The History of Gold and Silver
Gold and silver are one of the oldest forms of currency in the world. These two precious metals have been known to circulate as tradable money for thousands of years. This is a trait that no other printed money can even come close to matching. If you ever wonder why some people say that gold and silver are the most enduring investment vehicle in the world, you can attribute as much to the fact that they have been around as long as money itself.
Gold has always been known as a symbol of luxury and prominence, while silver always painted a picture more in line with utility. Where gold is often worn as jewelry, silver was frequently used as silverware or other accessories.
Jewelry, Currency, and Common Usage
Throughout the past several thousand years, gold and silver have had many different uses. The most notable functions of gold and silver in day-to-day life are in jewelry and currency. No matter what time frame you are considering, gold and silver will have been a symbol of money and power. They glimmer, they are rare, and they are soft enough that they can be formed into many different shapes and sizes. These attractive traits are what make precious metals so desirable among people from around the world.
The actual time that gold and silver were first used as currency is debatable, but there is no disputing that they have been around for at least 2,000-3,000 years, with many believing that its use as currency dates back much further. Gold and silver have served as currency for a few very simple reasons: they are easy to mold, they are inherently rare, a static value can be attached according to weight and purity, and they cannot be artificially reproduced. Unlike paper money, there is no machine that can generate silver and gold. The amount of precious metals in the world today remains a static figure, varying based only on amounts that are readily available.
Aside from jewelry and currency, investments and industrial use are the other two primary functions of gold and silver. The value in metals traces back to its use as currency, while the industrial usage can be attributed to its soft, conductive qualities. Though you might not realize it, metals are frequently used in the production of everything from electronics to vehicles.
Gold Standard and Government
The Gold Standard is a term that many are familiar with. When a government is using the Gold Standard, it means that they are basing their currency and valuations on a worth equal to an amount in precious metals (namely gold and silver). The United States is one of the most notorious countries that had once used the gold standard.
From 1785 until 1861, in the relatively early years of the country, the US based their financial structure on currency that utilized gold and silver. Instead of the paper that is used today, coins made of pure gold and silver were traded in the free market. If it was not for financial crises in 1857, it is more than likely that this system would have endured for much longer than it did.
Executive Order 6102 is a case that many mistake as being the Gold Standard itself. In 1933, Franklin D. Roosevelt enacted Executive Order 6102, which stated that citizens were not to own their own stock piles of monetary gold. All gold was to be turned into the government, with the owners receiving $20.67 per ounce in compensation. The primary outcome of this event was a sharp increase in the price of gold, as it would rise to $35 per ounce shortly thereafter.
When the Gold Reserve Act was announced a year later in 1934, it marked the absolute end of the Gold Standard in the US. While the country had already moved from using gold and silver alone, it was still possible to trade currency for physical gold up until this point. Today, currency cannot be traded for precious metals beyond normal trade (private buying and selling).
Purity in Gold and Silver
There are common misconceptions when it comes to the purity of gold and silver products. With gold, even the most common jewelry buyer will be able to tell you that 24k (karat) is as good as it gets. 24 karat gold means pure gold, it just doesn’t get any finer. With silver, however, many will incorrectly state that Sterling Silver is pure. The truth is that Sterling Silver is only 92.5% actual silver, with the remaining 7.5% being comprised of a much cheaper metal, copper.
When it comes to investing and buying gold and silver, you will almost always be dealing with the most pure forms. Aside from coins which are produced with varied amounts of silver and gold content, almost all bars for both gold and silver are at least 99.9% pure. Purity is also represented in numerical form, commonly as .999 (99.9%) or .9999 (99.99%) gold or silver.
Now that we have explained the history of gold and silver as currencies, we will discuss gold’s and silver’s modern function as an investment
Permaculture (the word, coined by Bill Mollison, is a portmanteau of permanent agriculture and permanent culture) is the conscious design and maintenance of agriculturally productive ecosystems which have the diversity, stability, and resilience of natural ecosystems. It is the harmonious integration of landscape and people — providing their food, energy, shelter, and other material and non-material needs in a sustainable way. Without permanent agriculture there is no possibility of a stable social order.
Permaculture design is a system of assembling conceptual, material, and strategic components in a pattern which functions to benefit life in all its forms.
The philosophy behind permaculture is one of working with, rather than against, nature; of protracted and thoughtful observation rather than protracted and thoughtless action; of looking at systems in all their functions, rather than asking only one yield of them; and allowing systems to demonstrate their own evolutions.
Permaculture in Landscape and Society
As the basis of permaculture is beneficial design, it can be added to all other ethical training and skills, and has the potential of taking a place in all human endeavors. In the broad landscape, however, permaculture concentrates on already-settled areas and agricultural lands. Almost all of these need drastic rehabilitation and re-thinking. One certain result of using our skills to integrate food supply and settlement, to catch water from our roof areas, and to place nearby a zone of fuel forest which receives wastes and supplies energy, will be to free most of the area of the globe for the rehabilitation of natural systems. These need never be looked upon as “of use to people”, except in the very broad sense of global health.
The real difference between a cultivated (designed) ecosystem, and a natural system is that the great majority of species (and biomass) in the cultivated ecology is intended for the use of humans or their livestock. We are only a small part of the total primeval or natural species assembly, and only a small part of its yields are directly available to us. But in our own gardens, almost every plant is selected to provide or support some direct yield for people. Household design relates principally to the needs of people; it is thus human-centered (anthropocentric).
This is a valid aim for settlement design, but we also need a nature-centered ethic for wilderness conservation. We cannot, however, do much for nature if we do not govern our greed, and if we do not supply our needs from our existing settlements. If we can achieve this aim, we can withdraw from much of the agricultural landscape, and allow natural systems to flourish.
SRDC Worldwide presents Hugo Salinas Price.
Mexican Multi billionaire Hugo Salinas Price participated in the 3rd annual World Conference on Riba in coordination with SRDC Worldwide. The annual conference addresses the unsustainable economic conditions due to Riba, or interest. It is an issue that has been becoming more prominent with the worsening global economic landscape.
The founder of Mexico’s Elektra retail chain addressed the conference on “Silver, liquid and illiquid, the ‘modified open mint’ and gold & silver as parallel monetary systems.” Hugo Salinas Price has since retired from Elektra. The current head is recurring figure on Forbes magazine’s richest 400 and Salinas Price’s son, Ricardo Salinas Pliego. The Mexican magnate is a proponent of sound financial policy in Mexico through a monetized silver coin to circulate parallel with the Mexican peso. He is the President of Mexican Civic Association Pro Silver, A.C. Which he founded in 1997.
The 3rd World Riba Conference also included other prominent speakers in the academe, economic scholars and practitioners. Speakers included former Malaysian Prime Minister Tun Dr. Mahathir Mohamed, Chairman & President of the USA Public Banking Institute Ellen Hodgson Brown and Best selling author and award winning documentary writer, Bill Still among others.
List of speakers:
- Tun Dr. Mahathir Mohamed, Fourth Prime Minister of Malaysia
- Ellen Hodgson Brown, Chairman/President of Public Banking Institute, USA
- Bill Still, Best Selling Author and Award-Winning Documentary Writer/Director
- Hugo Salinas- Price, President, Mexican Civic Association Pro Silver, A.C.
- Imran Nazar Hosein, Renowned Author and Scholar in Islamic Eschatology
- Tom J. Kennedy, Activist & Blogger
- Imam Afroz Ali, President , Al-Ghazzali Centre for Islamic Sciences & Human Development, Sydney
- Professor Dr. Ahamed Kameel Mydin Meera, Dean, IIUM Institute of Islamic Banking & Finance, Malaysia
- Professor Dato dr. Hj. Mohd Ali Baharom, President, Malaysia National Cooperative Movement
- YM Tunku Azwil Tunku Abdul Razak, Muslim Consumers Association of Malaysia
- Dr. Zulkifli Hassan, Faculty of Shariah & Law, Islamic Science University of Malaysia
SRDC Worldwide through its authorized training center in the Philippines, Orange Roshan Ventures Inc., participated at the 12th Young Economists Convention held on Feb 28 – March 3, 2013 held at the Henry Sy Sr. Hall at De La Salle University in Manila. The three day conference draws an estimated one thousand Economics students from the Philippines and abroad for the annual event.
SRDC Worldwide was represented by SRDC Philippine instructor Carlo Sumayao and SRDC trader and student leader Mr. Darwin Gempesaw.
The first day of the convention included Darwin Gemepsaw’s talk on the topic “Deviating from Traditions: Changing Global Landscapes”, highlighting the importance to innovate due to the economic situations. Gempesaw also outlined the highly inequitable nature of the current banking system with regards to purchasing power and the on-going currency crisis.
Senator Edgardo “Sonny” Angara also spoke on the first day of the convention on “The Role of Governance in the Economy”, discussing the influence of policy driven actions from the government on the national economy on a macro and micro scale.
The next day of the convention (March1) included SRDC Worldwide’s Carlo Sumayao’s talk on the topic “ Investments for Workers: Using Investments to Improve People’s Welfare” where he discussed the importance of first investing in human capital and financial education and financial literacy before even discussing investments. The talk continued about the investor’s mind set, the on-going process to become a successful investor. Sumayao also briefly discussed SRDC technical charting analysis and precious metals.
Other speakers during March 1 included Edward Valencia, Deputy CEO at Deutsche Knowledge Services and Managing Director at Deutsche Bank discussing the Knowledge Process Outsourcing (KPO) job possibilities of the Philippines. Inversely, Rommel Roque, Country Manager of ManPowerGroup Philippines spoke on the possible scenario of job mismatch crisis here and abroad.
A new company selling dinar and dirham coins have been established in Singapore recently for the purpose of savings and investments.
The company, registered as FLITU International has been operating since last October, along Arab Street, opposite the Golden Landmark building. Haji Abdul Rahman Arif Haji Tahir, a Bruneian entrepreneur who acts as the Chief Executive Officer, owns the company.
According to Haji Abdul Rahman, 45 years of age, the company is a joint venture of two companies – Rufus International and YESINV, which comes together as YesRufus Goldsmith. Rufus International originates as an import and export company for gold and silver generic bullions, which is based in Kuala Lumpur, Malaysia.
YESINV is a Bruneian company, which offers training services and financial intelligence courses owned by Haji Abdul Rahman. To explain the establishment of the new branch in Singapore, Haji Abdul Rahman states: “We think it is the best option to invest in gold and silver, rather than placing your investments on something that most investors have not a clue of.It is a very safe and stable investment and at the same time not volatile.” The company is headquartered in Bandar Seri Begawan, Brunei. Prior to this, the company has established branches in Petaling Jaya, Malaysia and Makati in Philippines. Further expansion of distribution channels will be established across the country this year, including Sarawak and Sabah. Another branch will be opened in Penang Island next month, added Haji Abdul Rahman .
The company produces two types of dinar coins – 1 dinar and ½ dinar. A 24 karat 1 dinar pure gold coin of 4.25gram is sold at a price of $394 inclusive of GST while the 24-karat ½ dinar pure gold coin, weighing at 2.125 gram is sold at $197 inclusive of GST. The company also mints and produces three types of dirham coins – 1 dirham, 2 dirham and 3 dirham. One pure silver dirham weighing at 2.975 gram sells for $8.35 inclusive of GST. The company designed the dinar and dirham coins. One surface displays the kris, a dagger of Bruneian heritage, and the opposite is a calligraphic sentence of Arabic origin which means “Let’s go for prayer, let’s go for success”. The dinar and dirham coins are sold to everybody, Muslims or non-Muslims.
“We would also like to share our knowledge and understanding about the value of gold and silver to the general public – not just as an investment tool, but also an instrument of preserving wealth.”
“We will be holding a few workshops concerning financial intelligence, based on the value of dinar and dirham coins, for investment and savings purposes, and how its value is withheld even when inflation hits.”
“We would also like to educate the general public about the usage of the dinar and dinar coins, on how owning physical precious metals does not go against a country’s regulations, and how it would complete one’s financial portfolio.”
YesRufus Goldsmith has organized a seminar on the dinar and dirham last Saturday with the ongoing topic of “Real Money In A Conventional Economy”. Haji Abdul Rahman and a scholar in the field of philosophy and Islamic economy, Mr. Abdul Halim Abdul Karim, delivered the lecture at the seminar. According to Haji Abdul Rahman, his company will be producing and selling gold and silver bullions in dinar and dirham denominations by the end of the following month.
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Paper bills really aren’t worth much, but gold, silver, and physical assets are. One group can help you tell the difference.
How much is your money — that wad of paper bills in your wallet — worth, really?
This will come as a shock to most: “The paper bill in your hand costs only 6 cents to print out, and that is its value,” says Carlo Sumayao, director of the Philippine center for SRDC Worldwide, a community of traders, investors and businessmen focused on raising financial awareness, education, and mentoring.
It used to be that all paper bills, like the American dollar, were backed by an equivalent weight in gold in the national treasury. Now it’s not a requirement: the public’s trust in it and in the government issuing the money is the only thing holding its perceived value together. Therefore, Sumayao adds, since paper cash has no intrinsic value, people really need to know what to invest in — such as gold and silver and physical assets like land and real estate. (Based on current world market prices, a gram of gold is worth about P2,100; a kilo of silver is about P37,000.)
That’s been the mission of SRDC Worldwide, founded by Orange Roshan (a native of Brunei with two decades of experience in multi-disciplinary conventional businesses and in trading forex and commodities) since it began four years ago. Now it boasts of about 20,000 members worldwide with bases in five countries.
A return to ‘real’ money
At the heart of the SRDC’s campaign is “a crucial need” for people to understand money and how it is being influenced by market factors, Sumayao says. “The investment products most obviously available to you today may not always be the financially intelligent choice, primarily because of inflation and all these problems plaguing the world economy,” he adds.
“By investing in actual money — that is, physical gold and silver — we are able to convert wealth into something that has true value,” adds the head of Orange Roshan Ventures, SRDC’s authorized local partner.
SRDC helps this process by producing minted silver and gold coins available at discounted prices to their members in varying units, making it“affordable and feasible to slowly convert one’s cash assets into precious metals by making consistent conversions over time,” Sumayao adds.
Knowledge is wealth
The second method of investment SRDC Worldwide advocates is trading the spot market by using an exclusive method of technical charting analysis. SRDC traders can safely and consistently enlarge one’s capital and use part of the profit to invest in physical assets, Sumayao adds.
“We have spent years acquiring academic and professional education in our youth, but we have not sufficiently acquired financial education from our schools,” Shaf Al Shukri, head of instructors at SRDC Worldwide, points out. The organization’s best example of financial education is Roshan himself; he learned from a market maker during his early days in Japan’s largest trading bank, Nomura Securities.
The bottom line is that everyone can avoid paying a heavy price and losing their hard-earned money due to lack of awareness and ill advice, says Sumayao. Even Filipinos need to know which investments to pursue and how to maximize their results while safeguarding themselves from loss.
“Nobody cares about your money more than you do,” Sumayao adds.
“In order for your wealth to grow, you need to invest in educating yourself.” — Lolita Villa
Why invest in precious metals?
In the 1970s, gold was pegged at $35 an ounce. By the early 2000s, gold had reached $300 an ounce. If you had invested in physical metals like “Rich Dad” author Robert Kiyosaki did at this point, your investment would have grown by more than 400 percent, at about $1,600 per ounce ($49 per gram, 1 ounce is equivalent to about 28.3 grams) in 2012.
As the value of paper currencies continue towards bankruptcy thanks to unreserved paper currency printing, the value of precious metals such as gold and silver will continue to rise, says Orange Roshan Ventures’ Carlo Sumayao. He adds: “It has taken the Us dollar about 40 years to lose 95 percent of its value. How long will it take for it to lose the remaining 5 percent?”