Gold and Silver Guide
Content
Everything You Need To Know About Buying And Selling Gold And Silver
By Mike Dillard
© The Elevation Group LLC 2011
Disclaimer
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Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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Hey Mike Dillard here, founder of The Elevation Group, and I just wanted to congratulate you on downloading a copy of my report, “Everything You Need To Know About Buying And Selling Gold and Silver”… This is subject that has become near and dear to my heart over the past few years, and everything you’re about to learn in this report is based on my own personal experience buying and selling over $1 Million dollars in gold and silver, and what I’ve learned through the relationships I’ve formed with industry leaders like Michael Maloney and James Turk.
M ike Dilla rd
I actually started putting the majority of my assets into precious metals back in early 2008, when silver was just $10 per ounce, and gold was around $800, after my eyes were opened to the pending disasters headed toward the United States which are still in the process of unfolding today. I’ll bet you’re reading this right now because you have the same concerns… Whether it’s though a friend, your financial advisor, or research you’ve done online, you’re probably aware that the actions of the Federal Reserve since its inception, but particularly since 2008, have been destroying the value of the Dollars in your bank account by printing record amounts of stimulus money. In fact, here’s how much new money the Fed has printed since 2008.
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Everything You Need To Know About Buying And Selling Gold And Silver
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As a result, inflation is rising, and the cost of your food and gas along with it. Turning your paper money into gold and silver is one of the best ways to protect the value of your savings and investments... And in fact, it has the potential to be the single greatest investment any of us will ever see in our lifetimes if you know two things… Let’s say that you pick up some precious metals and position yourself And here’s a chart showing just how fast the Dollars you own are losing their value because of that printing… on winning side of this wealth transfer during the next year or two. There will come a day when the gold bubble bursts, just like the real-estate bubble did, and the tech bubble before that, which means you’ll need to know two things… First… When to sell and get out of metals before they plummet. But most important of all… Where to put your money next. THAT is the million-dollar question that has driven me for three years, because buying gold and silver right now is simple. It’s easy. It’s common sense. But knowing when to sell your metals, and where to put your gains next will ultimately determine how wealthy you become. Unless you have a plan for your next move, you just have a bunch of shiny coins in your pocket. In fact, if you have a few minutes when you’re done reading this report, I’ll go ahead and show you what I’m planning to do with my money, including a little-known strategy I’m using to create a $100,000 per month retirement foundation that’s 100% tax free, and completely independent of the stock market. I’ll also talk about my plan when it comes to gold and silver, and I’ll show you a 3-part commercial real estate strategy I’ve recently uncovered that’s conservatively on track to turn a $50,000 investment, into $20,000,000, even it today’s market…
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Everything You Need To Know About Buying And Selling Gold And Silver
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But considering that we just met I should probably tell you a little more about myself and my past so that you’ll be able to judge the value and reliability of this report with confidence… I’m 34 years old, and have an amazing family here in Austin Texas. Back in 2005, I started an online marketing company, which publishes books, CD’s, and DVD’s that teach small business owners how to market and sell their products online, using strategies that allowed me to make my first million by the age of 27. Over 1,000,000 entrepreneurs and investors around the world have subscribed to my email newsletters, and I’ve had the privilege of speaking to thousands of entrepreneurs about marketing, wealth, and the economy from stage, or through the various publications we’ve been featured in. Today I run three companies out of two offices with 12 employees, which have produced over $20,000,000 in combined revenue during the last 36 months alone. And I know that when it comes to the internet, people can just throw out numbers and make up anything they want, so I thought I’d pull out my 2009 tax return for just one of the 3 businesses which did $6.3 Million just by itself in 2009. Now when it comes to my personal life and what I love to do for fun, I’m actually a huge baja racing fan… But my primary passion and focus over the past three years has become the economy and investing… Now I don’t know about you, but I wasn’t raised with a real education in wealth creation... I grew up in a middle class family with hard-working parents who did the exact same thing everyone else did with their money… They handed it over to a financial adviser who invested it for the long-term in a diversified portfolio of mutual funds and a Roth IRA. Well thanks to my success in business, by 2007 I had managed to save up a bit of money, and realized that I needed to put it to work instead of spending it on fast cars and all of the other things that a guy in his 20’s would buy… So I began a new personal journey into the world of money and investing, and I’ve dedicated my life to cracking open the “black-box investing strategies of the ultra-rich”… What I found was so unexpected, and is so profound that it has completely changed the entire direction of my life, my priorities, and my view of the world. It was so shocking that I even handed over control of my 8-figure businesses to my partners, and set off on a quest to turn these economic events into biggest opportunity of my life, and yours...
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You know that the US is bankrupt, and that it’s credit rating was downgraded for the first time in history…
You know that Europe is collapsing… You know that gold and silver are hitting new record highs ever month…
You know that the prices of your food and gasoline are rising at record rates…
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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Simply put, there are five factors are colliding together at this very moment, creating a perfect storm of unimaginable change so great, that just 10 years from now – for better or worse, America and the world, will be a fundamentally different place than how we know it today. I don’t have time to dive into the details on all five in this video, but you know deep down in your gut that the world is in trouble… You know that unemployment is at record highs and getting worse… And you know that the stock market and your retirement plans are teetering over a cliff… And yet I am here to tell you right now, that change creates opportunity, which is why more people became millionaires during the Great Depression, than any other time in American history. When massive change takes place, wealth transfers from one person’s hands to another, and today we’re living through the single greatest transfer of wealth in human history. So while it may seem a bit strange to talk about getting rich during what is unofficially a global economic depression, It’s actually the best opportunity you will ever have during your life-time to become very, very, wealthy … IF… You know how. And that leads me to the big question, and the point of this report… Is it possible to achieve peace of mind and financial security, or even produce incredible wealth during these times of economic chaos, and if so, HOW? The answer to both is a resounding YES, and gold and silver are at the heart of the strategy… So let’s dive in…
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Everything You Need To Know About Buying And Selling Gold And Silver…
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I like to give credit where credit is due, and the majority of my knowledge on gold and silver has come from the incredible work of Michael Maloney, (www.GoldSilver.com). If you have not purchased a copy of his book, “Rich Dad’s Guide To Investing In Gold And Silver”, stop what you’re doing and order a copy now. I can honestly say that it’s one of the single most important books I’ve ever read, and the best $12.00 you’ll ever spend. I discovered Michael through Robert Kiyosaki back in 2007, and we’ve become good friends since then. The first thing Michael will tell you when you when you meet him is that he’s NOT a “gold and silver” bug. He’s a historian of currencies and macro-economic cycles, or as he likes to call them, “wealth cycles.” He dove into gold and silver more than 10 years ago when he began to research the Federal Reserve Banking System, fiat currencies, and wealth cycles. Essentially, he identified that the US fiat currency called the “Dollar”, was coming to the end of its life-cycle, and that the United States was entering Stage 6 of 7 when it comes to the life-cycle of an empire. Yes… Fiat currencies and Empires have lifecycles just like everything else, and here’s a brief recap of the seven stages every single empire has gone through… Stage 1: A country starts out with good money, which is either gold or backed by gold.
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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Stage 2:
As it develops economically and socially, it begins to take on more and more economic burdens, adding layer upon layer of public works and social programs. As its economic affluence grows so does its political influence, and it increases expenditures to fund a massive military. Eventually it puts its military to use, and expenditures explode. To fund the war, the costliest of man’s endeavors, it steals the wealth of its people by replacing their money with currency that can be created in unlimited quantities. It does this at the outbreak of war, as in the case of WW I, during the war as in Vietnam, or as a perceived solution to the economic ravages of previous wars.
Stage 3:
Stage 4: Stage 5:
Stage 6:
Finally, the wealth transfer caused by expansion of the currency supply is felt by the population as severe consumer price inflation, triggering a loss of faith in the currency. (This is where we stand today).
Stage 7:
An en masse movement out of the currency into precious metals and other tangible assets take place, the currency collapses, and massive wealth is transferred to those who had enough foresight to position their money into the right asset class before hand…
Now when I talk to lifetime investors or traders who have been doing their thing through the most prosperous years of our nation, they just don’t get this. They think it’s crazy talk… It’s an impossibility because they have 30 years of previous life experience that dictate otherwise. But as a new kid on the block with zero preconceived notions clouding my judgment as to how things should or should not be, it’s an outcome that is as clear and inevitable as day. Just as 2+2 = 4, it is a mathematical certainty the United States of America will declare bankruptcy, or destroy the Dollar trying to prevent it. It is a process that every single nation who has played with fiat currencies has succumbed to since the fall of the Roman Empire.
Every nation… 100%… Without exception.
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So buying and gold and silver has nothing to do with the actual desire for the metals, and everything to do with the desire to avoid the consequences that will come with the death of the Dollar. I’ve been buying gold and silver to protect the value of my personal wealth, and to absorb the value of the rest of the world’s wealth, as it is transferred out of paper currencies, and into precious metals. Every single time the Fed prints more Dollars, it dilutes the value of the Dollars already in circulation. Anytime there’s more of something, that something becomes less valuable. This is called inflation. You see, the true value of gold never changes… The only thing that DOES change is the value of the Dollar. When the Dollar drops in value, it takes more dollars to buy one ounce of gold. So when you see the price in gold increase 25% in a year, the price of gold didn’t really increase 25%. It just looks that way because the Dollar actually dropped in value by 25%. This chart goes back to 1971 when the Dollar went off the gold standard, and basically says it all. Notice that it only goes to 2009, and gold is just at $1,000 per ounce. Considering we’re right around $1,900/ounce as of this writing, that means the Dollars in your pocket have lost an additional 90% of their value in the last 12 months alone! If you have cash sitting idle in a savings account, you’re literally going broke! This is how gold and silver allow you to protect your wealth from the inflation. And here’s the deal… The Dollar will not recover and reverse course over the long run. Its final destination will stop at “$0.00″, just like every other single fiat currency that’s come before since the days of Rome. The statistical probability of this based on 2,000 years of history is 100%. The best video summary I’ve found when it comes to today’s story behind the reasons for gold and silver’s current rise can be found here to the left. Now instead of focusing on a history lesson which is expertly told in Michael’s book, I want to focus on the practical steps and pieces of knowledge I’ve acquired when it comes to purchasing metals, and when to sell them.
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Who I Buy My Gold And Silver From:
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There are three primary sources I purchase my metals from… 1: www.GoldSilver.com 2: www.Tulving.com 3: www.GoldMoney.com The service and delivery from both companies has been perfect. Tulving’s website looks antiquated, but don’t let that bother you. They’ve been in business for decades, have the best prices, and every purchase I’ve made from them has been excellent. The only downside is that they have some pretty steep minimum purchase requirements: 5-20 ounces for gold depending on the type, and 500 ounces for silver. I simply buy from whoever has the best price, and inventory at the time. The advantage of buying from GoldSilver.com, is that Michael’s team will add you to their newsletter which will also tell you when they will begin to sell their metals. The third vendor I purchase from is www.GoldMoney.com. GoldMoney.com has been around for 10 years now, and is a unique service that I highly recommend to everyone. The owner, James Turk, is one of the most respected individuals and businessmen in the industry, and he started GoldMoney.com after witnessing the corruption taking place in traditional bullion banks. (We’ll talk about this more later). In a nutshell, it provides the strategic protection of owning physical metal overseas, with the flexibility of instant redemption in multiple currencies. After wiring funds into your account…
Everything You Need To Know About Buying And Selling Gold And Silver
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You have essentially (and legally), set up an off-shore bank account, making it the quickest and easiest way for you to keep some assets outside the US. You can then purchase gold, silver, or platinum by the gram. Every single gram of physical metal is actually “yours.” It’s held in your name, and is not shared on a fractional basis with anyone. Hence, GoldMoney.com gives you the buying and selling convenience of paper-based gold such as a stock like “PSLV”, but the security of owning physical metal. The metal is stored for you at the GoldMoney.com vault of your choice. Currently, you can have your metal stored in London, Zurich, or Hong Kong. GoldMoney.com takes a storage fee each month, and that’s how they make their money. Personally, I split my holdings between the Zurich and Hong Kong vaults. London is my last choice. Why? Because desperate times can call for desperate measures, and London is getting desperate. I like GoldMoney.com for three reasons: 1: If you ever need to leave the country quickly, as in the case of war or an economic meltdown, you can do so without the burden of trying to travel with physical metal in your suitcase. 2: It’s extremely liquid, and I can buy or sell with the click of a mouse. When I have sold metals, the funds have been wired into my bank account within 24 hours. 3: And finally, your proceeds can be turned into US Dollars, British Pounds, EUROS, Japanese Yen, Canadian Dollars, or Swiss Francs, giving you an additional layer of flexibility and security provided by multiple currency options. If you have an international bank account set up through HSBC or something similar, you can access your money from anywhere in the world.You can also use www.GoldMoney.com to put gold and silver into your IRA, which has tax advantages. Just make sure that your IRA administrator will allow you to invest in physical bullion via allocated storage. I would NOT just let them purchase shares of GLD and SLV stocks for reasons we’ll discuss in a minute.
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Storing Your Metals:
Depending on how much you purchase, I would take physical delivery of 50% of your metals, and then hold the additional 50% at GoldMoney.com. Because I talk about this subject publically, I keep mine at a high-security facility out of state, and abroad. The only thing I keep in my safe at home are guns… Lot’s of them. Whatever you do, DO NOT under any circumstance, store you metal in a bank’s safety deposit box. A record number of banks closed in 2010, and the rate is only increasing. When a bank closes, many customers find they can’t get access to their safety deposit boxes for months. If you take personal delivery of your metal, do not tell anyone. Period. You should consider arming your home as well. When/If hyperinflation takes place, desperate people do desperate things. Over the past four years, my family and I have amassed a substantial weapons arsenal, along with the skills and licenses to use them. I’ve found the number of millionaires and billionaires who have taken the same measures shockingly high, but that’s another topic for another time… If you purchase through Michael Maloney at www.GoldSilver.com, you can take advantage of their storage vault with Brinks Security. At the end of the day, if you don’t own the metal yourself in person, or in segregated storage, then you run the risk of losing control or possession of your metal through nationalization or confiscation. As Michael likes to say, “If you can’t hold it, you don’t own it.” Normally this wouldn’t be such a concern, but given the current circumstances, I agree 100%. If I were simply a private citizen and not in the public eye, I would keep 50% of my metal in a safe at home, and the other 50% with GoldMoney.com.
Should You Be Worried About Confiscation?
Speaking of confiscation risks, let’s talk about that…Back in 1933, the US Gov made it illegal for citizens to own gold, and unfortunately that could happen again. But if a coin dealer tries to sell you coins that are “exempt” from confiscation, run away. Quickly. It’s complete BS and they’re just trying to sell you over-priced gold.
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Should you worry about confiscation? Well here’s what Michael has to say about it… “The government will only nationalize gold and silver if people are asking for them in payment. If people are asking for gold and silver in payment, it means that we’re in the midst of hyperinflation. If we’re in hyperinflation, the vast bulk of the wealth transfer will have already occurred, and it will have been mind-bogglingly huge. So just sell the government your precious metals and buy something tangible right away, (like real estate!).” As far for my take, I’m not concerned about confiscation, as I believe any government attempts would lead to civil war. If that happens, all bets are off anyway.
What Types Of Gold and Silver To Buy: Bullion, ETF’s, Numismatics, Etc.
First and foremost, DO NOT buy gold and silver stock ETF’s like GLD or SLV. The only people who should consider purchasing these stocks are day-traders who want exposure to the price of gold and silver on a daily or weekly basis. There is substantial evidence that these funds do not actually own the physical metal they lead you to believe they do, and that multiple parties could have claim in the metal they do have on hand. Here’s a quick video from Michael on this topic: And several articles: Hind Capital’s Attack On Gold ETF Makes Financial Times. Doubts About Gold ETFs Broadcast Today On Two Major Networks
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Everything You Need To Know About Buying And Selling Gold And Silver
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Should You Buy “Numismatic” Gold And Silver Coins?
Numismatic coins are essentially “collector” coins. Not only do you pay for the market price of the gold or silver content of the coin, but you’re also paying for a premium based on the perceived “collectability” of that particular coin. The problem with paying that premium, is that the value of the coin is completely arbitrary and dependent upon its perceived value in the eyes of other collectors, which can change at any given moment. Today, even brand new coins are being passed off as “collectable” just because they’re uncirculated, which is crazy. There are many dealers out there who will try to sell you numismatic gold and silver on the basis that they will be exempt from confiscation should that ever happen, just like they were in 1933. Well guess what… The government can change that rule anytime they want, and then their advantage disappears instantly, and so does their value. The bottom line is this… The world is experiencing a currency crisis, which is why people are looking to gold and silver to find safe harbor. Let’s say that gold is currently selling for $2,000 per ounce, and you have $100,000 to invest… Would you rather purchase 50 ounces of gold bullion, or a single 1-ounce numismatic collector coin with a price tag of $100,000? Personally, I’ll take 50 ounces of gold with an established market value, over a one-ounce coin with questionable value any day. In other words, I highly recommend staying AWAY from numismatic coins. Unless you’re a professional collector who knows the rules of the game, you’re paying more for your metal than you need to.
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What I Buy
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So here’s what I do… When you buy metal from GoldMoney.com, you’re going to get the cheapest prices possible, because you’re buying into metal straight from the refinery, without the premiums added on by dealers. When it comes to taking personal delivery, which is what I would do first to create a foundation, you have a few options… 10 ounce or 100 ounces bars are great, and have the best price, so if you want the biggest bang for your buck, bars are perfect. Personally, I usually stick to 1-ounce coins. Which coins you purchase primarily depends upon the amount of transaction privacy you want when it comes to the US government and IRS. Here’s a summary of the part of Maloney’s book that explains the details… When you PURCHASE metals from a dealer, there are NO reporting requirements on your part, or theirs. You can buy as much gold or silver as you want, and neither you, nor the dealer is required to report the purchase. Period. Now the dealer must report the CASH transaction if it’s $10,000 or greater to the IRS, but not the precious metals. Most gold and silver dealers including Tulving, GoldMoney, and GoldSilver do not accept cash. They use bank wires for transactions. Now when it comes to SELLING your metal, there a few bits for consideration… The IRS requires the dealer who buys your metal to submit a 1099B report of the transaction IF you sell… • • • • • 25 or more 1-ounce Canadian Gold Maples, Krugerrands, or Mexican Onzas. 1 or more gold bar kilos (32.15 ounces each). 1 or more 100-ounce gold bars. Any silver bar totaling 1,000 ounces of more Any combination of 90 percent silver coins totaling $1,000 of face value or more
Now here’s the part to pay attention to… Dealer reporting requirements DO NOT apply to American Gold or Silver Eagles in ANY quantity, nor to any other metal types not listed above.
Everything You Need To Know About Buying And Selling Gold And Silver
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Now whether your purchase and sale of metals is reported or not is actually irrelevant. The only scenario where it could come into play is if the government attempts to confiscate public metal in some very extreme case. Personally, I’m not worried about that. Where reporting DOES come into play, is when you sell your metals and experience capital gains. Just as with stocks, bonds, or other investments, you are obligated to report your capital gains to the IRS when it comes to precious metals. If you make a capital gain, the IRS wants to know about it. So keep all of your receipts, and records when you buy and sell your metal, and get proper tax advice from your CPA.My personal metal holdings consist primarily of gold and silver American Eagles. Back in 2008 when the first rush to metal took place, it was nearly impossible to find any 1-ounce coins for several months.Almost every dealer I called was back-ordered 2-3 months. At that point, I had to purchase a 1,000 ounce bar of silver straight from the COMEX which was delivered three weeks later. This is a lesson I’ll never forget, because once the shit hits the fan and you really NEED to buy metal, it will be too late and you probably won’t be able to find them at any price. The ratio in ounces that I’ve been buying is 90% silver, to 10% gold.
Here’s Why Michael And I Favor Silver Over Gold…
The historical free market value of silver to gold going back thousands of years is about 12 ounces of silver to 1 ounce of gold because there is roughly 12 times more silver in the ground than gold. But that’s changing… There is less silver available today than ever before, and the current estimates put the available ratio at 8 to 1. Why? While 10% of gold is used for industrial purposes, 90% of silver is consumed in the production of electronics, and ends up in landfills. As you can see below, silver’s availability is incredibly low, just as demand has started to pick up momentum…
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Everything You Need To Know About Buying And Selling Gold And Silver
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To put this into perspective, the US government had a silver stockpile of 3.5 billion ounces in the 1960’s. Today, it has less than 20 million, just as investor interest has started to rise dramatically since 2008. Yet thanks to highly publicized fraudulent manipulation of the silver market over the past 10 years by JP Morgan and HSBC who’ve sought to suppress the price of silver at any cost, silver is massively under-valued with a current price ratio to gold at 53 ounces of silver to 1 ounce of gold as of November 2010. They accomplish this by selling massive amounts of silver into the COMEX market whenever the price starts to rise… But they’re not selling the actual metal. They are selling paper future contracts. And these two companies now have so many short contracts on silver, that they have literally promised to deliver more than 200% the amount of physical silver that exists above ground today. So they’ve sold every ounce that exists on the planet, whether they own it or not… TWICE. In October of 2010, a class-action lawsuit was filed against JP and HSBC for their manipulation. You can read more about the suit here… Silver Manipulation Lawsuit Posted At GATA’s Internet Site New Silver Class Action Invokes RICO Against Morgan, HSBC Another Class-Action Silver Manipulation Suit Hit’s Morgan, HSBC This price suppression has meant that the silver mining companies have not been able to mine silver at a profit for decades, and 75% of the silver than IS mined each year, is produced as a by-product from copper, lead, zinc, and gold mining. Silver is the single most manipulated commodity on the planet, and now that the momentum has changed and the world has started to buy physical silver for delivery in record quantities, these two companies will get caught in a short-squeeze of historical proportions. Once that happens, the potential high for silver will be off the charts, and could even equal that of gold… Another benefit of silver is that it has a built in safety net through its industrial use. Strategic rare earth metals like silver that we depend upon to produce electronics can only become more valuable year after year as available supply continues to decrease through manufacturing and disposal. So as you can see, the potential upside to silver is MASSIVE, and according to Robert Kiyosaki, it is “the investment move of our lifetime.” But be warned… Silver is a much more speculative play. The potential reward levels are higher, but so is the risk. If you are looking for security and stability, I would reverse the ratio and purchase 90% gold, and 10% silver.
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Everything You Need To Know About Buying And Selling Gold And Silver
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If you want the best of both worlds, divide your holdings 50/50.
Gold and Silver Mining Stocks…
Fortunes can be made in stocks of gold and silver mining companies during bull markets like this one. But… I’m not an expert on mining stocks so I haven’t really participated in them. If you’re investing in something you’re not familiar with, you might as well go to Vegas and throw your money on the tables. I also consider this point in history to be pivotal. The reason gold and silver are hitting new records, is because the Dollar is dying and by the time this is all over, we’ll be on a new currency, back on a gold standard, or there will be a new reserve currency consisting of a basket of the world’s major currencies. With that kind of chaos ahead, and don’t trust the stock market. I have approximately 5% of my net worth in stocks, for purely speculative plays. For example, I own AGQ and DGP. AGQ is a leveraged silver ETF that increases 2X over the price of silver. So if silver increases 10%, the price of AGQ increases 20%. DGP provides the same leverage, but for gold. Once again, “if you can’t hold the metal, you don’t own it”, so the money I have in these stocks is “Vegas money”, and I only bought into them after I was satisfied with the level of my physical holdings. ONCE AGAIN… DO NOT UNDER ANY CIRCUMSTANCE PUT MONEY INTO “SLV” or “GLD”. These are the standard ETF’s for gold and silver. When people want exposure to the price of metals within the market, these are typically what they buy because they simply don’t know any better. HUGE mistake. There are 100’s of articles and videos on the web revealing how these two stocks are essentially scams used by the large banks like JP Morgan, to manipulate the price of metals. Because of the well-documented fraud and price suppression schemes that have manipulated the gold and silver markets for decades, a day will come when the physical metals market will break free from the corrupt paper market. You will see the price of physical metal skyrocket, and the price of these stocks drop like a rock. If you MUST purchase stocks through your IRA, etc… then I’d highly recommend the two offered by Sprott Asset Management in Canada. Eric Sprott is one of the most trusted “heroes” of the sound money movement...
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The two trusts were created to invest and hold substantially all of its assets in physical gold and silver bullion. The Trusts intend to invest primarily in long-term holdings of unencumbered, fully allocated, physical gold and silver bullion and will not speculate with regard to short-term changes in gold prices. One of the unique features of the Trust is the ability of Unitholders to redeem their Units on a monthly basis for physical gold bullion. In other words, purchasing these stocks is akin to purchasing physical metal, because you can actually redeem your stock holdings for physical metal should you choose to do so. The two stocks can be fund under these symbols: “PHYS” – This is Sprott’s physical gold stock: http://sprottphysicalgoldtrust.com/ “PLSV” – This is Sprott’s physical silver stock: http://www.sprottphysicalsilvertrust.com/ But if mining stocks are something you want to get into, head to www.GoldStockAnalyst.com. So now that we’ve talked about what I’m buying, let’s move on to…
Everything You Need To Know About Buying And Selling Gold And Silver
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Summary Of Do’s And Don’ts When It Comes To Buying Precious Metals:
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1. Buy physical metals you can hold first. Never store them in a bank. 2. NEVER let dealers sell you on buying metals with leverage, with a payment plan, or on margin. If they try to, run away. (Monex.com is famous for high-pressure sales tactics around these options. I’ve experienced it first-hand, and would not buy from them again). 3. I do not recommend buying collectible coins or numismatics unless you are an expert in this area. Stick to the basics. If the dealer is pushing you toward collectibles, run away. 4. Set up a GoldMoney.com account second. I hold 50% of my metals there. 5. If you must buy stocks, I’d buy PSLV or PHYS. 6. NEVER buy GLD or SLV stocks. 7. Only buy mining stocks, or leveraged stocks like AGQ or DGP with money you can afford to lose.
When I Plan To Sell…
Now that you have the details of what I buy and where I buy from, let’s talk about when I plan to sell… Here are the milestones I’ll be looking for… Once we start to approach any one of these, is when I’ll start to seriously look at selling, while simultaneously shorting GLD and SLV on the stock exchange. Until then, I’m simply buying more. 1: A true gold and silver price that’s adjusted for inflation: If you took the previous bull-market high of $850 set in 1980, and adjusted it for inflation, gold would need to hit $2,275 just to match that previous mark. Adjusted for inflation, silver would need to hit $132/ounce. Yet today, the tsunami of horrendous economic challenges we face is far beyond the challenges in 1980.
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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2: The Real-Estate/Gold Ratio: At the peak of the gold bull market in 1980, you could purchase a median single-family home for $42,747, or 814 ounces of silver, which was priced at $52.50, giving us a Silver/Real-Estate ratio of 814 to 1. You could essentially take 814 ounces of silver and trade it in for a home. Today, a median single family home is $180,000. To find out the ratio, simply divide $180,000 by the current price for an ounce of silver. Or to get an idea of the future target price, take $180,000 and divide it by 814… That comes to a price $221 per ounce of silver to match the ratio reached in 1980. 3: The Dow/Gold Ratio: A third reliable indicator to watch is the Dow/Gold ratio, which simply calculates how much one share of the Dow is worth, compared to one ounce of gold. To establish the ratio, you simply take the Dow and divide it by the price of gold. For example, if the Dow was at 11,175 points, and gold was at $1,337, you would have a ratio of 8.35 to 1. So in this example, it would take 8.35 ounces of gold to purchase 1 share of the Dow. Generally, the Dow is undervalued in terms of gold when it costs less than 4 ounces of gold. It’s fairly valued at 6-7 ounces of gold during NORMAL economic times, and over-valued when it costs more than 10 ounces of gold. In 1929, the Dow was over-valued at 18 to 1, until the depression hit and it reverted back to 2 to 1 in favor of gold. In 1980, we hit a 1 to 1 ratio… There was a moment when gold was $800 per ounce, and the Dow was 800 points. Given today’s economic challenges, Michael and I expect to see an eventual Dow/Gold ratio of 1 to 1 within the next few years, which could look something like $5,000 gold vs. Dow 5,000. It will be extremely interesting to see how this plays out. The market is desperately trying to deleverage itself and deflate, but the Fed is refusing to let that take place, pumping Trillions into the market to prop it up and keep stock prices inflated. This process will only feed the inflation cycle, so we could also end up with Dow 50,000 and gold $50,000, but that won’t mean a damn thing because a gallon of gasoline will likely cost $50 by that point.
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Everything You Need To Know About Buying And Selling Gold And Silver
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4: When The Fed Or US Government Makes Its Move… The US has two options… We can default on our overwhelming debt and unfunded liabilities which total more than 100 Trillion Dollars, or… We can turn on the printing presses to devalue the debt through inflation, which is the most likely option. Either choice leads to the destruction of the US economy. Because inflation is the most likely scenario, there will come a time when the government will have to make a move and either reinstate a partial gold standard to back a worthless currency, or offer a new currency. When I start to hear about one of these two things happening, I’ll think about selling. A third scenario is the introduction of a gold standard by another nation, but only the EURO Zone and Japan have currency markets large enough to support such an endeavor. Because both of these countries are essentially whipping boys of the US Federal Reserve, I don’t expect them to make that kind of unilateral decision. And as of late 2011, the EURO is on its death-bed anyway. When these criteria start to creep into play, I’m planning to hold on to 10% of my gold and silver permanently. I’ll then sell the remaining 90% in 10% lots…This means I’ll be selling my metals in nine different transactions over a given period of time. Attempting to time the top of the market and sell all of your metals at that moment is impossible and stupid. The best strategy is to sell small portions over a period of time, allowing your to safely average your gains.
So What’s Next?
Well, as you can see, this is it… This is the largest wealth transfer of our lifetime, and we’re in Stage 2 of 3. Stage 1 started in 2000 when the current gold bull market began. Stage 2 started in 2008 with the financial collapse, and the quiet accumulation of the metal by people in the know.
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Everything You Need To Know About Buying And Selling Gold And Silver
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Stage 3 will likely begin in 2012-2013 when the public jumps into the metals in a massive way, causing the price to go parabolic. If you’re wondering if there’s still time to buy, there is… While no one can predict the future, by the time this is all over I expect to see gold top at $15,000+/ounce. I expect to see Silver at $500-$1,000+/ounce While it will be an extremely exciting time for those who own precious metals, it will also signal hyperinflation, the end of the Dollar, political rebellion, and most likely war with China. :( But remember… What you do NEXT with the profits you make from selling your gold and silver at the proper time will ultimately determine how wealthy you become… My team and I have been putting our investment plan together for the past three years… If you’d like to see it, you can learn more by clicking here... I’ll show you what I’m planning to do with my money, including a little-known strategy I’m using to create a $100,000 per month retirement foundation that’s 100% tax free, and completely independent of the stock market. I’ll also talk about my plan when it comes to gold and silver, and I’ll show you a 3part commercial real estate strategy I’ve recently uncovered that’s conservatively on track to turn a $50,000 investment, into $20,000,000, even it today’s market… If you want to get rich these days, you have to invest your money like the rich do, so click here to discover the black-box investing strategies they’re using to magnify their wealth while the rest of the world crumbles….
To your wealth,
Mike Dillard
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Mike Dillard is a 34-year-old native of Austin Texas. A recent husband and father, he went from waiting tables to Millionaire by the age of 27. Over the past five years he has founded two publishing companies, producing more than $20,000,000 in combined revenue, and over 1,000,000 entrepreneurs from 65 different countries have subscribed to his online newsletters. As an advocate for freedom, liberty, and entrepreneurship, he recently walked away from everything in order to share the urgent message and mission of The Elevation Group, you'll find here.
Everything You Need To Know About Buying And Selling Gold And Silver
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By Mike Dillard
© The Elevation Group LLC 2011
Disclaimer
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Everything You Need To Know About Buying And Selling Gold And Silver
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Hey Mike Dillard here, founder of The Elevation Group, and I just wanted to congratulate you on downloading a copy of my report, “Everything You Need To Know About Buying And Selling Gold and Silver”… This is subject that has become near and dear to my heart over the past few years, and everything you’re about to learn in this report is based on my own personal experience buying and selling over $1 Million dollars in gold and silver, and what I’ve learned through the relationships I’ve formed with industry leaders like Michael Maloney and James Turk.
M ike Dilla rd
I actually started putting the majority of my assets into precious metals back in early 2008, when silver was just $10 per ounce, and gold was around $800, after my eyes were opened to the pending disasters headed toward the United States which are still in the process of unfolding today. I’ll bet you’re reading this right now because you have the same concerns… Whether it’s though a friend, your financial advisor, or research you’ve done online, you’re probably aware that the actions of the Federal Reserve since its inception, but particularly since 2008, have been destroying the value of the Dollars in your bank account by printing record amounts of stimulus money. In fact, here’s how much new money the Fed has printed since 2008.
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Everything You Need To Know About Buying And Selling Gold And Silver
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As a result, inflation is rising, and the cost of your food and gas along with it. Turning your paper money into gold and silver is one of the best ways to protect the value of your savings and investments... And in fact, it has the potential to be the single greatest investment any of us will ever see in our lifetimes if you know two things… Let’s say that you pick up some precious metals and position yourself And here’s a chart showing just how fast the Dollars you own are losing their value because of that printing… on winning side of this wealth transfer during the next year or two. There will come a day when the gold bubble bursts, just like the real-estate bubble did, and the tech bubble before that, which means you’ll need to know two things… First… When to sell and get out of metals before they plummet. But most important of all… Where to put your money next. THAT is the million-dollar question that has driven me for three years, because buying gold and silver right now is simple. It’s easy. It’s common sense. But knowing when to sell your metals, and where to put your gains next will ultimately determine how wealthy you become. Unless you have a plan for your next move, you just have a bunch of shiny coins in your pocket. In fact, if you have a few minutes when you’re done reading this report, I’ll go ahead and show you what I’m planning to do with my money, including a little-known strategy I’m using to create a $100,000 per month retirement foundation that’s 100% tax free, and completely independent of the stock market. I’ll also talk about my plan when it comes to gold and silver, and I’ll show you a 3-part commercial real estate strategy I’ve recently uncovered that’s conservatively on track to turn a $50,000 investment, into $20,000,000, even it today’s market…
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Everything You Need To Know About Buying And Selling Gold And Silver
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But considering that we just met I should probably tell you a little more about myself and my past so that you’ll be able to judge the value and reliability of this report with confidence… I’m 34 years old, and have an amazing family here in Austin Texas. Back in 2005, I started an online marketing company, which publishes books, CD’s, and DVD’s that teach small business owners how to market and sell their products online, using strategies that allowed me to make my first million by the age of 27. Over 1,000,000 entrepreneurs and investors around the world have subscribed to my email newsletters, and I’ve had the privilege of speaking to thousands of entrepreneurs about marketing, wealth, and the economy from stage, or through the various publications we’ve been featured in. Today I run three companies out of two offices with 12 employees, which have produced over $20,000,000 in combined revenue during the last 36 months alone. And I know that when it comes to the internet, people can just throw out numbers and make up anything they want, so I thought I’d pull out my 2009 tax return for just one of the 3 businesses which did $6.3 Million just by itself in 2009. Now when it comes to my personal life and what I love to do for fun, I’m actually a huge baja racing fan… But my primary passion and focus over the past three years has become the economy and investing… Now I don’t know about you, but I wasn’t raised with a real education in wealth creation... I grew up in a middle class family with hard-working parents who did the exact same thing everyone else did with their money… They handed it over to a financial adviser who invested it for the long-term in a diversified portfolio of mutual funds and a Roth IRA. Well thanks to my success in business, by 2007 I had managed to save up a bit of money, and realized that I needed to put it to work instead of spending it on fast cars and all of the other things that a guy in his 20’s would buy… So I began a new personal journey into the world of money and investing, and I’ve dedicated my life to cracking open the “black-box investing strategies of the ultra-rich”… What I found was so unexpected, and is so profound that it has completely changed the entire direction of my life, my priorities, and my view of the world. It was so shocking that I even handed over control of my 8-figure businesses to my partners, and set off on a quest to turn these economic events into biggest opportunity of my life, and yours...
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You know that the US is bankrupt, and that it’s credit rating was downgraded for the first time in history…
You know that Europe is collapsing… You know that gold and silver are hitting new record highs ever month…
You know that the prices of your food and gasoline are rising at record rates…
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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Simply put, there are five factors are colliding together at this very moment, creating a perfect storm of unimaginable change so great, that just 10 years from now – for better or worse, America and the world, will be a fundamentally different place than how we know it today. I don’t have time to dive into the details on all five in this video, but you know deep down in your gut that the world is in trouble… You know that unemployment is at record highs and getting worse… And you know that the stock market and your retirement plans are teetering over a cliff… And yet I am here to tell you right now, that change creates opportunity, which is why more people became millionaires during the Great Depression, than any other time in American history. When massive change takes place, wealth transfers from one person’s hands to another, and today we’re living through the single greatest transfer of wealth in human history. So while it may seem a bit strange to talk about getting rich during what is unofficially a global economic depression, It’s actually the best opportunity you will ever have during your life-time to become very, very, wealthy … IF… You know how. And that leads me to the big question, and the point of this report… Is it possible to achieve peace of mind and financial security, or even produce incredible wealth during these times of economic chaos, and if so, HOW? The answer to both is a resounding YES, and gold and silver are at the heart of the strategy… So let’s dive in…
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Everything You Need To Know About Buying And Selling Gold And Silver…
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I like to give credit where credit is due, and the majority of my knowledge on gold and silver has come from the incredible work of Michael Maloney, (www.GoldSilver.com). If you have not purchased a copy of his book, “Rich Dad’s Guide To Investing In Gold And Silver”, stop what you’re doing and order a copy now. I can honestly say that it’s one of the single most important books I’ve ever read, and the best $12.00 you’ll ever spend. I discovered Michael through Robert Kiyosaki back in 2007, and we’ve become good friends since then. The first thing Michael will tell you when you when you meet him is that he’s NOT a “gold and silver” bug. He’s a historian of currencies and macro-economic cycles, or as he likes to call them, “wealth cycles.” He dove into gold and silver more than 10 years ago when he began to research the Federal Reserve Banking System, fiat currencies, and wealth cycles. Essentially, he identified that the US fiat currency called the “Dollar”, was coming to the end of its life-cycle, and that the United States was entering Stage 6 of 7 when it comes to the life-cycle of an empire. Yes… Fiat currencies and Empires have lifecycles just like everything else, and here’s a brief recap of the seven stages every single empire has gone through… Stage 1: A country starts out with good money, which is either gold or backed by gold.
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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Stage 2:
As it develops economically and socially, it begins to take on more and more economic burdens, adding layer upon layer of public works and social programs. As its economic affluence grows so does its political influence, and it increases expenditures to fund a massive military. Eventually it puts its military to use, and expenditures explode. To fund the war, the costliest of man’s endeavors, it steals the wealth of its people by replacing their money with currency that can be created in unlimited quantities. It does this at the outbreak of war, as in the case of WW I, during the war as in Vietnam, or as a perceived solution to the economic ravages of previous wars.
Stage 3:
Stage 4: Stage 5:
Stage 6:
Finally, the wealth transfer caused by expansion of the currency supply is felt by the population as severe consumer price inflation, triggering a loss of faith in the currency. (This is where we stand today).
Stage 7:
An en masse movement out of the currency into precious metals and other tangible assets take place, the currency collapses, and massive wealth is transferred to those who had enough foresight to position their money into the right asset class before hand…
Now when I talk to lifetime investors or traders who have been doing their thing through the most prosperous years of our nation, they just don’t get this. They think it’s crazy talk… It’s an impossibility because they have 30 years of previous life experience that dictate otherwise. But as a new kid on the block with zero preconceived notions clouding my judgment as to how things should or should not be, it’s an outcome that is as clear and inevitable as day. Just as 2+2 = 4, it is a mathematical certainty the United States of America will declare bankruptcy, or destroy the Dollar trying to prevent it. It is a process that every single nation who has played with fiat currencies has succumbed to since the fall of the Roman Empire.
Every nation… 100%… Without exception.
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Everything You Need To Know About Buying And Selling Gold And Silver
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So buying and gold and silver has nothing to do with the actual desire for the metals, and everything to do with the desire to avoid the consequences that will come with the death of the Dollar. I’ve been buying gold and silver to protect the value of my personal wealth, and to absorb the value of the rest of the world’s wealth, as it is transferred out of paper currencies, and into precious metals. Every single time the Fed prints more Dollars, it dilutes the value of the Dollars already in circulation. Anytime there’s more of something, that something becomes less valuable. This is called inflation. You see, the true value of gold never changes… The only thing that DOES change is the value of the Dollar. When the Dollar drops in value, it takes more dollars to buy one ounce of gold. So when you see the price in gold increase 25% in a year, the price of gold didn’t really increase 25%. It just looks that way because the Dollar actually dropped in value by 25%. This chart goes back to 1971 when the Dollar went off the gold standard, and basically says it all. Notice that it only goes to 2009, and gold is just at $1,000 per ounce. Considering we’re right around $1,900/ounce as of this writing, that means the Dollars in your pocket have lost an additional 90% of their value in the last 12 months alone! If you have cash sitting idle in a savings account, you’re literally going broke! This is how gold and silver allow you to protect your wealth from the inflation. And here’s the deal… The Dollar will not recover and reverse course over the long run. Its final destination will stop at “$0.00″, just like every other single fiat currency that’s come before since the days of Rome. The statistical probability of this based on 2,000 years of history is 100%. The best video summary I’ve found when it comes to today’s story behind the reasons for gold and silver’s current rise can be found here to the left. Now instead of focusing on a history lesson which is expertly told in Michael’s book, I want to focus on the practical steps and pieces of knowledge I’ve acquired when it comes to purchasing metals, and when to sell them.
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Who I Buy My Gold And Silver From:
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There are three primary sources I purchase my metals from… 1: www.GoldSilver.com 2: www.Tulving.com 3: www.GoldMoney.com The service and delivery from both companies has been perfect. Tulving’s website looks antiquated, but don’t let that bother you. They’ve been in business for decades, have the best prices, and every purchase I’ve made from them has been excellent. The only downside is that they have some pretty steep minimum purchase requirements: 5-20 ounces for gold depending on the type, and 500 ounces for silver. I simply buy from whoever has the best price, and inventory at the time. The advantage of buying from GoldSilver.com, is that Michael’s team will add you to their newsletter which will also tell you when they will begin to sell their metals. The third vendor I purchase from is www.GoldMoney.com. GoldMoney.com has been around for 10 years now, and is a unique service that I highly recommend to everyone. The owner, James Turk, is one of the most respected individuals and businessmen in the industry, and he started GoldMoney.com after witnessing the corruption taking place in traditional bullion banks. (We’ll talk about this more later). In a nutshell, it provides the strategic protection of owning physical metal overseas, with the flexibility of instant redemption in multiple currencies. After wiring funds into your account…
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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You have essentially (and legally), set up an off-shore bank account, making it the quickest and easiest way for you to keep some assets outside the US. You can then purchase gold, silver, or platinum by the gram. Every single gram of physical metal is actually “yours.” It’s held in your name, and is not shared on a fractional basis with anyone. Hence, GoldMoney.com gives you the buying and selling convenience of paper-based gold such as a stock like “PSLV”, but the security of owning physical metal. The metal is stored for you at the GoldMoney.com vault of your choice. Currently, you can have your metal stored in London, Zurich, or Hong Kong. GoldMoney.com takes a storage fee each month, and that’s how they make their money. Personally, I split my holdings between the Zurich and Hong Kong vaults. London is my last choice. Why? Because desperate times can call for desperate measures, and London is getting desperate. I like GoldMoney.com for three reasons: 1: If you ever need to leave the country quickly, as in the case of war or an economic meltdown, you can do so without the burden of trying to travel with physical metal in your suitcase. 2: It’s extremely liquid, and I can buy or sell with the click of a mouse. When I have sold metals, the funds have been wired into my bank account within 24 hours. 3: And finally, your proceeds can be turned into US Dollars, British Pounds, EUROS, Japanese Yen, Canadian Dollars, or Swiss Francs, giving you an additional layer of flexibility and security provided by multiple currency options. If you have an international bank account set up through HSBC or something similar, you can access your money from anywhere in the world.You can also use www.GoldMoney.com to put gold and silver into your IRA, which has tax advantages. Just make sure that your IRA administrator will allow you to invest in physical bullion via allocated storage. I would NOT just let them purchase shares of GLD and SLV stocks for reasons we’ll discuss in a minute.
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Everything You Need To Know About Buying And Selling Gold And Silver
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Storing Your Metals:
Depending on how much you purchase, I would take physical delivery of 50% of your metals, and then hold the additional 50% at GoldMoney.com. Because I talk about this subject publically, I keep mine at a high-security facility out of state, and abroad. The only thing I keep in my safe at home are guns… Lot’s of them. Whatever you do, DO NOT under any circumstance, store you metal in a bank’s safety deposit box. A record number of banks closed in 2010, and the rate is only increasing. When a bank closes, many customers find they can’t get access to their safety deposit boxes for months. If you take personal delivery of your metal, do not tell anyone. Period. You should consider arming your home as well. When/If hyperinflation takes place, desperate people do desperate things. Over the past four years, my family and I have amassed a substantial weapons arsenal, along with the skills and licenses to use them. I’ve found the number of millionaires and billionaires who have taken the same measures shockingly high, but that’s another topic for another time… If you purchase through Michael Maloney at www.GoldSilver.com, you can take advantage of their storage vault with Brinks Security. At the end of the day, if you don’t own the metal yourself in person, or in segregated storage, then you run the risk of losing control or possession of your metal through nationalization or confiscation. As Michael likes to say, “If you can’t hold it, you don’t own it.” Normally this wouldn’t be such a concern, but given the current circumstances, I agree 100%. If I were simply a private citizen and not in the public eye, I would keep 50% of my metal in a safe at home, and the other 50% with GoldMoney.com.
Should You Be Worried About Confiscation?
Speaking of confiscation risks, let’s talk about that…Back in 1933, the US Gov made it illegal for citizens to own gold, and unfortunately that could happen again. But if a coin dealer tries to sell you coins that are “exempt” from confiscation, run away. Quickly. It’s complete BS and they’re just trying to sell you over-priced gold.
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Everything You Need To Know About Buying And Selling Gold And Silver
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Should you worry about confiscation? Well here’s what Michael has to say about it… “The government will only nationalize gold and silver if people are asking for them in payment. If people are asking for gold and silver in payment, it means that we’re in the midst of hyperinflation. If we’re in hyperinflation, the vast bulk of the wealth transfer will have already occurred, and it will have been mind-bogglingly huge. So just sell the government your precious metals and buy something tangible right away, (like real estate!).” As far for my take, I’m not concerned about confiscation, as I believe any government attempts would lead to civil war. If that happens, all bets are off anyway.
What Types Of Gold and Silver To Buy: Bullion, ETF’s, Numismatics, Etc.
First and foremost, DO NOT buy gold and silver stock ETF’s like GLD or SLV. The only people who should consider purchasing these stocks are day-traders who want exposure to the price of gold and silver on a daily or weekly basis. There is substantial evidence that these funds do not actually own the physical metal they lead you to believe they do, and that multiple parties could have claim in the metal they do have on hand. Here’s a quick video from Michael on this topic: And several articles: Hind Capital’s Attack On Gold ETF Makes Financial Times. Doubts About Gold ETFs Broadcast Today On Two Major Networks
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Everything You Need To Know About Buying And Selling Gold And Silver
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Should You Buy “Numismatic” Gold And Silver Coins?
Numismatic coins are essentially “collector” coins. Not only do you pay for the market price of the gold or silver content of the coin, but you’re also paying for a premium based on the perceived “collectability” of that particular coin. The problem with paying that premium, is that the value of the coin is completely arbitrary and dependent upon its perceived value in the eyes of other collectors, which can change at any given moment. Today, even brand new coins are being passed off as “collectable” just because they’re uncirculated, which is crazy. There are many dealers out there who will try to sell you numismatic gold and silver on the basis that they will be exempt from confiscation should that ever happen, just like they were in 1933. Well guess what… The government can change that rule anytime they want, and then their advantage disappears instantly, and so does their value. The bottom line is this… The world is experiencing a currency crisis, which is why people are looking to gold and silver to find safe harbor. Let’s say that gold is currently selling for $2,000 per ounce, and you have $100,000 to invest… Would you rather purchase 50 ounces of gold bullion, or a single 1-ounce numismatic collector coin with a price tag of $100,000? Personally, I’ll take 50 ounces of gold with an established market value, over a one-ounce coin with questionable value any day. In other words, I highly recommend staying AWAY from numismatic coins. Unless you’re a professional collector who knows the rules of the game, you’re paying more for your metal than you need to.
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What I Buy
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So here’s what I do… When you buy metal from GoldMoney.com, you’re going to get the cheapest prices possible, because you’re buying into metal straight from the refinery, without the premiums added on by dealers. When it comes to taking personal delivery, which is what I would do first to create a foundation, you have a few options… 10 ounce or 100 ounces bars are great, and have the best price, so if you want the biggest bang for your buck, bars are perfect. Personally, I usually stick to 1-ounce coins. Which coins you purchase primarily depends upon the amount of transaction privacy you want when it comes to the US government and IRS. Here’s a summary of the part of Maloney’s book that explains the details… When you PURCHASE metals from a dealer, there are NO reporting requirements on your part, or theirs. You can buy as much gold or silver as you want, and neither you, nor the dealer is required to report the purchase. Period. Now the dealer must report the CASH transaction if it’s $10,000 or greater to the IRS, but not the precious metals. Most gold and silver dealers including Tulving, GoldMoney, and GoldSilver do not accept cash. They use bank wires for transactions. Now when it comes to SELLING your metal, there a few bits for consideration… The IRS requires the dealer who buys your metal to submit a 1099B report of the transaction IF you sell… • • • • • 25 or more 1-ounce Canadian Gold Maples, Krugerrands, or Mexican Onzas. 1 or more gold bar kilos (32.15 ounces each). 1 or more 100-ounce gold bars. Any silver bar totaling 1,000 ounces of more Any combination of 90 percent silver coins totaling $1,000 of face value or more
Now here’s the part to pay attention to… Dealer reporting requirements DO NOT apply to American Gold or Silver Eagles in ANY quantity, nor to any other metal types not listed above.
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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Now whether your purchase and sale of metals is reported or not is actually irrelevant. The only scenario where it could come into play is if the government attempts to confiscate public metal in some very extreme case. Personally, I’m not worried about that. Where reporting DOES come into play, is when you sell your metals and experience capital gains. Just as with stocks, bonds, or other investments, you are obligated to report your capital gains to the IRS when it comes to precious metals. If you make a capital gain, the IRS wants to know about it. So keep all of your receipts, and records when you buy and sell your metal, and get proper tax advice from your CPA.My personal metal holdings consist primarily of gold and silver American Eagles. Back in 2008 when the first rush to metal took place, it was nearly impossible to find any 1-ounce coins for several months.Almost every dealer I called was back-ordered 2-3 months. At that point, I had to purchase a 1,000 ounce bar of silver straight from the COMEX which was delivered three weeks later. This is a lesson I’ll never forget, because once the shit hits the fan and you really NEED to buy metal, it will be too late and you probably won’t be able to find them at any price. The ratio in ounces that I’ve been buying is 90% silver, to 10% gold.
Here’s Why Michael And I Favor Silver Over Gold…
The historical free market value of silver to gold going back thousands of years is about 12 ounces of silver to 1 ounce of gold because there is roughly 12 times more silver in the ground than gold. But that’s changing… There is less silver available today than ever before, and the current estimates put the available ratio at 8 to 1. Why? While 10% of gold is used for industrial purposes, 90% of silver is consumed in the production of electronics, and ends up in landfills. As you can see below, silver’s availability is incredibly low, just as demand has started to pick up momentum…
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Everything You Need To Know About Buying And Selling Gold And Silver
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To put this into perspective, the US government had a silver stockpile of 3.5 billion ounces in the 1960’s. Today, it has less than 20 million, just as investor interest has started to rise dramatically since 2008. Yet thanks to highly publicized fraudulent manipulation of the silver market over the past 10 years by JP Morgan and HSBC who’ve sought to suppress the price of silver at any cost, silver is massively under-valued with a current price ratio to gold at 53 ounces of silver to 1 ounce of gold as of November 2010. They accomplish this by selling massive amounts of silver into the COMEX market whenever the price starts to rise… But they’re not selling the actual metal. They are selling paper future contracts. And these two companies now have so many short contracts on silver, that they have literally promised to deliver more than 200% the amount of physical silver that exists above ground today. So they’ve sold every ounce that exists on the planet, whether they own it or not… TWICE. In October of 2010, a class-action lawsuit was filed against JP and HSBC for their manipulation. You can read more about the suit here… Silver Manipulation Lawsuit Posted At GATA’s Internet Site New Silver Class Action Invokes RICO Against Morgan, HSBC Another Class-Action Silver Manipulation Suit Hit’s Morgan, HSBC This price suppression has meant that the silver mining companies have not been able to mine silver at a profit for decades, and 75% of the silver than IS mined each year, is produced as a by-product from copper, lead, zinc, and gold mining. Silver is the single most manipulated commodity on the planet, and now that the momentum has changed and the world has started to buy physical silver for delivery in record quantities, these two companies will get caught in a short-squeeze of historical proportions. Once that happens, the potential high for silver will be off the charts, and could even equal that of gold… Another benefit of silver is that it has a built in safety net through its industrial use. Strategic rare earth metals like silver that we depend upon to produce electronics can only become more valuable year after year as available supply continues to decrease through manufacturing and disposal. So as you can see, the potential upside to silver is MASSIVE, and according to Robert Kiyosaki, it is “the investment move of our lifetime.” But be warned… Silver is a much more speculative play. The potential reward levels are higher, but so is the risk. If you are looking for security and stability, I would reverse the ratio and purchase 90% gold, and 10% silver.
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Everything You Need To Know About Buying And Selling Gold And Silver
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If you want the best of both worlds, divide your holdings 50/50.
Gold and Silver Mining Stocks…
Fortunes can be made in stocks of gold and silver mining companies during bull markets like this one. But… I’m not an expert on mining stocks so I haven’t really participated in them. If you’re investing in something you’re not familiar with, you might as well go to Vegas and throw your money on the tables. I also consider this point in history to be pivotal. The reason gold and silver are hitting new records, is because the Dollar is dying and by the time this is all over, we’ll be on a new currency, back on a gold standard, or there will be a new reserve currency consisting of a basket of the world’s major currencies. With that kind of chaos ahead, and don’t trust the stock market. I have approximately 5% of my net worth in stocks, for purely speculative plays. For example, I own AGQ and DGP. AGQ is a leveraged silver ETF that increases 2X over the price of silver. So if silver increases 10%, the price of AGQ increases 20%. DGP provides the same leverage, but for gold. Once again, “if you can’t hold the metal, you don’t own it”, so the money I have in these stocks is “Vegas money”, and I only bought into them after I was satisfied with the level of my physical holdings. ONCE AGAIN… DO NOT UNDER ANY CIRCUMSTANCE PUT MONEY INTO “SLV” or “GLD”. These are the standard ETF’s for gold and silver. When people want exposure to the price of metals within the market, these are typically what they buy because they simply don’t know any better. HUGE mistake. There are 100’s of articles and videos on the web revealing how these two stocks are essentially scams used by the large banks like JP Morgan, to manipulate the price of metals. Because of the well-documented fraud and price suppression schemes that have manipulated the gold and silver markets for decades, a day will come when the physical metals market will break free from the corrupt paper market. You will see the price of physical metal skyrocket, and the price of these stocks drop like a rock. If you MUST purchase stocks through your IRA, etc… then I’d highly recommend the two offered by Sprott Asset Management in Canada. Eric Sprott is one of the most trusted “heroes” of the sound money movement...
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The two trusts were created to invest and hold substantially all of its assets in physical gold and silver bullion. The Trusts intend to invest primarily in long-term holdings of unencumbered, fully allocated, physical gold and silver bullion and will not speculate with regard to short-term changes in gold prices. One of the unique features of the Trust is the ability of Unitholders to redeem their Units on a monthly basis for physical gold bullion. In other words, purchasing these stocks is akin to purchasing physical metal, because you can actually redeem your stock holdings for physical metal should you choose to do so. The two stocks can be fund under these symbols: “PHYS” – This is Sprott’s physical gold stock: http://sprottphysicalgoldtrust.com/ “PLSV” – This is Sprott’s physical silver stock: http://www.sprottphysicalsilvertrust.com/ But if mining stocks are something you want to get into, head to www.GoldStockAnalyst.com. So now that we’ve talked about what I’m buying, let’s move on to…
Everything You Need To Know About Buying And Selling Gold And Silver
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Summary Of Do’s And Don’ts When It Comes To Buying Precious Metals:
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1. Buy physical metals you can hold first. Never store them in a bank. 2. NEVER let dealers sell you on buying metals with leverage, with a payment plan, or on margin. If they try to, run away. (Monex.com is famous for high-pressure sales tactics around these options. I’ve experienced it first-hand, and would not buy from them again). 3. I do not recommend buying collectible coins or numismatics unless you are an expert in this area. Stick to the basics. If the dealer is pushing you toward collectibles, run away. 4. Set up a GoldMoney.com account second. I hold 50% of my metals there. 5. If you must buy stocks, I’d buy PSLV or PHYS. 6. NEVER buy GLD or SLV stocks. 7. Only buy mining stocks, or leveraged stocks like AGQ or DGP with money you can afford to lose.
When I Plan To Sell…
Now that you have the details of what I buy and where I buy from, let’s talk about when I plan to sell… Here are the milestones I’ll be looking for… Once we start to approach any one of these, is when I’ll start to seriously look at selling, while simultaneously shorting GLD and SLV on the stock exchange. Until then, I’m simply buying more. 1: A true gold and silver price that’s adjusted for inflation: If you took the previous bull-market high of $850 set in 1980, and adjusted it for inflation, gold would need to hit $2,275 just to match that previous mark. Adjusted for inflation, silver would need to hit $132/ounce. Yet today, the tsunami of horrendous economic challenges we face is far beyond the challenges in 1980.
Everything You Need To Know About Buying And Selling Gold And Silver
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Everything You Need To Know About Buying And Selling Gold And Silver
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2: The Real-Estate/Gold Ratio: At the peak of the gold bull market in 1980, you could purchase a median single-family home for $42,747, or 814 ounces of silver, which was priced at $52.50, giving us a Silver/Real-Estate ratio of 814 to 1. You could essentially take 814 ounces of silver and trade it in for a home. Today, a median single family home is $180,000. To find out the ratio, simply divide $180,000 by the current price for an ounce of silver. Or to get an idea of the future target price, take $180,000 and divide it by 814… That comes to a price $221 per ounce of silver to match the ratio reached in 1980. 3: The Dow/Gold Ratio: A third reliable indicator to watch is the Dow/Gold ratio, which simply calculates how much one share of the Dow is worth, compared to one ounce of gold. To establish the ratio, you simply take the Dow and divide it by the price of gold. For example, if the Dow was at 11,175 points, and gold was at $1,337, you would have a ratio of 8.35 to 1. So in this example, it would take 8.35 ounces of gold to purchase 1 share of the Dow. Generally, the Dow is undervalued in terms of gold when it costs less than 4 ounces of gold. It’s fairly valued at 6-7 ounces of gold during NORMAL economic times, and over-valued when it costs more than 10 ounces of gold. In 1929, the Dow was over-valued at 18 to 1, until the depression hit and it reverted back to 2 to 1 in favor of gold. In 1980, we hit a 1 to 1 ratio… There was a moment when gold was $800 per ounce, and the Dow was 800 points. Given today’s economic challenges, Michael and I expect to see an eventual Dow/Gold ratio of 1 to 1 within the next few years, which could look something like $5,000 gold vs. Dow 5,000. It will be extremely interesting to see how this plays out. The market is desperately trying to deleverage itself and deflate, but the Fed is refusing to let that take place, pumping Trillions into the market to prop it up and keep stock prices inflated. This process will only feed the inflation cycle, so we could also end up with Dow 50,000 and gold $50,000, but that won’t mean a damn thing because a gallon of gasoline will likely cost $50 by that point.
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Everything You Need To Know About Buying And Selling Gold And Silver
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4: When The Fed Or US Government Makes Its Move… The US has two options… We can default on our overwhelming debt and unfunded liabilities which total more than 100 Trillion Dollars, or… We can turn on the printing presses to devalue the debt through inflation, which is the most likely option. Either choice leads to the destruction of the US economy. Because inflation is the most likely scenario, there will come a time when the government will have to make a move and either reinstate a partial gold standard to back a worthless currency, or offer a new currency. When I start to hear about one of these two things happening, I’ll think about selling. A third scenario is the introduction of a gold standard by another nation, but only the EURO Zone and Japan have currency markets large enough to support such an endeavor. Because both of these countries are essentially whipping boys of the US Federal Reserve, I don’t expect them to make that kind of unilateral decision. And as of late 2011, the EURO is on its death-bed anyway. When these criteria start to creep into play, I’m planning to hold on to 10% of my gold and silver permanently. I’ll then sell the remaining 90% in 10% lots…This means I’ll be selling my metals in nine different transactions over a given period of time. Attempting to time the top of the market and sell all of your metals at that moment is impossible and stupid. The best strategy is to sell small portions over a period of time, allowing your to safely average your gains.
So What’s Next?
Well, as you can see, this is it… This is the largest wealth transfer of our lifetime, and we’re in Stage 2 of 3. Stage 1 started in 2000 when the current gold bull market began. Stage 2 started in 2008 with the financial collapse, and the quiet accumulation of the metal by people in the know.
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Everything You Need To Know About Buying And Selling Gold And Silver
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Stage 3 will likely begin in 2012-2013 when the public jumps into the metals in a massive way, causing the price to go parabolic. If you’re wondering if there’s still time to buy, there is… While no one can predict the future, by the time this is all over I expect to see gold top at $15,000+/ounce. I expect to see Silver at $500-$1,000+/ounce While it will be an extremely exciting time for those who own precious metals, it will also signal hyperinflation, the end of the Dollar, political rebellion, and most likely war with China. :( But remember… What you do NEXT with the profits you make from selling your gold and silver at the proper time will ultimately determine how wealthy you become… My team and I have been putting our investment plan together for the past three years… If you’d like to see it, you can learn more by clicking here... I’ll show you what I’m planning to do with my money, including a little-known strategy I’m using to create a $100,000 per month retirement foundation that’s 100% tax free, and completely independent of the stock market. I’ll also talk about my plan when it comes to gold and silver, and I’ll show you a 3part commercial real estate strategy I’ve recently uncovered that’s conservatively on track to turn a $50,000 investment, into $20,000,000, even it today’s market… If you want to get rich these days, you have to invest your money like the rich do, so click here to discover the black-box investing strategies they’re using to magnify their wealth while the rest of the world crumbles….
To your wealth,
Mike Dillard
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Mike Dillard is a 34-year-old native of Austin Texas. A recent husband and father, he went from waiting tables to Millionaire by the age of 27. Over the past five years he has founded two publishing companies, producing more than $20,000,000 in combined revenue, and over 1,000,000 entrepreneurs from 65 different countries have subscribed to his online newsletters. As an advocate for freedom, liberty, and entrepreneurship, he recently walked away from everything in order to share the urgent message and mission of The Elevation Group, you'll find here.
Everything You Need To Know About Buying And Selling Gold And Silver
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