reasons to own gold

8/3/2019 Reasons to Own Gold

1/16


2/16


3/16

10 Reasons To Own Gold

By John Embry

1Global Currency DebasementheUSdollaristechnicallyveryweakandshouldalldramatically.Othercountriesa r e v e r y r e l u c t a n t t o s e e t h e i r c u r r e n c i e s a p p r e c ia te a nd a re r es is ti ng t he al l o t he U S d ol la r. h u s , w ea r e i n t h e e a r l y s t a g e s o a m a s s i v e g l o b a l c u r r e n c y d e b a s e m e n t whi chwi l l s eetangi b l es ( m os tparti cul arl ygol d ) ,ri s es i gni i cantl y

i n p r i c e .

2Investment Demand or Gold Is AcceleratingW h e n t h e p u b l i c r e c o g n i z e s w h a t i s u n o l d i n g , t h e y w i l l s e e k anal ternati v etopapercurrenc i es and i nanci al as s ets and thi s wi l l createanenorm ous d em and orgol d .

3Alarming Financial Deterioration in the US he c ur re nt a mo unt o t he d e i ci t h as r ea ch e d l e ve ls w h ic hhav eportend ed currencycol l aps ei nv i rtual l yev eryotheri ns tancei nhi s tory.

4Negative Real Interest Rates in Reserve Currency (US Dollar)o c om ba t t h e d e te r io r at i ng i n an c ia l c on d it i on s i n t h e U S ,i n t e r e s t r a t e s h a v e b e e n d r o p p e d t o r o c k b o t t o m l e v e l s , r e a l i n te re s t r at es a re n ow n eg at i v e a nd , a c c or di ng t o s ta t em en t s r o m t h e F e d e r a l R e s e r v e , a r e e x p e c t e d t o r e m a i n s o o r s o m e ti m e. herehas b eenav erys tronghi s tori cal rel ati ons hi pb etweenn e g a t i v e r e a l i n t e r e s t r a t e s a n d s t r o n g e r g o l d p r i c e s .

5Dramatic Increases in Money Supply in the US and Other Nations

U S a u t h o r i t i e s a r e t e r r i i e d a b o u t t h e p r o s p e c t s o rd e l a t i o n g i ve n t he u npre ce de nt ed d ebt bu rd en at a ll l eve ls os oci etyi ntheUS.BenBernakei s onrecord as s ayi ngtheF ed has aprintingpressandwilluseittocombatdelationinecessary.Othern a t i o n s a r e o l l o w i n g t h e U S s o o t s t e p s a n d g l o b a l m o n e y s u p p l y i s a c c e l e r a t i n g .


4/16

6Central Banks are Nearing an Infection Point When Theywill be Reluctant to Provide More Gold to the MarketFarEasterncentralbankswhoareaccumulatingenormousquantitieso

USdollarsarerumoredtobebuyersogoldtodiversiyawayromtheUSdollar.

7Gold Is Increasing In PopularityProminentdevelopingcountriessuchasChina,IndiaandRussiah av e b e en a c cu mu l at i ng g ol d. I n a ct C h in a w it h i ts.billionpeoplerecentlyestablishedaNational

Gol d Ex change.Dem and i nChi nai s ex pected tori s es harpl yand coul d reachtonnes i nthenextewyears.

8Gold as Money is Gaining CredenceIslamicnationsareinvestigatingacurrencybackedbygold(theGoldDinar),thenewPresident

o Arge nt ina prop os ed , du ri ng h is c amp ai g n, agoldbackedPesoasanantidoteortheinancialcatastrophewhichh i s c o u nt r y h a s e x p e r i e n c e d a n d R u s s i a i s t a l k i n g a b o ut a ul l yconv erti b l ecurrencywi thgol d b acki ng.

9Rising Geopolitical TensionsTedeterioratingconditionsintheMiddleEast,theUSoccupationoIraq,thenuclearambitionsoNorthKoreaandthegrowingconictbetweentheUSandChinaduetoChinasreusaltoallowitscurrencytoappreciateagainsttheUSdollarheadlinethegeopoliticalissues,whichcouldexplodeatanytime.Aearulpublichasatendencytogravitatetowardsgold.

10Limited Size o the Total Gold Market ProvidesTremendous LeverageAllthephysicalgoldinexistenceisworthsomewhatmorethanonet r i l l i o n U S d o l l a r s w h i l e t h e v a l u e o a l l t h e p u b l i c l y t r a d e d g o l d companies in the world is less than one hundred billion US dollars.Whentheundamentalsultimatelyencourageastronglowocapitaltowards gold and gold equities, the trillions upon trillions worth opapermoneycouldpropelbothtounathomablyhighlevels.


5/16

BUYING GOLD AND SILVER

By Jim Kerben

I you are cons i deri ng b uyi ng gold and/ or s i lv er the i rst ques ti on

y o u s h o u l d a sk y o u r s e l i s W h at a m I t r y i n g t o a c c o m pl i s h ? h ea n sw e r t o t h i s q u e st i o n w i l l g u i d e y o u t h r ou g h t h e r e st o t h i sp r o c e s s .

S up p o s e y o u a r e t h i n k in g t h a t g o l d o r s i l v er w o u l d b e a g o o di n v e st m e nt . h e i r s t t h i n g y ou n e e d t o r e a l i z e i s t h a t i y o u s t a r tt o da y w i th t r o y o un c es o g o ld , i n y e a rs y ou w i l l s t il l h a v e

o n l y ou n c e s . h e r e i s n o i n t e r e s t , n o d i v i d e n do r a n y o t h e r e x p a n s i o n o t h e a m o u n t y o u h o ld . h e o n ly w a y y o u r i nv es tm ent w il lp a y i s i t h e p r i c e o g o l d i n c r e a s e s . O t h e r t y p e s o i nv e s t m e nt s m ay p ay i nte re sto r a d i v i d e n d a n d i n c r e a s e t h e a m o u n t o d o l l a r s t h a t y o u h a v e , e v e n i t h e p r i c e

d o e s n o t c h a n g e o v e r t i m e .M o s t p e o p l e , w h e n a s k e d w h a t t h e y a re

t r y i n g t o d o w i l l a n s w e r t h a t t h e i r p u r p o s e i s t o p r o t e c t t h e i r a c c u mu l at ed w ea lt h . S tat ed anot he r way, t he y arel o o k i n g o r i n s u r a n c e a g a i n s t l o s s o v a l u e . F o r t h i s p u r p o s e , g o l d andsilverareideal.Tebestillustration o thi s is the $ gold piec em i n t e d p r i o r t o . A t t h a t t i m e , g o l d w a s v a l u e d a t $ / t r o y

o u n c e . h a t o n e g o l d p i e c e w o u l d b u y a v e r y n i c e m a n s s u i t . F a s t o r w a r d to t o d a y, t h a t go l d p i e c e is w o r t h ov e r $ . S o , t o c a r r yt h e a na l og y ur t he r, t ha t g ol d p ie c e w ou ld s ti l l b uy a v er y n ic em ans s ui t.L ets l ook atwhathappe ned .

At i rs t g l an c e, m os t p e op l e w ou l d s ay t h at t h e p ri c e o g ol di ncreas ed rom $to$/ ounce. hi s i s notaccurate.Gol d s ti l l

b uy s t h e s a me a mo un t o g o o ds a n d s er vi ce s t hat it d id i n .Gol d s tayed prettym uchcons tant. hev al ueo thed ol l ar el l b ya actoro s othati ttakes ti m es m orepaperd ol l ars tob uythes a m e a m o u n t o g o o d s a n d s e r v i c e s t h a n i t d i d i n .

Lookingorward,youmustask,willthedollarbuymoreorlessin , , o r y e a r s . h e g o l d y o u h a v e t o d a y w i l l a l l o w y o u t o b u y t h e s a m e a m o un t o g o o d s a n d s e r v i c e s t h a t y o u r m o n e y w i l l b u y


6/16

today,,,oryearsromnow.Looke datinthi sway,goldands i l v e r b e c o m e a w ay o p re s e r v i n g y o u r w e a l t h . h e y a r e a o r m ow e a l t h i n s u r a n c e .

M o s t E u r o p e a n s h a v e l o n g h e l d o t h e i r n e t w o r t h i n p r e c i o u s m e t a l s o r t h i s v e r y p u r p o s e . h e y h a v e a h i s t o r y w h i c h

i n cl ud e s h yp e r in l at i on , g ov er nm en t c h an ge s , b o rd e rs t h at h av em ov ed and twoworl d wars . hed urab i l i tyo gol d has s erv ed them w e l l t h r o u g h a l l s o r t s o p o l i t i c a l u n r e s t . I n a c t , i t i s t h e o n l y

c o n s t a n t i n a w o r l d s u b j e c t t o c h a n g e .

WHAT TO BUYYouhavenowmadethedecisiontomake

apurchaseandareacedwiththedecisionowhattobuy.herearemanywaystoown

gold,coins,bars,oldcoins,jewelr y,etc.Sincetheyareallawaytoaccomplishthesametask,

weshouldlookatsomeothedierences.

Intodaysmarket,thereareacoupleodierentwaystobuygold.Bul lioncoinsandbarswouldbeoneway.heotheriscollectiblecoins.Which is better? hey both have advantages and disadvantages. Letsirstlookatthedierence.

Bullioncoinsaresoldbyweight.Tisisthecommondenitionobullion.Collectiblecoinsaresoldbyacomplexpricingstructurethatincludes,

butisnotlimitedto goldweight.Itisvaluedasa collectible.Youmighta l s o h e a r t h e t e r m n u m i s m a t i c u s e d t o r e e r t o collectiblecoins.hisisabitoamisnomer.

hetermnumismaticsreerstothestudyo mone y. A lt hou gh c oi n c ol le ct or s a rere erred toas num i s m ati s ts ,thes tud yo

money can include many dierent thingsbesidescoins.Papermoneyisincludedando n e c a n c e r t a i n l y c o l l e c t m o d e r n c o i n a g e a s a h o b b y o r n u m i s m a t i c p u r s u i t . F o r o u r purposes,wellcalloldercoinscollectibles.

I n , F DR , i n a d es ir e t o r em ov e t he Un it ed S ta t es ro mtheinternationalgoldstandard,issuedanordertothepublictoturn


7/16

inallgoldcoins,bullionandgolddenominatedpaperbills.Peoplewerepaidatparvalueortheseitems.Aterthiswasaccomplished,heimmediately devalued the dollar by raisingt h e o i c i a l p r i c e o g o l d r o m $ t o

$ / ounce. his has become known as thegoldconiscation.

h e o r d e r m a d e t h e o l l o w i n g e x c e p t i o n s : g o l d usedinindustryorproession;goldheldintrustoraoreigngovernmentandcoinshavingarecognizedspecialvaluetocollectorsorareandunusualcoins.Itisthisphrasethatleadssomedealerstoclaimthatcollectiblecoinsareexemptromany

utureactbecauseothisphrasing.

Otherdealerswillclaimthatbullionisthebestwaytobuybecauseitdoesnothavethecollectorspremiumandthusthepriceisclosertothevalueogolditsel.hisissueisonethatyoushouldhaveresolvedonewayoranotherwhenyougotobuy.Itwilldeterminewhatyoubuyandasaconsequence,howmuchyoupay.

Usingouranalogyoinsurance,oneisbasiccoverageandtheotherisa more expensive coverage. Whether the more expensive model givesyoumoreprotectionisa matteroopinion.Youshouldknowwhatyoubelieveaboutthis.


8/16

GOLD PRICING h e w a y g o l d a n d s i l v e r a r e p r i c e d i s t h e s o u r c e o a l o t o

m i s u n d e r s t a n d i n g .

Mostpeoplelookatthespotpriceandtrytogureouthoweverythingrelatesto

that.Tespotpriceorgoldisthepriceperounceoaoz.goldbarusedtoulllauturescontractontheComex,orNewYorkCommodityExchange.Goldproducersselltheirgold(sometimesbeoreitisproduced)onaorwardcon-tracttoabuyer.Onthedaythatisspeciedbythecontract,thesettlementpriceiscalledthespotprice.Tesecontractscanvaryinlengthotimeandtheyallhavethesamephysicalamountogold,ounces.

Iyouareagolduserandbuyacontract,you

willreceiveaoz.barassettlementiyouwish.oproduceamoresaleableproduct,youmustthenmeltthebarandputitintodiscsorcoinsorsmallerbars.Tereisacostinvolved.Ten,adesignorpatternisstampedintothegolddiscorbar.Tereisacostinvolvedinthis.Oncethesecoinsorbarsareproduced,themanuacturermustmarketthesetocompanieswhichsellthesetothepublic.Tereisanadditionalmarkupinvolvedhere.Asyoucansee,thecostsandmarkupswillputthepricewellabovethespotprice.

Further,collectiblecoinshavescarcity,condition,andotheractorswhichalsoa-ectprice.Inperiodsohighdemand,themarketmayalsomoveaheadotheprice.

Anexampleothisiswhentheproducersaroundtheworldcannotproduce

anymorecoinsthantheyarecurrentlymaking.Anincreaseindemandwillnotaectthespotpriceatallsincetheproducerisalreadybuyingasmuchgoldastheycanproduce.Whathappensthenisthatthepremiumorcoinsthatalreadyexistincreaseeventhoughthespotpricehasntchanged.

Inthelongrun,thepriceogoldissecondarytothepurposeoholdingit.Rememberourinsuranceanalogy.Iyoubuygoldtodayandsellitintenyearsoraprot,you

havedonewell.I,intenyears,thepriceogoldislessthanwhatyoupaid,thedierenceisthecostoinsurance.Spreadoutovertenyears,itisprobablyasmallcostindeed.Tisalsoexplainswhymostdealerswilltellyouthatthelongeryouholdgoldthebetteroyouwillbe.

Mostouswouldbehardpressedtondanotherormoinsurancethatpaysyouthepremiumbackiwedontuseit.Lieinsuranceisprobablytheonly one andthereiscertainlyacostinvolvedthere.Tekeythingtorememberisthat


9/16

spotpriceisthepriceoragoldcontractandthatthereareseveralstepsinvolvedinputtinggoldintoaormthatissaleableintodaysmarket.Anyoneclaimingtosellatornearspotisprobablybuyingromanunwittingpublicatbelowspot.

QUALITY AS A PRICE CONSIDERATION

Aconusingpartometalsqualityrevolvesaroundtheissueopurity.Coinpuritycanrangeromupto.pure.Purityisnotas importantascontent.

AnAmericanEagleispure.Ithascoppermixedwithittohardenthegold.ACanadianMapleLeais.pure.Teybothcontainozogold.Tereore,theirpriceis similar.TeEaglewillweighmoreasa coin,eventhoughthegoldcontentisthesameasaMapleLea.

Alongthesesamelines,mostcoinshaveanominalamountometalandan actual amount o metal. Since these coins are already made and noonwillmeltthemdowntoextractthemetal,theywilltradeattheirnominalamount.

Anexampleisthe$LibertyorIndian.Teyareoznominally,althoughthe actual amount o gold is . oz. Even though they are slightly less

thanaulloz.,theyarepricedandtradedasthoughtheywereaull oz.

Another quality consideration is coin grading. Highgrade d collec tibles are g raded and encapsulated

in tampe r proo plastic holders by two recognizedsources,NCGandPCGS.Generally,MSand

higheraretreatedthisway.Inaddition,very

rarespecimensknownonlyinlessergradescanalsobegradedthisway.Aslongastheplastic holder is intact, once graded, thesecoinsareeasilyboughtandsoldasknown

quantities.

Tere are also known to exist, rolls o silvercoins which have never circulated. hese BU (Brilliant Uncirculated)

specimensareotenoundintheiroriginalwrappersandarebestnothandledastheirvaluecoulddropshouldthecoinsbecomescratchedoraltered.

Finally,aconditionknownastoningisofenassociatedwithsilvercoins.Interactionwithchemicalsinambientaircanproducethiseectanditisnotconsideredaawordetrimenttothecoin.Inact,somecollectorsseeit

asasignoauthenticity.


10/16

HOW TO OWN GOLD AND SILVER IN YOUR IRAIyoucurrentlyhaveanIRAoraqualiedplansuchasa(k),(b),

etcmostlikelyyourplandoesnotallowyoutoownphysicalgoldorsilverinyouraccount.Ithatisthecase,thereisawaytodoitthatisrelativelyeasyandinexpensive.Whatollowsisastepbystepexplanationohowtodoit.

Terststepistondacustodianthatwillallowsuchatransaction.TereareseveralincludingSterlingrustCompany,GoldstarrustCompanyandEntrust. Tereare many others.Tesethreeare themostexperiencedwithholdingmetals.Onceyouselectacustodian,youwillneedtoopenaseldirectedIRA.Tisinvolvesaminimumamountopaperworkandaeetosetuptheaccount.

Onceyouhavetheaccountestablished,itneedstobeunded.IyoualreadyhaveanIRA,themoneycanbetranserredtoyournewIRA.Iyouhaveaqualiedplan,youcanrolloverassetstoyournewIRA.CAUION.Iyouarestillcontributingtoyourplan,orarestillemployedbytheplansponsor,theymaynotletyourolloveryourmoney.

Beoreyouopenyournewaccount,makesureyoucanunditthewayyou

intend.A n o t h e r o p t i o n o r u n d i n g w o u l d b e t o b e g i n t o m a k e a n n u a l

co nt ri butions to your new account. Currently, the maximum allowed is$.ayearwi thanad d i ti onal $.i youareov ertheageo.

Tenewcustodian(Sterling,Goldstar,Entrust)willtransertheundsor

you.Yourotheroptionistomakethewithdrawalyourselandthensendthechecktoyournewaccount.Tedangerhereisthatthismusttakeplacewithindaysothewithdrawaldateoryouwillbe liableortaxesonthewithdrawal.Pleasenote,thetranserringomoneyromonecustodiantoanotherdoesnotmakeyouliableortheearlywithdrawalpenalty.Youdidnotmakeawithdrawal,youtranserredtheassetsromonecustodiantoanother.

Onceyournewaccountisunded,youcanthendirectyourbrokertopurchasegold,silver,platinumandpalladiumoryouraccount.Yourbrokerwillwithdrawpaymentorthepurchaseandsendtheappropriateamountometalstothecustodiansstorageacility.Testorageacilitywillreportthereceipttoyourcustodianandshowthemetalsinyouraccount.


11/16

French 20 Franc (Angel)

FineGoldContent:.1867royozFineness:90.00%21.6Karats

Diameter:21.0mm

French 20 Franc (Rooster)


Diameter:21.0mm

Swiss 20 Franc


Diameter:21.0mm

British Sovereign

FineGoldContent:.2354royozFineness:91.67%22Karats

Diameter:22.05mm

South Arican Krugerrand

FineGoldContent:1royozFineness:91.67%22Karats

Diameter:32.6mm

Canadian Maple Lea

FineGoldContent:1royozFineness:99.99%24KaratsDiameter:30.0mm

Austrian Philharmonic

FineGoldContent:1royOzFineness:99.99%24KaratsDiameter:37.0mm


12/16

American Eagle

FineGoldContent:1royozFineness:91.67%22Karats

Diameter:32.7mm

American Eagle

FineSilverContent:troyounceFineness.PureSilverDiameter:.mm

Liberty

18501907FineGoldContent:.9675royoz

Fineness:.90021.6KDiameter:34mm

St Gaudens



Indian



American Bufalo

FineGoldContent:1royozFineness.99924K

Diameter:32.7mm

Morgan Dollar

18781921FineSilverContent:.7734royozFineness:90.0PureDiameter:38.1mm

Peace Dollar

19211935FineSilverContent:.7734royozFineness:90.0PureDiameter:38.1mm


13/16

Clean Silver Rounds

FineSilverContent:1troyounceFineness.999PureSilverDiameter:39mm

Walking Liberty Hal Dollar

1916-1947FineSilverContent:.36169royoz.

Fineness:90.0%PureDiameter:30.6mm

Kennedy Hal Dollar

1964FineSilverContent:.36169royoz.

Fineness:90.0%PureDiameter:30.6mm

Ludwig von Mises

2009-PresentFineSilverContent:1troyounceFineness.999PureSilverDiameter:39mm

Free Lakota Bank

CrazyHorse2009FineSilverContent:royozFineness:.999PureSilverDiameter:39mm

Merc Dime

19161945FineSilverContent:.07234royoz

Fineness:90.0PureDiameter:17.9mm

Modern Commemoratives

1982PresentFineGoldContent:.24187royozFineness:.90021.6K

Diameter:21.6mm


14/16

HOW TO BUYobegintheprocess,allyouneedtodoiscall.Ourbrokerswilltakeyourinormationandworkwithyoutoinsureyouareinvestingincoinsthatwillmeetyourinvestmentgoals.

Whenyouhave decided on an order, yourbroker will give you the totalamountdueandatradenumber.

hetradenumberwilllockinyourpriceorivebusinessdaysandisabindingagreementorthepurchase.Regardlessotheuctuationsinthepriceothemetalsaferthetradedate,thecontractedpriceisbindingonyouandonus.Inabusymarket,priceschangerapidly!

Youwillsendinyourpayment,eitherbycheck,moneyorderorbankwiretoMidasResourceswithinthosevebusinessdaysandtheprocessingoyourorderwillbegin.

Yourbrokerwillnotiyyouwhenyourorderhasbeenshippedandwillgiveyouaregistrationnumbertotrackyourshipmentonline.

AllordersareshippedregisteredandinsuredbytheU.S.PostalService.heUSPSrequiressignatureupondeliveryoregisteredmailandisthesaestdeliverymethodasiderompickingitupyoursel.MidasResourceshasexcellentrecordodeliveryoroveradecade.

Ourbrokersarereadytoansweryourquestionsandhelpyougetstarted.

Yourutureistooprecioustopostpone.Dontdelay,callMidasResourcestoday.


15/16


16/16

reasons to own gold

Documents