Gold and Energy Advisor
Gold and Energy Advisor's Real Wealth

Real Wealth #247  09/08/2009



United Nations' Conference Report calls for Global Currency to Replace U.S. Dollar

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Dear Gold & Energy Subscribers,

Early this morning as Asia’s financial markets opened, gold futures opened and stayed above the $1,000 mark for the first time in 6 months.

I’ve been appearing in a good many TV and Internet financial news shows predicting gold would jump over $1,000 and perhaps as high as $1200 by years end. We are still in the early stages of an economic crisis that will eventually evolve into monetary collapse that will literally change the world we live in.

Today’s push above $1,000 comes on the same day that a UN Conference on Trade and Development (UNCTAD) released a new report that asserts the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises we’ve seen the past two years.

The report suggests that the U.S. Dollars role as world’s reserve currency be re-examined. 

While it is true a number of countries, including China and Russia, have suggested the U.S. dollar be replaced as the world's reserve currency, this report by UNCTAD is the first time a major multinational institution made such a suggestion.

The UN conference report suggests a new Bretton Woods-style system of managed international exchange rates that would require central banks intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.

The UN report suggests surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US continuing to take the main burden of readjustment.

"Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," said Detlef Kotte, one of the report's authors. "But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund."

Small hoard of U.S Gold 1 ounce and 1/2 ounce medals

The Friday before last I was able to buy a small hoard of U.S. gold. Before there were American Eagles and Buffalos the U.S Mint produced a series of Commemorative American Arts Medallions.

These half and one ounce medals were minted over a five-year period from 1980 through 1984. Each honored a renowned American artist. Beginning with 1980, the yearly 1-ounce Commemorative American Arts Medallions portrayed Grant Wood, Mark Twain, Louis Armstrong, Robert Frost and Helen Hayes, respectfully.

The half ounces featured portraits of Marian Andersen, Willa Cather, Frank Lloyd Wright, Alexander Calder and John Steinbeck. The reverse theme for each medallion related to the accomplishments of the pictured artist.

The ones I purchased have been all graded by the Professional Coin Grading Service (PCGS) MS65 or better.

Extremely low mintages and many were melted!

 

Significant quantities of the 1980 and 1981 and lesser quantities of the 1982 and 1983 have been melted for their gold value. In fact, its no secret that the approximately 850,000 ounces out of a total of 1.68 million ounces were melted of the 1982 and 1983 issues of the gold bullion medallions by J. Aron & Co. in 1984.

 

What dose this mean...tremendous scarcity of a true collectible!

 

Here’s a reliable picture of the rarity of these U.S. Gold Medals

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Despite the tiny mintages and huge melting you can still finding these in MS60-MS64 uncirculated condition but finding them in PCGS graded and certified holders in high grade MS65 or better is very hard – only small numbers of coins have managed to survive in Choice, Gem or Superb uncirculated condition.

The fact is that most of these gold medals have less than a total 125 graded in MS65 or better. Many have less than 50 graded in Superb MS66 or better condition. In fact, out of the surviving rough 848,000 ounces of gold medals only 817 have been graded MS65 or better by PCGS none have been graded by NGC. Here’s an exact breakdown.

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I purchased 90 ounces total of these 1/2 and 1 ounce in total that grade MS65 to MS67 and are available for just about the same price of the certified U.S. $50 Gold Eagles that we often sell as a reliable gold coin play. Keep in mind while there are only 817 ounces of the American Arts Medals graded by PCGS there have been hundreds of thousands of American $50 Eagles gold eagles graded in MS65 and better condition by PCGS and NGC. I now have less than 45 ounces left.

The MS66 and MS67 quality Commemorative American Arts Medallions pieces sell for a very modest -- small premium more than the MS65’s.  

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Buy 5 ounces in any combination and we'll add three years to your Gold & Energy Advisor subscription or we'll renew your subscription for three years. What ever is appropriate?

I really like these 1 ounce US Medals because they are also 100 times rarer than American Gold Eagles and Buffalos. Many of them were melted and only small numbers of high grade coins remain. So its a play on both gold with rarity but still sells at a very reasonable premium over the melt value.

Call Finest Known, LLC my rare coin and precious metals company at 1-866-697-GOLD (4653) or 1-561-750-1716.

Best Wishes,

James DiGeorgia

Editor

Gold & Energy Advisor

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