Four Ways to Preserve your Wealth and Make Some Profits

8/6/2019 Four Ways to Preserve your Wealth and Make Some Profits

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Four Ways to

Preserve Your Wealth and

Make Some Profits in 2011

Will the Republican wins in the Mid Term elections cause an immediate economic boom

or do we still have a rocky 2011 and maybe 2012? Will Obama and the democrats move to the

middle or keep governing from the left with anti-business policies? Do you risk everything in

the Stock Market or hedge your bet with tangible assets?

In this article we will cover four very specific tangible assets: precious metals, common

numismatic coins, rare numismatic coins and a unique investment program based on rare

numismatic coins. This is a basic how to guide backed up with 3rd

party resources, educational

tools and red flags of the industry. Remember the old Ronald Reagan Motto Trust but Verify?

Verify everything you do in this industry.

The first option is precious metals which include: gold, silver, platinum, bars, modern

day coins (post 1932) or rounds. You should not be paying more than 4% to 6% above spotprice of the metal to buy and you should be able to sell for spot. These prices should include

shipping, handling and insurance. If you are being charged more or offered less, you are being

gouged. It happens a lot in this industry, verify everything. Each of the precious metals has

strengths and weaknesses.

Gold is being pushed by fear and TV marketing. Ten years ago the ratio between silver,

gold and platinum was 17 oz. of silver to 1 oz. of gold and 3 oz. of gold to 1 oz. of platinum. That

ratio had stayed pretty static for over 50 years. Today, the ratio is 59 oz. silver to 1 oz. of gold

and 1.2 oz. of gold to 1 oz. of platinum. Fear of government spending and the heavy marketing

by TV gold resellers has pushed the perceived value of gold way higher than silver or platinum.

The rule is to buy low and sell high. Gold is at an all time high. Will it go higher, probably, but atsome point it will turn. When it does, gold will drop very fast. If you have gold or thinking of

buying gold, you need to follow the economy very closely. When there is perceived and

noticeable improvement in the business sector GDP, business sector New Jobs and the

government bailouts and spending has stopped, this is when gold will start dropping. There is

also a possibility the present government may confiscate gold. The goal would be to destroy

the U.S. dollar, by devaluing it, just like FDR did in 1934. Good for the U.S. Government and its

debt, bad for everyone else in the world. Just to give you the numbers, there has been 165,000

tons of gold pulled out of the ground since the beginning of civilization. 115,000 tons is in

manufacturing and jewelry. 50,000 tons is in gold reserves (coin, bar or round). The U.S.

Government has 8,000 tones and U.S. private citizens have 20,000 tons. 56% of the worlds gold

reserves reside in the U.S. The closest country to us is Germany with 3,000 tons.Silver is undervalued and has a lot more potential to go up short term than gold. Google

JP Morgan Silver to see several articles on market manipulation. Silver was 75 oz. to 1 oz. of

gold 2 years ago. Today it is 59 oz. of silver to 1 oz. of gold. Silver has outperformed gold for the

last 2 years. As long as you can handle the weight and volume it is a good investment. A

$100,000 investment in silver would weigh 370 lbs. and take up 20 shoe boxes. Because Silver

is mainly for manufacturing and there is a shortage, when the economy starts to get better,


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silver will stay pretty flat or drop slowly compared to gold. Technically silver can also be

confiscated, practically it cant. There is a shortage of silver and it is needed for manufacturing.

Platinum is also undervalued but for different reasons. 67% of the platinum and

palladium that is mined goes into catalytic converters for the cars and oil industry emission

clean up equipment (industrial sized catalytic converters). When the economy collapsed, the

auto and oil industry followed and the demand dropped drastically. Platinum was going for$2,500 an oz. 3 years ago. Today it is at $1,700. When the economy starts to recover, including

the car and oil industry, the demand for platinum and palladium will go through the roof driving

the prices up. Again, technically Platinum can also be confiscated, but for manufacturing needs,

practically it cant.

If you are betting on a long term economic recovery, buy silver. If you think the

economy will turn around quickly, buy platinum. If you do not want to deal with the patriot act,

buy gold, silver or platinum American Eagles. You can buy and sell as many of these coins as

you want and it is a non-reportable item (no 1099, no SSN). As for the Health Care Bill 1099

modification that makes every transaction over $600 reportable (all industries), democrats,

republicans and independents are all against for different reasons. It was only included so the

CBO Office could say the Health Care Bill would pay for itself. This part of the bill does not go

into effect until January 2012 if it is not repealed. Follow ICTA (Industry Council for Tangible

Assets) for updates.

The second option is common numismatic coins. There are millions of coins minted

between 1792 and 1932 that have survived. Most are common, not rare. These common

numismatic coins have premiums ranging from 20% to 200% or more depending on spot, grade,

supply and demand. A year ago, the premiums on these coins were at an all time high. The gold

resellers were heavily marketing these coins. Supply was down and demand was up. Than the

European debt problem comes to a head in January of 2010. After FDR confiscated gold in

1934. Europe wanted gold not U.S. dollars by 1936. Millions of common numismatic coins

moved to Europe during this time. When the premiums hit and all time high and Europeneeded cash in early 2010, they dumped millions of these coins into the U.S. market. The gold

resellers moved away from marketing common numismatic coins to non-reportable European

fractional gold, American Eagles and Buffalos. Supply was high and demand was down.

Premiums collapsed. Premiums hit bottom around August 2010. Supply is slowly being bought

up.

If you are betting on a long term economic recovery and think the gold resellers will

start marketing these coins again, buy common numismatic coins. The premiums are way

down and large profits may be attained. These coins are non-reportable, exempt from

confiscation and fall under 1031 exchanges.

The third option is rare numismatic coins. Wealthy people learned a long time ago thatyou have three tangible assets: real estate, commodities and rarities. Real Estate is tanking in

most places, commodities are very volatile, but rarities have always been a good long term

investment. PCGS (Professional Coin Grading Service) one of the two large grading services for

the coin industry show how rare coins have averaged 12% annually for the last 40 years. This

means they double in value every 6 years just sitting in a vault gathering dust. It cost about 5%

to 10% above the perceived value of a rare coin to buy. The first year you are recovering what

it cost you to get into the coin and making a little equity. It is the second year where you start


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Four Ways to Preserve your Wealth and Make Some Profits