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)