Gold - GBP100,000 of it - was transferred under heavy guard, Dec. 1, from strong rooms in Hatton Gardens, London, to the Savoy Hotel, London, and put on display for the press of the world to see.
Gold - GBP100,000 of it - was transferred under heavy guard, Dec. 1, from strong rooms in Hatton Gardens, London, to the Savoy Hotel, London, and put on display for the press of the world to see. Behind this fabulous consignment of 28-1b gold bars - each worth GBP5,000 - lies a new enterprise. The International Gold Corporation, Ltd. of Johannesburg, South Africa, is introducing a scheme enabling people to bury gold by purchasing certificates (bearer bonds).
The plan is to make it possible for the investor - whether large or small - to buy gold in the simplest way. Purchaser of a bond becomes the owner of a quantity of gold - stored for him free of charge. The bond is fully negotiable in all countries where the regulations permit. As an investment alone, the purchase of gold - a non-depreciative asset - is attractive.
Managing director of I.G.C, Jan Krajewski, outline the scheme to reporters. Political and economic restrictions, he said, did not create confidence. For the sake of the ordinary man in the street there should be a form of absolute and international internationally accepted currency. "It must be possible for it, however, to be dealt in small units so that every citizen can buy it." Lowest unit obtainable: GBP20. He pointed out that it was not possible to trade gold in the Sterling Area, "but this position may change within the next few months when we hope Sterling will become fully convertible."
Standard Bank of So. Africa will bank the gold and guarantee the availability of gold to the owner of bearer bonds - holding the gold under their control in London.
Since 1931, when Britain left the Gold Standard, no equivalent form of bearer bonds, backed 100 percent by gold, and internationally negotiable, have been available.