Historic, Historical Gold Bonds
Historical Gold Bonds are collectors' items. There are all sorts of historic bonds that were issued to fund building projects of one kind or another or private corporate enterprises, such as railroads. Some are rare, and therefore command a relatively high price among collectors.
A Bond is a Promissory Note, issued by a corporation or government toward the completion of a project. A Bond is a means for that corporation or government to borrow money from the general public in small individual increments. In return for the use of the Bond owner's money, interest is paid on a pre-determined schedule.
Every Bond has a maturity date. On that maturity date, the Bond owner can cash in the Bond for his original investment amount and any interest due. Not all Bonds retain their value since it's not unusual for a project to fail; like DEBENTURES, Bonds are only as good as the issuer.
The only Bonds backed by the United States Government are issued by the U.S. Treasury Department. See the U.S. Treasury Department's Bureau of Public Debt web site for more information relating to Bonds and U.S. Treasuries.
Whether the Bonds in question were issued in the United States or in Paraguay, or in Germany, or anywhere else, every Bond fund is closed after a reasonable amount of time. In other words, if you don't cash them in a timely manner they are no longer redeemable.
Historical Gold Bonds are a popular "commodity" in the the UNDERGROUND NETWORK. The most frequently offered are Pre-World War II German Gold Bonds. After that come Railroad Bonds. All are stated as being redeemable, frequently in gold.
You are made to jump through an infinite variety of hoops involving bank-to-bank transfers and private meetings. You are offered so-called authentication documents attached to impressive appraisals, often supposedly drafted by attorneys, accountants, bank officers, and dealers.
The fact is that in these scams there seldom any Bonds of any kind. If by chance the fraudster does have old Bonds in his/her possession that actually belong to them, they are only worth the collector's value. There are no huge interest payments, no cache of gold sitting in Switzerland to back them, and the German Government will not recognize them as anything more than items to display in a small museum.
They certainly cannot be leased or used for collateral to enter into another scam - the HIGH-YIELD INVESTMENT PROGRAM - and they cannot be used as collateral to purchase a LETTER OF CREDIT or TREASURIES, all of which you may be told by these fraudsters or a middleman.
As for the Railroad Bonds, while very pretty and artistic, at most they are only worth around the price of dinner for 2 at an expensive restaurant, and that's only if they are very rare and desirable.
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