PILONCITOS: The treasure of Philippine numismatic

Piloncitos is the earliest form of precious metal based currency of the Philippines. It is likely made of pure gold with a weight ranging between .5 grams to more or less than 3 grams.

Piloncitos is not exclusively found in the Philippines as most collectors and local historians have agrees. Similar type of gold can be found in some regions of Indonesia which they call massa.

The earliest written account of Piloncitos was made by our national hero, Jose Rizal himself. According to Rizal, he found the gold nugget while tilling the soil of Dapitan. He himself coined the word piloncitos, which basically describe the coin's unusual shape. They are round and stamped with what looks like the pre-Spanish baybayin character “ma,” leading historians to guess that it could be short for “Ma-I.


Even before the Thai moved southward from their original home in China, the lucrative sea trade between the South China Sea and the Bay of Bengal established several maritime empires such as Sailendra-Srivijaya and Majapahit, which controlled coastal areas of modern Indonesia, Burma, Malaya, Thailand, Vietnam, and the Philippines.

In an era before coined money was widely used, Indo-Pacific beads were made first at a site called Aakmidu in South India ca. 200 BC. The manufacture then moved in sequence to Ceylon, South Thailand, Java and finally Malaya. By about 1200-1300 AD the larger Majopahit beads, excavated today in the interior of Java, had supplanted it. Since these factory sites have been dated, archaeologists now use the beads to date sites, though whether beads rose to the level of metals, salt, cloth, and cowries as "standard" trade goods is uncertain.

The first indigenous metallic coinage in the region, ca. 750-850 AD, comes from the Javanese kingdom of Sailendra (Chinese: Ho-ling). These roughly dome-shaped silver of irregular weight bore stamps of a flowing vase, and the sandalwood flower (quatefoil). By 850 AD weights had been standardized at 20 rattis to a Massa of about 2.4 grams. Silver and gold coins of Massa and fractional denominations were issued until about 1300 AD, with changes in shape and quality of inscription marking periods of issue. The gold Piloncitos of the Philippines are a late offshoot of the gold coinage, while the beanlike silver "namo" series, of the Malay isthmus was presumably an offshoot of the silver and may have evolved into the bullet (pod-duang) coinage of Sukothai in Thailand.

Past local numismatist like Dra. Anita Legarda and Gilbert Perez made some research regarding this coin but only few specimen were found and no further study nor specimen have surfaced recently aside from those what have been found.

What fascinates historians and numismatists alike is why piloncito can only be found in the Philippines and unlike its counterpart gold massa that are vastly present in the Southeast Asian region.

Migration to Gold increases as Market uncertainty continues

Last Wednesday -- which was the worst day for both the dollar and US equities -- the average price of US Mint-manufactured gold rose to $1952/oz. That's about $130/oz higher than gold futures got that day.

Meanwhile, Gold continues to break all-time records as uncertainty and lost of confidence hammer the U.S. dollar. There were times Gold was even at par or more with Platinum which were never seen before.

Gold dealers on Ebay continue to profit from the market tremors brought by the sudden surge in the prices of precious metals especially with Gold. In demand right now are bullion coins most likely falling from .900 or of higher purity.

Bangko Sentral Ng Pilipinas (BSP) expresses that despite the falling value of the dollar, they are still confident with the beleaguered currency as the current dollar reserve rose to %16. Though BSP remained optimistic with the current economy as credit rating agencies upgraded the Philippines credit worth to BB+, changes in the prices of commodities such as oil and wheat have become the headaches of most economist as prices become more unstable and harder to forecast.

Bargain hunters in the Quiapo black market are scouting the area for possible opportunities since local bullion market still takes a while to adjust and effect of the price changes in COMEX is slower. Local auctions are now attended more than ever by precious metal prospectors rather than collectors as more and more players now participate in the trade of precious metals especially with Gold.

Gold soared to $1700 despite U.S. credit downdgrade

Gold soared to record highs above $1,700 an ounce on Monday as an unprecedented downgrade to the U.S. credit rating sent investors scrambling out of riskier assets, hammering equity markets and the dollar.

Both U.S. gold futures and cash gold could rise further if pledges by the Group of Seven nations to support battered financial markets fail to bear fruit as investors turn their attention to the Federal Reserve's policy-setting committee, the FOMC, meeting on Tuesday.

The one notch downgrade by Standard & Poor's of the U.S. long-term rating on Friday added to the threat of contagion from the euro debt crisis, fears over recession in the United States and even the possibility of a third round of U.S. quantitative easing.

Spot gold touched a lifetime high around $1,714 an ounce, its 11th record in 19 sessions -- lifting the price of silver by more than 5 percent. The U.S. December gold contract also hit a record about $1,718 an ounce.

"What people are realizing is that dollar and euro currencies have real problems and I think that's manifesting in the gold price," said Dominic Schnider, an analyst at UBS Wealth Management.

"That's why we increased the gold price to $1,800, but I would say the way things evolve right now I really could even imagine $2,000 being in the cards. The chances have increased that we'll reach $2,000 -- the forecast remains 12-month $1,800, but the risk is that we will actually hit toward $2,000."

Premiums for gold bars were mostly steady as purchases from investors who are worried about the state of the global economy helped the physical market offset pressure from record bullion prices. Premiums for gold bars were at $1 in Hong Kong and 60 cents in Singapore.

Finance chiefs from the world's industrial powers pledged on Sunday to take whatever actions were needed to steady financial markets, spooked by the political wrangling in Europe and the United States over slashing their huge budget deficits.

Treasury Secretary Timothy Geithner said U.S. Treasury debt is as safe as it was before the S&P downgrade, urging European leaders to ensure there is an "unequivocal financial backstop" for euro zone governments facing fiscal and debt problems.

"I guess the uncertainty in the financial markets is keeping gold prices underpinned. It's essentially safe-haven buying," said Ong Yi Ling, investment analyst at Phillip Futures.

"One of the events that investors will watch is of course the FOMC meeting that is scheduled Tuesday ... investors will scrutinize the statement on the assessment of the economy and outlook for monetary policy."

Investors are watching for any statement on whether the Fed will ease monetary policy further.

Gold priced in sterling jumped to a record around 1,043 pounds following gains in dollar-priced gold. Bullion priced in euro was also at an all-time high.

Shares tumbled on Monday despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded the U.S. credit rating, but the euro jumped on hopes the ECB will act to stop Europe's debt crisis from engulfing Italy and Spain.

The lingering economic crisis has been a boon for safe havens like gold, which has risen for six successive weeks and is up 13 percent since the start of July.

Gold, which has gained more than 20 percent this year, had shrugged off data showing the U.S. economy generated 117,000 jobs last month and unemployment fell to 9.1 percent.

The dip in the jobless rate reflected more of a contraction in the size of the work force than an improved employment picture.

"I think troubles in Europe are also undermining markets. Progress in dealing with Europe sovereign debt issues is painfully slow," said Natalie Robertson, a commodities strategist at ANZ.

"But prices are overbought at the moment. If you look at the RSI, it's above the 70 level. If you look at technicals, it could be vulnerable to some profit taking."

Data released by the U.S. Commodity Futures Trading Commission showed managed money in gold futures and options raised their net length to a five-year high in the week up to August 2.

In the energy market, crude fell more than $2 a barrel on Monday on the S&P downgrade.

BSP Monetary Board meanwhile decided to raise key policy rates by 25 basis points for the second consecutive policy meeting in May 2011 as baseline projections indicated that the inflation target for 2011 could be at risk.

The MB noted that while commodity prices had moderated somewhat in recent months, they continued to pose a risk to the inflation outlook given structurally strong demand from emerging economies amid persistent supply constraints. At the same time, the reserve requirements (RR) on deposits and deposit substitutes of all banks and non-banks with quasi-banking functions was raised by one percentage point (ppt) effective 24 June 2011 to prevent possible additional inflationary pressures from excess liquidity. Expectations of continued strong capital inflows, driven by positive market sentiment over the favorable prospects for the Philippine economy, could fuel domestic liquidity growth and add to future inflation risks.

Special Report: Philippine Coin prices

Philippine coin prices have been bullish lately due to the extended streak of gains of bullion prices in the world market. However, collectors have not been so intuitive lately that most silver and gold coins escaped much attention as it went to only a handful of local investors.

Street price (Quiapo price) has been used as the pattern for local coins since but due to the crisis brought by several catastrophic events, it has been rendered lately as obsolete as experts predict that climb of bullion metals will become regular and most of the times erratic.

U.S. gold and silver prices extended their gains Wednesday as gold reached a new all-time record high for a second straight day and silver advanced to a fresh 31-year high for a third day. The metals gained on the back of a weaker U.S. dollar and expectations of higher inflation.

June gold prices added $6.00, or 0.4 percent, to settle at $1,458.50 an ounce on the Comex in New York. Gold hit an intraday low of $1,452.50 and a high of $1,463.70.

"People are very concerned about inflation, especially with our central bank holding rates so low for so long," Matt Zeman, a market strategist at Kingsview Financial in Chicago, said and was quoted on Bloomberg. "In the eyes of the investing public, Bernanke’s reputation as an inflation fighter is questionable, and you’re seeing people continue to buy precious metals."

Silver prices for May delivery advanced 20.4 cents, or 0.5 percent, to $39.387 an ounce. Silver prices traded between $39.120 and $39.785.

"Yesterday’s release of Fed meeting minutes led market participants to believe that the US central bank’s policymaking members are still divided over the timing of the withdrawal of the stimulus-oriented stance that their institution adopted in the wake of the financial crisis," wrote Jon Nadler, Senior Analyst at Kitco Metals Inc.

"At the same time, a rather disappointing reading in the ISM Services Index for the month of March, added to the woes of the US dollar and reinforced the feeling that the Fed will not be likely to end its QE2 program prior to its end-June expiry. Combine the above with crude oil hovering at or above 2.5 year highs and gold and silver were given the opportunity to rise to new price peaks."

Platinum prices for July delivery edged up $1.00, or 0.1 percent, to $1,797.80 an ounce. Prices ranged from $1,794.40 to $1,816.70.

Palladium prices for June delivery dropped $8.50, or 1.1 percent, to $784.60 an ounce. The metal touched an intraday low of $781.60 and a reached a high of $800.00.

London PM fix bullion prices advanced as compared to their PM fixings on Tuesday.

The PM gold fixing added $28.00 at $1,461.50 an ounce, the silver fix surged $1.55 at $39.630 an ounce, the platinum fixing advanced $21.00 at $1,808.00 an ounce, and the palladium fix jumped $13.50 at $793.50 an ounce.

For a second straight day, the one-ounce American Eagle Gold was the single United States Mint bullion coin to advance. It rose 3,000, the same amount as Tuesday. United States Mint bullion sales figures follow.

U.S. Mint 2011 Bullion Coin Sales
	April 2011	YTD 2011
American Eagle Gold Coin (1 oz)	31,500	295,000
American Eagle Gold Coin (1/2 oz)	0	21,000
American Eagle Gold Coin (1/4 oz)	0	38,000
American Eagle Gold Coin (1/10 oz)	5,000	165,000
American Gold Buffalo Coin (1 oz)	3,000	41,000
American Eagle Silver (1 oz)	658,500	13,087,500

Silver dips to $34 as Global crisis deepens

U.S. gold and silver prices were little changed Monday as gold climbed 0.2 percent and silver dipped 0.3 percent. Platinum and palladium, however, faltered heavily on industrial demand concerns following Japan’s earthquake. The metals fell 1.7 and 2.3 percent, respectively.

April gold prices edged up $3.10 to close at $1,424.90 an ounce on the Comex in New York. Gold was traded as low as $1,418.20 and as high as $1,433.50.

"Gold … remains well bid due to all the uncertainty in the world, led by Japan’s possible nuclear meltdown. The Middle East crisis still looms though it is no longer the lead story on the headlines," Miguel Perez-Santalla, vice president of Heraeus Precious Metals Management, said and was quoted on Reuters.

Silver prices for May delivery retreated 9.5 cents drops to $34.66 an ounce. It ranged between $35.500 and $36.505.

Silver "prices closed near mid-range and saw mild profit-taking pressure. The silver bulls have the strong overall near-term technical advantage," noted Jim Wyckoff of Kitco News. "There are still no early technical clues to suggest a market top is close at hand. Prices are in a steep six-week-old uptrend on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $34.05. Bulls’ next upside price objective is producing a close above solid technical resistance at last week’s high of $36.745 an ounce."

Platinum prices for April delivery declined $29.40 to close at $1,752.30 an ounce. Prices ranged between $1,739.90 and $1,787.00.

Palladium prices for June delivery fell $17.30 to $748.20 an ounce. It hit an intraday low of $745.45 and a high of $763.55.

London PM fix prices were mixed for precious metals when compared to their previous PM fixings. The gold fix added $10.75 at $1,422.25 an ounce. Silver surged $2.08 at $36.180 an ounce. Platinum lost $15.00 at $1,762.00 an ounce. Palladium fell $2 at $752 an ounce.

The United States Mint did not publish updated sales figures for its bullion coins, although Monday was the launch date for its 2011-dated American Buffalo Gold Bullion Coin.

The latest bullion sales figures as provided by the Mint on Friday follow.

U.S. Mint 2011 Bullion Coin Sales
	March	2011 Totals
American Eagle Gold Coin (1 oz)	30,500	233,500
American Eagle Gold Coin (1/2 oz)	4,000	17,000
American Eagle Gold Coin (1/4 oz)	10,000	28,000
American Eagle Gold Coin (1/10 oz)	5,000	125,000
American Eagle Silver (1 oz)	717,000	10,379,000

Silver makes record at $35.33 an ounce

U.S. silver prices on Friday soared to $35.33 an ounce, bringing silver coin values to 31-year highs in the process.

Silver rose nearly 84% last year, but it was down for most of 2011 until Middle East tensions sparked investor buying and lifted silver prices to new heights. The metal is already 14.2% higher this year and has doubled in price over the past 12 months.

In coin terms, a Washington quarter struck for circulation in 1964 now has a melt value of $6.39 since it is composed partly of silver. In contrast, go one and two years back and that same 25-cent piece had melt values of $3.11 and $2.33, respectively.

The 1964 quarter is one of several very common 90 percent silver coins produced by the United States Mint for everyday circulation. All of them have seen their intrinsic coin values explode in recent years, as highlighted in the following table:

Silver Coin Melt Values

Silver Coin	Coin Values (Silver at $12.90 on March 4, 2009)	Coin Values (Silver at $17.18 on March 4, 2010)	Coin Values (Silver at $35.33 on March 4, 2011)
1942-1945 Jefferson Nickel	$0.73	$0.97	$1.99
1916-1945 Mercury Dime	$0.93	$1.24	$2.56
1946-1964 Roosevelt Dime	$0.93	$1.24	$2.56
1932-1964 Washington Quarter	$2.33	$3.11	$6.39
1916-1947 Walking Liberty Half Dollar	$4.67	$6.21	$12.78
1948-1963 Franklin Half Dollar	$4.67	$6.21	$12.78
1964 Kennedy Half Dollar	$4.67	$6.21	$12.78
1965-1970 Kennedy Half Dollar	$1.91	$2.54	$5.23
1878-1921 Morgan Dollar	$9.98	$13.29	$27.33
1921-1935 Peace Dollar	$9.98	$13.29	$27.33
1971-1976 Silver Eisenhower Dollars	$4.08	$5.43	$11.17

The silver prices used are the closing prices in New York on the dates provided.

U.S. coins minted before 1965 contain 90 percent silver. Taking wear and tear into the equation, that means $10 worth of pre-1965 coins include more than 7 ounces of silver. Or, $1.40 of the coins contain about one ounce of silver. (See the silver coin calculator.)

Melt values for modern United States Mint silver coins and sets have jumped to levels that make their prices more palatable. As an example, the 2010 Silver Proof Set which contains 90 percent silver coins (Kennedy half dollar, the four quarters, and the dime) had a melt value of nearly $25.50 when it was released. Based on Friday’s silver price, each set is now up to $47.28, or $9.67 less than its current listing price of $56.95. The $67.95 price of the 2011 Silver Proof Set now has a smaller $20.67 premium over its melt value. The best deal is the 2010 America the Beautiful Quarters Silver Proof Set. It is listed for $32.95 and contains $31.95 worth of silver.

The following table shows how melt values have changed for modern US Mint silver coins and sets between their issue date and Friday.

Melt Values for Modern Silver Coins and Sets

Silver Coin or Set	Issue Date	US Mint Price	Coin Values on Issue Date	Coin Values on March 4, 2011
2011 Medal of Honor Silver Dollar Uncirculated	Feb. 25, 2011	$49.95	$25.45	$27.33
2011 Medal of Honor Silver Dollar Proof	Feb. 25, 2011	$54.95
2011 Army Silver Dollar Uncirculated	Jan. 31, 2011	$49.95	$21.79
2011 Army Silver Dollar Proof	Jan. 31, 2011	$54.95
2011 Silver Proof Set	Jan. 25, 2011	$67.95	$35.88	$47.28
2011 American Silver Eagle	Jan. 3, 2011	n/a	$31.13	$35.33
2010 ATB Silver Quarters	May 27, 2010	$32.95	$16.70	$31.95
2010 Silver Proof Set	Aug. 26, 2010	$56.95	$25.40	$47.28
(1) 2010 ATB Silver Coin	Dec. 10, 2010			$176.65
2010 Boy Scouts Silver Dollar Uncirculated	Mar. 23, 2010	$35.95	$12.95	$27.33
2010 Boy Scouts Silver Dollar Proof	Mar. 23, 2010	$43.95
2010 American Veterans Disabled for Life Uncirculated	Feb. 25, 2010	$35.95	$12.48
2010 American Veterans Disabled for Life Silver Dollar Proof	Feb. 25, 2010	$43.95

These coins and sets are obviously not purchased to melt down. Their true values are mostly dictated by their numismatic worth. However, secondary market prices for them fluctuate when there are large precious metal price swings. (coinnews.net)

Gold hits another record high, Silver just 2.5cents shy of $35

U.S. gold extended its record high for a second straight day on Wednesday. Silver prices reached a fresh 31-year high with its best point just 2.5 cents shy of $35 an ounce.

Investors edgy over inflation and unrest in the Middle East and North Africa sunk their money into safer bets, like gold and silver.

April gold prices advanced $6.50, or 0.5 percent, to close at $1,437.70 an ounce on the Comex in New York. It traded from a low of $1,428.20 to a high of $1,441.00. Gold is up 1.1 percent in 2011.

"The bullish breakout to a fresh all-time high has put gold in an outstanding technical position to extend its advance into record territory," Richard Ross, global technical strategist at Auerbach Grayson said, according to MarketWatch. "The triple top breakout reinforces an already bullish picture and has opened the door to a test of $1,461 an ounce in the short term and $1,634 an ounce by year end."

"You have political problems all over the world, a Federal Reserve bank that still erred on the side of easing rather than tightening, rising commodities prices in general, and growing disdain for fiat currencies generally," Dennis Gartman, author of the Gartman Letter, an daily investment newsletter, said and was quoted on Reuters. "It will be illogical for gold not to be going higher," he said.

Silver prices for May delivery surged 40.8 cents, or 1.2 percent, to settle at $34.835 an ounce — its best closing level since 1980 when prices reached as high as $50.35 an ounce. Silver ranged from $34.35 to $34.975. The metal has risen 12.6 percent this year.

"Tensions in the Middle East, inflation concerns along with the weaker U.S. dollar index are also supporting the silver market. The silver bulls have the strong overall near-term technical advantage," wrote Jim Wyckoff of Kitco News.

"There are no early technical clues to suggest a market top is close at hand. Prices are in a steep five-week-old uptrend on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid technical support at $33.00. Bulls’ next upside price objective is producing a close above solid technical resistance at $36.00 an ounce," added Wyckoff.

Platinum prices for April delivery added $14.20, or 0.8 percent, to $1,859.30 an ounce. It traded as low as $1,829.20 and as high as $1,865.50. Platinum has climbed 4.6 percent in 2011.

Palladium prices for June delivery ended up $5.95, or 0.7 percent, to $822.65 an ounce. Prices ranged from $809.80 to $826.10. Palladium is up 2.4 percent this year.

Gains in earlier London PM fixing prices ranged from 1 percent for gold and platinum to 1.1 percent for silver and palladium.

The PM gold fix price was $1,435.50 an ounce for an increase of $14.75 over its previous PM fixing. Silver was $34.750 an ounce, up 38 cents. The platinum fixing came in at $1,846 an ounce, registering a gain of $18. Palladium was $9 higher at $821.00 an ounce.

Higher precious metals prices appear to be depressing United States Mint bullion coin sales, at least for now. The only gains published by the Mint during the first two days of March are for the one-ounce American Gold Eagles. They rose 6,000 on Wednesday. The latest bullion sales figures from the United States Mint follow.

U.S. Mint 2011 Bullion Coin Sales
	March	2011 Totals
American Eagle Gold Coin (1 oz)	6,000	209,000
American Eagle Gold Coin (1/2 oz)	0	13,000
American Eagle Gold Coin (1/4 oz)	0	18,000
American Eagle Gold Coin (1/10 oz)	0	120,000
American Eagle Silver (1 oz)	0	9,662,000