GOLD HAS GONE UP.

Pukekohe & Waiuku Times, Volume 5, Issue 165, 14 April 1916, Page 4 (Supplement)

GOLD HAS GONE UP.

BUT YOU NEEDN'T WORRV

ABOUT IT

In common with most other commodities, gold has gone up in price since the war.

Some people labour under the delusion that the price of gold is a fixed price; that it cannot go either up or down.

This is not so. There is a minimum price for gold; but there is no maximum price. The minimum price is £3 17s 9d an ounce, which is wnat the Bank ot England is obliged by law to pay tor as much gold as anybody chooses to offer. The Mint also must accept all the gold anybody cares to offer it, and not only that, but it must coin it into sovereigns free of charge. Moreover, the Mint's price for gold ,s as the rate of £3 17s io£d an ounce, lid more than that of the Bank of England, But then tho man who takes his gula bullion to the Royal Mint has to wait his turn to have it converted into com.

So most people having raw gold prefer to take it to the Bank of England, auu accept the slightly lower rate. Sometimes, however, as is happening at present, the Bank has to pay a little more than this in order to outbid foreign competitors v.ith a view to strengthening its reserve.