Paul Mladjenovic, author of Precious Metals Investing for Dummies, discusses what he feels is the #1 Reason to Buy Gold. Many people consider safety to be the primary reason for owning gold. If you own the physical metal you have something of value without counter party risk. Although precious metals in the recent past have not done as well as some other assets if you look at the long term climb of precious metals rather than short term returns you’ll feel confident you made the right decision investing in precious metals.
As the price of silver drops and we hear more and more stories about coming possible shortages of physical silver as opposed to paper silver, this just might be the time for those of you who have not yet invested in physical silver to stick your toe in the water and get started. The first question people should ask themselves is what are you goals – what are you looking for – investment, do you think the financial system is going to collapse and you are looking for a safety net, or you are not sure and just wanted to get started?
This video gives some good starting points but I believe there are some important points that should be added. The most important thing I think to know is that today counterfeiting is widespread. American Silver Eagles are counterfeited as well as the Canadian Maple Leaf. But junk silver coins, older coins with silver content, collectible coins, bullion bars, generic rounds and just about any form of physical precious metal you might be interested in have been counterfeited. Counterfeits have gotten so good that it is no longer easy to tell them from the real by the relatively easy tests that worked in the past such as appearance, weight, size, magnetism. You can check out videos of factories in China churning out thousands of copies of older American coins often called junk silver that look genuine to the casual examiner
So although it may cost you a little bit more make sure you buy from a reputable vendor. By reputable I mean someone who has a reputation for selling genuine coins and fulfilling your order in a timely fashion. There have been instances of coin dealers being fooled and buying counterfeit coins. There have also been coin dealers selling counterfeit coins unknowingly and instances of less than reputable dealers selling counterfeits knowingly.
So the first rule should be to do your research and only buy from those you thoroughly trust. It doesn’t pay to think you are saving a few per cent or getting a great bargain only to discover what you bought is a worthless counterfeit.
The major types of physical precious metals you can invest in are:
– Junk Silver
– Private Minted Coins or Bars
– Government Issued Coins
– Fractional Silver
– Silver Bars
They all can be great options depending upon your reason for buying physical precious metals. Many people argue that junk silver is the best option because you will be paying the lowest premium. Premium being the cost above the melt value of the precious metal itself. All coins, bars, etc have some premium above the melt value of the metal to cover the costs of minting, marketing, and distribution. It is often argued by proponents of junk silver that they have the smallest easily exchangeable unit of precious metal value. It’s often argued by those who see a financial collapse coming that you will be able to trade your junk silver quarter for the value of the silver and get five or ten dollars worth of groceries. I personally believe that since there are so few people in the US that are knowledgeable about precious metals that you will have a hard time convincing you local merchant that the junk silver quarter you are offering him is worth any more than twenty five cents.
For this same reason I think you may have the same problem convincing someone that your generic round is what you say it is and worth what you claim. It seems today that there are hundreds of different firms producing generic rounds, some from well known precious metals mints and some from places I have never heard of. Since today the reliability of the easy tests to separate genuine from counterfeit can no longer be counted on and the only reliable tests either require expensive testing equipment or destructive tests like the acid test or actually cutting into the center of a coin or bar, for me this is also an option that I’ll pass on.
Bars present an attractive option since the premium is lower, especially on larger bars. However you might have the problem of convincing someone your bar is genuine and with the larger bars the unit of value may be too large for the average person to buy. Often a prospective purchaser of one of the larger and more valuable bars will require you to have it assayed befor he will purchase it. This can be quite expensive.
For me I feel the best option is to invest in government issued coins like the American Silver Eagle or Canadian Maple Leaf. I realize of all of your options the premium will probably be the highest. But in exchange for that premium you are getting one of the world’s most widely recognized precious metal coins. People know what it is and know what the value is. It is also a relatively small unit of precious metal value that almost everyone can afford. If there is a question about value you can just refer them to what is stamped on the coin for weight and check the current pricing for value. What the author of this video says is true – this also makes these coins one of the worlds most highly counterfeited coins. But I think that risk is largely eliminated if you only buy from reputable vendors you trust.
January 2015 www.preciousmetalsinvesting.com
Oil has been in the news. The prices are dropping. With the New Year people are cheering prices at the gas pumps that are less than $2.00 a gallon. In fact I saw one gas station in my area that was charging $1.82. Lots of financial pundits are saying that low gas prices are like a tax cut and the consumer now has more to spend to drive the economy. They are cheering too. However there might be some long range ramifications of low gas prices that go beyond the media buzz. Some cracks in the economic system are beginning to show. The financial markets today are all interrelated and interdependent. What happens in one sector does not occur in a vacuum but it’s effects ripple out in wider and wider circles often with unseen consequences. Some financial commentators are saying low oil prices might just turn out to be the black swan event that brings down multiple sectors that today are only being propped up by their over-leveraged and overloaded debt and paper promises. Today on http://www.preciousmetalsinvesting.com Ted Sudol and Paul Mladjenovic, author of Precious Metals Investing for Dummies discuss some of these other implications and how they are important to the precious metals investor.
Bernake’s loose monetary policy that seemed to drop money from the sky earned Bernanke the nickname “Helicopter Ben.” If that makes investors worry about the stability of the dollar and increases volatility buckle your seat belt and get ready for Janet Yellen. David Morgan says you haven’t seen anything yet and says that if Bernanke was “Helicopter Ben” than Janet Yellen as a Concorde. Make sure you visit David Morgan’s Resource page here at www.preciousmetalsinvesting.com for more information and resources from David Morgan.
This interview of David Morgan took place at the 11th Annual Silver Summit in Spokane, Washington. David talks about the movement of physical gold and silver frm the west to the east where demand for buying physical precious metals like gold and silver is still very strong. David feels the opportunity is especially great in the mining stocks. When asked exactly when the change in investor sentiment for the precious metals would take place he said he didn’t know exactly would be the spark ignited the stampede to the precious metals or exactly when it would occur. However David maintains there are signs that it is beginning to occur such as the seeming loss in confidence in fiat currencies around the globe.
Record levels of sales by corporate insiders have been reported recently. What does this mean for you? Today at www.preciousmetalsinvesting.com we discuss what it means for your and what actions you should be taking. Ted Sudol interviews Paul Mladjenovic, author of Stock Investing for Dummies.
When the German Government asks for the gold it left with the US FED and was told by the FED it would take seven years to get their gold back should you be concerned? When Germany only gets a small part of the fraction of the gold they were promised should you be concerned? When the gold they get back is not the gold they left there for safe keeping but newly melted bars – should you be concerned? We here at www.preciousmetalsinvesting.com think you should be concerned. It seems apparent that the stories we have been told about the amount of gold stored in the Fed, Fort Knox and banks around the globe may not be true.
What is money after all? For thousands of years money meant a stable source of value. To facilitate a medium of exchange money took the form of gold and silver that made trade, barter, and commerce possible. Dollars were merely claim checks giving the bearer the right to exchange their dollars for gold or silver that had a relatively stable value.
However since the dollar was taken off the gold standard it is only backed by the full faith in the US government that it can be used to settle debts. But what value does the dollar hold? Has that value been stable over time? Data shows that the dollar is worth only 2% of the value that it had in the 1900’s.
In this video they question of “What is Real Money” Is examined. Watch it and let me know what you think.
My sister corrected me the other day when I said there were two classes in America the haves and the have nots. She said today there are actually three – the haves, the have nots and the usta’ haves. Inflation and low interest rates have been constantly chipping away at the middle class and converting a lot of middle class people into usta’ haves.
Most of the audience here at www.preciousmetalsinvesting.com I believe are in the middle class, upper middle class or saving to be in the middle class. We look at gold as a source of wealth that will not diminish in time as opposed to the value of the dollar that has fallen to just 2% of the buying power it had in the 1900’s.
If you have been shopping for food, paying for gas, heating your house, paying for electricity to light your home anytime in the past four years you know that prices have been rising almost continuously. You also know that the government’s official reported rate of has nothing to do with reality or your life and the things you need to buy every day to live. Inflation is vitally important to you because you know that inflation is constantly eating away at what your money can purchase and constantly reducing the amount of money that you can use to protect yourself and your future by purchasing precious metals. If you have saved for your retirement you see the artificially low interest rates have severely reduced the amount of money your thought you would have at retirement.
So let’s just see what the new Fed chief, Janet Yellen, has said about inflation and you decide how her actions might affect you. As president of the San Francisco Federal Reserve Bank four years ago, she said, “Accommodative policy is appropriate, in my view, because the economy is operating well below its potential and inflation is undesirably low. If it were possible to take interest rates into negative territory, I would be voting for that.”
For the average American purchasing the goods and he needs to cover daily living and support his family what the heck is a “undesirably low” rate of inflation? What does that mean for you and your future.
For that matter what does an “undesirably low” rate of inflation mean for corporations and job formation. If a company knows that inflation is low it knows that the prices of the raw materials that it uses to produce its products will be relatively stable and it can plan for the future. Corporations that are able to plan for the future look to grow. Corporate growth generally means job creation. Corporations love stability.
I have read that Janet Yellen is very smart. However watching her on television my initial impression was that she specializes in using the largest amount of words to convey the smallest amount of information. The Fed just made their latest pronouncement. As the new head of the Fed here’s her latest pearls of wisdom as quoted in the New York Times after she had just said that she was planning to keep short-term rates near zero “for a considerable time.” When Yellen was asked to define “a considerable time,” Ms. Yellen responded, “This is the kind of term that’s hard to define, but it probably means something on the order of around six months or that kind of thing.”
We know what interest rates near zero mean for the people trying to save for their future. We know what interest rates near zero have meant for retirees whose money is invested in bank accounts and cds.
I think most people will agree that very little of the stimulus has trickled down to the average person. It’s mostly gone to Wall Street, Financial Institutions, and the Banks that caused the problem. And the ironic thing is that its the “average” person who has been footing all of the bills through their taxes. It’s the average person whose hard earned cash is being spent and whose future is being mortgaged to bail out the institutions that caused the problem in the first place.
Gold and Silver Expert Mike Maloney of goldsilver.com reiterates the fact that governments are trading directly in currencies other than the dollar. Although he doesn’t call it currency wars as we did the bottom line is that governments around the world are becoming uneasy. Governments are becoming uneasy about the level of US debt and monetary policies like quantitative easing that devalue the dollar by increasing the money supply by printing up tremendous quantities of new dollars.
In this wide ranging interview Mike talks about his company’s new series, The Hidden Secrets of Money. He also thinks Bernake, Yellen and Sommers are just noise to take our attention away from the ball and the fact that the government created these problems through it flawed monetary policies and inflating the currency supplies. Mike says most wars are just attempts by governments to blame the other guy or the other country for the problems the government itself created.
Mike says the single line accounting in which banks have been listing gold they have leased out, which is really a receivable and not an asset, is illegal accounting and morally corrupt. But the good news for precious metals investors is that when the banks are forced to buy back the gold they have leased out the prices are sure to rise and that rise will probably be pretty dramatic.
The crisis in the Ukraine will have both short term and long term effects that you as a precious metals investor as well as stock investors should be aware of. It’s important that you protect your investments so you are not buffeted about by these global winds that are blowing all around us. We are all going to be exposed to these global forces but it is the prudent person who knows how to position himself to take advantage when possible and protect his investments when necessary.
Be sure to visit www.preciousmetalsinvesting.com for more free tip, videos and techniques from experts in the field of precious metals investing. Join our free mailing list and you’ll get the latest information to help you make informed decisions. You’ll also get our FREE Guide to Precious Metals.
For several years evidence has been gathering about the suppression of precious metal prices in the face of skyrocketing demand for the physical precious metals in places like India and China. They have recently been buying up a major chunk of what is reportedly a year’s worth of production. Evidence has been accumulating that banks and government entities that claim to have large stores of the physical precious metals may only have a tiny fraction of what they claim.
The precious metals investment community was certainly shaken when the Fed told Germany, when they asked for their gold back, that they needed to wait 7 years to get it back. (Remember it’s all supposedly tucked away safely in Fed vaults)
What’s that? Say that again! It will take the Fed 7 years to return another government’s property they stored with them for safekeeping? This is 2014 – planes cross the ocean in hours, ships take several days, FedEx has next day delivery. I’m sure if the Fed told Germany they could get their gold tomorrow Germany could arrange transportation the day after. They only reason I can think of that it would take seven years is because the Fed doesn’t have it. If they have another explanation I’m willing to hear it along with insistence for the first independent audit of Fort Knox and the Fed vaults in a long time.
One of the leading investigators into the manipulation of the precious metals market is Ted Butler.
In his post 2013 – The Year of JPMorgan Ted details some of the suspicious moves by JPMorgan that just appear to be much more than mere coincidence. Everyone who is interested in the precious metals and investing should read this article and go to Ted’s site SilverSeek
According to Ted Butler the price moves in the market took place over such a short time span, about five trading days, and the movements don’t seem like they were driven normal market forces.
With Ted’s calculation that JPMorgan stood to profit by 3 Billion Dollars their motivation is not hard to figure out.
One puzzling aspect is how come JPMorgan has been given a free pass to flout the COMEX regulations that are supposed to limit the amount of contracts any one can take and hold in any one month. That regulation is designed to limit the power any one entity has to warp the market. But JPMorgan has been able to flout the regulations without the Comex objecting. Why? Could it be that they both profit while the average silver investor gets savaged and more wealth gets transferred to the super rich (and super connected). If you would like to read more about this fatal trap of Wall Street Lobbists, high priced lawyers and outgunned regulatory agencies that are supposed to protect us read “Angry Bart Takes his Parting Shot” This article, which appeared on bloomburg.com is about Bart Chilton, a member of the Commodity Futures Trading Commission, one of the financial industry’s most important regulators. After 6.5 years on the commission and 30 years in Washington politics he is leaving. As an insider on the commission he had a front row seat and his message for the future is bleak
But Ted tells this sordid tale better than I. He’s been following this much longer than I have and has uncovered the research to back up his claims. I would urge you all to go to 2013 – The Year of JPMorgan and read the full article.
What’s in store for the precious metals for 2014. Well having profited from driving the precious metals down in price JPMorgan has now switched tactics and is furiously buying up physical precious metals on the cheap. It’s a perfect game as long as you are the one who is rigging it.
The chances of getting any of our politicians to take action is slim to none. Now that corporations have been declared “persons” by the conservative court and tons of money are to be had for the politician listening to Wall Street Lobbyists maybe even the dream of democracy is slipping away under the corporatization of the government.
So the best course of action I can see if you believe this chain of events, in light of JPMorgan’s decision to start buying is to follow their example. Follow the example of India and start buying. Follow the example of China and start buying.
There are some pundits that have recently proclaimed that gold is going to $700. You can believe that if you want and place your vote (and your money that way) But as for me personally I’ll be placing my bets with JPMorgan, India and China and picking up some precious metals bargains now.
As always consult with your financial adviser before making any investment. All investments, including precious metals carry the risk of a significant loss of capital.
I converted my IRA to a precious metals IRA earlier this year. It was a two week search to find the 4 required entities that would both work together and meet my standards. There are some vitally important differences and questions about the type of account, storage, business separation of the different parties, etc. that you need to have answered before you proceed. Within a few weeks I’ll be completing a video course on how to set it up and offering it here on preciousmetalsinvesting.com
Even after doing my due diligence the metals took their dive this year and I saw the value of my IRA sink significantly. I wasn’t worried because an IRA is a long term investment. But, as one who is involved in precious metals I admit the sector is volatile and the ride can be bumpy. In short, if you can’t stand the heat stay out of the kitchen.