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All Posts Tagged With: "Monaco"

Multi-year Gold Bull Market Is Firmly Intact

Adam Crum – Monaco Rare Coins

Critics Believe Second Round of Quantitative Easing By the Fed Will Further Devalue the Dollar and Create Inflation

Federal Reserve Chairman Ben Bernanke has been quoted as saying he would fly over the United States and drop dollars from a helicopter should it be necessary.

Sans helicopter, for the time being at any rate, the Federal Reserve has announced that it plans to breathe new life into the economy with additional quantitative easing, a series of Treasury purchases starting with $600,000,000 that may ultimately total $1 trillion or more according to some sources. With the U.S. economy expanding at just 2 percent annually in the third quarter of this year and the jobless rate apparently stalled at about 9.6 percent, the Fed was pressured to do something to stimulate the economy.

Bernanke explained to students at Jacksonville University that a second round of easing will enable the Fed to accomplish its two Congressional mandates, ensuring full employment and stable prices while preventing deflation and generating some “good” inflation.

Critics say the dollar will weaken and create inflation

Critics believe that the dollar will weaken as these purchases (accomplished by printing money) increase the Fed’s balance sheet. Inflation is fueled by a weaker dollar as the real price of goods and services becomes more expensive. Using past research and her own models, Goldman Sachs strategist Robin Brooks suggests the dollar will need to drop a great deal more than the Federal Reserve thinks in order to meet the central bank’s inflation target.

“Substantial additional monetary stimulus is needed for the Fed to meet its dual mandate on inflation and employment,” wrote Brooks after the Fed’s announcement. She has raised her estimate for the total size of this second round of quantitative easing from $1 trillion to $2 trillion. “If indeed the Fed sees the dollar as one of its key policy levers for preventing inflation from staying below its mandate for a prolonged period, the dollar needs to fall a lot further from here,” says Brooks.

The big question is when Bernanke discovers that the plan isn’t working, how much farther could the dollar fall? This controversial plan of additional quantitative easing takes the Fed into essentially uncharted waters and puts the dollar at risk of crashing. Frankly, these additional bond purchases could be more destructive than critics even think if inflation is ignited when the economy finally comes around. (more…)

Giant Gold Rush Ingots at Long Beach Expo

Two huge California Gold Rush era assayers’ ingots, recovered from the fabled SS Central America and with a combined weight of over 100 pounds of gold, will be exhibited at the next Long Beach Coin, Stamp & Collectibles Expo, September 10 – 12, 2009, in the Long Beach, California Convention Center, 100 S. Pine Ave.

Adam Crum of Monaco Rare Coins holds the 598-ounce Justh & Hunter ingot, one of two huge California Gold Rush-era assayers' bars recovered from the 1857 shipwreck of the SS Central America

Adam Crum of Monaco Rare Coins holds the 598-ounce Justh & Hunter ingot, one of two huge California Gold Rush-era assayers’ bars recovered from the 1857 shipwreck of the SS Central America

“The display will feature a Kellogg & Humbert gold bar that weighs 662.28 ounces and a Justh & Hunter ingot that is 598.08 Troy ounces. Both were recovered in the late 1980’s from the Central America, the legendary ‘Ship of Gold’ that was carrying tons of California Gold Rush coins and ingots to New York City when it sank during a hurricane in 1857,” said Ronald J. Gillio, Expo General Chairman.

The Kellogg & Humbert gold bar is stamped as number 804 and with a value in 1857 of $12,225.62. It is the fourth largest gold bar among the 532 ingots recovered from the Central America. The Justh & Hunter ingot is #4255 and marked at the time as $11,089.95

The historic ingots will be displayed by Monaco Rare Coins of Newport Beach, California.

“The exhibit also will include some of the finest known Augustus Humbert $50 denomination octagonal ‘slugs’ produced in San Francisco during the height of the Gold Rush,” said Adam Crum, Monaco Vice President. “These colossal gold bars and big $50 coins, literally, are treasures of Wild West history.”

During the three-day Long Beach Expo more than 1,000 dealers will be buying and selling rare coins, paper money, stamps, postcards, historic documents, antiques, estate jewelry and other collectibles. Some will provide free, informal appraisals for visitors.
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