Further Study

 

Before investing in gold and silver, we offer our customers educational material toward making a silver and gold investment as well as offering two FREE DVD's with detailed information on both bullion sales and bullion products.   It's not just how to buy gold bullion or how to buy silver bullion that's important, but knowing what makes private bullion such a sound and wise investment that counts.

Why is Gold more valuable than Silver ?

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  • There is only 4.6 Billion Ounces of Gold in the world (approx. 8 tenths of one troy ounce per person)
  • There is only 23 Billion Ounces of Silver in the world (approx. 4 ounces per person)
  • On earth, silver as a resource is available on a ratio of 15:1 therefore generally 1 measure of gold is equivalent to 15 measures of silver
  • Silver is a man made product (manufactured) while Gold is natural and mined.
  • Silver is lost in use (ie. Scrapped in computers etc.) while Gold cannot be destroyed easily and is recycled.

General Gold facts :

General Gold Facts

  • Gold chemical symbol = AU
  • Gravity = 19.5
  • Melting Point = 1063 degrees Celsius
  • Found in earths crust = 5 parts per Billion
  • Total Found = 4.6 Billion Ounces
  • Availability per person on earth = 8 tenths of one troy ounce

General Silver facts :

General Silver Facts

  • Silver chemical symbol = AG
  • Gravity = 10.5
  • Melting Point = 960.5 degrees Celsius
  • Found in earths crust = 73 parts per Billion
  • Total produced = 37.5 Billion Ounces (23 Billion Ounces left)
  • Availability per person on earth = 4 ounces

Historical background of bullion and money

  • Until 600BC Gold and silver was the Globally traded currency of the world based on fair weights and value. Money, in comparison is a relatively new invention in history with the first paper money invented in China (800 AD) and introduced to Europe in Sweden in 1601 AD.
  • In 1878 paper money was backed by a tangible promise to pay the bearer on demand in either gold or silver depending on the jurisdiction of issue (ie. a gold or silver certificate) but in 1933 in the USA this promise was removed and replaced with the term legal tender for all debt which has since resulted in moneys value varying greatly. It also meant an unlimited supply of paper money could be printed as the equivalent backing in gold or silver was no longer required. The printing of more and more money meant the currency loses value known as inflation (inflation = increase in money supply)
  • The value of money in comparison fluctuates greatly as currency by Government decree has no intrinsic value but is based on economic confidence.
  • Further, as a result of the later introduced fractional banking system allowing money (credit) to be lent on more credit with less than 10% actually required to be held by banks in reserve, both government, business and private debt has spiralled out of control. In the US only approx. 1.64% of all bank lending is available for withdrawal. The US debt is so high that if it was to stop incurring more tomorrow and start repaying at the rate of a $1 a second it would take over 340,000 years to pay it off !
  • Government debt drives inflation and today only 1 in 150 people approx. worldwide are actually debt free. When banks lend money they actually supply credit therefore all money is debt to the banking system.
  • Later, to get out of debt they introduce more circumstance based legislation, introduce more taxes, borrow and spend more money and ultimately blame others !
  • History has proven that Government and corporate greed create and escalate monetary problems through flawed laws and rules.
  • Global financial Crisis are not new but cyclinic. They seem to have occurred in history approx. every 50 years along with monetary & debt problems.
  • Dr Daniels predicted the current world crisis in the 1990’s (refer DVD dated 1996 from the Way I see it series) and likened it to the Wall street crash of 1929 in the USA leading to the global great depression.
  • People always return to the safer haven of Gold in times of crisis as it is the only real standard of value that has stood the test of time (unlike money) as it can’t be printed.
  • We see precious metals reaching new all time highs over time

 

Who Owns Most of the World's Gold?

As at July 2nd, 2009

 

With gold prices getting ready to soar, we've decided to find out who owns the most bullion in the world.

It's no surprise that governments, central banks, and investment funds are world's largest holders of gold reserves. These organizations know gold is the ultimate store of value that protects against inflation and offers a safe haven during times of economic and geopolitical turmoil.

To find out who owns the most gold in the world, we referred to data from the International Monetary Fund's International Financial Statistics Report.

The 10 biggest gold owners in the world:

 

Rank

Owner

Tonnes

Share of Foreign Reserves

10

Netherlands

612.5

61.4%

The Netherland central bank, De Nederlandsche Bank, oversees the Dutch national finances, including the country's 612.5 tonnes of gold reserves. The Dutch gold is currently worth over $20 billion and accounts for 61.4% of the country's foreign reserves.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

9

Japan

765.2

2.1%

Although Japan is ninth largest gold owner in the world, its 765.2 tonnes of gold accounts for just 2.1% of the nation's total foreign reserves. On the open market, Japan's gold reserves would fetch approximately $25.4 billion and are managed by the Bank of Japan.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

8

Switzerland

1040.1

37.1%

Conducting Switzerland's monetary policy is the Swiss National Bank, which oversees the country's 1,040.1 tonnes of gold. The gold is believed to be stored in huge underground vaults near the federal Parliament building in Berne, but the Swiss National Bank treats the location of the gold reserves as a secret. With the world's eighth largest reserve of the yellow metal, Switzerland's stockpile would fetch approximately $34.5 billion in today's gold market, accounting for 37.1% of the country's foreign reserves.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

7

China

1054.0

1.8

The world's most populous country also has the world's seventh largest gold reserve. With a population of 1.33 billion, the country holds about $26 worth of gold per person, worth a total of almost $35 billion. The Chinese gold accounts for only 1.8% of the nation's total foreign reserves.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

6

SPDR Gold Shares ETF

1,120.6

n/a

Originally listed on the New York Stock Exchange in 2004, SPDR Gold Shares has been one of the fastest growing ETFs in the world. SPDR Gold Shares now trade on the Singapore Stock Exchange as well as the Tokyo Stock Exchange. All of the Trust’s gold is held by the Custodian, HSBC Bank, in their London vault except when the gold has been allocated in the vault of a sub-custodian.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

5

France

2,450.7

72.6%

The Banque De France is responsible for France's gold holdings, which have been reported at about 2,450.7 tonnes by the International Monetary Fund. With the fifth largest gold reserve in the world, France's amount to about $81.3 billion, accounting for 72.6% percent of the country's foreign reserves, which is the second highest percentage of gold in foreign reserves on our top ten list.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

4

Italy

2,451.8

66.5%

The Italian National Bank, Banca D'Italia, manages the country's large gold holdings, which account for 66.5% of its foreign reserves. With approximately 2,451.8 tonnes of gold in reserve, Italy's holdings are very close to France's and are also worth approximately $81.3 billion at current prices.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

3

International Monetary Fund

3,217.3

n/a

The International Monetary Fund oversees the global financial system by following the macroeconomic policies of its member countries 185 member countries. It is an organization formed to stabilize international exchange rates and facilitate development and offers highly leveraged loans mainly to poorer countries. The IMF's gold policies have changed in the last quarter century, but the reserves remain in place for use in stabilizing international markets and aiding national economies. The IMF's official policy on gold as it is stated on the organization's website is governed by the following principles:

  • As an undervalued asset held by the IMF, gold provides fundamental strength to its balance sheet. Any mobilization of IMF gold should avoid weakening its overall financial position.
  • The IMF should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies.
  • The IMF has a systemic responsibility to avoid causing disruptions to the functioning of the gold market.
  • Profits from any gold sales should be used whenever feasible to create an investment fund, of which only the income should be used.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

2

Germany

3,412.6

69.5%

The Deutsche Bundesbank, Germany's central bank, is the most influential member of the European System of Central Banks. With a hefty 3,412.6 tonnes of gold reserves, which are valued at about $113.2 billion at current prices, Germany's gold accounts for almost 70% of the country's total foreign reserves.

 

Rank

Owner

Tonnes

Share of Foreign Reserves

1

United States

8,133.5

78.3%

The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, the US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is reported to be held in the world famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the US reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.

The top ten largest owners of gold in the world are reported to control a total of 24,258.3 tonnes, or over 855 million ounces. At current spot prices, this gold would be worth approximately $804.35 billion and represents about 15.4% of all the gold ever mined.

Introductory DVD’s :

If you would like more information we offer 2 DVD’s :

Further Study Dvd 1DVD 1 covers the benefits of acquiring Cash and Carry Bullion products (like coins, jewellery etc.) unique to DanEl for the suggested purpose of insurance with a lower capital outlay with a minimum order of $5000 US.

Order your introductory DVD's

 

 

 

Further Study Dvd 2DVD 2 covers the benefits of acquiring private Gold and Silver Bullion Bars for the suggested purpose of investing and why DanEl bars are among the worlds best. These require a higher capital outlay and are recommended for Strategic Asset Allocation of ones investment Portfolio.

Order your introductory DVD's