The recent run up in gold in only the beginning. For more than 6,000 years, the most sought-after form of asset protection has been physical gold.
Gold is the most liquid financial asset on the planet. It has no borders, is recognized throughout the world, and can easily be relocated or hidden. For this reason, owning gold represents financial privacy and independence. Gold frustrates the attempts of governments to completely control of the finances and lives of their citizens.
Gold performs the role as the only real money. Tyrants, dictators, ill willed leaders can’t undermine its value nor can politicians or bankers who print paper money at will, devaluing their currencies more and more each year. Unlike paper money, gold has held its value over the long run. For example…
Back in 1933, you could buy the equivalent of a Ralph Lauren suit of clothes with a U.S. $20 gold coin or a $20 bill. Today, that $20 gold coin, worth about $1,100, will still buy a nice suit of clothes. The $20 bill, however wont even buy a decent necktie at Sears.
During the great depression of 1929, cash was king because cash represented real physical gold. In truth, gold was king. While most assets plunged like a stone in the 1930’s, the price of gold skyrocketed.
In a depression, a recession, economic crisis, inflation or war, people seek financial security. They invest in assets that represent more than just a paper promise to pay. For many, that means owning physical gold.
GOLD PROVIDES SAFETY AND PEACE OF MIND
The past few years have not been kind to investors in the traditional markets. Investors and saver have lost over $8 trillion in market declines ranging from the stock market to the real estate market. Increasing unrest and instability throughout the world will lead to a greater need for financial security.
Is it possible that we will we see the kind of double-digit inflation that has plagued the U.S. in the past? Never forget the power of the Federal Reserves printing press. Due to the Fed’s recent record expansion of the U.S. monetary supply, it is likely that the U.S. dollar will continue to weaken. How much did a gallon of gas cost when you first got your driver's license and how much is it today?
"..Gold stocks are not money; they're speculative vehicles. And despite the strength in gold, the costs and risks of finding and building mines have gone up."
An unstable economy, with elements of both inflation and deflation, will make more traditional investment strategies obsolete. Gold coins should be a major part of every investor’s portfolio over the next turbulent years. Of course by now you have heard from investors that made their name in other assests all touting the value of phsyical gold and precious metals.
WHY GOLD PRICES ARE STILL CLIMBING
Gold has never had more favorable conditions for its bull run that is still in its infancy.
Global demand for gold exceeds supply by over 1,000 tons per year. Central banks have made up the shortfall- and have helped suppress the price of gold- by selling or loaning thousands of tons of their gold reserves.
However, all that is about to come to an abrupt end.
The bull market in the U.S. dollar is now over. As the dollar goes into a long-term downtrend, millions of foreigners will start re-directing their money out of the paper financial markets and into the world’s “other” proven reserve currency… Can anyone say Bear Stearns or the US Housing market?
All it would take to spark an explosion in the price of gold is one major event- an escalation of terrorism in the U.S….an expansion of the war in the Middle East…another stock market meltdown… or a major bank failure....Can anyone say Bear Stearns or the US Housing market?
Once the price takes off, panic buying could easily set in. If you are not in position before the price explosion starts, your opportunity for profits will be substantially deminished.
To safeguard your financial portfolio, we recommend that you place up to 33 - 50% of your investments in precious metals. The best way to own gold is in the form of privately held gold coins.
However, a shortage of gold coins is already developing. U.S. $20 double eagles are in very short supply and high demand. Sophisticated investors are quietly acquiring millions of dollars worth of non-reportable gold coins. When the crowd comes rushing in, supplies of these coins will evaporate and prices will surge as they did in 1979-80.
NON-DEALER REPORTING DETAILS
Virtually ever asset or investment which we own is highly visible, traceable, reportable and under the watchful, scrutinizing eyes of our Big Brother government. With the new cash and metals transaction reporting law and regulations, even cash, cashiers checks, money orders and most forms of gold transactions are reportable. In effect, the privacy, which was guaranteed by the Constitutions 4th Amendment, has, for the most part, disappeared in the area of investments.
If you sell bullion coins to a coin dealer, the dealer is required by law to report that sale to the IRS on Form 1099. That is one reason to avoid gold bullion coins. However, coins with a premium above 15% do not have to be reported by a coin dealer when you sell them. For example, the semi-numismatic $20 Liberty and $20 St. Gaudens have premium above 15% and are, therefore, gold coins which do not have dealer reporting requirements.
Every informed investor should own an asset that no one else knows about- a low profile, bearer type investment that leaves no tracks when bought or sold. Semi-numismatic gold coins fit the bill perfectly. These are the exact coins that the Superior Gold Group specializes in.
HIGHEST UPSIDE POTENTIAL
The semi-numismatic $20 Liberty and $20 St. Gauden gold coins currently have a 40-90% premium over bullion. (Numismatic coins have 500-5,000% premiums over their bullion content.) The premium on the $20 gold coins have expanded to 100% in recent years, and under certain bullish gold market conditions, could rise even higher. In a rising gold market, the semi-numismatic $20 Liberty and $20 St. Gauden coins have a substantially greater upside potential than a normal gold bullion coin.
Why? Unlike bullion coins, which are freshly minted by the millions each year, most semi-numismatic coins are nearly 100 years old and in very limited supply.
For example, if the price of gold moved up $100 an ounce, a bullion coin would move up a corresponding $100. However, semi-numismatic coins have historically doubled that movement.
PROTECTED FROM GOVERNMENT CONFISCATION
Unfortunately, many governments, including the U.S., have a history of confiscating gold bullion coins. In 1933, by Executive Order, the Roosevelt Administration declared it illegal for American citizens to own gold. Practically overnight, a law went into effect that forced Americans to turn over their gold or face up to ten years in prison. Gold was confiscated and replaced with freshly printed-paper dollars. The following is an excerpt from Roosevelt’s Executive Order (dated April 5, 1933):
All persons are hereby required to deliver on or before May 1, 1933, to Federal Reserve System all gold coin, gold bullion and gold certificates now owned by them or coming into their ownership on or before April 28, 1933…
However, there was one type of gold that was exempt from this Draconian law--- namely, “gold coins having a recognized special value to collectors of rare and unusual coins.” Stated in plain English, numismatic and semi-numismatic gold coins.
"..You have to report a bank account, but you don’t have to report a safe deposit box. "
Since 1975, Americans have been allowed to own gold bullion. During some future crisis, power-hungry politicians, eager to squeeze out the last drop of your civil liberties, could again make gold illegal and confiscate gold bullion bars and coins.
Could the current “war on terrorism” or "global bear market" give the government the excuse to call in gold bullion once again? In the event of another “government gold grab,” collectible gold coins have always been excluded from such a confiscation.
Call the Superior Gold Group today to get more information on placing your hard earned money on the gold standard!
888.969.6465
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