Where to Start When You Want to Buy Gold
By Dr. Steve Sjuggerud
"You think people were surprised when gold hit $1,000 an ounce," a
legendary investor told me this week. "Wait 'til they see $5,000."
As we talked, this investor could hardly hold back his enthusiasm. You
see, he has spent his career finding crises, then buying assets at the height of
Normally, he does this far away from Wall Street in emerging markets.
And he's done it many times in his career. But now, for the first time, he's
thinking about coming to the States.
Most Americans wonder what will happen next. They have never seen anything
like this before. But my friend has seen it many times. He explained it
"In crisis, banks want safety," he told me. "So they get rid of
potentially nonperforming assets at any price. They don't care what they get, or
how much they lose on a property, for example... They just want to get it off
Having seen this many times in emerging markets, my friend is convinced the
Great Inflation is coming to the States in the next few years. The last time we
saw double-digit inflation was in 1981. It could get even worse this time
around. "It's already happening," he says, pointing to the U.S. money supply
figures, which have shot up over the last few months. "It will just take time to
My friend is buying gold. One of his holdings is 100-year-old gold
coins. He has many millions of dollars worth of them. He has personally
experienced bank closures and currency revaluations, which have nearly
bankrupted some of his businesses.
So he owns physical gold. This is not like money in the bank. The
government can easily seize your bank account... or devalue your currency... or
confiscate your retirement account (which just happened in Argentina). It's much
more difficult for a government to mess with your physical gold – if it can even
For years now, I have been recommending 100-year-old gold coins. The
price of gold has more than doubled since I started recommending them. And so
have the prices of these gold coins.
It's not too late to buy. Relative to
their meltdown values, rare coins are cheap. But I don't think that's going to
be true for long...
People are finally catching on to the idea of holding physical gold.
Plain gold bars and "bullion" gold coins (coins that don't have value as a
collector's item), which should sell close to melt value, are in short supply.
You either won't be able to buy them at all... or you'll have to pay an
outrageous price for delivery at some undefined date.
Gold dealer Kitco has stopped selling 18 types of silver and gold bullion
coins and bars. The company's not even sure how long it's going to take to fill
orders that are already in. And bullion gold, which is only worth its melt
value, is now selling at premiums not seen since Y2K caused a market
So I much prefer the rare gold coins... the 100-year-old ones in near mint
condition. With bullion, you only make money if gold goes up. But with rare
gold, you can make money two ways... if gold goes up and if the "collector's
premium" over melt value goes up.
I've heard from a lot of readers who don't know how to start investing
in gold coins. Professional Coin Grading
Service has a website with lots of information, including a link to www.coinfacts.com, which is a good starting
point. If you want a book, Coin
Collecting for Dummies is actually a good starting place, even if you don't
think of yourself as a collector.
I am comfortable pointing you in the direction of a few honest dealers, who
have taken good care of my subscribers for many years. Van Simmons, in
particular, is a mentor of mine (www.davidhall.com). Dana Samuelson and his
team (www.amergold.com) have done my
readers right for years as well, as have Michael, Glenn, and Rich at Asset
The Great Inflation is coming, my friend says. And he knows better than
anyone. He believes gold could hit $5,000. So as a part of his portfolio of
assets, he owns millions of dollars of 100-year-old gold coins.
"People told me I was crazy when I was buying them," he told me. "But
the gold was mine, outside of any bank. And now I've made triple-digit
My friend believes this is just the beginning for gold. Do you have
some gold, or gold coins, in your portfolio? Maybe you should...
As for my own recomendations for where to buy Gold, I'm not expet at all, but I like the Liberty Dollar as it can actually be used in some stores across the United States, including one place on Martha's Vineyard in Vineyard Haven, if I remember correctly.
Anyway, as Steve said, good investing.
Christopher D. Osborn
Posted from Bergen, Norge