Today CEO and author, Craig R. Smith was a live guest on FOR THE PEOPLE, hosted by Chuck Harder, airing on Talk America radio network and WHRI shortwave internationally.
The following is a summary of the program. The audio is available at this link under the category of "THE NEW GOLD RUSH!"
CHUCK: Craig Smith is CEO of Swiss America, celebrating his 20th Anniversary in 2002. He is also the author of "REDISCOVERING GOLD IN THE 21ST CENTURY: THE COMPLETE GUIDE TO THE NEXT GOLD RUSH." Craig is an expert on collectibles and the gold market. I want to pick your brain and then open the phone lines in the second half. As I have said many years ago, NAFTA and GATT would destroy the American economy ... and it is. Craig, why are some things not as good as others to collect? For example, antique cars have dropped lately.
CRS: We have to be careful not to get caught up in a so-called "Tulip mania"... that is what happened with collectible cars. Remember, liquidity is not a major issue if you are a long term collector, but it is required for investors.
CHUCK: How about antique trains? They also have dropped from thousands to hundreds ... it seems hobby collectibles have lost steam?
CRS: Yes, I think that the blood bath on Wall Street has caused many investors to tap into their other assets to maintain lifestyle or, to simply to pull out their equity. The ripple effect has hit almost asset except real estate.
CHUCK: But that is changing. The amount of people with big money is now shrinking, which will effect real estate prices. Construction is on hold. The problem with the Real Estate bubble is that someone will get stuck.
CRS: Yes, I agree the wealth effect has a downside.
CHUCK: I have been worried about real estate bubble ... I believe that we will go back to basics and land prices should be much lower. Speculation is driving the prices beyond reality. There used to be a lot of people in the 1970s saying buy silver, buy silver, but I disagreed with them.
CRS: You were right. Silver is an industrial metal first, precious metal second. I have not recommended silver (except collectible silver coins) for many years. The new economy myth has been exposed as a lie because there was no "new economy."
CHUCK: I think there are two kinds of investors: 1) The non sophisticated, who should probably buy bullion coins and 2) The sophisticated, who understand what a "numismatic" coin is...the collection of valuable rare coins.
CRS: U.S. collectible gold coins have outperformed every other area of the market in the last three years. I disagree about unsophisticated investor ... coins are not that hard to understand, but you must get educated first with the facts ... you must be informed.
CHUCK: My belief is that even gold bullion coins have done well this last year, like say an American Eagle, today priced at $330, one year ago the same coin was about $275 -- that's a 20% increase. That is also a no brainer. Do you sell those type of gold coins?
CRS: Yes, we have a division that specializes in bullion, Swiss America Product Sales. Bullion coins offer great protection, but not nearly the privacy or profit potential of collectibles -- which in some cases average 10-20% per year. Gold bullion is a hedge against inflation and currency devaluation. It's all about maintaining your buying power over the long term.
CHUCK: How can people reach you to get more information.
CRS: 1-800-289-2646, spell 1-800-BUY-COIN. We will send out a FREE copy of "THE NEW GOLD RUSH" magazine, ($19.95, 32 pp) just released on 9/30/02 featuring; 20 EXPERTS CONFIRM ... "GOLD IS THE BUY OF A GENERATION." Craig Smith-SATC, Dr. Fred Goldstein-SATC, Alison Beard-Lon. Fin. Times, MaryAnne and Pamela Aden-Aden Forecast, Richard Russell-Dow Theory Letter, Thom Calandra and Andrea Coobes-CBSMarketWatch, Robert Prechter-Elliot Wave, Dennis Peacocke-The Bottom Line, Mark Minnella-Integrity Investors, Roger Arnold-MyHomeLender.com, Dr. Ray Lombra-Economics professor, U of PA, John Waggoner-USA TODAY, Walter Murphy-Sr. Int. Strategist, Merrill Lynch, Jean Marie Eveillard-Int. gold fund manager, Pat Boone-entertainer/investor, and Real Money Perspectives editor, David Bradshaw-My Idea Factory.
CALLER, SHAWN: I bought a limited edition 2002 Thunderbird car for $50,000, now I can't get my money out of it. What should I do?
CRS: Auto dealers will charge a premium on special edition cars to buyers, but not for sellers of that same car that is used. If you can afford to hold your T-Bird for 20-30 years, you will probably do all right, otherwise, if you must sell it now, you could lose 20-30%.
CHUCK: The problem is you fell in love with a new car, but it is not necessarily a good investment. The lesson here is that you should never shop for a car with your checkbook or hand a car dealer your car keys. Let's go back to discussing collectibles that will hold their value. Tell us more Craig...
CRS: I've never been more impressed about the urgency of Americans getting educated about how to diversify their assets. THE NEW GOLD RUSH represents the combined wisdom of over 20 analysts who agree that a small portion of your money should be diversified into gold.
CHUCK: I like your product because it is liquid. Coins are also a portable and divisable form of wealth that you can hold in your hand.
CRS: Yes, very portable, very private, no gov't regulation, tax advantages. But you must get an education first. Swiss America offer the best education in the business.
CHUCK: What do you say to investors that got burned in the stock market and want to test the market... with say $250-$1,000?
CRS: It depends on their objective. For the small investor, I recommend the Proof silver WWII era coins. For those with over $1,000, I have never been more excited about a market than I am about U.S. Gold Commemorative coins (1903-1926) because they are in such limited supply and they serve as a great educational tool about American history. THE NEW GOLD RUSH covers all of that and much, much more. But profit should not be the first priority, protection and privacy are first, then profit potential. Call today for a FREE review copy of THE NEW GOLD RUSH!
CHUCK: Whether you want to buy bullion coins or collectibles, call Swiss America. The thing I like about these rare coins is that you won't lose your shirt ... there is no penalty for driving it off the lot.
CRS: That's right! And there is no obligation when you call.
CHUCK: We'll talk more about this topic in the future, until next time, may God bless America!
The "For the People" (TM) program seeks to provide a forum for the average citizen to learn the workings of government and useful consumer and financial information. Because the program is supported by listener's memberships and donations, Harder speaks without fear of corporate censorship or reprisals and his stations have honest deniability. Thus the truth, facts, breaking stories, and cutting-edge investigations are aired without second thoughts. Harder is a walking encyclopedia of information from how to collect a debt to getting a large corporation to respond to consumer needs.
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