the kingdom. Because of the large value, aureus is only used as a means of paying debts. Aureus 99% made of pure gold weighing 8 grams. But when Nero was the emperor, then the weight was reduced to 7, 7 grams.

starting from the Roman and Persian
-----------------------------
Dinar and the dirham is known by the Arabs long before paper money came. In trading activity, these Arab traders interact with many nations. We came home from Syria, they took the gold dinar Roman (Byzantine), and who returned from Iraq, they brought a silver coin of Persia (Sassanid). Often they bring Himyar dirhams from Yemen.

This fact continued throughout history until just before World War I when the world stop using gold and silver as currency. The use of gold coins / silver is more and more lost. and ended when the Turkish Ottoman Caliphate collapsed in 1924.

origin of paper money system
-----------------------
"Usury" is a system derived from the dark ages. In the heyday of the Order of Knights Templar in Europe after the First Crusade (1099), the order passed by the Pope and privileged to be able to levy taxes on the entire territory was later founded a savings and loan institutions that either by coincidence or not to be named " usury ".

If you are the pilgrims from Europe who wanted to go to Jerusalem, bringing wealth and fortune so much as stock, then the existence of "usury" is, every European pilgrims who want to be left Jerusalem property to "usury" in Europe and in its place he was given a piece of paper as a security card containing the code words, which will arrive in Jerusalem could be exchanged for money and he needs to just hand over the security paper. Of course, as the organizer of this Order "usury" interesting material benefits.

Knights Templar Order itself was formed by the Priory of Sion, an Order founded Godfroi de Bouillon, one of the commanders of the army cross banak Western historians allegedly comes from the Kabbalah. This group consists of leaders Kabbalis Jews who later gathered at Sir Rotschilds Mayer Amschel in Judenstrasse, Bavaria, in 1773, to design a mastery of the world and founded The New Illuminati under the command of Adam Weishaupt. From this point the Federal Reserve and the world banking network that spread the money originated ratio.

In principle, the system of paper money (ratio) is a system of fraud against the community at large. Simply put, this system can be described as a print as much paper money (currency symbol does not really have any value at all) and flush to the community. On the other hand, at the same time, managers or entrepreneurs who make money ratio is interesting as many gold bars to the side of the community at large. So they exchange money at the same ratio of no value to the gold bars.

history of paper money in the United States
-------------------------------------
History ratio of money that we can see quite well in the history of the United States economy. All of exposure below relevant history in the U.S. currency was quoted from the book "Knights Templar, Knights of Christ" (Alkautsar Pustaka, 2006):

Long before the United States was formed, the Masons have been in this land. When America was still a British colony 13, Benjamin Franklin visited London and met a number of Jewish financiers there. In a meeting recorded in the U.S. Senate Document 98 pages 33 items, reported Robert L. Owen, the former head of banking and finance commission for the U.S. Congress, reported that company representatives in London, Rothschild asked Benjamin Franklin what things it can make the American colony's economy could be developed.

Franklin was a member of the British Freemansonry replied, "That's easy. We will print our own currency, according to the needs required by our industry. "Rothschild immediately smelled a huge opportunity for profit menangguk in this British colony. But as a first step, the right to print their own money for the colony across the ocean is still banned by the British who ruled the Jews.

Rothschild Amshell itself when it was still busy taking care of business in Germany, which one branch of business was to organize a mercenary (The Mercenaries) Germany for England to maintain the British colonies that extend beyond Europe. Proposed print their own currency to the U.S., apart from the British currency system, finally arrived in front of Rothschild. After calculating all the profit that would be obtained, as well as political domination, the Rothschild finally nodded his head.

Quickly arose a law that gives rights to the British government in the American colonies to print their own currency for the benefit of the colony. All the American colonies had assets excluded from the Bank of England, as seklaigus deposit refund with interest paid by the new currency. This raises new hope in the American colonies. But was it so?

Within a year was Bank of England, through the influence of investors who are some people involved in the international conspiracy, refused to accept payment for more than 50% of the value of American currency, and this is guaranteed by the laws of the new. By itself, the value of U.S. currency also fell by half. "... My time off has ended, and turned into a severe economic crisis. The streets in the entire colony is now no longer safe, "said Benjamin Franklin exposure recorded in document number 23 the U.S. Congress.

Not enough with that, the British government to impose additional taxes the colony known as the Tea Tax. The situation in the American colonies grew worse. Famine and chaos happening everywhere. Popular discontent mingled with the ambition of some politicians. Increasingly precarious situation. And hands unseen increasingly heated situation to rekindle what has happened before in the UK and France: the Revolution.

History records, between bentrokkan armed British forces against the United States freedom fighters erupted on April 19, 1775. General George Washington was appointed as the leader of the revolutionaries.

During the revolution took place, as usual, the International Conspiracy to play on both sides. Which one supports England, providing debt and weapons to quell 'revolutionary rebellion', while another party to support the revolutionaries with money and weapons. Conspiracy hands caused England to lose, and on July 4, 1776, a number of United States declared its independence.

Political independence did not guarantee the full independence economically. The investors from the UK government still pestering the newly formed. Rothschild and the whole network tirelessly continue to infiltrate its agents into the body of Congress. Two of their agents, Alexander Hamilton and Robert Morris in the year 1783 succeeded in establishing the Bank of America (not the central bank), as 'representative' of the Bank of England. Seeing poor, Congress authorized the Bank to cancel the U.S. to print money.

Battle secretly lasted very hot. Between groups of investors with a number of international conspiracy of America, which surprisingly many of them are members of Freemasonry, to master the new economy of this country.
Thomas Jefferson wrote to John Adams, "I am sure that financial institutions are more dangerous to our liberty than the enemy raids. Financial institutions also have given birth to a group of wealthy Aristocrat whose power threatens the government. In my opinion, we must review the right to print currency for these financial institutions and restore authority to the American people as the most eligible. "

Conspiracy investors were angry not to play knowing this letter. Nathan Rothschild personally threatening President andre Jackson America will create conditions more severe and prolonged crisis. But President Jackson did not flinch. "You all is none other than the herd robbers and snakes. We will destroy you, and vowed to destroy you all! "

Capitalist conspiracy really angry that urged the British to invade the U.S. and the war there in 1816. William Guy Carr has been detailing events for this with a very good. President Abraham Lincoln himself on the night of 14 April 1865 was murdered by a fellow named John **** les Booth. Ordered the murder conspiracy in the knowledge that President Lincoln would soon issue a law that would eliminate conspiracy against American hegemony.

The killer Lincoln, Booth **** les, associated with a Rothschild agent in America. Booth himself was caught and punished, while the conspiracy remains safe.
Due to the political turmoil that began with economic interests, in 1913 the American Bankers claimed to have shortage in the U.S. currency. Therefore, the U.S. government could not issue currency anymore because of all the gold reserves have been used.

In order to have an additional circulation of money, a group of people and then set up a bank called "The Federal Reserve Bank of New York", which then sold the stock owned and bought by their own worth U.S. $ 450. 000. 000 through banks: Rothschild Bank of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam (The Warburg controlled the Reichsbank Germany with Family Rothschild), Israel Moses Seif Bank of Italy, Lazard Brothers of Paris, Citibank, Goldman & Sachs of New York, Lehman & Brothers of New York, Chase Manhattan Bank of New York, and Kuhn & Loeb Bank of New York.

Because these banks have large gold reserves, the bank can issue the currency and gold reserve currency is called the "Federal Reserve Notes". Shape similar to the U.S. currency and may each exchange.

To pay the interest, the U.S. government created the income-tax. So in fact American citizens to pay interest to the Federal Reserve.
Income tax began in 1913, in the same year the Federal Reserve Bank was established. All the accumulated income tax paid to the Federal Reserve as interest on loans.

Beginning in 1929, the Federal Reserve stopped accepting dollars as payment. Applicable only 'official money'.

The Federal Reserve began to pull money guaranteed paper gold from circulation and replacing them with 'official money'.

Before the year ended 1929, the U.S. economy experienced catastrophe (known as the 'Great Depression'). In 1931, U.S. President Hoover announced a shortage budjet of U.S. $ 902. 000. 000. In 1932 the United sell gold worth U.S. $ 750. 000. 000 is used to ensure the American currency.

This is the same as 'liquidation sale' of a troubled company. Gold sold was purchased at a discounted (discount rates) by internsional banks / foreign banks (just like the situation in Indonesia today), and the purchaser is the owner of the Federal Reserve in New York.

Roosevelt's decision to conduct a series of reorganizing the U.S. government as a company. The company later went bankrupt. United went bankrupt because they can not pay the interest due owed to the Federal Reserve.

As a result of bankruptcy of America, the banks are owners of the Federal Reserve now has ALL Americans, including citizens and asset-assetnya. American countries is a subsidiary form of the Federal Reserve.
In 1934 Roosevelt ordered all banks in the United States to shut down for a week and took the gold of all U.S. residents and is also backed currencies, gold up and replaced it with "as if the money" (money ratio) of the Federal Reserve printed. That year is remembered as the 'National Bank Holidays'.

U.S. Citizens Prohibited Own Gold -> THIS LOH horror ...
-------------------------------------------------- --
People began to hold gold because they do not want to use the worthless paper "as if the money". Therefore, Roosevelt in 1934 issued an order that every citizen is forbidden to own gold, as illegal. The servants of the law began to penyelisikan on people who have the gold, and immediately confiscated if found.
(Note: At this time the terrified people flocked to the gold trade with the certificate / bond marked U IO signed by Morgenthau, the American Minister of Finance). This is a gold robbery major happens in human history. In 1976 President Carter drew this rule.

In 1963 President Kennedy ordered the U.S. Treasury to print silver coins. This step ended the power of the Federal Reserve because of having their own money, then the American people do not have to pay interest on money alone.

Five months after the order was issued, President Kennedy was killed.

The first step is to cancel President Johnson President Kennedy's decision and ordered the U.S. Treasury to stop the printing of a silver coin and silver coin pulled from circulation to be destroyed.

On the same day Kennedy was buried, the Federal Reserve Bank of spending money 'no promise' of the first. Money is not promising that they would pay in the currency lawful, but this currency is a valid means of payment.
President Ronald Reagan planned to improve the U.S. government in accordance with the rules of the constitution. He was shot several months later by the son of his close friend, Vice President George Bush. Reagan did not issue new orders, and in 1987 to implement, but the order is not respected by the U.S. government.
In 1993, James Traficant in a famous speech in Parliament condemning the Federal Reserve system as a large-scale fraud.

Not long after that he became a victim of the corruption investigation even if there are no demands on him for years. In 2002, Traficant eventually - somehow - BY LAW proven corruption. (konspirasikah?)

He said that the witnesses against him all forced to lie. He also complained of is not allowed to contact all the people who investigate, as a witness.

Because the system decay The Federal Reserve, Henry Ford once said, "Perhaps there are good Americans in general do not know the origin of money, because if they knew it, I'm sure tomorrow morning will come the revolution. "

Thus the history of decay paper currency system.

We should assiduously began using the back of gold and silver as currency, not dollars, dollars, and so on.

In the United States alone, a number of its citizens has long been actively campaigning again the use of gold and silver as real currency (Liberty Dollar). Slowly but surely, the world will again use this real currency. Hopefully we are not late.

Source: http://www.kaskus.us/showthread.php?t=886116


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Spread

We know it usually spreads in trading currencies, namely the difference between selling to buy for example, if we buy 1US $ = Rp9100, then at the same time, if we sell 1US $ = Rp9000. that spreads Rp.100

So is the buying and selling gold, buying gold will be very different LM spreads with gold jewelry.

In Antam Pulogadung spreads per 1 gram is Rp.8000, for example, we buy gold 100gram for Rp.30.800.000, at the same time we sell the gold back to Antam Rp.30.000.000 we will be appreciated.

Gold Shop spreads to average 10,000 per gram

Meanwhile, if we buy gold jewelry spreads average 10%, if the price per gram of gold Rp 300,000, we'll get spread Rp.30.000. not to mention the cost of production cost per gram of about Rp.60.000, so that for 1 gram of gold we will lose Rp.90.000. Suppose we buy gold jewelry for Rp.30.800.000, at the same time if we sell we will only get Rp.21.800.000.

Now choose where to invest the LM or gold jewelry?.

Spread it must be noted also that if we want to make gold as a business investment.

But if we save the gold in the long run the LM at least 1 year, must be able to cover the spread.

Hail Gold!!

Source: Henry Lou Writing on GOLD Investment facebook group

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Opinion of Alan Greenspan on Gold and Economic Freedom

Here is the opinion of Alan Greenspan about the gold and economic freedom. Alan Greenspan is the former governor of the Fed period from 1987 to 2006.

In his essay was originally known, entitled "Gold and Economic Freedom" deals with the gold when used as a currency / investment instruments can serve as a means to achieve economic independence, which is economic independence is the loss of the ability of government to take a forced some of the property wealth of its citizens in the form of excessive taxes and inflation caused by deficit spending policy.

Free translation of some excerpts from an essay written in italics.


Introduction

Gold Standard is a monetary system where the medium of exchange (money) that is used is supported by a number of gold deposits of the same. Money is essentially a claim for a valuable asset.

In the Gold Standard is a valuable asset in the form of gold. So that when the government printing money of Rp 1 trillion, and determined that 1 gram gold price is USD $ 1 million so the government issuing the currency must have gold reserves as much as 1 ton.

In this case, the government can not just print money for various purposes in the form of interest really useful for society or for the interests of the government itself.

Laissez-faire (derived from French that means "let it happen" is a kebjiakan which prohibited government interference in market economic activities.

In other words the government should not intervene to regulate the economy. It's up to whatever the market does, good or bad, beneficial for society or not, just government should not intervene.


"They (opponents of the gold standard) seems to judge that gold and economic freedom are two things that can not be separated, that the gold standard is an instrument of laissez-faire policy, and both (gold standard and laissez-faire) is the same meaning and need each other. To can understand the reasons for their opposition, it first needs to understand about the specific function of gold in a free society. "


Gold as a currency

"Money is a means for the implementation of all economic activity. Money is a commodity that serves as a medium of exchange (medium of exchange), accepted by all participants as a tool of economic activity pemabayaran on goods and services, and therefore can be used as a standard in the market pricing and as a store of wealth (store of value) is as a means of saving money. "

"Money could be the shape of gold, silver, shells, cattle or tobacco depends on the context and economic development. In fact, all of which mentioned above was once used as money in different period of time."


Banking System

Banking system without interest is a system that benefits the community as a means to solve the economic transactions in large numbers. Initially the banking using 100% reserve system where the number of loans issued does not exceed the amount of bank reserves.

Reserves are meant was a number of all existing public deposits in banks. But at this moment using Fractional Reserve Banking Banking where the bank only has an obligation to have a spare part, for example 10%, of the number of loans issued. With Fractional Reserve Banking is the bank has the ability to create money.

"If all goods and services paid for in gold, large payments to be difficult to implement and this tends to limit the development of the division of labor and specialization within a society.

Thus, as a logical continuation of the use of gold as money is dikembangkanlah a isntrumen banking system and credit (bank notes and deposits) which act as substitute for gold, but can be exchanged for gold. "

"While banks make loans on productive business activities and profitable, the bank loan repayment smoothly and as a result the bank loans will always be available.

But if business activities by the bank a little ddanai profits and repayment of debts choking the bankers soon realized that their loans outstanding exceeds the amount of the existing gold deposits, and bankers began to hold back in lending, usually by raising interest rates .

This will limit the discharge of bank loans for new business activities and requires that business activities already underway to increase its profits as a requirement to obtain additional bank loans. Thus, in the Gold Standard system, the banking system can function as a protector of stability and balanced growth of an economic activity. "


"A banking system truly free of government intervention and that is perfectly consistent with standard gold system has never existed. But before War I, America's banking system is based on gold and even though governments intervened occasionally, banking system is still virtually free.

Each period, due to the rapid credit expansion, the capacity of banks to provide the maximum loan is equal to the gold deposits, the bank's interest rate jumped up, new loans ekonomipun canceled and a sharp decline but short.

Was limited gold reserves that stopped the expansion of business activities that are not balanced, before the expansion has developed into a disaster as happened after World War I. Walked a short adjustment period and immediately put the economy back to a strong foundation for continued expansion. "

"But the healing process is one diagnosed as a disease: if shortage of bank gold reserves led to an economic downturn - so the argument proponents of economic intervention - why not find some way to supply additional reserves to banks so that banks will never reserve shortage.

If banks can provide loans forever - so they thought - then there would be no reduction in economic activity. And thus, the Federal Reserve System was established in 1913. "


Evidence of history: bad result from the abandonment of Gold Standard

"When in 1927 the business activities in the United States experienced a mild contraction, the Fed creates more reserves of paper (fiat money) in hopes of preventing the occurrence of bank reserve shortage. However, a more dangerous again is the Fed's efforts to help the British moved to the gold deposits Americans for the Bank of England refused to raise interest rates while the market wants.

The mind of the authorities involved at the time was: if the Fed to pump up the paper / paper reserve (fiat) that many of the American banks, interest rates in the U.S. will fall to a level comparable to that of England; this will result in cessation of movement of gold from England to America and the British government terhindarnya from shame at having to raise rates. "

Gold background English emigration to America was before World War I U.S. dollar to British pound is $ 1: £ 0.20. After the Dunai War I, the British wanted to return to the Gold Standard and at that time the dollar exchange rate to sterling has become a $ 1 = £ 0.23. This exchange rate decline due to inflation in the UK.

However, the British government wanted to return to the Gold Standard in the comparison condition of the dollar to soften pundsterling the same before the war that is 1: 0.20. This requires deflation / general decline in prices in the UK due to the price of export goods worth $ 1 which can be sold before the price should come down £ 0.23 to £ 0.20.

Market in order to accept this deflationary policy, bank interest rates in the UK should be increased so that if the bank interest rate rises and the money will go to the bank, as a result, the amount of money (claim) in circulation decreases, because the claims on goods and services reduced the price of any goods and services will fall.

Meanwhile, interest rates higher in America than in England. Because the interest rate in America's higher then the owner of gold in the UK moved to the U.S. gold in the bank for America to earn a higher interest rate.

"As a result, American economic collapse. England fared even worse and rather than face the consequences of his stupidity, instead leaving England in full Gold Standard in 1931, destroy the remnants of confidence and encourage banks fall all over the world. The world economy was in free fall into what the so-called Great Depression of 1930. "

"By the logic that will remind the older generation, advocates of the welfare state / welfare state argue that the Gold Standard most to blame for being the cause of excessive credit expansion, so there was the Great Depression.

Furthermore they argue if only English was never applied Gold Standard, the stopping of English make payment in gold will not cause the downfall of banks around the world. "

Welfare State

The concept of the State Welfare / Welfare State is the concept of a state where the state must take full responsibility for welfare guarantees. How to create social programs that help poor people. Source of funds for these programs comes from government income earned through the sale of natural wealth, tax levies and other levies.

To consider the concept of the welfare state is the way to collect funds and implementation of the distribution of these funds in order not to place fraud in the collection and distribution of funds will only benefit certain groups.

"Without academic jargon, the welfare state / welfare state is nothing more than a mechanism by which the government forcibly taking property productive members of society to support a variety of welfare schemes. The greatest part of the decision is forced through taxation.

However, supporters of welfare state can quickly recognize that if they want to retain political power, the amount of tax that is taken must be limited so they must create new ways of deficit spending programs on a large scale, by way of borrowing money by issuing government bonds, for welfare programs financed expenditures in large scale. "


"By applying the Gold Standard, the number of credits that can be supported is determined by the amount of intangible assets / tangible assets owned, because basically every credit instrument is a claim for tangible assets. However, government bonds are not backed by tangible assets, only supported by the government's promise to pay from the results of future tax revenues, and these bonds can not be easily swallowed by the financial markets.

The new government bonds issued can only be sold to the public in the interest rate is higher. Thus, deficit spending by the government in the Gold Standard system is very, very limited. "

"Termination of Gold Standard allows the application of welfare state advocates to use the banking system as a means of credit expansion without limit. Were created paper reserve in government bonds that after going through several complex steps banks accept them as tangible assets and treat as actual savings deposits is the same as that used of gold deposits.

Holders of government bonds or bank deposit created by paper reserve was finally convinced that he has a legitimate claim on real assets. But the fact now there are more outstanding than Kalim real assets that are available. "


Inflation

The correct definition of inflation is increasing the money supply in the community resulting in general price increases. However, the current definition of inflation growing and the most frequently cited is the rising prices of goods and services in general, whereas the price increase is the effect of increasing the money supply in the community.

Therefore, today there are two kinds of definition of inflation is monetary inflation increase the money supply and price inflation is rising prices of goods and services in general.

"The law of supply and demand is not for the game. Along with the increased supply of money / claims are not accompanied by the addition of asset supply, prices must eventually rise.

Thus the earnings saved by the productive members of society down in value. "

"Without a Gold Standard, there is no way to protect savings from making forced through inflation."

Conclusion

"Deficit spending is simply forced wealth-making scheme. Golden prevent this evil process. Gold stands as a protector of property rights. When people understand this, are not difficult to understand the antagonism against the Gold Standard."

Source: Writing Dadang Farhan's father Facebook Group: Gold Investment for the Future Gold

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Kinds - Gold colors

If you buy gold jewelry is not actually 100% pure gold, pure gold is usually in the form of precious metal (LM) bars, as in issued by PT. Antam TBK, if we buy 22-carat gold is 22 parts pure gold and two parts are mixed.

To have a suit the color of gold is mixed with metals to different example is yellow gold mixed with silver composition greater than the copper.

See the list below gold composition:

Yellow Gold (22K) Gold 91.67% Silver 5% Copper 2% Zinc 1.33%
Red Gold (18K) Gold 75% Copper 25%
Rose Gold (18K) Gold 75% 22:25% Copper 2.75% Silver
Pink Gold (18K) Gold 75 % Copper 20% Silver 5%
White Gold (18K) Gold 75% Platinum or Palladium 25%
White Gold (18K) Gold 75% Palladium 10% Nickel 10% Zinc 5%
Gray -White Gold (18K) Gold 75% Iron 17% Copper 8%
Soft Green Gold (18K) Gold 75% Silver 25%
Light Green Gold (18K) Gold 75% Copper 23% Cadmium 2%
Green Gold (18K) Gold 75% Silver 20% Copper 5%
Deep Green Gold (18K) Gold 75% Silver 15% Copper 6% 4% Cadmium
Blue-White or Blue Gold (18K) Gold 75% Iron 25%
Purple Gold Gold 80% Aluminum 20%

ource: Henry Lou Writing on facebook group: Investasi Emas Batangan

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