The 1894 One Centavo of Alfonso XIII

This very rare Spanish-Philippine coin was sold for 15, 500 euros as lot 1083 in the December auction of Cayon Numismatica and is considered as one of the most elusive coins of Philippine numismatic. The coins of one and two cents of weight, minted in Madrid at the hands of Bartolomé Maura, were made by order of 15 December 1893. The Decree refers to "lack of copper currency adjusted to the legal system" which encourages coining full retail. Shall be "the new pieces of copper one and two cents of weight, equivalent, as the silver 10 and 20 cents, which circulate in the Peninsula (...) Most all of these fractional coins will be legal tender only in the territories that are dependent on the General Government of the Philippines". The initiative was just one of the so many in the pipeline, but that Maura, the newly appointed general engraver, left us a few pieces by way of historical testimony. The magnificent bust with riotous hair, appears on these coins, still better than weight. It is perfectly proportioned (especially the two cents) and technically perfect.

It is especially curious that even having the permission of the Crown, coins on the same Islands were not coined under his name and it was even struck in Madrid, marked with a Pentagram. Perhaps because of insecurity or lack of larger machinery (remember the diameters of the cash of the father, 10, 20 and 50 cents, and clear, 4 weights) where carry out works such as these that we present. We assume that he just followed the guidelines given in the Royal Decree of December 15, 1893: "...Article 1. It is authorized the temporary opening of the Casa de Moneda de Manila, for the coinage which are necessary in the territories of the Government General of the Philippines, without prejudice of the Casa de Moneda de Madrid, to use when it's convenient to the best service..."and"...Section 3. This will be limited for now, fractional silver coin in 50, 20 and 10 cents of weight parts and bronze coin adjusted to the decimal system in parts one and 2 cents of weight..."

According to estimates, these coins exist only in two values, with no more than ten or twelve mintages. Preserves the archaeological museum in Madrid two parts of a penny and three two (one of them Sastre collection proceeding).  These coin has never been in the market in the last decade and was only recorded sold in the Philippines once decades ago.

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1762 One Real with F70 counterstamp: A Unique Specimen Of Counterstamped Minor Coins

Counterstamped minor coin is one of the hardest to acquire in the hobby of collecting counterstamp coins.  Dr. Pablo De Jesus and Dr. Fortirch have listed counterstamped minor coins among the top variety of counterstamp coins that are hard to come by in the market.  Among the four (4) denominations other than 8 reales, only three (3) namely: four (4) reales, two (2) reales, and one (1) real counterstamped coins have appeared in the market since the collecting began in the early days of the 20th century in the Philippines.  Among them, only the four (4) and two (2) reales have been documented to bear both King Ferdinand VII and Queen Isabela II mark while only specimen bearing the counterstamp of Queen isabela II appeared in the one (1) real coin.  No half (1/2) real coin was known to exist bearing either of the two reigns.

Among the counterstamped one real coins, none were struck on coins dating the 1700 period and those that were reported to surface only bear the reign mark of Queen Isabela II.  Very rare are the "dos mondos" or the legendary two pillar coins having marks of either of the two reign in any denominations.  Seeing a one real "dos mondos" bearing the mark of King Ferdinand VII is really magnificent and breathtaking because this is truly another great discovery in the realm of Philippine numismatic.  The specimen bears the 5-4-1 pearl and  minted in Mexico.    

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New Rizal 1-Piso now in circulation

New Jose Rizal one-peso coins the Bangko Sentral ng Pilipinas minted to commemorate the 150th Birth Anniversary of the country’s national hero have begun circulating through the financial system.

The coins are of the same size and weight as the one-peso coin now in circulation —24 millimeters in diameter at 5.35 grams. On the side of Rizal's portrait is etched "150 years" and "1861-2011".

On the face of the grayish, nickel-plated coin is the portrait of Rizal, with the words “150 years,” “Republika ng Pilipinas,” and the years “1861-2011” etched on it. The reverse side carries the new BSP seal, “1-piso,” and “2011”.

The new Rizal coin still inherits the qualities of the previously minted 1-Piso coin which is magnetic. This is in relation to the government's counter smuggling policy where 1-Piso were being smuggled to China for its metal content especially copper.

The new coin is the latest legal tender issued by the BSP, which has been replacing its old set of banknotes and coins with the "New Generation" currency series

But unlike the new paper bills, which were found to contain various inaccuracies in their depiction of Philippine wildlife and geography, the new Rizal coin has so far met no serious criticism from the general public. Some are asking, however, why they were issued towards the end of the 150-year celebrations and not, say, on Rizal's 150 birthday itself, June 19.

Others have questioned why Rizal adorns a low-value coin. But lower denominations are usually thought to signify greater stature because of their wider circulation. There was a ripple of controversy some years ago when Emilio Aguinaldo replaced Andres Bonifacio on the five-peso currency. Bonifacio's visage now shares the ten-peso coin with Apolinario Mabini's, which some may think is a step down for the father of the Katipunan, who was executed in a power struggle with Aguinaldo.

BSP spokesperson Fe M. Dela Cruz told GMA News Online that as soon as word got out that the new coins were going to be issued, the central bank got a flood of inquiries and requests for allocations.

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PILONCITOS: The treasure of Philippine numismatic

Piloncitos is the earliest form of precious metal based currency of the Philippines. It is likely made of pure gold with a weight ranging between .5 grams to more or less than 3 grams.

Piloncitos is not exclusively found in the Philippines as most collectors and local historians have agrees. Similar type of gold can be found in some regions of Indonesia which they call massa.

The earliest written account of Piloncitos was made by our national hero, Jose Rizal himself. According to Rizal, he found the gold nugget while tilling the soil of Dapitan. He himself coined the word piloncitos, which basically describe the coin's unusual shape. They are round and stamped with what looks like the pre-Spanish baybayin character “ma,” leading historians to guess that it could be short for “Ma-I.


Even before the Thai moved southward from their original home in China, the lucrative sea trade between the South China Sea and the Bay of Bengal established several maritime empires such as Sailendra-Srivijaya and Majapahit, which controlled coastal areas of modern Indonesia, Burma, Malaya, Thailand, Vietnam, and the Philippines.

In an era before coined money was widely used, Indo-Pacific beads were made first at a site called Aakmidu in South India ca. 200 BC. The manufacture then moved in sequence to Ceylon, South Thailand, Java and finally Malaya. By about 1200-1300 AD the larger Majopahit beads, excavated today in the interior of Java, had supplanted it. Since these factory sites have been dated, archaeologists now use the beads to date sites, though whether beads rose to the level of metals, salt, cloth, and cowries as "standard" trade goods is uncertain.

The first indigenous metallic coinage in the region, ca. 750-850 AD, comes from the Javanese kingdom of Sailendra (Chinese: Ho-ling). These roughly dome-shaped silver of irregular weight bore stamps of a flowing vase, and the sandalwood flower (quatefoil). By 850 AD weights had been standardized at 20 rattis to a Massa of about 2.4 grams. Silver and gold coins of Massa and fractional denominations were issued until about 1300 AD, with changes in shape and quality of inscription marking periods of issue. The gold Piloncitos of the Philippines are a late offshoot of the gold coinage, while the beanlike silver "namo" series, of the Malay isthmus was presumably an offshoot of the silver and may have evolved into the bullet (pod-duang) coinage of Sukothai in Thailand.

Past local numismatist like Dra. Anita Legarda and Gilbert Perez made some research regarding this coin but only few specimen were found and no further study nor specimen have surfaced recently aside from those what have been found.

What fascinates historians and numismatists alike is why piloncito can only be found in the Philippines and unlike its counterpart gold massa that are vastly present in the Southeast Asian region.

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Banknotes and coins: The 'calling cards of the nation

Money talk brings about certain moods. We get sad and irritated when there's a lack of it, giddy when we receive crisp bills as "pamasko," proud with a glint in the eye when we have too much of it, and always frustrated when the bills have to be paid.

But during the Jose Rizal Lecture at the 2011 Philippine PEN (Poets and Playwrights, Essayists, and Novelists) Conference, historian and author Ambeth Ocampo made his audience smile without throwing cash at them, instead making them ponder about how our banknotes—the "common, everyday things" we fish out of wallets and pockets—speak about us Filipinos.

Ocampo, considered an "expert" on all things Rizal, called bills and coins "calling cards of a country."

"They tell a story, they're an official view of history," he said at the conference held at the Cultural Center of the Philippines last December 2. "But banknotes are such common, everyday objects that we don't notice them."

When we do, it's to criticize, he said, noting how the New Generation bills launched last year drew flak for "faulty" designs, particularly the "geographically wrong" map of the Philippines printed at the back of the 1,000-peso bill.

Ocampo, who was "the only outsider" on the Numismatic Committee of the Bangko Sentral of the Philippines (BSP) that recommended approval of the bills, offered in good humor: "You can blame me," which he withdrew by saying "I'm always consulted but I'm never really listened to."

And while he agreed with President Benigno Aquino III, who countered criticisms by noting that you wouldn't consult a thousand-peso bill for directions, the historian pointed out that these little matters—like lost islands that you won't notice in a map at first glance—show how unsure we are of ourselves, especially in our claim over territories like the Spratlys and Sabah.

"Just to show you how different we are from Indonesia: the back of their 100,000 bill has a map. When you look at [it], the map in their money has Papua New Guinea and Malaysia in it. They actually claim it. They're very secure about themselves and what they own.

In the Philippines, not only don't we know the exact number [of our islands], we also don't put disputed territories in it," he said, adding that what goes into the map is something that "should be discussed."

Faces of heroes

Ocampo also discussed the faces that defined our currencies, which he said reflected "what we tend to think of ourselves."

He shared the pitch he made when he was first told about the BSP coming up with the new generation currency: get rid of all its current "faces," replace them with "people who are younger—no more 19th century heroes."

"And I said, 'Why don't we put artists and writers?' The Central Bank, of course, said no. They refused to look at it," he said. "It would have been a way for people to learn about their artists and their writers."

Saying that they didn't have time with the buzz of the upcoming elections, the BSP retained all the faces in the notes—save for the inclusion of former President Cory Aquino in the 500-peso bill and the removal of Gloria Arroyo at the back of the 200-peso bill.

Ocampo, who was "the only outsider" on the Numismatic Committee of the Bangko Sentral of the Philippines (BSP) that recommended approval of the bills, offered in good humor: "You can blame me," which he withdrew by saying "I'm always consulted but I'm never really listened to."

And while he agreed with President Benigno Aquino III, who countered criticisms by noting that you wouldn't consult a thousand-peso bill for directions, the historian pointed out that these little matters—like lost islands that you won't notice in a map at first glance—show how unsure we are of ourselves, especially in our claim over territories like the Spratlys and Sabah.

"Just to show you how different we are from Indonesia: the back of their 100,000 bill has a map. When you look at [it], the map in their money has Papua New Guinea and Malaysia in it. They actually claim it. They're very secure about themselves and what they own.

In the Philippines, not only don't we know the exact number [of our islands], we also don't put disputed territories in it," he said, adding that what goes into the map is something that "should be discussed."

Faces of heroes

Ocampo also discussed the faces that defined our currencies, which he said reflected "what we tend to think of ourselves."

He shared the pitch he made when he was first told about the BSP coming up with the new generation currency: get rid of all its current "faces," replace them with "people who are younger—no more 19th century heroes."

"And I said, 'Why don't we put artists and writers?' The Central Bank, of course, said no. They refused to look at it," he said. "It would have been a way for people to learn about their artists and their writers."

Saying that they didn't have time with the buzz of the upcoming elections, the BSP retained all the faces in the notes—save for the inclusion of former President Cory Aquino in the 500-peso bill and the removal of Gloria Arroyo at the back of the 200-peso bill.

Regardless of whether Rizal's presence in the one-peso coin is a step down or a mode of remembrance, Ocampo noted the result of a Social Weather Stations (SWS) survey conducted early this year, which showed that "as far as the people are concerned, Rizal is their National Hero."

Ocampo noted that Rizal led "by a huge margin" of more than 80 percent. His "contender," Bonifacio, was "a far third" with only 1.9 percent.

But he said Filipinos should stop making the National Hero title such a competition among the 19th century heroes.

"Rizal, Bonifacio, Aguinaldo—they are all national heroes. It's not about asking young people 'Rizal or Bonifacio,' but telling them, 'You have two heroes. You have Rizal and Bonifacio,'" he said.

Ocampo also zoomed in on the fact that sandwiched between these 19th century figures was pound-for-pound king and Sarangani Rep. Manny Pacquiao, who got 2.8 percent.

"When you look at the list of names, there's Erap (former President Joseph Estrada), FPJ (Action King and presidential candidate Fernando Poe Jr.), Chiz Escudero... So you have to ask yourself, who names these heroes and why do the people consider them as such?" he added.

As his lecture came to a close, Ocampo expressed his hopes that "common things" like banknotes would "make us appreciate—or not appreciate—people."

"Later on, when you open your wallet, give it a second look and think not just about history. Ask, 'Do these bills embody what we think we are?' And maybe it should help us reflect on the nation that we want to be, the nation that we hope to be, and, more importantly, the nation that, often, we fail to be," he said. — KG/ELR,gmanewstv

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BSP to introduce 100-M crisp banknotes in the coming month

The Bangko Sentral ng Pilipinas will introduce into circulation a hundred million new generation currency (NGC) banknotes in time for the Christmas holiday season when crisp peso bills are all the rage, especially with children who get money as their aguinaldo.


These peso bills will be added to the almost 300 million currency notes already in circulation. Recently, the New Generation banknote won a top international prize in a recent design competition held in Singapore.

Despite the effort of the government to familiarize the public regarding these notes, several complains are being received by the BSP including the notes unattractive design which can be considered ironic in spite of the recent award it bagged.

The public is also being warned that counterfeit money will be out again in mass this holiday. People are being to be cautious and scrutinize bills passed on to them especially those of higher denominations.

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BSP Notes won top prize despite controverisies

The Bangko Sentral ng Pilipinas will introduce into circulation a hundred million new generation currency (NGC) banknotes in time for the Christmas holiday season when crisp peso bills are all the rage, especially with children who get money as their aguinaldo.

These peso bills will be added to the almost 300 million currency notes already in circulation.

The NGC banknotes recently won a finalist award for Best New Banknote Series in a conference in Singapore, despite being criticized for some errors and controversies.

Earlier this year, these notes became the subject of political and religious discussions due to the fact that some of the details were either not correct or insufficient.

Moreover, the new notes carry the slogan "PINAGPALA ANG BAYAN NA ANG DIYOS AY ANG PANGINOON" which has outraged some religious sects.

Best New Currency Feature?

The NGC version of the 500-peso and 1000-peso bills have an additional feature known as an optical variable device (OVD) patch and had won in the category of “Best New Currency Feature" — comparable to the dollar and Euro bills.

The OVD patch is a reflective foil that bears the image of BSP Logo with a parrot on the 500-peso bill and the South Sea Pearl inside a clam in the 1000-peso bill, which changes colors when the notes are rotated 90 degrees.

“The judges must have been impressed because of the beautiful combination between the security features and the design itself, and the play of colors," said BSP Vice Governor Diwa Guinigundo in an interview with Saleema Refran on GMA News TV's SONA.

The new bills were printed in France and are composed of 20 percent abaca fibers. But by the end of next year, the BSP expects to be able to print NGC banknotes here in the Philippines.

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Revalidados: The Rare Holed Coins of the Philippines

Counterstamped coinage of the Philippines during the Spanish rule is in fact the hardest to collect of all numismatic rarities of the Philippines. Due to few available references for collectors like that of the books of Dr. Orphilla-Fortich and Pablo De Jesus, no other local numismatists have continued the study of Philippine Counterstamped coinage since.

Several individuals attempted to make further research on countermark coinage such as the prominent Barilla co-founder Dr. Benita Legarda, and other known officers from the organization Philippine Numismatic And Antiquarian Society (PNAS) but the short lived effort that managed to acquire some important specimen such as the SASTRE countermark for the BSP Money Museum have only produced facts that have already been outdated by time and the need for further expanding the avenue of research on the subject of Philippine Counterstamped coinage.

On March 13^th October 1828, Don Mariano Ricafort, Captain General of the Philippine Islands, a subdivision of the Vice-Royalty of Mexico, issued an edict introducing a system of marking the “pesos y onzas de oro” produced by the “provincias insurectas y gobiernos revolucionarios” of the South American continent so that such subversive words as “Republica”, “Indepencia”, and “Libre” commonly seen being bannered on the newly coined silver crowns of Peru, Bolivia, Colombia, and others be obliterated. The Spanish mint introduced machinery that could re-coin such silver crowns defacing them with their original legends and be replaced instead with that of “Habilitado por el Rey N.S.D. Fernando VII”, surrounded by a wide serrated border. The authorities of the still remaining colony in the East, the Philippines, desperate to oppress the awakening of the revolutionary spirit, devised a system that would not allow the flow of the new revolutionary coins into the Philippines.

Though crude and still not tested, the re-coining process was initiated in the year of 1828 by stamping the new coins with the large “MANILA” to assert the colonies restriction that otherwise guaranteed acceptance for trade and commerce. The production was however halted after less than 5 years of operation because the die easily worn out and later broke down thus, the authorities have decided to replace the die with a much simpler oval or circle countermark.

It was not until the 27^th of October in the year of 1832 that Don Pascual Enrile, the new Governor of the Islands, resurrected the mint’s stamping office replacing the complicated procedure with a much simpler oval punch. During that same year, the local authorities implemented the piercing of foreign and older coins as similar to modern day demonetization therefore making them obsolete and not for circulation anymore. Piercing was usually done and placed on the 12 o’clock on the obverse of the coins that have therefore created holes on the coins similar to that of medals and amulets. The countermark coinage of 1832 was not only for the purpose of stamping but otherwise for the revalidation of the obsolete or pierced currencies.

In the strict sense of grading coins, pierced or holed coins have to be graded less or appraised at a lesser value which would be considered degrading to the coins catalogue value. However, there is always an exemption to that rule and this can be applied to revalidated coins.

Historical records however does not indicate if the piercing of coins were officially done by the mint itself or by supervision to its citizen, whether voluntary or mandatory, or with application of standard tools or not but for some reason however, only one thing is for sure, only a handful of revalidated coins have surfaced in the past and each specimen can be considered unique to its own category.

The policy of revalidation however does not only occurred during the reign of Ferdinand VII, the later reign of Queen Isabel II otherwise adopted the same policy. However, it can be noted that the implementation of the policy that time was rather conservative and stricter which manifested on the specimen that have surfaced. The YII countermark can only be seen on F70 countermark revalidated coins and this can be proven by all specimens that have been previously collected. No specimen that only have “YII” or Isabel II countermark been placed either one or both holes of pierce coins without initially been stamped either by the “1828-1830 Manila” or Ferdin VII oval countermark have ever been found. There are YII countermarked holed coins but these however cannot be considered connected to the same type of coins such as the coin below.

Yet the cream of the crop still has its own cream on top. Among the favorite specimen of the revalidated coinage is the 1828 MANILA with a Ferdin VII oval countermark on its hole previously sold in an auction held by PNAS several years ago. Also a specimen to be considered unique is a Peru Libre 1823 with triple countermark, F70 on obverse and YII on both sides of the hole. Another impressive specimen is the Ferdin VII 8 reales minted in Zacatecas Mexico with triple countermarks including both Ferdin VII and Isabela II countermarks. However, what makes this coin special are the two different countermarks placed on each holes, F70 on the obverse and YII on the reverse.

Most noted specimen with two countermarks on both holes has one monarch’s countermarked placed on both holes either with Ferdin VII or Isabel II only. Different monarch’s countermarks are excessively rare and can be considered as a valuable treasure of Philippine numismatic.

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The Platinum Amulet (Anting-Anting)

This artifact is perhaps the most significant discovery in Philippine history. Never before expected that this rare metal would be present in the Philippine and in such period of our colorful past. Anting-anting is unique to Philippine culture and still baffle historians up to this day. There are so many varieties that have surfaced in the past and yet none have ever traced its maker nor those significant people who have worn these talisman.

What makes this piece so important is because it is one of a kind. Platinum is a very rare metal and the existence of this metal in our history proves that Spain did bring platinum to the Philippines during their reign. Numismatist only became aware of the existence of Platinum in Philippine numismatic when then young lawyer,. Willam Villareal reported a 2 peso Isabel struck in platinum during the late 70's. Spain did utilize Platinum for counterfeiting coins for their South American colonies during the reign of Isabel II. It has never been accounted though in our historical records if it had been done otherwise in the Philippines aside from the discovery of Villareal.

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1808 Peru 2 reales with Ferdin VII and serration countermarks (Double Countermarks)

In 1832, Ferdin VII ordered the colony to have its coin countermark due the shortage of coins for the Philippines. The Manila counterstamp was a failure and a simple counterstamp was instead ordered as replacement.

Counterstamping of lower denominations were forbidden and thus only 4 to 6 specimen of 2-reales and 4-reales counterstamp are believed to exist. There were no reports of Ferdin VII countermark on 2 pillar portrait reales or any pre-revolutionary coinage of the Spanish colony. What makes this coin exceptional and unique is it has 2 distinct countermarks, the first one is the F70 on the obverse and on the reverse is serrated countermark on the reverse.

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1862 Isabel II MANILA Junio 21 Inauguracion Del Obras Fuente Tubular

A similar medal issued during the reign of Queen Isabel shows the inauguration of the Manila Mint in 1861. It was only known among Philippine historians that  there were only water utility medals issued by Spain such as the 1882 Alfonso XII medal commemorating the opening of the Sta. Cruz fountain and first modern water pipe system of the City of Manila.

There were no reports however of bridge medals besides than the occasional bridge tokens that were discovered years ago, the rarest of which was from the later part of the 19th century.

This medal is otherwise believed to have been struck in Manila since the same design was used in the medal to commemorate the opening of the Manila Mint. No reported medal was struck for bridge inauguration and this specimen has only been known in existence on this modern day only. It is struck in silver and weighs around 5 grams.

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Sto. Tomas...then UP, now Ateneo...what's next?

The year of 2011 is the year of overhauls and overprints of the current Philippine notes. The most controversial of which, is the issue behind some landmarks of the country and the proper way of writing scientific names, the portrait of figures who were made to look younger, the unattractive and eye sore bright colors, and so on. Most controversial among the changes is the phrase placed on the face of the banknote itself aside from the confusion it brought to the public as they became unfamiliar with the association of the notes color with its face value.

Bangko Sentral Ng Pilipinas (BSP) quickly withdrew the notes and instead of revising the notes errors has instead re-issued the previous design and just changed the signatories to the current President of the Republic and the current Governor of the Central Bank, Benigno S. Aquino III and Amando M. Tetanco Jr respectively.

Last July, BSP issued the 100-piso bill which bears the overprinted logo of the University of the Philippines College of Law in celebration of the 100 years of Excellence in Law (1911-2011) of the premier public educational system of the country. This is the second time, BSP issued 100-piso bills which bears an overprinted logo of the institution as the University of the Philippines system itself celebrated its 100^th year foundation day last 2008.

This month of August, BSP again issued another 100-piso overprint but this time with the logo of the Ateneo De Manila College of Law as the institution itself celebrates its 75^th year foundation day( 75 YEARS ATENEO LAW SCHOOL AD MAJOREM DEI GLORIAM).

The 100 pesos which bears the date 2011 (similar to P194), but with blue 75 YEARS ATENEO LAW SCHOOL and the latin phrase AD MAJOREM DEI GLORIAM ("FOR THE GREATER GLORY OF GOD") overprint on the watermark area.

This is the third time this year that BSP notes hosted the foundations of the leading educational institutions in the country, earlier this year the University of Sto. Tomas foundation day was hosted on the 200-piso bills as they celebrate their 400-year foundation.

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Migration to Gold increases as Market uncertainty continues

Last Wednesday -- which was the worst day for both the dollar and US equities -- the average price of US Mint-manufactured gold rose to $1952/oz. That's about $130/oz higher than gold futures got that day.

Meanwhile, Gold continues to break all-time records as uncertainty and lost of confidence hammer the U.S. dollar. There were times Gold was even at par or more with Platinum which were never seen before.

Gold dealers on Ebay continue to profit from the market tremors brought by the sudden surge in the prices of precious metals especially with Gold. In demand right now are bullion coins most likely falling from .900 or of higher purity.

Bangko Sentral Ng Pilipinas (BSP) expresses that despite the falling value of the dollar, they are still confident with the beleaguered currency as the current dollar reserve rose to %16. Though BSP remained optimistic with the current economy as credit rating agencies upgraded the Philippines credit worth to BB+, changes in the prices of commodities such as oil and wheat have become the headaches of most economist as prices become more unstable and harder to forecast.

Bargain hunters in the Quiapo black market are scouting the area for possible opportunities since local bullion market still takes a while to adjust and effect of the price changes in COMEX is slower. Local auctions are now attended more than ever by precious metal prospectors rather than collectors as more and more players now participate in the trade of precious metals especially with Gold.

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Gold soared to $1700 despite U.S. credit downdgrade

Gold soared to record highs above $1,700 an ounce on Monday as an unprecedented downgrade to the U.S. credit rating sent investors scrambling out of riskier assets, hammering equity markets and the dollar.

Both U.S. gold futures and cash gold could rise further if pledges by the Group of Seven nations to support battered financial markets fail to bear fruit as investors turn their attention to the Federal Reserve's policy-setting committee, the FOMC, meeting on Tuesday.

The one notch downgrade by Standard & Poor's of the U.S. long-term rating on Friday added to the threat of contagion from the euro debt crisis, fears over recession in the United States and even the possibility of a third round of U.S. quantitative easing.

Spot gold touched a lifetime high around $1,714 an ounce, its 11th record in 19 sessions -- lifting the price of silver by more than 5 percent. The U.S. December gold contract also hit a record about $1,718 an ounce.

"What people are realizing is that dollar and euro currencies have real problems and I think that's manifesting in the gold price," said Dominic Schnider, an analyst at UBS Wealth Management.

"That's why we increased the gold price to $1,800, but I would say the way things evolve right now I really could even imagine $2,000 being in the cards. The chances have increased that we'll reach $2,000 -- the forecast remains 12-month $1,800, but the risk is that we will actually hit toward $2,000."

Premiums for gold bars were mostly steady as purchases from investors who are worried about the state of the global economy helped the physical market offset pressure from record bullion prices. Premiums for gold bars were at $1 in Hong Kong and 60 cents in Singapore.

Finance chiefs from the world's industrial powers pledged on Sunday to take whatever actions were needed to steady financial markets, spooked by the political wrangling in Europe and the United States over slashing their huge budget deficits.

Treasury Secretary Timothy Geithner said U.S. Treasury debt is as safe as it was before the S&P downgrade, urging European leaders to ensure there is an "unequivocal financial backstop" for euro zone governments facing fiscal and debt problems.

"I guess the uncertainty in the financial markets is keeping gold prices underpinned. It's essentially safe-haven buying," said Ong Yi Ling, investment analyst at Phillip Futures.

"One of the events that investors will watch is of course the FOMC meeting that is scheduled Tuesday ... investors will scrutinize the statement on the assessment of the economy and outlook for monetary policy."

Investors are watching for any statement on whether the Fed will ease monetary policy further.

Gold priced in sterling jumped to a record around 1,043 pounds following gains in dollar-priced gold. Bullion priced in euro was also at an all-time high.

Shares tumbled on Monday despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded the U.S. credit rating, but the euro jumped on hopes the ECB will act to stop Europe's debt crisis from engulfing Italy and Spain.

The lingering economic crisis has been a boon for safe havens like gold, which has risen for six successive weeks and is up 13 percent since the start of July.

Gold, which has gained more than 20 percent this year, had shrugged off data showing the U.S. economy generated 117,000 jobs last month and unemployment fell to 9.1 percent.

The dip in the jobless rate reflected more of a contraction in the size of the work force than an improved employment picture.

"I think troubles in Europe are also undermining markets. Progress in dealing with Europe sovereign debt issues is painfully slow," said Natalie Robertson, a commodities strategist at ANZ.

"But prices are overbought at the moment. If you look at the RSI, it's above the 70 level. If you look at technicals, it could be vulnerable to some profit taking."

Data released by the U.S. Commodity Futures Trading Commission showed managed money in gold futures and options raised their net length to a five-year high in the week up to August 2.

In the energy market, crude fell more than $2 a barrel on Monday on the S&P downgrade.

BSP Monetary Board meanwhile decided to raise key policy rates by 25 basis points for the second consecutive policy meeting in May 2011 as baseline projections indicated that the inflation target for 2011 could be at risk.

The MB noted that while commodity prices had moderated somewhat in recent months, they continued to pose a risk to the inflation outlook given structurally strong demand from emerging economies amid persistent supply constraints. At the same time, the reserve requirements (RR) on deposits and deposit substitutes of all banks and non-banks with quasi-banking functions was raised by one percentage point (ppt) effective 24 June 2011 to prevent possible additional inflationary pressures from excess liquidity. Expectations of continued strong capital inflows, driven by positive market sentiment over the favorable prospects for the Philippine economy, could fuel domestic liquidity growth and add to future inflation risks.

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BSP boasts notes new security features

In light of the issuance of the new peso bank notes, the Bangko Sentral ng Pilipinas (BSP) has called on the public to be aware of the security features added to the bills in order to easily detect counterfeits.

Speaking at the sidelines of the launch of an anti-counterfeit campaign spearheaded by the BSP in partnership with IT firm Hewlett-Packard (HP), officials said that while the new bills are expensive and difficult to reproduce, the public can still be fooled if they do not know the security features of the new bank notes.

"The BSP has invested a lot of money and effort so our money can be secure from counterfeiters," said Fe dela Cruz, the BSP's director for corporate affairs.

"But if [the people] don't know how to identify counterfeits, then our investments are useless," she added.

New security features

According to Maja Gratia Malic, manager of the currency analysis and redemption division of the BSP, previous security features are still present in the new notes but the difference can be seen—or felt, for that matter—once one touches the bills.

"Pag sinalat mo [ang bagong bills], naka-emboss iyung pangalan, for example, 'Dalawampung Piso' at yung 'Republika ng Pilipinas'," Malic said.

Dela Cruz said this was achieved through a process called "intaglio printing," which uses more ink and takes three to four days to dry, making it difficult to be copied just by anyone.

Aside from this, Malic said the security thread usually seen in the older version of the bank notes are still present, but were made larger so as to appear more visble.

"Sa halip na 1.4 millimeters lang, ginawa nating 4 millimeters, lalo na yung P100 to P1000 pesos," Malic said. "Madali itong makita, and it changes color from green to red and vice-versa."

The usual watermark which can be seen when the bill is brought up against the light is still present, but dela Cruz said they have added the watermark of the denomination as well.

"[These] were incorporated in the printing process, and is considered an indelible mark of the bank note," she added.

In addition, inscription has been placed on the bill, the lower part of which is visible as white markings in front while the upper part is represented as dark markings at the back of the bill, both of which should appear as one coherent working when brought up against a light.

The inscription, Malic said, is written in "baybayin," a pre-hispanic script used by early Filipinos. "The script means 'Filipino' when translated," she added.

Reporting counterfeits

When a person receives a suspicious bank note that appears to be counterfeited, dela Cruz said it should be taken to the bank immediately.

"The bank will then give the person an acknowledgment receipt, and the bank will forward the suspicious bill to the BSP," she said.

After determining if the note is counterfeit or not, dela Cruz said the central bank will inform the bank immediately so the note can be returned if proven original.

Dela Cruz maintained, however, that the BSP will not replace bills found to be counterfeited.

"In principle, the bill has no value, so we do not have to replace it," she stressed, adding that this is the primary reason why consumers should be vigilant about detecting counterfeit money.

"It's like [a warning]. People should be more conscious [about the security features] before accepting the money," she added.

Economic repercussions

This early, Malic said some have attempted to replicate the new version of the Philippine peso bills, but these incidents are too few and considered "negligible."

"It's not alarming, mga two or three pieces lang, at very dull and smooth ang mga itsura. It's easily recognizable and smooth to the touch, compared to the rough feel of our new notes," she added.

In general, dela Cruz said, patronizing counterfeit goods jeopardizes the operations of legitimate companies in the country.

"These companies pay taxes and wages and invest a lot of money to train their personnel," dela Cruz said. "Pag mas marami ang counterfeit, mawawalan ng trabaho ang mga tao."

Just recently, the government destroyed more than $39 million (P1.6 billion) worth of counterfeit goods consisting of fake handbags, sunglasses and pirated DVDs, among others.

Despite these intensified efforts against fake goods, the country remains on the US blacklist of intellectual property righs violators.

Initial criticism

When they were first released, the new bank notes were criticized for several geographical inaccuracies in the maps printed on the back of the new bills.

Several online observers said that the Philippine map on the P1,000-peso bill overshot the location of the Tubbataha reefs by about 300 kilometers.

Some also pointed out that the Batanas islands, the northernmost part of the country, were conspicuously absent in the map on one of the new bills.

The BSP had said that they will be correcting these inaccuracies with the next print batch, stressing that "there is nothing perfect in this world" and that they will look into public criticism.

President Benigno Aquino III, meanwhile, lashed out at critics of the new notes, saying the bills are "not a map, it's not a cartographer's sketch." — TJD, GMA News

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BSP presented Jose Rizal on Philippine Currencies Since 1903 to descendants

The Bangko Sentral ng Pilipinas (BSP) pays tribute to national hero Jose Rizal, whose 150th birth anniversary is on Sunday, June 19, through an exhibition of Philippine banknotes and coins. The exhibit “Rizal in Our Midst: A Homage to Greatness” showcases the different denominations ranging from five centavos to as high as 100 pesos since 1903 where the image of Rizal or his monument appears. Today, Rizal is on one-piso coins, making him accessible to most Filipinos. About five billion one-piso coins or 30 percent of total coins are in circulation today. On June 19, BSP will launch a commemorative medal bearing Rizal’s image, his signature and his handwritten phrase “Adios Patria Adorada.” BSP will also issue special edition legal tender one-piso coins bearing Rizal’s image and the “150 years” inscription before the end of 2011. At the opening of the exhibit, BSP Gov. Amando Tetangco, Jr. (center) flanked by Monetary Board Members Alfredo Antonio and Nelly Favis-Villafuerte presented to the descendants of Rizal a framed replica of Jose Rizal banknotes, coins and commemorative medals. They are (front row): Amelia Garcia Yulo, Enrique Herbosa, Gemma Cruz-Araneta, Mia Faustmann, Atty. Ramoncita Reyes and Ismael Guerrero Cruz, Jr. (back row): Patricia Herbosa Grau, Jose Rizal Lopez, Vivencio Villaruz, Jr., Alberto Filart, Securities and Exchange Commission Chair Teresita Herbosa and Carmen Cruz. The family members descended from Rizal’s brother Paciano and sisters Lucia, Saturnina, Maria, Narcisa and Olimpia.

Rizal coins and medals have been popularly produced and minted by other private organization, relgious sect or cults, educational institutions, and other foreign countries. Some medals are even treated with Godly respect and power like those of Rizalistas and other local masonic organizations.

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US Mint May 2011 Coin Production Surges, Grant $1 Mintages Revealed

The amount of coins coming out of the United States Mint surged in May 2011, according to the latest coin production figures from the bureau.

The totals were the highest of the year, the second best over the past twelve months, and revealed the final mintages for the Ulysses S. Grant Presidential $1 which launched into circulation May 19.

The Mint pressed 807.41 million coins for circulation in May, topping the previous month by 26.1 percent and year ago levels by 22.9 percent.
Monthly US Mint Coin Production Figures / Mintages
Month Mintages Rank
May 2011 807.41 M 2
April 2011 640.17 M 9
March 2011 485.5 M 12
February 2011 523.14 M 11
January 2011 764.73 M 4
December 2010 80.200 M 13
November 2010 531.46 M 10
October 2010 730.22 M 6
September 2010 690.02 M 7
August 2010 743.78 M 5
July 2010 772.08 M 3
June 2010 918.94 M 1
May 2010 657.22 M 8



The production gap grew wider last month between the two United States Mint facilities responsible for striking American circulating coins, which are the Philadelphia and Denver Mints. The lack of Philadelphia quarters was a deciding factor in the balance.

Both Kennedy half dollars and Native American $1 coins were silent for a second straight month. The United States Mint again focused its attention on smaller denominated coins. The combined Philadelphia and Denver Mint totals for the cent, the Jefferson nickel and the Roosevelt dime were easily the highest of the year. As always, Lincoln cents led the pack. They accounted for 55 percent of the entire coin output.
May 2011 US Mint Coin Production
Denver Philadelphia Total
Lincoln Cents 236,140,000 204,800,000 440,940,000
Jefferson Nickels 65,760,000 67,680,000 133,440,000
Roosevelt Dimes 93,000,000 121,000,000 214,000,000
2011 Quarters 16,800,000 0 16,800,000
Kennedy Half Dollars 0 0 0
Native American $1s 0 0 0
Presidential Dollars 1,110,000 1,120,000 2,230,000
Total 412,810,000 394,600,000 807,410,000



As mentioned, the latest coin production figures reveal Ulysses S. Grant Presidential $1 mintages. Including the Grant dollar, there have been 18 Presidential $1 coins released since the series debuted in 2007. The Grant $1s rank fourth in terms of least produced. Their combined 76.02 million mintage falls behind the:

* 2011 Andrew Johnson $1 (72.66 million)
* 2010 James Buchanan $1 (73.36 million)
* 2010 Millard Fillmore (74.48 million)

How the Grant $1 compares against past Presidential $1 coins may be seen in the table below.

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BSP to produce Rizal's 150th Anniversary medal

During the centennial celebration of Rizal's day, the Central Bank of the Philippines minted in limited quantities 50 centavo and 1-piso coins showing two angles of Rizal's bust. The coins were produced in the United States and were made of .900 fine silver.

The mintage of both coins were just limited to just 100, 000 pieces each, and were assigned as KM 192 and 193 in the Coin Catalog.

Descendants of Dr. Jose Rizal are working with the Bangko Sentral ng Pilipinas (BSP) to produce a commemorative medal in time for the national hero's 150th birth anniversary this June.

Ramoncita Reyes, great granddaughter of Saturnina Rizal, the hero's eldest sister, said the family decided to participate in the national celebration by creating a gold-plated medal.

“This commemorative medal will be produced for a limited number but it won’t be used for commercial transactions,” said Reyes.

The coin-like medal features Rizal's image on the front while the back carries his signature and “Adios, Patria Adorada”, taken from “Mi Ultimo Adios” (My Last Farewell) written before he was executed in 1896.

The reverse side also depicts sunrise, marking the time of Rizal's execution in Bagumbayan (now Luneta Park).

“'Adios, Patria Adorada' for us, relatives, does not only mean goodbye to the country. It also means he is hoping that the country would move on be well,” said Reyes.

She added the BSP is yet to announce how many Rizal commemorative medals it will produce distribute and at what price will these be sold.

Reyes, who belongs to the fourth-generation of Rizals, said she did not personally feel any extra pressure to do well in school.

“I believe every student is expected to do good in school by their parents. In our case, it's not just because we are descendants of the national hero,” she said.

Reyes, meanwhile, lamented the country's current condition. “It’s been 150 years (since he was born), but where are we now? It hasn’t changed much since he left.”

She is hoping, though, that the youth will still carry on the national hero's ideals.

“He (Rizal) would always want to mentor the youth. I hope the young generation would become more aware of his ideals just like those in foreign countries who believe in him.”

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The Papal Coinage and Medals

Not known to many Filipinos, Bayani Rumbaoa is the official engraver and designer of the famous Pope John Paul II commemorative coin during the celebration of the World Youth Day held in Manila in the year 1995. The year was the second visit of the recently beatified Pope in Manila and his first as a Pope was in the year of 1981.

During the Pope’s first visit, Imelda Marcos commissioned Tupas Medal and Coin Engraver to design and engrave medals that would feature the late President’s bust, Ferdinand Marcos and that of the Pope and another medal where both busts are placed on each side of the medal.

Contrary to popular sources on the internet, Rumbaoa is not the first coin engraver of the BSP but Tupas was commissioned by the BSP prior to its establishment during the abolition of the earlier design inherited from the Commonwealth where the design of Melecio Figueroa was utilized. In 1981 at the earliest years of the BSP, the President himself ordered several medals from Tupas that would serve as pattern for the planned coins of Bangko Sentral Ng Pilipinas. One of those designs was exclusively ordered to commemorate the visit of Pope John Paul II.

Tupas was not new in designing and engraving the Papal medal and coin. In 1970, during the visit of Pope Paul VI, Tupas was commissioned by the Central Bank to produced medals and pattern coins for the occasion. The preferred design where the President and Pope’s bust were placed on both side of the coin was produced for general circulation and were minted both in proof and uncirculated and were struck in nickel, silver, and gold catalogue in Krause as KM 202, 202A, and 202B.

These coins were minted in Franklint Mint located in the United States where other coins of the Central Bank were also being struck at that time.

Franklin Mint was otherwise commissioned to strike the Papal coinage in 1981; these coins were the 50-piso silver coin (KM 233) and the 1500-piso gold coin.

During the last visit of Pope John Paul II in 1995, several coins were struck by different mint houses to commemorate the occasion. Some issues remain unofficial and with record of mintages still unknown. Bangko Sentral Ng Pilipinas officially released two (23) different of coins, the first one is struck in silver with the denomination of 100-piso (KM 264) and the second one is struck in gold with a denomination of 2500-piso (KM 266).

Pobjoy Mint of England otherwise produced two (2) coins for the occasion, they were issued in 100 and 200-piso denominations. However, these coins are very rare with mintages still unknown.

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Holy Week Special: The Sacred Money Part II

Holy week or “Mahal na Araw” as we call it, is a very special occasion among Filipino Christians as we recall and dramatize the crucifixion of Jesus Christ. Among the traditions that we inherited from the Spaniards is the “pabasa” as a unique practice among the local Christians where the “Passion of Christ” is sang rather than read for the whole day within a week. Famous it is that even our colonizer admires such practice.

This is also a special occasion among the practitioners of witchcraft, faith healing, and holders of talisman as they re-energized their powers and learn more from their peers thru gatherings or conventions that are especially held every Good Friday of the Lenten season. As a numismatist and historian, talisman or anting-anting amulet never fails to amaze me because of its uniqueness and the mystery behind.

The Sacred Money or Agimat is a very unique aspect of numismatic that can only be found in the Philippines. Mostly either made or casted in bronze and brass, and rarely in silver or other precious metals, these amulets mostly appeared during the period of revolution from Spain and Philippine-American War.

Among the amulets, the silver amulets and those made with other precious metals baffle historians and numismatic researchers alike because it appeared from nowhere and neither without recognizable purpose except that it depicts face value in peso. Studying historical records, the denomination was first introduced in the Philippines during the later reign of Queen Isabela II of Spain and it was first introduced in the form of Gold. The “Un Peso” denomination became acceptable in silver as Spain slid in political and economic turmoil during the reign of Alfonso XIII when the one year type “Un Peso” dated 1897 reached the Philippines during the last years of Spain in the colony. Therefore, we know for a fact that these amulets as most historians agree were first struck during that same period.

Some numismatists and local coin dealers suspect that most of these amulets were manufactured in the Southern Tagalog region particularly in Batangas were there were many silver smiths during that period and some even argue that it was minted by several Masonic organizations to commemorate or celebrate an important event. But why most of these bear the dates of 1001, 1770, and 1771?

The date 1001 is particularly significant with the Moslems and not with the Christians particularly made famous by the story “The Arabian Nights”. Meanwhile, the date 1771 was not technically the last minting of the famous coinage “dos mondos” and in relation to the country’s history does not connect to any memorable event of the same year.

In mathematical analysis, 1001 is the first and equal symmetrical number with equal number “1” and “0”. We can even see a distinctive "personality" in these various kinds of number behavior complementing three personality groupings.

The vertical type (based on unconscious specialisation of personality) complements the difference (i.e. of given number and reverse) which is always divisible by 9 (i.e. in base 10).

The horizontal type (based on conscious specialization of personality) complements the sum (i.e. of given number and reverse with even total of digits) which is always divisible by 11.

The diagonal type (based on both conscious and unconscious specialization of personality) complements the difference (i.e. of given number and odd total of digits) which is always divisible by 99.

That will point us to the Holy Family or Sagrada Familia which is always placed either on the reverse of the 1001 or above it. The 1001 therefore is not a date but a representation of psychological and personality perfection.

There are also numerous symbols included in the medal that are foreign in origin like the crossed keys which is the symbol of the Vatican, the Sun’s face which can be found on the coinage of South and Central America like the Rio Plata of Colombia, the crossed-wing Eagle with a snake which is from Mexico, and the Cap and Rays which is also from the same region.

New findings also suggest that these medals / coins were not defaced 8 reales or USPI peso but made and struck out of several distinct dies as suggested by their weights and dimensions. Most of them weighs between 30 to almost 40 grams with measurement ranging from 35 to 42 millimeter making me suspicious otherwise that these amulets were struck using not only of silver but a combination of gold and silver that could have made it heavier than coins of the same size. (to be continued)

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