Persatuan Ulama Malaysia (PUM) lancar Kelab Penyokong Dinar

Satu lagi perkembangan terbaru yang akan menyembarakkan lagi usaha memertabatkan dinar & dirham. Dua artikel ini boleh dibaca di Harian Metro dan Harakahdaily. Disertakan juga artikel ini dibawah untuk memudahkan anda.

Apa lagi, dapatkan dinar & dirham anda dari EmasDagang. Click pada Tab Jual/Beli untuk maklumat lanjut :)

 PUM lancar Kelab Penyokong Dinar

Posted on the December 23rd, 2010 under Politik by admin

 

KUALA LUMPUR, 22 Dis: Persatuan Ulama Malaysia (PUM) dengan rasminya pada hari ini melancarkan Kelab Penyokong Dinar.

Pelancaran itu dilakukan oleh Datuk Al-Sheikh Abdul Halim Abdul Kadir, Yang Dipertua PUM sempena Seminar Seminar Minisiri Dinar Emas di Putra World Trade Centre (PWTC).

Menurut Abdul Halim, penubuhan Kelab Penyokong Dinar ini merupakan sebahagian daripada usaha PUM memberi kesedaran kepada orang ramai tentang dinar emas.

“Untuk merealisasikan usaha memberi kesedaran dan kefahaman menyeluruh kepada masyarakat awam, mengenai peri pentingnya mengembalikan kebangkitan dinar emas dalam muamalah ummah, dan menggerakkan kesedaran tersebut secara dinamik dan berkesan, maka Kelab Penyokong Dinar ini dilancarkan,” ujarnya semasa menyapaikan ucaptama pada seminar itu.

Seminar sehari ini menampilkan beberapa pembentang iaitu Dr Zahimi Chik (Al-Qafilah International), Khalid Noorshah (Gold Dinar Research Group, Universiti Sains Malaysia),Khairudden Hussin (Muamalah Council), Mazli Alias (Penganalisis Pasaran Ekuiti), Redhuan Oon (Pengasas Adempiere), Abdullah Zaidi Hassan (Penyelidik Perpustakaan Islam Nur Az-Zahrah), Haji Ann Wang Seng (Setiausaha MACMA), Rafidi Hashim (Pendakwah) dan Dr Luqman Abdullah (Pensyarah Kanan Jabatan Fiqh dan Usul, Universiti Malaya).

PUM sokong guna dinar, dirham

KUALA LUMPUR: Bermuamalah menggunakan mata wang syariah bernilai hakiki iaitu dinar emas dan dirham perak jelas termaktub di dalam syariat Islam, malah perkataan dinar serta dirham disebut dalam beberapa surah al-Quran.

Sehubungan itu, Persatuan Ulama Malaysia (PUM) menyokong penggunaan dinar dan dirham sebagai langkah alternatif menggantikan mata wang konvensional yang ketika ini semakin menyusut.

Yang Dipertuanya, Datuk As-Syeikh Abdul Halim Abdul Kadir berkata, ada suatu perkara yang dulunya biasa dan amat akrab dalam kehidupan umat Islam tetapi ia kini terpinggir dan ada pihak berpendapat akibat terpinggirnya amalan itu, rata-rata umat Islam berada dalam hambatan kemiskinan sama ada dari segi iktisad (ekonomi) dan siasah (politik).

“Amalan yang terpinggir itu adalah penggunaan mata wang syariah bernilai hakiki iaitu dinar emas dan dirham perak. Penggunaan mata wang syariah itu lebih dekat dengan Islam dan mempunyai pelbagai kelebihan seperti mengelakkan riba yang kebiasaannya diguna pakai secara berleluasa dalam aktiviti perbankan dan wang kertas.

“Emas adalah wang paling stabil pernah digunakan manusia dan ia sudah terbukti digunakan sejak daripada awal tamadun Islam sehingga ke hari ini. Kestabilan nilai emas dapat mengelakkan daripada berlakunya inflasi dan krisis ekonomi.

“Malah, emas tidak boleh dicetak sewenang-wenangnya oleh sesebuah kerajaan seperti wang kertas menyebabkan nilainya tidak mungkin susut atau jatuh seperti mana nilai wang yang digunakan sekarang,” katanya ketika ditemui selepas Seminar Minisiri Dinar Emas bertajuk ‘Kebangkitan Dinar Emas Dalam Muamalah Ummah’ di Pusat Dagangan Dunia Putra (PWTC) di sini, semalam.

Seminar sehari dengan kerjasama Al-Qafilah International Sdn Bhd itu dihadiri kira-kira 60 peserta termasuk ahli perniagaan dan pelajar universiti yang membincangkan penggunaan mata wang syariah dari sudut agama dan ekonomi.

Abdul Halim berkata, kesohoran dinar sebagai mata wang rasmi dalam sektor ekonomi sudah lama disemat dalam sejarah tamadun Islam dan pernah digunakan di Madinah ketika zaman Nabi Muhammad s.a.w dan diperluaskan pada zaman Khulafa al-Rashidin ke seluruh dunia, tetapi Bapa Turki Moden, Mustaffa Kamal Atartuk membatalkan penggunaan dinar sebagai mata wang dan menggantikannya dengan syiling dari Barat pada 1924.

Beliau berkata, di Tanah Melayu pula, Kelantan pernah membayar ufti kepada Siam dalam bentuk bunga diukir daripada emas manakala Kerajaan Melayu Melaka pernah membayar ufti kepada Siam dan China dalam bentuk sama.

“Urusan dinar adalah urusan agama dan kedaulatan daulah Islamiah dan penggunaan dinar melambangkan ketundukan dan kepatuhan kita kepada perintah Allah menyebabkan kebangkitan muamalah ini amat mustahak dalam membentuk ummah bersatu dan disegani.

“Satu dinar melambangkan penyatuan satu ummah dan sudah pasti melangkaui sempadan, bahasa dan warna kulit,” katanya.

Perbandingan Antara Pelaburan Emas dan Perak

Melihat kepada kenaikan harga komoditi ini, saya hanya ingin mengulas mengenai perbandingan antara peningkatan nilai untuk emas dan perak. Walau bagaimana pun, sesuatu yang patut kita perhatikan adalah, semua barang komoditi naik, inilah kesan daripada sistem ekonomi yang kita ada sekarang (wang kertas / fiat money), selagi mana kita tidak berbalik kepada sistem yang berasaskan kepada emas & perak, harga barangan akan terus naik. Perlu diingat, kenaikan harga komoditi mempunyai kesan yang amat rapat dengan kehidupan seharian kita.

Berbalik kepada emas dan perak, peningkatan nilai untuk emas (bandingan antara Januari 2009 sehingga sekarang) adalah 47%. Perak pula pada masa yang sama, naik sebanyak 93%. Hal ini sangat konsisten dengan hasil kajian & penulisan pakar-pakar yang mengatakan bahawa, harga perak sekarang adalah dibawah nilainya yang sebenar. Sekiranya anda ingin membaca lebih lanjut sila click link ini.

Melihat kepada situasi ini, apa tindakan anda sekarang ? Melihat sahaja atau mula untuk melabur di dalam logam perak ? Pilihan berada ditangan anda :)

Selepas Abu Dhabi, di Florida pula, Di Malaysia? Gold Vending Machine

Fancy ATM skips the folding cash, spits out gold

AP – FILE - In this photo made available by Ex Oriente Lux company, Thomas Geissler the CEO of Ex Oriente … 

 

By KELLI KENNEDY, Associated Press Kelli Kennedy, Associated Press – Fri Dec 17, 5:15 pm ET

BOCA RATON, Fla. – Shoppers who are looking for something sparkly to put under the Christmas tree can skip the jewelry and go straight to the source: an ATM that dispenses shiny 24-carat gold bars and coins.

A German company installed the machine Friday at an upscale mall in Boca Raton, a South Florida paradise of palm trees, pink buildings and wealthy retirees.


Thomas Geissler, CEO of Ex Oriente Lux and inventor of the Gold To Go machines, says the majority of buyers will be walk-ups enamored by the novelty. But he says they're also convenient for more serious investors looking to bypass the hassle of buying gold at pawn shops and over the Internet.

"Instead of buying flowers or chocolates, which is gone after two or three minutes, this will stay for the next few hundreds years," Geissler told The Associated Press in a telephone interview.

The company installed its first machine at Abu Dhabi's Emirates Palace hotel in May and followed up with gold ATMs in Germany, Spain and Italy. Geissler said they plan to unroll a few hundred machines worldwide in 2011. He said the Abu Dhabi machine has been so popular it has to be restocked every two days.
A bank in Vietnam installed its own brand of the machines in a country with a much poorer population but one that values gold more than paper money.

The gold-leaf-covered machine at Boca Raton's Town Center Mall sits outside a gourmet chocolate store and works much like the cash ATM beside it. Shoppers insert cash or credit cards and use a computer touch-screen to choose the weight and style they want. The machine spits out the gold in a classy black box with a tamperproof seal.

Each machine, manufactured in Germany, carries about 320 pieces of different-sized bars and coins. Prices are refigured automatically every 10 minutes to reflect market fluctuations. On Friday, a two-gram piece cost about $122, including packaging, certification and a 5 percent markup. An ounce cost about $1,442.
Buyer beware: A gram of the heavy metal is much smaller than you think, about the size of a fingernail. An ounce is a little larger than a quarter.

Florence Schneider, who checked out the machine Friday, said she might use it, but only if she needed a unique gift.

"I can't see it being successful. Maybe for Christmas as a gimmick," said the 78-year-old Boca Raton resident. "If I knew someone was having a big birthday coming up I'd buy it for something different."
Owners said the machine, which will hold around $150,000 in cash and gold, will be flanked by an armed bodyguard for now. Several live security cameras are fixed inside and outside the machine.
The popularity of gold is cyclical, but it's riding high these days in part because of fears stoked by financial troubles.

Geissler, who plans to open a machine in Las Vegas by the year's end, said the collapse of the Lehman Brothers investment firm was the impetus for the flashy ATMs. His customers refused to buy bonds, stocks and other funds from the financial industry, so they focused on precious metals.

As some investors continued to lose faith in global finance markets, the company worked on the gold-leaf finished ATM, banking that the protection of purchasing power found in gold would lure market leery customers.

"Gold always comes back to its real value," Geissler said. "It's not diamonds, it's not silver, it's not real estate. It's just gold."

Dave Jones, who brokered the deal to bring the machines to the U.S., predicts gold will become a parallel currency in the next five years. He said they plan to install about 40 more machines at upscale malls and hotels around the U.S.

"Gold has a place in everyone's portfolio," said Jones, of Boca Raton-based PMX Gold. "It's a good hedge against inflation and it's a good comfort level."
___
Associated Press writer Suzette Laboy contributed to this report.
___
Online:
Gold To Go: http://www.gold-to-go.com/en/

Source : http://news.yahoo.com/s/ap/20101217/ap_on_re_us/us_gold_atm

Pembelian Emas Melalui Vending Machine

Bila Vending Machine sebegini akan mula muncul di Malaysia ?

Apa yang menyebabkan permintaan terhadap emas sekarang begitu tinggi?

Berdasarkan kajian, permintaan yang tinggi terhadap emas sekarang adalah kerana dipengaruhi oleh faktor berikut :-
1. Kebimbangan terhadap kadar inflasi yang semakin meningkat
2. Keputusan Federal Reserved US untuk mencetak USD600 Billions (Quantitative Easing - QE)
3. Keputusan kerajaan China untuk membenarkan pemilikan emas oleh orang awam.

Untuk pembacaan seterusnya, sila rujuk artikel dibawah :-

What's behind the 2010 gold rush?

Investors and central banks are buying up the yellow metal at unprecedented levels, but will its allure last as fears over the global economy ease?

 by By Richard Blackden at Telegraph UK  

Less than a month after Marshall's find and a few hundred miles further south, a defeated Mexican government signed the Treaty of Guadalupe Hidalgo, ending a two-year war with its northern neighbour and ceding swathes of territory to the US.

"The discovery of gold was little short of a revolution and came as California became American," explains Malcolm Rohrbough, author of Days of Gold: The Californian Gold Rush and the American Nation. "People were celebrating."

The yellow metal had of course dazzled many civilizations before, and from the middle of the 19th century added America to that list.

It has bewitched the country ever since and never more so than in the three years since the financial crisis erupted.

And as gold closes in on a 10th straight year of gains, a debate is raging across the country on whether the longest rally since at least 1920 can last.

The price has moved at a pace that would have left even the most ardent of the early diggers breathless. It is up 27pc this year and hit a record high of $1,424 an ounce early in November. Its current US renaissance isn't one that can just be measured on charts, either.

Officials have added a sixth weekly tour of the New York Federal Reserve's cavernous gold vaults, which sit in the heart of Wall Street and are home to about a quarter of the world's gold. This year's tours have been sold out for weeks.

A few blocks further south, near the very tip of Manhattan, business has been brisk at Manfra, Tordella & Brookes (MTB), one of the eight companies in the US authorised to sell the gold and silver coins produced by the US Mint.

"It's always been a profitable business but the last couple of years have been very profitable," Mike Kramer, MTB's president, explains after a day's selling. "People do of course take profits at these levels, but are you going to put that in the bank? People are reinvesting in gold."

Back in California, the Gold Prospectors Association of America, which organises gold hunts across the country, has seen its membership double to 70,000 in the past three years.

For Americans, though, the metal's latest dizzying arc upwards carries a sting in its tail.
Its allure seems to deepen with each new warning that, like an increasingly infirm and frail pensioner, the country's greatest days are behind it.

The prophecies come in all flavours, including those that recommend hunkering down with some bullion, water and provisions to prepare for the impending storm. It's true that gold stirs up fervour like little else, no matter where you live.

"Nothing arouses such passion," says Marcus Grubb, managing director of investment and research at the World Gold Council (WGC), the market's trade body. "Nobody gets this passionate about Japanese government bonds or Brazilian equities."

Few voice a vision of America's troubled future more forcefully or more controversially than Glenn Beck, a one-time radio disc jockey and now Tea Party champion and influential presenter on the Fox News Channel. His prescription for the country? It's a simple one: "God, gold and guns."

"If you've been watching for any length of time and still haven't looked into buying gold, what's wrong with you?" he asks on his website. Beck's also a spokesman for Goldline, a California-based company that sells bullion and coins, a role that's drawn the ire of his political opponents.

Beck may be far removed from Wall Street but some of America's best-known hedge funds are also buying into gold's rally. John Paulson, who scooped a $3bn (£1.9bn) fortune betting on the collapse of the US housing market, is the biggest investor in the SPDR Gold Trust, a $57bn exchange traded fund backed by bullion, according to a filing last month with the Securities and Exchange Commission.

Soros Fund Management listed two gold miners – Nova Gold Resources and Kinross Gold – as two of the fund's top 10 holdings, a similar filing showed.

"We've got the gold bugs who have always believed that paper currencies will fail," said Richard Sylla, a professor of financial history at New York University, who recently heard Paulson tell an audience that the gold price could double over the next decade. "But you've also got investors like Paulson who are genuinely worried about inflation."

2010 is the first year in three decades that gold demand from investors has outstripped that from the Indian-dominated jewellery trade, according to GFMS, a metals research group.

On Wall Street, most say there's enough fear to go round, at least for 2011, to keep gold on the up. Fear that the Federal Reserve's latest $600bn of quantitative easing (QE) – or printing money – will damage the dollar and unleash inflation. Fear that the Fed's QE will fail, letting the deflation genie out of the bottle. Fear that the eurozone will implode. Or just fear of the unknown.

"You've got such a bullish environment right now," says Michael Widmer, an analyst at Bank of America Merrill Lynch who has been covering the gold market for a decade. "Next year, we're good for the gold price."

He expects prices to reach $1,500 an ounce, while his counterparts at Société Générale are predicting $1,485. Goldman Sachs is among the most bullish and expects to see gold change hands for $1,750 in 2012. But that's the peak, says Goldman, which doesn't see Armageddon looming on America's horizon. Instead, the bank last week ratcheted up its forecasts for US gross domestic product in 2011 and 2012.

Those with longer memories know that gold doesn't always shine as brightly as it has done over the last decade. After soaring in 1980 to $850 an ounce, prices plunged to below $300 as Paul Volcker, then chairman of the Federal Reserve, aggressively lifted interest rates to fight inflation.

"We don't think the decline will be as violent as in the early 1980s," says David Greely, who covers the market for Goldman. "But at these levels, gold is a tactical trade rather than a long-term investment."
Even gold's loudest cheerleaders admit that a robust economic recovery and rising interest rates would mean thinner oxygen for the metal at these levels. Gold, after all, provides no dividend, which poses an investor few problems when real interest rates are negative.

If fears over the global economy ease, "would that be a dreadfully bad environment for gold?" asks Grubb of the WGC. "We still think you'll see higher gold weightings in portfolios because people won't forget this crisis."
This, then, isn't gold as an asset you scramble to buy when the world implodes, or, as Goldman argues, something you trade tactically, but something a fund manager owns on a permanent basis in case the world does unravel. The WGC says its study shows portfolio's with 3pc and 5pc in gold offer better returns.
Those who reject the view that gold is poised for a plunge as giddy as its ascent also point to the opening up of the gold market in recent years though Exchange Traded Funds (ETFs), which offer investors exposure to bullion through buying shares in the fund.

"If you wanted to buy gold before ETFs it was pretty arduous," says William Rhind, head of US sales and marketing at ETF Securities, a UK company that was the first to develop an ETF backed by gold in 2003.
And gold is not getting any cheaper to get out of the ground. Production costs are currently running at about $450 an ounce compared with $180 an ounce a decade ago. That may be why many foreign central banks have decided to store much of their reserves in the secure vault at the New York Fed, where staff have to wear $500 metal shoes to protect their feet should a bar slip.

America's reserves are housed at the Fort Knox military base in Kentucky. These central banks could also play a key role in buttressing the gold price should Western economies roar back to life, as they seek to diversify some of their reserves out of dollars. India, Sri Lanka, Mauritius and Russia were all buyers last year, and the metals team at Société Générale expects that central banks will be net buyers next year.
Then there's China. Already the world's biggest producer, the country's gold imports in the first 10 months of this year were almost five times higher than for the whole of last year, Shanghai's Gold Exchange said last week. China National Gold Group, owner of the biggest mine, saw sales of gold bars soar 40pc in the first half of the year as inflation threatens to accelerate.

"You've moved from the [Chinese] government forbidding the hoarding of gold to incentivising people to buy it," says Widmer of Bank of America Merrill Lynch.

Away from the debate about gold's future that's raging in financial capitals, Dominic Ricci, the director of operations at the Gold Prospectors Association of America, expects his membership to hold up whatever happens to the price.

A day's prospecting, he says, is more about the camaraderie than the money. "Finding a nugget is a bit like going to Vegas and winning big. How often does that happen?" he asks.

 

 

Kenali Dinar & Dirham serta sejarah kemunculan matawang kertas (Fiat Money)

China & Mexico akan menggunakan matawang perak (dirham) untuk mengatasi inflasi?

Silver money for China by  Hugo Salinas Price

Source : Plata.com

We have been proposing the monetization of a silver coin in Mexico since 2001. According to our proposal a one-ounce coin of pure silver, with no engraved value, would be given a monetary value by the Mexican Central Bank. This coin would exist and circulate as money, in parallel with the paper money system of Mexico.
The monetary value would be superior to the bullion value of the silver ounce by about 15%. This margin would allow a profit, called “seigniorage”, for the Central Bank. Since the coin would not have an engraved value, rises in the price of silver (which would tend to eliminate the seigniorage of the Central Bank) would be met with new, higher, Central Bank quotes for the monetary value of the coin.

The rises in the value of silver in the silver markets of the world would no longer cause the disappearance of the monetized silver ounce. As soon as a rise in the price of silver would begin to affect the seigniorage of the Central Bank, it would produce a new and higher quote.



In order for the silver coin to become money and cease to be a commodity, the last quote of the Central Bank would have to remain stable and not diminish if and when the price of silver were to fall, which of course it does from time to time. Granted such immunity from falls in the price of silver, the coin would become legal tender money and could be used for any commercial transaction.

Now we read that China is having problems with inflation of its money supply. We think that if China were to monetize a silver coin, its Central Bank would have an effective instrument to assist in dealing with inflation.
China used silver exclusively as money for many centuries and restoring it to circulation in China would seem appropriate for China, as it aspires to recover its former glory as the richest country in the world.

The hypothetical case of a monetized silver coin in China.

The first thing that strikes us as we consider a silver coin to be used as money in China is that given its enormous population a one-ounce coin would appear to be much too large.

Let us consider a smaller coin. In the case of silver coins with engraved values we have seen the case of Mexico, whose Central Bank attempted to retain a silver peso (with an engraved value) in circulation all the way up to 1967. The attempt required removing all previously minted and engraved silver coins from circulation and replacing them with new One Peso coins containing less silver.

What we are suggesting is radically different. Instead of replacing a One Peso coin with coins with progressively less silver content, we are simply, in the special case of China, “cutting up” a one ounce pure silver coin into smaller pieces. 

For the purpose of silver in circulation in China, we suggest a small coin, about the size of an American dime, with a pure silver content of 1/10 oz., alloyed with 10% copper to give a fineness of .900. In metric terms, the coin would have a gross weight of 3.45 grams and a pure silver content of 3.11 grams.

The determination of the monetary value of the 1/10 oz coin in Yuan
Today, November 24, 2010, the exchange rate for the Chinese Yuan is 6.6489 Yuan per dollar, and silver is traded at $27.59 oz.

At these values, the value of silver bullion per ounce, in Yuan, is 6.6489 x $27.59 = 183.44 Yuan per ounce.
The value of silver in a 1/10 coin would be 183.44 / 10 = 18.34 Yuan.

Add to 18.34 Yuan, the cost of minting, which we shall estimate at 10 cents per coin = .67 Yuan for minting costs. Then 18.34 + .67 = 19.01 Yuan.

19.01 Yuan x 1.1 to provide a seigniorage profit to the Chinese Central Bank = 20.91 Yuan.
We round up the Yuan figure of 20.91, to 25 Yuan as the initial official quoted legal tender value of the small 1/10 oz coin, using multiples of 5 for steps in future increases of legal tender monetary value as the price of silver continues to rise. This facilitates public use of the coin.

The Chinese population will snap up these coins in enormous quantities. As they do so, they will initially be handing over 25 Yuan for each coin purchased.

One tonne of silver will serve to manufacture 321,510 coins. One thousand tonnes of silver will allow for the manufacture of 321,510,000 coins. For the population of China, this will be merely the first appetizer. The population of China will gobble up many thousands of tonnes of silver for its savings.
Each 1,000 tonnes of silver that is monetized, at 25 Yuan per coin, will initially withdraw 8.04 billion Yuan from circulation.

The silver coins that go into circulation will be money, but will hardly be used for purchases. It will be difficult to find these coins, as they will all be treasured up by the Chinese population. Their velocity of circulation will be close to zero and thus they will have no inflationary effect upon the economy. Paper Yuan are withdrawn and replaced with silver money which goes into savings; this is a correct way to fight inflation.
Saving these coins will amount to voluntary austerity for the Chinese. Saving is the postponement of consumption. Voluntary austerity is always more effective and sounder from an economic point of view than the forced savings beloved of Statists, who have dictated taxes and scarcity for consumer goods so that the Statists can build factories.

The monetization of a silver coin will be a free-market decision that prompts people to save, spontaneously, of their own accord, and which does not require raising interest rates to draw the people’s money out of the economy into savings. 

When the Chinese begin to withdraw silver from the world markets, in order to supply the vast appetite for silver savings of the Chinese, the price of silver will climb to unsuspected heights. We can easily visualize a price four times higher than the present high price: $100 Dollars an ounce.

At 100 Yuan per 1/10 oz. – the initial price calculated above, times four – the Chinese Central Bank would be withdrawing about 32 billion Yuan from circulation with each 1,000 tonnes of monetized silver coin placed in the hands of the Chinese people.

Silver is sold on the world markets, for dollars. At $100 dollars/oz., the Central Bank would be able to transform part of its vast dollar and euro reserves into silver at $3,125,100 dollars per tonne. One thousand tonnes would require $3.1 billion dollars. A drop in the bucket as far as Chinese C.B. reserves are concerned, but every little bit helps, considering that Chinese reserves are not actually worth a Chinese firecracker and that sooner or later, China will have to take a gigantic bath when this fact is recognized.

What about the impact of $100 silver on the price of gold?
We think that the ratios of the past and of the present will disappear. Gold will not necessarily rise four times in price, to retain the same ratio with silver, at its new price of $100 dollars / oz. The silver ratio to gold has been as high as 100 to 1, and lately has been around 50 to 1. The silver ratio to gold can continue to fall towards the old ratio of 16 to 1. If China persists in purchasing world silver, the price of silver might far exceed $100 dollars per ounce and become increasingly effective in stemming inflation as higher prices for the silver coin draw off greater amounts of paper money from the economy.

Quite apart from the effect of sopping up quantities of Yuan at present in circulation in China, monetizing the silver coin for the use of Chinese in their savings would have a salutary effect upon society in China.
Silver as money gets masses of people to think, not of the present, but of the future, and to focus on their long-term objectives as they accumulate savings in real money. It has a binding effect upon society.
Tranquility, or peace of mind, is one of the great Confucian philosophical values of the Chinese and solid savings in real money are a great tranquilizer. It seems to us, that more tranquility in a frenzied Chinese society would be of benefit to China.

The world is seeking a new paradigm in money. The Keynesians and inflationists and Statists have had their day, and they have fudged it. The world’s monetary system is in the initial stage of breakdown. Confidence in fiat money is evaporating. The trend is in place and there is nothing to stop it. The time for real money has arrived, and China can lead the way by monetizing silver into small coins which can be used as money.
Perhaps silver will open the way to a further, more far-reaching reform for gold in the International Monetary Process; for what the world has at present is not a System, but only a Process – of meltdown.

****

Hugo Salinas Price is President of the Mexican Civic Association Pro Silver; its website, with some articles in English, is www.plata.com.mx