Gold coins a new investment alternative
Gold coins a new investment alternative
JAKARTA (JP): Another investment alternative became available
to ordinary investors yesterday with the launching of a new range
of gold coins by Gold Corporation of Australia at the Mercantile
Athletic Club of Indonesia.
The launching of the Australian Lunar series also marked the
beginning of the joint gold industry development program between
Gold Corporation and its Indonesian agent, Maya Mandiri
Servicatama (MMS), which is a fully Indonesian-owned precious
metals trading company.
"This is the launch of our gold coins in Indonesia, but it is
also the formal beginning of a joint program which we hope will
lead to the establishment of fabrication plants for semi-finished
products and international export markets for Indonesian
jewelry," said Don Mackay-Coghill, Gold Corporation's chief
executive officer.
"Because of the importance of Indonesia, we have chosen to
launch the series here today, rather than in the traditional
Asian gold markets of Hong Kong or Singapore," said Mackay-
Coghill.
Indonesia is Australia's most important gold market in Asia
after China, he added.
Major producers
Both Australia and Indonesia are major gold producers in the
region, each producing 360 tons and 100 tons of gold per year
respectively. In 1994, Indonesia was also the tenth largest
market for gold in the world, with gold demand totaling 97 tons.
The gold was used primarily in the manufacture of jewelry.
The coins include the first of a 12-year series of coins
featuring symbols from the Chinese Lunar calendar, the 1996 coins
for the Year of the Mouse. Every coin is 99.99 percent pure gold
and available in three weights in proof issue or legal tender
bullion coins. Also introduced were the 99.99 percent pure gold
Australian Nugget bullion coins.
"You can sell the coins everywhere, unlike gold bars, which
can only be re-sold to the original traders," Mackay-Coghill
explained.
"We have also signed an agreement with Walt Disney Indonesia
to issue the Mickey Mouse gold coins. The Mickey Mouse image on
the coins will be in color, with Queen Elizabeth on the other
side," Mackay-Coghill added.
Meanwhile, the Director General of Metal, Machinery and
Chemical Industries Effendi Sudarsono said in his written speech
that Indonesia still faces problems in its gold industry although
its exports have continued to increase.
"In 1994 exports reached US$870 million, 70 percent of which
was contributed by gold jewelry," said Effendi. "But in 1995 the
figure declined so we have to take steps to increase the exports
of gold jewelry."
Among the problems Indonesia has to deal with are the shortage
of gold raw materials, of which only 10 percent is supplied by
domestic production. (lem)