Above is a lovely example of the strength and power of the Gold Bull: it is also a particularly lovely example of the Gold Lamb, a staple of the coinage of the 14th Century.
At the time Europe was wracked and ravaged by the 100 years war - as well a the bubonic plague. Gold was everywhere in short supply, though still used, as it had been since about 600 BCE as money. This coin would have been minted most probably to pay officers assembling armies of mercenaries, or perhaps in exchange for luxury goods like fine silks for some Nobleman's castle. The symbol of the Lamb of Christ, of course implied that those using this token of worldly power were servants of God.
Yesterday, somebody purchased this coin at an auction in Brussels for about $9000. Three years ago it could have been had easily for $3000. This auction had many unusually well preserved gold specimens from this era. They all brought similar prices.
Three years ago bullion gold was selling for about $1000. Now it's selling for about $1700. Meanwhile top numismatic specimens of historical gold have tripled.
What does this mean?
No, I'm not encouraging people to run out and buy numismatic gold. But I have noticed that over the last ten years, numismatic gold - like Old Master Art, Certified Diamonds, classic cars, historical documents, rare books etc etc have served as an leading indicator for the Bullion price of Gold.
Why? Because the wealthy in the world are now so wealthy that they're desperately seeking to preserve - rather than grow - that wealth by diversifying out of paper money into REAL THINGS. These things serve as a wonderful store of wealth. Just as REAL MONEY: GOLD serves the same purpose.
Interesting though, the more the wealthy - (the top 1 percent of which holds 70 percent of the world's financial assets) seeks to preserve wealth through Real Things - the faster these Real Things appreciate, and the wealthier the wealthy become.
As the Original Lamb of God once noted: "Whoever has will be given , and he shall have an abundance. Whoever does not have, even that which he has shall be taken from him." Mat, 13:12
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