Although gold deposits have been found in all parts of the Philippines, Chinese traders in the 3rd century referred to Luzon as the "Isle of Gold". The cities of Manila and Olongapo are located on the island of Luzon. Gold mines in the Philippines yield more than 30 metric tons per year, nearly the same amount as before the industry collapsed due to the Pacific war (during World War II). I don't know what the gold value is these days, but that's a whole lot of gold.

Yamashita's Gold (or Yamashita's Treasure)

As you can probably guess, the Philippines is rich in mineral resources. It makes me wonder why anyone would concoct a story like Yamashita's gold. Supposedly, the World War II Japanese General Tomoyuki Yamashita hid gold and golden treasures in caves, tunnels and underground complexes somewhere in the Philippines.

There must have been some evidence to its existence, or so you would think, because a Philippine treasure hunter named Rogelio Roxas filed a lawsuit in the state of Hawaii in 1988 against the former President and his wife, Ferdinand and Imelda Marcos, and won. He claimed to have found the gold and then had it taken away from him when Marcos found out about it. He also claimed to have been beaten and imprisoned for up to a year by the Marcos regime.

The Philippines Gold Rush

In 1995, a Philippine law was passed to allow foreign investors 100 percent ownership of mines in the Philippines. The law was contested in 2005, but upheld by the Philippine Supreme Court. It is expected that several billion dollars will have been invested in the Philippines by next year (2010).

As usual, many Filipinos dislike the situation, citing it as another way for the country to be exploited. Filipinos should own and operate the mines, they say, without knowing that it takes a lot of money to open and maintain the mines — money that the Philippines government, as well as local investors, just don't have. Others state that mining ruins biodiversity while exacerbating natural disasters, while not benefiting the Filipino people.

Mining operations, be it Gold or any other precious metal, have been going on in places all over the world. Many economies of the US were founded on mining enterprises. As dangerous as mining can be, it does provide jobs for local residents — jobs that might not otherwise exist.

Owning and Wearing Gold in the Philippines

Like a lot of Filipinos I know, my wife is obsessed with gold jewelry. It's a close second to her desire for diamonds. Over the years, either through gifts or buying them herself, my wife has amassed a small fortune in gold jewelry. The necklace she wears is valued at well over USD $1000 by itself. The exact amount is unknown, but she has pawned it on a couple of occasions and received more than $1000 as the loan each time. The pendant is a huge, solid gold cross.

Investing in gold is a worthwhile pursuit in almost any place you may live, not just the Philippines. As paper money loses value, gold seems to keep its value. It's a good hedge against inflation. When it comes to the point where you need to sell gold, don't look to me for answers. I have never sold gold to anyone or any place. In fact, if I ever get into the position where I need to sell gold, I'll have to do research and learn how to sell gold without getting ripped off.

Wearing gold in public places in the Philippines isn't a good idea. That is, unless you want to lose that gold. In the city of Manila, gold necklaces, bracelets, watches and even rings (including the fingers) have been stolen from people who proudly wear their gold. The incidents have decreased since the 1980s, but it still happens. My wife won't wear her gold in public, even in the city of Olongapo.

Can you believe I don't own any gold (except through my wife)? I don't wear jewelry. Ever. The only thing I wear is a cheap watch with a Velcro wristband. I don't even wear a wedding ring, but that's a different story that I don't want to get into right now. The only thing I'll say about it is: Fat finger.

Pawning Gold or Getting Payday Loans

When you're in a tight spot and need cash, there are several ways to get the money you need in a hurry. Pawning gold pieces and gold jewelry is one way and getting payday loans is another.

It may seem unlikely, but payday loans (that are not through a bank) are more costly than pawning gold. The finance charges incurred by either method are excruciating and painful. My wife has done both in the past, so I know what I'm talking about. Luckily, neither of us is in the position where we need to get cash fast anymore. Until my wife leaves the US when neither of us will be employed (unless you count self-employed), we can get direct deposit advances through our joint checking account, if something unforeseen comes up.

With payday loans and direct deposit advances, there's a limit to how much you can get on short notice. By pawning or selling gold, I'm sure you're only limited by how much gold you actually own.

The History of Gold

I wouldn't know where to begin.

Gold has been used for financial transactions and ornaments since the beginning of recorded history. In fact, it's biblical. I can't get through a single historical reading session, and I really like reading history from different perspectives (country views), without gold being mentioned at least once.

I'm sure the history of gold in the Philippines is as rich as it is in any country. Because of the diverse history, however, I doubt much of it has been written down for people of the present day and age to read about.

• Retirees and other Americans Living in the Philippines
• The Philippines Mourns the Death of Former President Corazon Aquino
• The Three Seasons of Weather in the Philippines
• Typhoons and Floods in the Philippines
• Being an American in the Philippines has its Disadvantages