Will the 'Gold Standard' make a comeback to the U.S. in 2013?(Yahoo).By Oliver Hirt and Caroline Copley.
Divisible gold 'Combibar' can easily be broken into one gram pieces and used as payment in emergencyPrivate investors in Switzerland, Austria and Germany are lining up to buy gold bars the size of a credit card that can easily be broken into one gram pieces and used as payment in an emergency.
Now Swiss refinery Valcambi, a unit of U.S. mining giant Newmont, wants to bring its "CombiBar" to market in the United States and build up its sales presence.
India - the world's largest consumer of gold where the precious metal has long served as a parallel currency. Investors worried that inflation and financial market turmoil will wipe out the value of their cash have poured money into gold over the past decade.
Prices have gained almost 500 percent since 2001 compared to a 12 percent increase in MSCI's world equity index. Investors worried that inflation and financial market turmoil will wipe out the value of their cash have poured money into gold over the past decade.
Sales of gold bars and coins were worth almost $77 billion in 2011, up from just $3.5 billion in 2002, according to data from the World Gold Council.
"The rich are buying standard bars or have deposits of phsyical gold. People that have less money are buying up to 100 grams," said Michael Mesaric, CEO of Valcambi "But for many people a pure investment product is no longer enough. They want to be able to do something with the precious metal."
Mesaric said the advantage of the "CombiBar" - which has been dubbed a "chocolate bar" because pieces can be easily broken off by hand into one gram squares - is that it can be easily transported and costs less than buying 50 one gram bars.
"The produce can also be used as an alternative method of payment," he said.
Valcambi is building a sales network in India and plans to launch the CombiBar on the U.S. market next year. In Japan, it wants to focus on CombiBars made of platinum and palladium.Since the launch of the machines, which operate under the name "GOLD to go", 50,000 customers have withdrawn more than 21 million euros in gold. The average buyer is male, over 50 years old and well off.Read the full story here.
Related: Virginia introducing Bill to return to Gold and Silver standard in case of Federal Reserve System breakdown.
The US Treasury, Federal Reserve and the FDIC Mulling New Gold Regulation; ‘May be biggest event in gold market since US dropped gold standard’
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