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The Platinum Anting-Anting and the Philippine Revolution

2010-03-01T22:30:00.000-08:00

Platinum has played a very important role in shaping the history of mankind particularly the world of science and technology. Usage of platinum dates back from the ancient civilization of Egypt and the Roman Empire. However due to the rarity and isolation of the metal unlike that of gold and silver, it can only be found in the history of the western civilization, and in modern times can only be mined either in South Africa or the Ural mountains of Russia. So rare that it is 30 times rare than gold and so scarce that if the entire platinum in the world is gathered inside an Olympic-size swimming pool, it would barely reach an ankle.

Asia has no particular episode in its history where it was indicated that the metal was used except during the early part of the 20th century or before World War II broke out.

In some occasion during the occupation of Spain, some gold coins intended for monetary circulation in the Philippines. Spanish counterfeiters used platinum to counterfeit gold coins because of its high density and its closeness of weight with gold.

Platinum was never considered by the Spaniards as valuable metal because of its high melting point and high-resistant to heat which made it an unqualified candidate for minting coins.

In the Philippines, platinum has never become a subject nor has never been identified as part of any period of its history except for several rumors that the metal was secretly smuggled to the Philippines by the Japanese Imperial forces during World War II. Nonetheless, treasure hunters have pursued this rare metal with no particular evidence of success except for more rumors and tall tales.

Recently, an amulet or "anting-anting" entirely different from any other amulet surfaced and was accidentally discovered. Rarely that a white anting-anting has ever been produced nor have been encountered at all. So different that it was initially thought as made of stainless steel. Its size is exceptional with a diameter of 63 mm and about 1 and half millimeter thick.

First, I was hesitant to write an article about it and introduce this to the public since I was not really sure what it is. After making some test and analysis, the amulet was found to be made of platinum.

The discovery of this metal as being thought to have been absent in the history of the Philippines has significantly altered what we know about our past, particularly the period of "The Revolution" between the end of the 19th century and the middle of the 20th century.

According to our history, anting-anting or amulets were worn by the Katipuneros during the revolution to give them strength and protect them from the bullets of the Spaniards. Under equipped and without armors nor shield to repel projectiles, these amulets served (as they believed)as the source of their unusual power and strength.

The inscription written on the amulet is Latin though some of the words seems to be borrowed Latin or pidgin. The formation and arrangement of symbols are masonic while in some part of the amulet coded messages that could represent direction or maps can be seen.

Whatever is written on this amulet is another mystery to solve while its discovery will now definitely create a major impact in the rich history of the Filipino people. Instead of answering a puzzle, this piece of artifact now baffles the world of antiquities and even numismatic. Where did this piece come from? Who made it? Who wore it? And more questions, which I myself still has no answer.

Cory 500 bill nearing circulation

2010-01-17T23:04:00.000-08:00

The long wait of collectors and followers of the late Cory Aquino is finally over as the government is nearing the issuance of the proposed five-hundred peso bill featuring the late president Corazon C. Aquino for circulation, a senior central bank official said.

The new legal tender secured approval from the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board, the agency’s policy-making body, and Malacañang before the end of the year as part of the intended goal of the BSP to redesign our currency.

The new notes are expected to be in circulation before the year ends but special trials and special issues would become available to collectors before that date.

The BSP decided to overhaul designs of all bank notes to keep up with technological advances and to stay one step ahead of counterfeiters, Guinigundo said.

Other new bank note designs may include Philippine attractions such as the Banaue Rice Terraces, and the Underground River in Palawan, he hinted.

Currently, the front of the yellow P500 bank note features the image of Mrs. Aquino’s husband former Sen. Benigno Aquino Jr.

The former senator’s assassination in 1983 triggered a series of protests that led to the EDSA 1 bloodless revolt that ousted then strongman Ferdinand Marcos from power in 1986.

Mrs. Aquino, a key figure in that revolt who sat as president until 1992, succumbed to colon cancer last August 1.

On Wednesday, BSP Governor Amando Tetangco Jr. was quoted as saying that the agency is considering honoring Mrs. Aquino by having her image on the P500 bill.

“Yes, I have asked the numismatic committee to consider the proposal to put up the portrait of former President Aquino in the P500 bill in designing our new generation currency notes," he said in a report.

The committee, led by Guinigundo, is composed of other central bank officials and historian Ambeth Ocampo as representative of the National Historical Commission.

Former BSP Governor Jaime Laya is a consultant.

Once the redesigns are complete, they will go through the Monetary Board and then sent to Malacañang for final approval.

“The notes will go to print upon approval by the President," Guindigundo said, adding that no new print has been previously rejected by a president.

Manila hosts International Galleon Conference

2009-11-05T16:57:00.000-08:00

The Manila-Acapulco Galleon trade, an important economic infrastructure of Spanish colonial rule, was a flourishing trade that plied the Pacific Ocean, shuttling back and forth from Manila and Acapulco, Mexico from 1565 to 1815, carrying goods such as spices, porcelain, textile, furniture, gold ornaments, fixtures, etc is made famous by one single coin, the Spanish Peice of Eight.

In an initiative to bring the understanding of the rich tradition of the galleon trade within the public realm, the Intramuros Administration is organizing the International Conference on the Galleon and the Making of the Pacific, on Nov. 9-11 at Villa Immaculada, Gen. Luna cor. Anda St., Intramuros, Manila

“The Galleon trade built Intramuros, from its churches, to the schools,” states Anna Marie Harper of the Intramuros Administration. “It marked the start of globalization from the Orient to Europe.” At its peak, only one single coin conquered the trade of the world which was no other than the legendary "Dos Mondos" or the Pillar Dollars. Known for its beauty, purity, and aesthetic. The "Dos Mondos" not only symbolizes the meeting of the East and the West by design but it otherwise characterized the passion for travel, adventure, and exploration.

The three-day gathering of scholars from Spain, People’s Republic of China, Indonesia, the United States, Mexico, and the Philippines will look into the context and infrastructure of the Galleon Trade, its impact on regional trade in Asia and the Americas, and the horizons of change and cultural transformation brought by the Galleon trade.

“More than just an exchange of goods, the Galleon was key to an exchange of culture amongst the countries along the route it plied,” Harper adds. “Even today, linkages between Filipino and Mexican culture can be traced back to their roots in the Galleon trade.”

Students, the academe, cultural workers, and history enthusiasts, are enjoined to attend the conference, which covers discussions on heritage and conservation in the port cities during
the Spanish empire, trade in island Southeast Asia from 1565 to 1815, music in the rituals and ceremonies during Colonial Manila, insights into the transformation of the economy during the Galleon trade, a survey of the cultural influences from Latin America during the Galleon trade, the contribution of the Philippines to the galleon and the making of the Pacific, and the Manila-Acapulco Trade from the Perspective of Mexico-Sevilla traffic.

Speakers include economic historian Dr. Benito Legarda; Dr. Gusli Asnan of the Ministry of Museum and Antiquities of Indonesia; Javier Ruescas and Javier Wrana of the Associacion Cultural Galleon de Manila-Madrid; Dr. William Summers professor of Musicology of Dartmouth College, US; Dr. Wu Jie Wie of the University of Beijing; Architect Jorge Loyzaga of Mexico; Architect Francisco Pol, Professor, University of Alcala and Recipient of the Premio National de Urbanismo, Spain; Dr. Carlos Lles Loza, urban sociologist from the Universidad Carlos III.

Two roundtables (heritage conservation and current researches on Intramuros and the galleon trade) will be convened with presentations from stakeholder institutions in the vicinity of Intramuros. Dr. Ing. Adolfo Jesus Gopez, president of FEATI University, Ambassador Reynaldo O. Arcilla, Dean of International Relations of Lyceum University, Dean Ramona Lopez-Ty of the Pamantasan ng Lungsod ng Maynila, and Professor Manuel Zamora of the Intramuros Studies Center of Letran College are among the discussants.

Aside from talks, round table discussions, and workshop sessions, the conference also features out of conference activities, including museum tours and walking tours.

Gold hits an all time high of $1045, dollar continues to plunge

2009-10-07T18:17:00.000-07:00

Gold prices surged to a new high Tuesday as investors sought a safe harbor from a falling dollar and inflation.

Gold for December delivery rose to as high as $1,045 an ounce, surpassing a previous intraday high of $1,033.90 logged in March 2008, just days after Bear Stearns Cos. collapsed.

Gold also had a record high closing price, finishing the day at $1,039.70 an ounce, up $21.19, or 2.2 percent. Some analysts see the dollar rising to $1,100 in the coming days.

Gold's advance was stoked by a tumbling dollar, which hit a 14-month low against the Australian currency after Australia became the first major country to raise interest rates since the onset of the financial crisis.

The move signals that Australia believes its economy is strengthening enough to withstand a slight increase in borrowing costs, and made the Australian currency a higher-yielding and thus more attractive investment to fund managers versus the US dollar.

Meanwhile, the Philippine peso continues to strengten on a daily basis as analysts predicted due to the the falling value of the dollar. Russia and China have recently express their concern that their crude importation will not rely anymore on the dollar but on basket of currencies.

Where our money is produced

2009-10-01T09:48:00.000-07:00

Three decades ago, the Philippine government took an important step toward greater self-reliance with the establishment of a facility that would be responsible for the production of Philippine bills and coins.

The facility, located on East Avenue in Quezon City, is called the Security Plant Complex (SPC) of the Bangko Sentral ng Pilipinas and is currently headed by Assistant Governor Evelyna Avila.

For most of our history, all our country's coins and banknotes were produced abroad. However, the shortages in coins in the early 1960s prompted the government to seriously consider the idea of producing currency in the country instead of importing all our coins and bills.

In 1975, the Security Plant Complex initially operated a printing plant for banknotes. Subsequently, it went into security printing works and the establishment of a gold refinery and mint.

Currently, the SPC prints circulation and commemorative banknotes. It also produces regular and special checks, e-passports, seafarer's identification and record books, documentary stamps, judicial title forms, and other non-security documents such as bills, bonds, and certificates.

SPC produces circulation coins as well as special coins and medals. It purchases the gold produced by small-scale miners and refines them to forms acceptable in the international gold bullion markets.

While part of our printed money requirements (and all coin blanks) are still outsourced, local production insures that we are able to maintain a comfortable buffer and contingency supply at all times. We also realize significant forex savings commensurate to the volume locally produced.

The amount of money to be printed depends on economic indicators, cash operations data and projected needs of the regional and branch offices of the BSP.

Printed money has an average life of one to five years, depending on frequency of use. Expectedly, lower denominated bills have a shorter life span than higher denominated bills.

The Security Plant Complex celebrated its 31st anniversary earlier this month. Events such as this provide us with a welcome opportunity to look back at the beginnings of an institution that has become such an important part of our economy and our daily lives.

Gold passed $1020, Silver at $17, & Platinum $1340

2009-09-16T06:26:00.000-07:00

Last summer was by far remembered as the peak of the price of precious metals when gold reached a record level together with silver and platinum. A year after the collapse of Lehman Brothers, it seem that the prediction made of Peter Schiff that gold may reached $2000 is still around the corner.

Gold climb again to $1020 level and gained at least 16$ in 24 hours as silver surpassed $17 after falling to less than $10 at the beginning of the year. Rumors about China buying the all the gold it could purchase after its government has allowed its companies to walk away from their obligation from US companies. China has been reported to have stockpiled 1000 tonnes of gold due to the suppression of the price of gold for last year.

Analyst and author of the famous book "Crashproof", Peter Schiff otherwise believe that the recession in the United States has not yet ended and the beleaguered superpower is facing a much tougher future due to the massive debt, expenditures, and bailouts it did.

Ben Bernanke was even cautious when he announced today that the recession has finally ended but retracted the optimism by adding that the repercussions would still be experienced.

The weak dollar and several discreet trade agreements between the major global players of the world aggravate the rumor that the fate of the dollar has already been sealed. "The USD would soon be replaced by basket of currencies, and the monopoly of the USD would soon be over." one analyst commented.

Meantime, supply of coins minted out of precious metals continue to decline which simply proves that most holders are already anticipating that the fruit of their patience may soon be realized by another huge climb.

Central Bank hires private printer to destroy paper money

2009-09-09T23:37:00.000-07:00

The Bangko Sentral ng Pilipinas (BSP), who just alloted P2 billion to acquire a brand new currency printer, has been outsourcing the shredding and burning of defective security paper used for printing money to a private company located in Marikina.

Sources close to the Monetary Board, the central bank’s policy-making arm, said Monetary Board members were not informed that the Security Printing Complex (SPC), headed by assistant governor Eve Avila, has outsourced the destruction of security paper to a paper manufacturer and notebooks maker, Noah’s Paper Mills

But the same sources said even without approval, deliveries started this month and at least two BSP armoured vehicles pick up the defective security paper from SPC three times a week for disposing. It was also disclosed that a special armoured car carrying higher-valued banknotes are scheduled every Saturday.

BSP officials were alarmed that SPC did not seek Monetary Board approval to contract a private company to handle the security paper used for making currency notes. The defective security paper was bought from a Spanish papermaker in 2004 to print P100 banknotes.

The Monetary Board is composed of seven members and chaired by the BSP governor, Amando M. Tetangco Jr. who has been with the central bank for more than 30 years. The rest of the board members, with the exception of twice re-appointed Raul Boncan, took on the job only in 2005 while Ignacio Bunye, former press secretary, was appointed last year.

The Monetary Board has already ordered SPC to submit a production report to account for volume and spoilage. BSP can print up to one billion pieces of banknotes at different denominations per year.

Sources said about six percent of SPC spoilage are destroyed but Monetary Board members want to know how defective money is being disposed of.

The BSP is already mired in controversies especially in the bidding of new currency printers.

It is planning to buy a superline currency printing press. The original proposal, which was approved by the Monetary Board in 2007, was to buy two superline printers but a decision was made last month to cut the budget by half.

Because of parties pushing for a negotiated bid, which would blow up the cost by as much as P2 billion, the Monetary Board has ruled that a straight out bidding process will be done.

Once the new printer is acquired, it will replace two printing presses, bought in the 1980s. BSP’s money shredding activities are also done in the Quezon City plant

BSP Gold Refinery

2009-08-29T02:11:00.000-07:00

A few years ago, the Bangko Sentral ng Pilipinas (BSP) came out with a beautiful coffee table book entitled, “Ginto: History Wrought in Gold.” The book, which discussed our rich history in terms of our nation’s gold possessions, was the subject of one of my columns last year. A recent development at the BSP, which is in charge of refining Philippine gold to be sold to the international market, is worth another brief discussion.

Last May 28, the BSP gold refinery at the Security Plant Complex in Quezon City received good news from the London Bullion Market Association. The LBMA periodically certifies a list of refineries around the world that produce good quality gold.
Dr. Paterson Encabo, Deputy Director of the BSP Department of General Services, said the Bank’s gold refinery had passed the LBMA’s proactive monitoring gold assaying test.

The BSP, Encabo said, continues to be included in the LBMA-accredited Good Delivery List (GDL).

“This means that if we say that our gold has a purity of 99.5 percent, the international market accepts it at face value,” Encabo explained. More importantly, he stressed, being on the LBMA’s list means that those who buy BSP-refined gold bars trust their quality.

Encabo said that the London Gold Market, the precursor of LBMA, first recognized the then Central Bank of the Philippines refinery as an acceptable melter and assayer of “good delivery” bars in September 1979.

Good delivery bars are the final output of the refining process, which involves the separation of gold from other elements such as silver and base metals, and the casting of the refined gold into bars.

“That year was the start of our gold refinery’s operations,” the BSP official said, adding that the Philippines was then among the only three countries in Asia recognized by the London Gold Market.

The LBMA was not that strict in determining the quality of gold bars before, Encabo said. But in 2001, the association decided to become more proactive in monitoring the percentage of gold bars by way of each refinery’s assaying process.

The first step in the LBMA’s monitoring process starts with the taking of a “dip sample” the size of a button from the normal gold production melt. Half of the dip sample would be assayed (this refers to the actual process of determining the percentage of gold) at the BSP refinery while the other half is sent to the LBMA. The LBMA would then forward the sample to a third assayer, also referred to as the “referee,” for analysis. This third party ensures that there is no bias during the whole testing process, Encabo explained.

Encabo said this was the second time the BSP refinery made it to the LBMA list. It last passed the gold assaying test three years ago.

“The most recent test results are good for another three years,” Encabo said. He added that it was a great honor for the BSP hallmark (or actual seal on the gold bar) to be recognized and respected internationally.
* * *

My fellow Kiwanians from the Kiwanis Club of Muntinlupa, led by President Jimmy Ventura, recently had a field day visiting the BSP Money Museum and the pre-Hispanic gold collection at the Metopolitan Museum.

They oohed and aahed as Curator Ginny Cruz walked them through the different epochs in our history and explained the prevailing types of money during the period. They were also all amazed how our ancestors were able to make intricate and artistic gold ornaments with what were probably very crude tools at that time.

Another instant hit was the “money machine” which enabled the Kiwanian visitors to produce their own “money” with denominations up to P100,000 bearing their own photographs and signatures.

Both museums are open to the public Mondays to Fridays, from 9 a.m. to 4 p.m. --- courtesy of MB

BSP considering new designs of coins and notes vs. counterfeiting

2009-07-21T20:05:00.000-07:00

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The Bangko Sentral Ng Pilipinas is considering to change the design of our coins and banknotes to fight the proliferation of counterfeit banknotes and coins. BSP also admit that the current designs of our notes and coins have been utilized for the past 20 years now is counterfeits have been very familiar with the these designs.

The newly designed money will feature new advantages such as for blind people and other security measures against rampant counterfeiting. According to BSP, these notes and coins will become available in 2011.

BSP mulls shift to plastic money

2009-07-19T16:25:00.000-07:00

Plastic money may soon find its way into the wallets of Filipinos as the Bangko Sentral ng Pilipinas (BSP) considers phasing out paper bills.

Unlike the traditional paper money, plastic money is not susceptible to "wear and tear" because it has a coating that protects it from dirt and moisture. It lasts longer in circulation and is harder to counterfeit.

Paper money is made out of abaca and cotton whereas plastic money is produced from polymer substrate, which is also used in making other plastic products such as garbage bins and plumbing fittings.The BSP said it got a proposal from Australia, the first country to have a full set of circulating plastic banknotes for all denominations, regarding the shift to polymer money.

"They proposed to us to start using it and we're studying the pros and cons," BSP Deputy Governor and Officer-in-Charge Armando Suratos said.

Aside from Australia, other countries that use plastic banknotes include Bangladesh, Brazil, Brunei, Chile, Indonesia, Israel, Malaysia, Mexico, Nepal, New Zealand, Papua New Guinea, Romania, Singapore, the Solomon Islands, Sri Lanka, Thailand, Vietnam, Western Samoa, and Zambia.

On the other hand, countries that issue commemorative polymer notes include China, Kuwait, and Hong Kong.

Suratos admitted that polymer notes are more durable than the country's current paper bills. It could also prevent counterfeiting as plastic money would allow banknote manufacturers to incorporate security features such as optically variable devices that are difficult to reproduce.

However, Suratos said plastic bills would be more expensive to create. "We also have to consider how people handle bills."

At present, the Philippines prints money using a fiber composite of 20 percent abaca and 80 percent cotton. Suratos explained that the use of abaca fiber was deliberate, as this was meant to support the local abaca industry.

"We make sure Philippine abaca is used, not just any material. We ask them to certify their suppliers," he said.

Meanwhile, Suratos said the BSP has phased out P5 and P10 paper bills. "We have decided that in the new denominations, there will be no more P5 and P10 bills, but in coins only."

Rare coin could get more than $2M at an auction

2009-04-29T18:15:00.000-07:00

CINCINNATI – The coin world is abuzz over the auction of a rare silver dollar, one of the most valuable in the world and one of only 15 known to exist from a never-circulated group made for the likes of the King of Siam and the Sultan of Muscat.

The 1804 Adams-Carter silver dollar fetched more than $2 million in a private sale two years ago and is expected to top that again this week. The coin has been owned by a Boston banker, a Texas publishing mogul and by a collector who sold everything to help build a church school in Ohio.

The auction is a major happening for collectors — even ones who can't afford the expected price tag — partly because it will be a rare opportunity to see the coin. It's the highlight of the Central States Numismatic Society Convention that runs Wednesday through Saturday in Cincinnati. Anyone registered to bid on any item in the auction may view the coin, and that could number in the thousands, said Todd Imhof of Heritage Auction Galleries of Dallas.

Joe Barrett, co-owner of three Rare Coin Gallery shops in the Cincinnati area, compared the convention to a movie buff's visit to a film museum, with Kevin Costner as tour guide.

"For coin people, it doesn't get any better than this," Barrett said. "For young collectors, this is an opportunity to see things they wouldn't get a chance to see otherwise."

Beth Deisher, editor of Coin World magazine, suggested the valuable coin may not be seen in public for another 50 years.

"It's a rare coin that has a great story," she said.

Coin Values magazine rates the 1804 Adams-Carter silver dollar as the seventh most valuable coin in the world. The most valuable is a 1933 $20 double eagle that sold for $7.6 million in 2002.

Only 15 of the 1804 silver dollars are known to have been struck, and coin aficionados can account for every one of them. Six are held by museums.

The coins were never circulated and weren't actually struck in 1804 — the date refers to the year after the US Mint stopped making silver dollars. The front of the coin shows a bust of Lady Liberty in profile, the reverse a version of the Great Seal of the United States.

Coin Facts says eight of the coins were ordered struck by the US Department of State in 1834 to be given to foreign heads of state, including the King of Siam and the Sultan of Muscat. One specimen was made in 1857. The other six, including the Adams-Carter dollar, were made sometime after that — possibly illegally by a mint employee.

The one being auctioned Thursday is named for 19th century collector Phineas Adams, an early owner, and Amon Carter Sr., a later owner, Texas oilman, entrepreneur and publisher of the Fort Worth Star-Telegram.

In November 2001, Phillip Flannagan donated the coin to raise money for the building fund at Middletown Christian School, north of Cincinnati. It brought $874,000 at auction. The rest of Flannagan's collection, totaling some $2 million, went to Grace Baptist Church, which operates the school.

The name of the current owner is closely guarded. Heritage Auction Galleries identifies him only as an East Coast collector. The buyer mostly likely will bid through an agent.

Internet bidding will continue until two hours before Thursday night's auction, Imhof said. The high bid on Tuesday had reached $1.7 million. The live auction, expected about 9:30 p.m. EDT Thursday, will be streamed on Heritage's Web site, Imhof said. - AP

Bangko Sentral defends special deposit accounts

2009-03-30T17:19:00.000-07:00

The Bangko Sentral ng Pilipinas (BSP) defended its decision to keep special deposit accounts (SDA), saying it will continue paying high interest to institutional investors as long as there was demand.

This was announced on Monday by BSP deputy governor Diwa C. Guinigundo, who attempted to defuse criticism that the SDAs were making less funds available for companies.

By paying investors high interest rates, SDAs – as a monetary tool –siphoned off cash from the financial system, reducing liquidity and thereby cutting inflation risks.

There were no indications that the need for SDA facilities were on the wane, Guinigundo said.

Shuttering the SDA facility would be equivalent to a major reduction in interest rates, a move that would release more funds into the system that has already been awash in liquidity ever since the BSP cut rates in December.

Some P500 billion in liquidity has already been made available for companies and borrowers especially after the BSP imposed consecutive rate reductions and eased deposit reserve requirements.

Treasury bills have been lower than the BSP’s overnight rates, making the SDA more attractive to investors.

While T-bills – especially the benchmark 91-day debt paper – helps government raise cash for its short-term needs, investors prefer putting their money in SDAs whose interest is government guaranteed.

The BSP’s policies covering the SDA would be market-driven, depending on demand, Guinigundo said.

“If there is demand for more liquidity, banks would naturally pull out their funds from the SDA," Guinigundo pointed out. “We believe that the market continues to work as a signaling device so we keep an eye on that before moving anything."

For his part, BSP Governor Amando M. Tetangco Jr. said that releasing funds into the system makes cheap money available, allowing economic activities in the country to continue. - GMANews.TV

Bangko Sentral aims to improve local fiscal policies

2009-03-29T21:05:00.000-07:00

The Bangko Sentral ng Pilipinas (BSP) has issued landmark guidelines formalizing electronic money transactions, reportedly the first of its kind of electronic innovation in the world.

The new rules set a maximum monthly load limit of P100,000 ($2,068) on any e-money instrument such as cash cards, e-wallets and similar products.

The Anti-Money Laundering Law will also cover e-money transactions.

Meanwhile, Bangko Sentral ng Pilipinas otherwise hosted the National Course on Macroeconomic Management and Financial Sector Issues, conducted by International Monetary Fund-Singapore Regional Training Institute (IMF-STI), for executives from NEDA, Dept. of Budget and Management, Bureau of Treasury, Dept. of Finance, and the BSP. The annual program sponsored by the governments of Japan and Singapore cascades real-world issues to government officials to support efficient implementation of macroeconomic and financial policies.

Such program aims at strengthening of our fiscal policies amid the impact of the global financial crisis.

BSP- SM Partnership Boosts Coin Recirculation & Support for Public Schools

2009-03-25T06:10:00.000-07:00

SM Prime Holdings Inc., the largest shopping mall operator in the Philippines, is one of the partners of the Bangko Sentral ng Pilipinas in promoting the regular use of coins and the “Tulong Barya Para sa Eskwela,” the joint BSP-DepEd coin collection campaign for the benefit of public elementary schools.

At SM’s Mall of Asia, the program was launched by (from left) SM Supermalls President Annie Garcia, SM Prime Holdings SVP for Retail Operations Jorge Mendiola, Monetary Board Member Juanita Amatong, and BSP Corporate Affairs Director Fe de la Cruz. The Bangko Sentral has issued roughly 14 billion pieces of coins worth P14 billion. However, the habit of many consumers to leave coins in their homes and offices have reduced the number of coins in circulation. By supporting “Tulong Barya,” coins are recirculated, stores are able to provide exact change to consumers, and funds are raised for public elementary schools. “Tulong Barya” coin cans are at cashier counters of SM Department Stores.- BSP

Speculators forecast Gold May Rise on Demand for Dollar Alternative

2009-03-22T17:16:00.000-07:00

Gold may extend its rally for a second straight week as the slumping dollar boosts demand for the precious metal as an alternative investment.

Twenty-one of 28 traders, investors and analysts surveyed from Tokyo to Chicago on March 19 and March 20 advised buying gold, which rose 2.8 percent last week to $956.20 an ounce in New York. Five said to sell, and two were neutral.

Last week, the dollar dropped 4.8 percent against the euro, the most since December. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, has jumped 41 percent this year to a record.

Most traders surveyed on March 12 and March 13 have expected gold’s gain last week. The survey has forecast prices accurately in 151 of 254 weeks, or 59 percent of the time.

Platinum already broke $1100 level while Silver is steady at the $13 mark for the meantime. Precious metal prices have been volatile for these past weeks, even though investors ascertained that still, these are the safest investments in the time of depression.

Rumors are spreading that the dollar is beginning to exhibit weakness amid peculation that it may no longer claim the title as the world's top reserve currency.

The returning gold barter

2009-03-19T02:35:00.000-07:00

After posing as one of the most wealthy and promising African nations, Zimbabwe fell to its knees brought by massive inflation, civil and political unrest, and dictatorship.

Recently, the country made records by the issuance of denominations only equivalent with that of the Weimar Republic when Germany itself once succumbed with the crippling inflation. Zimbabwe's currency crisis held the country's literally chaotic that even computers and automated teller machines (ATM) where rendered useless by digits added on a daily basis.

Inflation is on a massive scale that the government issues new denominations every now and then.

Now, the current situation made the people abandon the fiat currency and returned to gold barter. People are piling-up on river banks to pan for gold in exchange for food and other basic commodities.

"A 0.1 gram of gold can buy a tin can of rice, enough to feed an entire family for a meal. Everything is price in gold." one local claimed.

"A family need 0.3 gram of gold to survive." he added.

"The Global Financial crisis brought one of the unpredictable move on the paper market but the value of precious metal will continue to rise as people began to realize the flaw and start to lose trust the financial system.

NBI seized fake bills

2009-03-16T19:41:00.000-07:00

The National Bureau of Investigation (NBI) on Thursday confiscated P1 million worth of fake bills in Pasay City that would have been part of a campaign fund for the 2010 polls.

Radio dzBB’s Carlo Mateo said NBI agents arrested two men – identified as Armando Baluyot Tiangson and Fulgencio Badabas – after being caught in possession of fake P1,000 and P500 bills in an establishment along F.B. Harrison Street.

The report quoted NBI director Nestor Mantaring as saying his agents had already seized the machines that the suspects used in churning out the counterfeit money.

Banko Sentral ng Pilipinas officials who came along with the NBI agents said the fake bills were "almost genuine." The bank officials however noted how the fake money had a slightly smoother paper than genuine bills.

Another radio report said the arrested suspects claimed they were commissioned by one Ben Zaldos to produce a total of P2 million in fake bills that would allegedly be used by an unnamed politician from the Visayas region

NBI later invited the politician for explanation but he vehemently denied that the allegation has basis and challenge the authorities to seek further investigation.

“It would be better if they name names because that is a very serious offense and it's for the best interest of everybody," according to the politician. ---excerpts from gmanews.tv

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Gold rose, Silver back on the $13 level

2009-03-13T16:59:00.000-07:00

After brief and swift dives, Gold, Silver, and Platinum are up for a third straight day on speculation the recession will deepen, boosting the appeal of the precious metal as a store of value. Silver is back on the $13 level.

Even the Dow surge to the 7000 mark as bank stocks like HSBC (HongKong & Shanghai Banking Corporation) concluded the week with a better outcome.

“Gold continues to resist any sustained decline, bouncing back quickly from any minor sell off,” said Adrian Day, president of Adrian Day’s Asset Management in Annapolis, Maryland. “The fly in the ointment could be a sustained and strong, broad global stock-market rally which would calm some investors’ fears. There is little prospect of this on more than a short-term basis in my view, so we continue to be buyers on any dips.”

Gold futures for April delivery rose $6.10, or 0.7 percent, to $930.10 an ounce on the Comex division of the New York Mercantile Exchange. The price rose 3.1 percent in the previous two sessions. The metal is still down 1.3 percent this week.

Silver futures for May delivery climbed 27.2 cents, or 2.1 percent, to $13.215 an ounce. While the price fell 0.9 percent this week, it is still up 17 percent this year.

Gold’s gains were limited as the S&P headed for the biggest weekly increase since November, curbing investor demand for alternatives to owning equities. Earlier, the price slipped as low as $919.60.

The decline was a buying opportunity for investors who has been purchasing gold this week as the metal dropped to a one-month low $891.10 on March 10.

Gold may also benefit as an alternative to currencies. The Swiss National Bank said yesterday it was selling the franc, undermining the currency’s haven status.

China’s Premier Wen Jiabao said he is “worried” about his country’s holdings of U.S. Treasuries and wants assurances that the investment is safe. China is the biggest holder of U.S. debt.

“Should China or some other significant buyer of U.S. debt announce that they will no longer buy U.S. debt unless denominated in a non-U.S. dollar currency, gold is going to the moon,” said Tom Winmill, president of New York-based Midas Management Corp.

In 2008, Treasuries returned 14 percent while gold gained 5.5 percent as investors sought a haven from financial turmoil. Treasuries slumped 2.9 percent this year through yesterday. (quotes from Bloomberg)

MILF Official urged Goverment to cease mining permit issuance

2009-03-11T17:27:00.000-07:00

A high official of the Moro Islamic Liberation Front (MILF) demanded that Malacañang should stop issuing mining permits in any area under the proposed Bangsamoro Juridical Entity (BJE) pending the outcome of the peace talks.

The MILF proposes the BJE to be the governing body consolidating the areas which the government and MILF peace panels may agree to unify together as a sole recognized Muslim homeland in the South.

Peace talks between the government and the MILF began on Jan. 7, 1997, but gained headway only in 2003 with the help of Malaysia as mediator.

In a statement, Datu Jun Mantawil, secretariat chief of the MILF peace panel, urged President Arroyo and Environment and Natural Resources Secretary Lito Atienza to freeze all applications for mining permits in areas inside the proposed BJE.

Mantawil commented that any positive action from Mrs. Arroyo and Atienza will help restore the credibility of the 10-year-old peace process, often shaken by misunderstandings on how both sides are to establish a Muslim homeland which the MILF wants to govern.

Mantawil said indiscriminate mining operations in the South may just leave the BJE with nothing to wisely exploit as source of income to sustain a strong, economically sound Moro community.

"What will happen to BJE if all the gold, silver, copper and other natural resources are consumed?" he asked.

Many areas in the proposed BJE, including the provinces of the Autonomous Region in Muslim Mindanao, are known to have vast deposits of precious stones, metals, minerals and natural gas.

Mantawil said one of the areas that the MILF wants protected from encroachment by big mining firms is the 220,000-hectare Liguasan Marsh, a vast delta surrounded by the provinces of Sultan Kudarat, Maguindanao, Shariff Kabunsuan and North Cotabato.

The Liguasan Marsh is renowned for its scientifically surveyed oil and natural gas deposits.

"Spare the remaining natural resources for the sake of our people and not those of the huge multinational companies and their local contacts whose interests do not necessarily jibe with the interest of the masses," Mantawil said.

He did not say whether the MILF would work for the removal of existing mining ventures in the region.

The La Bella Filipina Token & The Manila Carnival

2009-03-10T21:05:00.000-07:00

The Philippines has been one of the patrons of beauty contests since the United States forces arrived on the archipelago. Fiestas or town festivities were usually celebrated at the beginning of summer and before the rainy season to thank the bountiful harvests. During the "Peace Time" or the era between the birth of American governance and the invasion of Japanese Imperial Army, one particular event embodied the whole period. It was the famous "Manila Carnival".

The carnivals have been held at the old Wallace Field or Bagumabayan(now known as the Luneta). It would last for two weeks and culminates with the coronation of the “Queen” just before Ash Wednesday. The Manila Carnivals are actually intended to showcase the agricultural and industrial potential of the Philippines under American occupation. People gather to the event dressed in different costumes in line with a theme every year. Fluvial parades are also being staged during the two weeks; various floats represent regions showing their top produce. This period of pre-war beauty pageants is fondly recalled as the “Carnival era.”

The election of a carnival queen often begins at the provincial level. The young lady who takes center stage will be that year’s Miss Batanes, Miss Laguna, Miss Cavite, etc. The rest of the provincial beauties would be given runner-up titles, like Miss Luzon, Miss Visayas or Miss Mindanao and then made part of the queen’s entourage.

The method of choosing the queen varies each year: either by a panel of judges from the highest echelons in society, or done through ballots published by sponsoring newspapers. The queen, usually, is a daughter from a family of “impeccable credentials”—someone beautiful beyond comparison—clued-up in fine points of comportment and etiquette, so that her parents, siblings, relatives as well as her countrymen could look on her with pride.

At the coronation night, people look forward to the pomp and pageantry: These ladies are the center of it all. They’re adorned with lavish costumes—from the Filipiniana, Egyptian, Thai, to the Arabian nights. There are even instances that security men are hired to guard the expensive sets of jewelry that prettify the winners.

This era lasted for 31 years, from 1908—nine years after the American armada sailed into Manila Bay—to 1939, two years before the Japanese soldiers hit Pearl Harbor in Hawaii and Nichols Field in Manila. It produced 29 queens. There were no contests in 1910, 1911, 1919 and 1928. In some years, meanwhile, two queens shared the spotlight: the “Queen of the Orient” representing the Philippines, and the “Queen of the Occident” standing for the United States.

Aldo Basso first mentioned "La Bella Filipina" token on his book, to commemorate the yearly celebration of the carnival. The token depicts a head of a Filipina similar to that of Queen Isabella coins but as sharp as the Liberty's head of the U.S five cents, or seems more of a combination of both.

A similar music of the same title was exclusively composed to serenade the Queen of the night, that up to now can be occasionally heard being played by brass bands on local fiestas.

The Disappearing "10 - Piso" Coin

2009-03-08T03:10:00.000-07:00

Recently, reports of disappearing coins have been circulating publicly at the height of the local celebration of Valentines Day. The relationship seem to be unrelated yet, because of a tip from a reliable source I have decided to try and see if the story is true and as expected, I was not disappointed.

The Bangko Sentral officials claimed that there is no need for the public to hoard the P10 coin since the gossip about its intrinsic value, about it being alloyed with gold according to some, is not true. For fear that such act would escalate inflation, officials have officially declared that hoarding coins would have a negative impact to the local economy.

After receiving a tip from a local source, I headed for a local goldsmith and see if what he said was true. Arriving at the scene, I found several customers flocking at the shop's front holding some P10 coins. In one of the store's corner, I also found several stacks of P10 coins waiting for their turn to be melted.

That goldsmith was busy making some P10 coins into engagement rings or wedding rings for sweethearts who would like to have rings before they make vows to each other . The P10 coin's core will be removed from the coin and heated by torch to smoothen and flatten its surface. After a couple of minutes, a pair of rings has been made from a single core.

According to the shop's owner, the month of February was the peak of their business since that was the time when couples celebrate or make proposals of love. "Marami kaming order nun, basta di nawawala sa 50-100 kada araw ang gawa" (We always had between 50-100 orders last month) .

I asked when this craze started and the owner told me that it has been happening since a gold alloy had been discovered with the core of P10 coin dated 2000. It was an instant hit because, a pair of gold ring can be made for 10 pesos only. Although the gold content is not pure about 10 to 12 carat, the important thing is the metal never fade and maintain its luster even if used on a daily basis which is very ideal for couples.

The shop owner added that since the year 2000 was a very scarce coin, customers would prefer to have 2001 or 2003 P10 coins as rings other than any dates because of their seemingly gold like appearance when finished. "You can even wear it even if you are washing your clothes, washing the dishes, or doing any other household chores. The ring would still be brilliant and lustrous."

"For couples who cannot afford even the cheapest silver rings, that would mean a lot to them since no jewelry nor pawnshop can beat P10." he commented

Foreign reserves up on higher gold prices, govt loans

2009-03-06T05:28:00.000-08:00

The recent climb of gold and the national government’s dollar loan proceeds increased the Philippines’ foreign exchange reserves last month, the Bangko Sentral ng Pilipinas (BSP) said.

The Bangko Sentral recently reported through their website that the Philippines gross international reserves (GIR) went up by 0.26 percent to $39.3 billion as of end- February from $39.2 billion the previous month.

The current dollar reserves are enough to to cover 5.9 months of imports of goods and payments of services and income.

The increase was the result of the national government’s deposits of loan proceeds from the World Bank and the Asian Development Bank and higher prices of BSP gold holdings, BSP Governor Amando M. Tetangco said.

Inflows from the BSP’s net foreign exchange operations aside from revaluation gains in the gold holdings on higher gold prices in the international market in February helped beef up GIR.

"These inflows were partly offset by payments of maturing foreign exchange obligations of the NG and the BSP," Tetangco added.

Net international reserves (NIR) – which is the difference between the BSP’s GIR and total short-term liabilities – is up by 1.59 percent month-on-month to $38.3 billion from $37.7 billion. NIR includes revaluation of reserve assets and reserve-related liabilities.

Gold & Other Precious Metals climb on Opening Day Trading

2009-03-01T16:08:00.000-08:00

After some setbacks last week Gold, Silver, & Platinum are again at a bullish move on the opening day trading. Gold climb almost $10 at the first hour amid reports that financial giant AIG is about to receive another $30 billion stimulus from the Obama administration.

'I'm not affected by the sudden shift on the news, I still prefer gold over other investments." one investor said.

In local news, Bangko Sentral Ng Pilipinas filed with the Department of Justice charges of syndicated estafa involving P1 billion (one billion pesos) against Celso G. delos Angeles, Jr., and other officers of the Legacy Group and affiliated companies. Named as respondents for syndicated estafa defined and penalized under Article 315 of the Revised Penal Code, in relation to Presidential Decree No. 1689 are the following:

Mr. Celso delos Angeles, Jr. (CDA)
Mr. Alexis Petralba, Consultant of Mr. Celso delos Angeles
Ms. Namnama Pasetes, Chief Finance Officer of Legacy Consolidated Plan, Inc. (LCPI)
Ms. Carolina Hinola, Chief Executive Officer of LCPI
Mr. Roy Hilario, President of Fusion Capital Corporation
Mr. Bruce Rafanan,Mr. Hilario’s assistant
Mr. Virgilio Odejar, President of Rural Bank of Paranaque
“John Doe’s and Jane Doe’s ”

The BSP also requested the DOJ that the respondents be included in the watchlist of the Bureau of Immigration.

The criminal schemes conceived and hatched by Mr. delos Angeles himself were used to swindle the public and to siphon funds from the Rural Bank of DARBCI, a rural bank with offices in General Santos City and Cebu City. The BSP said that while records as of 30 September 2008 indicate that RB DARBCI had P830 million in deposits raised from the public, its cash position was less than P1 million as of the same date.

The cases were filed as BSP’s investigations uncovered massive diversion of funds by said banks using fictitious loans. During the validation process, many of the bank’s borrowers denied having obtained loans from the closed banks while others admitted having signed blank documents in consideration of commission fees ranging from P10,000 to P15,000 for supposed loans amounting to millions of pesos. The BSP also discovered that falsified documents were used to support alleged loans. Public documents falsified included Mayor’s Permits and Department of Trade & Industry Registration Certificates. In effect, the fictitious loans were used to siphon money from the banks.

Meanwhile, authorities are on a lookout for a stolen monstrance made of silver and gold from the altar of the San Juan Bautista in Tiling village in Cauayan town in Negros Occidental. Local antique dealers are encouraged to report to authorities in case similar religious relics are being offered for sale.

Despite Gold's setback, Local Pawnshops flourish

2009-02-26T17:04:00.000-08:00

The setback in the price of precious metals have suddenly caused some analysts to wonder about the real trend. As soon as Jim Kramer, the host of CNBC's Mad Money made a recommendation about buying and investing in gold, and after Rick Santelli made a bullish statement about the metal's future, gold and other precious metals have started declining.

"If Kramer has predicted it, I'll do the opposite! I think the price of gold and other precious metals will eventually return to its upward trend after some minor corrections. Even so, I consider this setback as an opportunity to stack-up some more." one bullion trader commented.

Meanwhile, local pawnshops are flourishing amid the global financial crisis due to the rise on the number of borrowers desperate to raise needed cash for their daily needs. Pawnshop owners and lenders have reported that the increase of customers was due the rising unemployment and deteriorating economic conditions due to the rise of cost of living.

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Local authorities have again warned the public that smaller denominations such as 10 and 5 centavo coins should be spent and accepted by the local communities in order to avoid further inflation. "Hoarding or disregarding these coins means further lost to the current purchasing power of the peso and to productivity since our government allocate funds for the production and circulation of these coins." a BSP official explained.

The Banknote Errors of 2003

2009-02-25T04:02:00.000-08:00

In the year of 2003, a rare printing error occurred in the Bangko Sentral facility where banknotes were being printed. This affected the production of the 20 peso bill which resulted to some 20 pesos note's reverses to either exhibit light printing or totally lost the whole design itself which should have resulted to a uniface 20 peso bill.

Other special errors were recently sold via Ebay, belonging to the same batch but one apparent error I have managed to save the images was a unique 20 peso note where a second printing of obverse occurred on the note's reverse which therefore resulted to overlapping images.

Modern error notes rarely surface since the Mint are very strict and to stumble upon such kind of error is like winning a lottery.

The reason why I became particular with this date is because several collectors also cited the same abnormalities on the 20 peso notes dated 2003. Some notes exhibited lightly printed reverse which were particularly obvious only with this date and denomination. Click this link to view more...

Apparently, uniface note is one of the toughest type of errors in collecting notes since Mint employees should have easily recognized the oddity and apparently destroyed it after being isolated.

Luckily this note escaped scrutiny and now belongs to the exclusive collection of this site.