Archive for February, 2011


Source: Komo News

Counterfeit coins by the thousands are turning up in Washington state, and authorities are warning coin collectors to be on the lookout for them.

All or most of the counterfeits appear to be from China.

“Stacks of ingots, bars, all kinds of stuff – they make everything from pennies all the way up to silver dollars,” says Port Angeles police officer Duane Benedict. “China is making these things by the thousands.”

Several of the fake coins were recently sold to a Port Angeles business, EZ Pawn, for $400. They would have been worth more than $1,500 had they been real, Benedict said.

Officer Benedict got a call from EZ Pawn.

“They brought me in there to look at something they thought was fake. So I was pre-warned. But I picked it up and said, ‘What’s fake about it?'”

The 20 counterfeit U.S. Morgan silver dollars were supposedly from a century ago. Brian Winters of EZ Pawn has bought coins for years – and even he was fooled.

Unlike most counterfeits, the coins did not all have the same dates. One was a super rare 1893S, worth thousands and thousands.

It was at that time Brian pulled out a loupe and looked at a real coin and a suspect one. He found the “T” and the “I” too thick. All the coins were fake.

The real coin weighed in at 26.7 grams. The fake was two grams lighter.

For those of us without a gram scale – there are other tests for detecting the counterfeit coins.

The real ones have a high-pitched ring when they’re dropped. The counterfeits land with a thud.

Also – a strong magnet will detect small amounts of iron in counterfeit U.S. coins. If a supposedly “silver” coin has even a little bit of attraction to the magnet, then it is a fake, Benedict says.

The counterfeits aren’t just limited to silver dollars. Other coins – including Indian head pennies – also have turned out to be fakes.

And EZ Pawn says they’re continuing to see fake coins brought in by other customers.

And Benedict warns businesses to be suspicious if someone uses only coins to pay for merchandise.

“Use caution if someone brings in a lot of coins to buy something, and look them over carefully,” Benedict said.

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Source: ZeroHedge.com

A week ago, when we reported on a move by the Dutch central bank that ordered a pension fund to forcibly reduce its gold holdings, we speculated that “this latest gold confiscation equivalent event is most certainly coming to a banana republic near you.” And while we got the Banana republic right, the event that we are about to describe is not necessarily identical. It is much worse. A bill proposed in the State of Washington (House Bill 1716), by representatives Asay, Hurst, Klippert, Pearson, and Miloscia, whose alleged purpose is to regulate secondhand gold dealers, seeks to capture “the name, date of birth, sex, height, weight, race, and address and telephone number of the person with whom the transaction is made” or said otherwise, of every purchaser of gold in the state of Washington. Furthermore, if passed, Bill 1716 will record “a complete description of the property pledged, bought, or consigned, including the brand name, serial number, model number or name, any initials or engraving, size, pattern, and color or stone or stones” and of course price. But the kicker: if a transaction is mode for an amount over $100, which means one tenth of an ounce of golds, also required will be a “signature, photo, and fingerprint of the person with whom the transaction is made.” In other words, very soon Washington state will know more about you than you know about yourself, if you dare to buy any gold object worth more than a C-note. How this proposal is supposed to protect consumers against vulture gold dealers we don’t quite get. Hopefully someone will explain it to us. We do, however, get how Americans will part with any and all privacy if they were to exchange fiat for physical. And in a police state like America, this will likely not be taken lightly, thereby killing the gold trade should the proposed Bill pass, and be adopted elsewhere.

While we are confident that representatives Asay, Hurst, Klippert, Pearson, and Miloscia have no clue why they are even proposing this bill, we would also be delighted to find out which moneyed interests they represent, and what happens to precious metal trading in America should Bill 1716 become a legal precedent which is effectively the first step before the final implementation of Executive Order 6102 version 2.

Read Full Bill…

Source: Bloomberg.com

South Korea’s Financial Services Commission suspended the business of four local savings banks for six months from today due to a liquidity crunch.

The four banks are Bohae Mutual Savings & Finance Co. and three subsidiaries of Busan Savings Bank — Jungang Busan Savings Bank, Busan II Savings Bank, and Jeonju Savings Bank, the financial watchdog said in a statement today.

“They have suffered a bank run” after the recent suspension of two other banks, the FSC said in a statement after a meeting at 7:30 a.m. today. “We concluded that they will not be able to meet demand for withdrawals, eventually hurting depositors’ interests and credit order.”

Busan Savings Bank and Daejeon Mutual Savings Bank were ordered to halt operations for six months from Feb. 17 due to soured construction project loans. The commission is tightening scrutiny of smaller mutual savings banks, with a plan to buy as much as 3.5 trillion won ($3.1 billion) worth of deteriorating loans made to builders and developers.

State-run Korea Finance Corp. and other big commercial lenders in the country are prepared to provide 2 trillion won in credit to the mutual banks to prevent a potential liquidity crunch, and the government may secure as much as 10 trillion won together with Korea Deposit Insurance Corp., the commission’s chairman, Kim Seok Dong, said on Feb. 17.

Combined assets at South Korea’s 105 savings banks totaled 86.5 trillion won as of September 2010, accounting for about 3 percent of total assets held by the country’s financial institutions, according to the FSC’s data.

State-run Korea Deposit Insurance guarantees clients’ deposits and interest up to 50 million won in case a financial institution becomes unable to repay clients.

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