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All Posts Tagged With: "World Gold"

Turkish Numismatic Association Chairman Cem Mahruki Call for change in Ottoman Coin Law

Gold and silver coins from the Ottoman sultans are being melted down because traders are afraid of being charged with smuggling Lamenting rules making it illegal to have, purchase or sell such coins in Turkey, Mahruki says it is time for the government to reform the law

The following is from an Article from Hurriyet Daily News

“Turkey desperately needs to change its legal injunctions against the trading of Ottoman coins if it wants to preserve such heritage, according to the head of the country’s top coin-collecting association.

“In our country, people who are seized with a copper coin from the Sultan Mahmud II that is not even worth a Turkish Lira are treated like smugglers,” said Turkish Numismatic Association Chairman Cem Mahruki, who added that the system was very different in Europe.

“In most of contemporary countries, especially in the European Union countries, old coins are freely purchased and sold over the Internet,” he said.

Speaking to the Anatolia news agency, Mahruki said the Code of Protection of Cultural and Natural Properties banned the purchase and sales of coins until the last six sultans and only granted permission for collection under very stringent conditions.

Many moneychangers and junk dealers obtain old gold and silver Ottoman coins made of valuable metals everyday, Mahruki said, but added that such people typically melt and turn the coins into bars of gold for fear of the law.

“In this way, hundreds of kilograms of historic Ottoman coins vanish because those having these coins are considered as smugglers,” he said.

Law encourages smuggling

In this, the law does not prevent smuggling but, on the contrary, encourages it, Mahruki said. “Old coins that cannot find buyers in the country are found by smugglers for cheap prices and taken abroad.”

Noting that the potential for coin collection is high in Turkey, Mahruki said: “If the law is amended, coins that collectors easily purchase and sell will remain in the country and moreover, the ones abroad will be brought back. We can see its example in paper coins that can easily be collected, and coins inherited from the period of the last six Ottoman periods.”

Complaining about the high prices Turkish collectors must pay at European auctions to bring Ottoman coins back to the country, Mahruki said, “If the goal is to prevent smuggling abroad, there should be heavier punishments and measures against smuggling of these coins to abroad. It should be free to own, purchase and sales the Ottoman and Turkish coins.”

Mahruki also said the current law violated the right to property and that many families had old coins from their ancestors. (more…)

UPWARD TREND IN GOLD PRICE DURING SECOND QUARTER 2010 BACKED BY STRONG FUNDAMENTALS, SAYS THE WORLD GOLD COUNCIL

Mixed economic news around the world, concerns over a double dip recession and significant fiat currency weakness meant gold retained its lustre as a protector of wealth during the second quarter 2010, according to the World Gold Council’s (WGC) latest Gold Investment Digest (GID).  The quarter recorded significant net inflows into various gold-backed investment vehicles, as investors sought to harness gold’s investment benefits at a time of weakness and pronounced volatility in other asset classes.

While China has remained resilient, GID also suggests that jewellery demand in other key markets has continued to recover from a weaker 2009.

The report, which was published today, showed:

  • Heightened investor activity supported an upward trend in the gold price throughout the quarter; on several occasions breaking record highs and reaching US$1,261.00/oz on the London PM fix on 28 June, as investors sought out assets offering protection, diversification and liquidity.
  • Investors bought 273.8 net tonnes of gold via exchange traded funds (ETFs) in Q2 2010.  This represents the second largest quarterly inflow on record and brought the total amount of gold held in the ETFs that the WGC monitors to over 2,000 tonnes (worth US$81.6 billion). In particular, SPDR Gold Shares (GLD) surpassed the US$50 billion milestone.
  • In the early part of the second quarter, many currencies around the globe not only fell against the US dollar but also experienced higher levels of volatility as credit woes in Europe had a negative impact on the outlook for the euro and the British pound. While the dollar appeared to fare better, investors sought out gold as a currency alternative as evidenced by large purchases of coins and small bars around the globe.
  • Many assets, including global equities and commodities, experienced a period of pronounced volatility, in some instances surpassing levels seen during the first quarter of 2009.  Gold price volatility, however, remained much lower than many of these assets during the period, meaning gold outperformed versus S&P 500 Total Return Index, the MSCI World ex US Index and S&P Goldman Sachs Commodities Index (S&P GSCI) on a risk-adjusted basis.
  • In Q2 2010, the diversity of gold’s demand base, less driven by industrial uses as many other commodities, meant that gold was one of the best performing commodities.  Oil fell by 9.1% and, similarly, metals with a greater degree of exposure to industrial cycles fell substantially: zinc, nickel and lead dropping by more than 20.0% quarter-on-quarter. Even platinum and palladium posted quarterly losses on the order of 6.7% and 7.9%, respectively.

Juan Carlos Artigas, Investment Research Manager, World Gold Council commented:

“During the second quarter, many financial assets, especially in Europe, suffered losses as risk aversion, credit concerns, and disappointing economic news around the world prompted investors to seek assets with little or no default risk, greater liquidity and lower volatility.  As a result, gold was, once again, one of very few assets that exhibited a positive price performance during the period.  However, it is important to note that while gold continued its upward trend during Q2 2010, its price, relative to the price of various assets is not overvalued by historical standards1 . (more…)