Real Money Perspectives 2007

Real Money Perspectives 2007

The Future of Gold


By Craig R. Smith, CEO SATC

By David Bradshaw, Editor RMP
Page 1

Joseph Farah Interviews Bill Murphy
Page 1

By Dr. Fred Goldstein, Sr. Broker, SATC
Page 5

By Craig R. Smith, CEO SATC
Page 5

By Nick Timiraos, The Wall Street Journal
Page 7

By Gabor Steingart, Author, Editor
Page 8

By Jerome Corsi, Author
Page 12

By Bill Bonner, Author, Editor
Page 12

By Richard Daughty, Editor
Page 14

By Jim Burg, Sr. Broker SATC
Page 14

By Michael Savage
Page 15

By Tom Rodriguez, Sr. Broker SATC
Page 16

Page 17

Page 18

Page 19

Page 20

21st Century Gold Rush to Hit Mainstream in 2007

A major buying opportunity in the biggest gold bull market ever in history does not come along every day.. but it has come along today!

In the FIRST GREAT GOLD RUSH that began in 1971, gold prices ran from $35 to over $700 - a twenty-fold rise! A decade later, prices settled near $300 - a tenfold increase.

In Phase One of the SECOND GREAT GOLD RUSH that began in 2001 gold prices have run from $275 to $625 - 28% growth/year! Not bad, but this is still just the warm up phase!

In Phase Two of the SECOND GREAT GOLD RUSH gold prices are expected to climb above $750-$850. If gold again rises twenty-fold.. that's a $5,500 peak price, with prices then settling near $2,750 - a tenfold increase... and 450% higher than today.

Numismatic (or rare) U.S. gold coins rushed toward new records during the first half of the year, but then in the second half of the year they historically over-corrected. For example, a Mint-State 65 $20 Liberty actually slipped 10% in price between December 2005 and December 2006 -- despite a 20% rise in gold bullion prices!

PCGS, the rare coin industry's top grading and certification organization's 'CU3000 Index' reports that generic $20 gold coins are down 30% from the May 2006 high, while gold prices are only down 15%.

Why the big discrepancy? Market makers report the introduction of the new $50 Gold Buffalo bullion and proof coins this summer is one of the primary reasons the demand for these historic gems have momentarily fallen.

This presents the greatest opportunity in recent history to buy a beautiful, certified specimen of American history which also provides you with 100% privacy of ownership -- unlike all gold bullion bars, coins or ETFs.

High quality $20 gold coins have already grown 85%-105% since 2001, despite the temporary price drop. If you're planning to own gold for the long run, certified $20 U.S. gold coins should be strongly considered. They have a very limited downside risk and premiums closer to melt value than ever before -- it's like getting a second chance to Microsoft stock before the Information Age! You would but that, right? (See A Rare Second Chance - Page 5)

The best news? You're not too late to join the gold rush. Bull markets in commodities run 15 to 23 years on average. Experts say these first five years have been a "stealth" bull market, mostly hidden from the public. But not for much longer! The mass media is slowly informing the public about the exciting new prospects for gold. We suggest staking you gold claim ASAP, way ahead of the crowd.


Craig R. Smith, CEO

The Future of Gold: 2007 and Beyond CD

Featuring a founder, Joseph Farah interviewing Bill Murphy, founder of

35 years after abandoning the gold standard, the U.S. is now technically bankrupt! A recent Fed study confirms the U.S. will NOT be able to pay its future obligations. Yet, stocks and the dollar have risen. What's going on?

This new CD from and Swiss America will explain it all!

*WHY gold prices are still cheap and are heading to $3,000-$5,000/oz.
*HOW powerful money manipulators temporarily force gold prices down.
*WHY artificially low gold prices present a great buying opportunity.
*WHAT to expect in the financial markets in 2007 and beyond.'s head Whistleblower, Joseph Farah asks Gold Anti-Trust Action Committee (GATA) founder, Bill Murphy hard-hitting, investigative questions about the inner workings of the financial/currency markets and what's in store for precious metals. My. Murphy is 'in the know' as proprietor of one of the most informative and influential gold Web sites,

Request this FREE interview on audio CD by registering at or calling 800-289-2646.

Four-Digit Gold... And Beyond!

Thirty economic experts finally agree on something!

By David Bradshaw, Editor,
Real Money Perspectives

Gold prices hit $725/oz. in 2006, then corrected under $600/oz. before beginning to rise again! How high will this bull market in "real money" and commodities send gold prices over the next 5 to 15 years? Between 2001-2006 many analysts have jumped onto the $1,000/oz. plus gold bandwagon -- most of them whom were not considered "gold bugs" in the past.

Here's a list of nearly three dozen prominent authors and gold experts already on the record forecasting four-digit gold prices to arrive in the years ahead. Their combined gold price expectation for a gold peak averages $2,195/oz.!

I suggest counting up the reasons for owning gold these experts suggest, which together will drive gold prices sky-high. I counted two dozen reasons listed at the conclusion.

PHILIP MANDUCA, Manging Director -- Titanium Capital Ltd.
"Gold is still by far the optimal choice for most investors to play. It's been successful in '04, '05 and '06. Gold will be through $1,000 in the next 18 months."
- Bloomberg, 11-29-06

"We would not be surprised to see $1,000-plus gold from sometimes in 2007 at the earliest to 2009 at the latest. Physical demand is now being added to by the turnaround in hedge funds' change of heart to the upside. The potential oil shortage and more-than-likely ruptures in the stability of the global-money system when the dollar starts to suppurate."
-Marketwatch, 11-3-06

DR. CLIVE ROFFEY, Elliot Wave Theory Analyst/Publisher -- Gold Action
"I believe that the current correction is a more likely to be a minor before a move to well above the previous $720 peak, probably above $800. When the minor correction should occur leading to a wave 5 that will eventually peak well above $1,000 before we hit the next major correction." -321gold, 10-6-06.

HOWARD RUFF, Editor -- The Ruff Times
"Gold and silver are now early in a historic bull market that will dwarf the 500-1700% profits we make in the '70s. Gold will hit at least $2,172 and $100 silver in inevitable. Investment vehicles to avoid: Stocks, bonds, fixed-return investments like utilities, REITs, residential real-estate, ARMS (adjustable rate mortgages). Investment winners in bull markets: Gold, silver, copper and other base metals, uranium. The most powerful, completely essential factor affecting gold in monetary inflation. The most compelling force affecting silver today is the supply/demand equation." -Marketwatch, 8-24-06.

DR. DAVID DAVIS, Senior Gold Analyst -- Credit Suisse Standard Securities
"Between 2007 and 2010, supply-and-demand dynamics will undergo irreversible change, caused by a decline in global mine and official sector supply and increased demand from China and the investment community. We still see a gold price of $700/oz, $800/oz and $1,200/oz by 2008, 2010, and 2015 respectively." - Resource Investor, 8-4-06.

ROBERT KIYOSAKI, Author -- Rich Dad
"I still think gold will go to $1,500 an ounce. I'm betting against the U.S. dollar. Gold is a hedge against U.S. government mismanagement. My family members have a tradition of saving all their spare change for months on end and then trading all the coins in for a single gold coin."
-Washington Post, 6/20/06

STEVEN LEEB, Author -- The Coming Economic Collapse
"Gold took a hit last week, falling 5.7%. As with other commodities, gold was perhaps due for a correction and responded to Bernanke's tougher words. We could see it drift a little lower -- between $580 and $600. But this downside is paltry compared to the upside potential for gold. Gold could reach a price many times higher than its at today, regardless of whether inflation or deflation becomes the problem. So we remain buyers of gold along with energy and our low-risk hedges." - The Complete Investor, 6-12-06.

HARRY SCHULTZ, International Harry Schultz Letter
"My view has always been: current governments (which are bank-owned) won't voluntarily return to a gold standard, with its discipline on money creation. But, when the price roars to, say $1,600, they'll quite possibly be forced to do so, to appease a clamor for sound money - e.g. Bretton Woods II. The price could go to $2,000 while they debate the new rules. Washington insiders would see it as their last chance to save the US dollar as a reserve currency. If they don't, the euro, yen or yuan could make a bid for that status ... If no rules are made at $1,600, gold could keep climbing till they do. Hello $3,000."
-Marketwatch, 6-5-06

PAUL MYLCHREEST, Analyst -- Cheuvreux Investment
"We also see the possibility of a spike to $2,000 or higher, if the story on diminished central bank gold reserves becomes widely accepted, if central banks in countries with large US dollar holdings compete to buy gold and diversify forex reserves away from dollars, and if the U.S. economy slides into either high rates of inflation or deflation." -Mineweb, 2-6-06

JIM CRAMER, Founder --, Host -- Mad Money
"Gold could reach $1,000 if the Chinese stop buying our paper. Once the levee to the Treasuries breaks, the easy high ground worth gaining would be gold. Any portfolio designed to counter government-mandated inflation has to be bedrocked in gold" - New York magazine, Oct. 10, 2005

JAMES TURK, Founder --
"Gold is going much higher, and the $8,000 [per ounce] I mentioned a couple of years ago is probably as good a target as any. There are two aspects to what's driving the gold price: First, there is strong physical demand around the world. When gold crossed the $500-an-ounce level, people started buying gold in anticipation of monetary problems. Second, the physical demand for gold is causing a huge problem for the gold shorts. There has been a large gold carry trade in place. It is very possible gold could have a massive spike in the next six to 12 months to as high as $2,000, driven by these factors." "GOLD MINE" - Barrons, 5/29/06

JIM ROGERS, Author/Adventurer -- Hot Commodities (former George Soros partner)
"Mr. Rogers, who foresaw the start of a commodity rally in 1999, told Bloomberg the boom in energy and raw material prices will endure, driving gold to a record $1,000 an ounce. The shortest bull market for commodities lasted 15 years, the longest 23 years, so if history is any guide, they've got a long way to go. This is not a bubble." - Bloomberg, 4-19-06.

RICHARD RUSSELL, Editor -- Dow Theory Letters
"Gold is now being accepted as the fourth currency along with the dollar, the euro and the yen. But there is a difference. Gold is also being recognized as the tangible currency and the ONLY SAFE currency. That gold pays no interest -- but is still at a 25-year high in terms of dollars -- is a testament to its value and safety in the eyes of sophisticated investors."

J. TAYLOR, J. Taylor's Gold and Technology Stocks
"This is a different gold bull market and most bullish of all is the fact that this is still a stealth bull market. The voice of the global market is just starting to express a declining confidence in the dollar but with a coverage of only 1.7% [in U.S. gold reserves] at close to $700/oz., I believe we are still in the very early stages of a major gold bull market. We have a long, long ways to go toward $3,000 and beyond."

JOHN HATHAWAY, Portfolio Manager -- Tocqueville Gold Fund
"Gold is in a bull-market trend, and there are a lot of reasons for that, and we will see higher prices. People shouldn't be surprised to see gold trade in the four digits." -Barrons ... "In truth, the price of gold at $600 is no big deal. In 1980 dollars, it is only $300. If prior highs mean anything, a target of $1,700 in today's dollars is what investors should be thinking about. Investors should worry less about whether this particular movement is a good or bad entry point and ponder the implications of sailing through uncharted waters without a lifeboat." -

MARC FABER, Author -- Tomorrow's Gold
"A vicious drop in the Dow coupled with a vicious rise in gold, possibly pushing gold to an astounding $2,000, $3,000 or even $6,000. Commodities are an asset class for the first time in history." -

BILL BONNER, Author/Editor -- Daily Reckoning
"When the price of gold goes over $1,000, the bull market will be in its bubble phase. The price may go far higher - depending on what else is going on in the economy and the markets. But this will be a time to be careful... when we stop adding to our positions and begin to reduce them. Gold is now cheap and almost hidden. People are buying it for the right reason: because is it cheap. We see signs, though, that gold is coming out of the closet and the financial press is beginning to notice." -

CRAIG R. SMITH, Author/CEO -- Swiss America
"Gold is clearly headed toward $1,000/oz. and is still a great bargain near $700/oz! Gold recently jumped over $700 and is overdue for a price correction -- which is the sure sign of a healthy bull market -- offering yet another opportunity to but the dips in this ongoing secular bull market." -CNBC Squawk Box.

Lord WILLIAM REES-MOGG, Author & Economist
"I expect gold to reach $1,000 an ounce in the foreseeable future. The price of gold is linked to the price of oil and to the movements of the dollar... oil is probably headed towards $100 a barrel. If there is any shooting in Iran, prices will go through the roof. That however, is one reason for thinking that there may not be any attack on Iran. The world's oil supply cannot afford it." - MoneyWeek

"Gold prices may reach $2,000 an ounce by 2010 on demand for an alternative to currencies. You have much more money than there is gold, and as people see their currencies falling relative to gold, they're going to be saying 'Maybe I should have some of this'." - Bloomberg

PHILLIP GOTTHEFF, President/Commodities Analyst -- Equidex Inc.
"The gold market knows inflation is already here ... which helps explain the hysterical surge in prices in 2006... ETFs have expanded the metals market to now include institutional investors.. With Goldman Saks forecasting $100+ oil I think we could see $1,000-1,500 gold easily... Why hoard? Because investors are afraid of paper. If we were to try to monetize our paper with gold the price would be in the $10,000/oz. - $20,000/oz. range." -CNBC "$1,000 gold debate" 5-9-06

JOHN PERSON, President, National Futures Advisory Service
"As more and more investors start allocating more resources in gold, we could see $800 and as high as $1,000 by year's end. All the elements are in place for such a move, and it would not be unrealistic to achieve in a relatively short period of time."

KEVIN KERR, Commentator/Author --
"Golden Opportunity: The case for $1,000 an ounce... If your thing is to hold the actual gold in your hand then numismatics (coins) or bullion are the way to go."

JOHN EMBRY, Chief Investment Strategist -- Sprott Asset Management
"Gold will hit at least $800 per ounce as paper money is going to hell in a handcart. Even a $1,000/oz gold price may be conservative."

PIERRE LASSONDE, President -- Newmont Mining Corp.
"The price of bullion may exceed $1,000 (U.S.) an ounce within five to seven years as demand growth driven by Asia outstrips global supply." -

"What are we seeing is the result of years and years of a gold price suppression scheme BLOWING UP! Gold is moving up because the crooks have lost control! GOLD is going to go to $3,000/oz as more geopolitical problems arise." - GoldRush21

ROSS NORMAN, Analyst --
"Yes, I do think we will be in the $700s perhaps late in the second quarter, or perhaps the third quarter of 2006 - the market seems incredibly robust both in terms of external factors like the correlation with the oil market that we're still underperforming against - if the ratio held with that we'd be at about $1,000 an ounce now. I think it's gaining strength from the ETFs and more corporate and pension money coming into the market on a regular day by day basis - all this conspires to make one believe that the market has got plenty of strength, that it's "stronger for longer" as they say." -

ADAM HAMILTON, CPA -- Zeal Intelligence
"If our current gold rally truly unfolds into a Great Gold Rally, $1000 gold is merely the first stage. A gold bubble, which will probably ultimately happen as a way to climax the coming gold mania maybe five to seven years out, could easily launch gold above $5000 per ounce. The actual top of a new gold bubble at the final pinnacle of another Great Gold Rally could touch $6000+ per ounce!"

EMANUEL BALARIE, Senior Market Strategist -- Wisdom Financial
"I think gold prices will eventually shatter even my own bullish expectations of $1,000/oz. If you have not entered the gold market, waiting for an opportune time might be too late. Keep in mind that regardless of what the media is telling you, gold is still cheap at these levels." CNBC Squawk on the Street.

NICK MOORE, Chief Metal Analyst -- ABN Amro
"$1,000 gold is by no means an outrageous forecast. It's a cocktail of positive stimuli for gold, you get the spillover of people buying into commodities, whether it's copper, aluminum, soft commodities or precious metals. People are moving there."

PAUL VAN EEDEN, Managing Partner -- Cranberry Capital LLC
"While my model indicates gold should be fairly valued at $900, there's no reason to believe that gold wouldn't dramatically overshoot that mark. And if 1979 to 1980 is anything to go by, it could exceed several thousand dollars per ounce." -Bloomberg

JOHN NADLER, Investment Products Analyst -- Kitco
"Gold prices actually started their life at $35 per ounce in the early 1970s. From there, it went to $850-$875 -- a twenty-five-times-over move. Gold began its latest move up at $252, so prices at $6,250 can't be rules out either, in terms of magnitude of the move."

It all boils down to this: today gold offers unparalleled safety, privacy and profit potential - just as Swiss America has said for a quarter century. As for my projection on gold; I agree with the highly esteemed experts that gold may ultimately rise to four, perhaps even five-digit prices -- as the public's confidence in the world's paper currencies unravels.

Visit$1000gold for complete story links to all of the above expert comments. The list of experts who are calling for $1,000 plus gold ahead is growing daily. Please e-mail your favorite expert quote (with story link) to and we'll add it to the Web version.

24 Reasons to Own Gold...NOW!

1. Gold is still by far the optimal choice for most investors
2. Likely ruptures in the stability of the global-money system
3. $625+/oz. gold prices will eventually peak well above $1,000
4. The most powerful factor affecting gold is monetary inflation
5. 2007 gold supply-and-demand dynamics will undergo irreversible changes
6. Gold's downside risk is paltry compared to the upside potential
7. Some insiders see gold saving the US dollar as reserve currency
8. Central banks buy gold to diversify reserves away from dollars
9. Portfolios designed to hedge inflation must be bed-rocked in gold
10. The shortest commodity bull market is 15 years, the longest is 23 years
11. Gold now accepted as the fourth global currency (with $, Eu, & Y.)
12. Regardless of what the media is telling you, gold is still cheap
13. Investors should worry less about good and bad gold entry points
14. Commodities are now an asset class for the first time in history
15. Gold is coming out of the closet and the press is taking notice
16. Price corrections are a sign of a healthy bull market, buy dips
17. If there's any shooting in Iran, gold/oil prices through the roof
18. Hard currencies (gold) boom as people watch paper currencies fall
19. Gold market knows inflation is already here, explaining 2006 surge
20. More and more investors are allocating more resources into gold
21. Gold you can hold in your hand: Numismatic coins or bullion best
22. Gold gaining strength from the ETFs, cooperate and pension money
23. A gold bubble 5-7 years out could easily launch gold above $5,000/oz
24. Most bullish of all: the fact this is still a stealth gold bull market

A Rare Second Chance
By Dr. Fred Goldstein, Sr. Broker, SATC

If you have not yet taken action in acquiring a position in gold, you now have a rare second chance to buy high quality U.S. gold coins at last year's prices.

The fundamental reasons for buying gold are very clear; trade and budget deficits, geopolitical problems, increased commodity prices, a weakening dollar, and increased costs of living, etc. Yes, we've been saying this for several years. What we haven't said is that you're not too late to join the gold rush.

Although gold prices moved up 20% in 2006, numismatic, or rare, gold coins are still trading at 2005 levels. Following gold's correction from a high of $725/oz. in May 2006, some generic $20 "Double Eagle" gold coins fell over 30%.

Many analysts believe this correction is overdone, and blame the introduction of the .999 Buffalo gold bullion coin. Experts believe investor money, which would have gone into the Double Eagle market, instead went to the new buffalo bullion and proof coins in the second half of 2006.

Although many $20 Double Eagles have doubles in price since 2001, their prices today are trading as if gold is still under $500 an ounce!

At Swiss America, we often refer to the phrase "the ratio". This is the number of ounces of gold it would take to buy one $20 Double Eagle gold piece. For example, today's ratio between one ounce of gold bullion and one MS65 Double Eagle is just three-to-one (3:1) -- the lowest it's ever been since we opened our doors in May 1982! (Note: "the ratio" topped thirteen to one (13:1) in the summer of 1988)

Experts say commodity bull markets last between one and two decades, and during the first five years the public rarely participates. It's our belief that as gold prices continue rising the public will get more and more involved, and once again Double Eagle gold coins will skyrocket.

With the U.S. gold coin premiums at record lows, we believe the downside risk is limited while the upside potential is enormous. Call your Swiss America representative to get the latest price quotes as well as the availability of these historic gems.

Safety, growth, privacy... shall I go on?

By Craig R. Smith, CEO Swiss America

Precious metals continue to outrun almost every other asset so far in the new century, as I said they would in my book Rediscovering Gold in the 21st Century, first released in 2001.

I remember the raging debate in November 2005 about whether gold or Google would be the first to cross the magic $500 level. Gold won that race hands down, crossing the $500 level on November 29, 2005. Meanwhile, Google stock didn't reach $500 until a year later, only to fall back the following week!

All the hoopla over the Dow reaching new records is pure symbolism. The truth is that the Dow must rise to 13,700 to match the March 2000 high of 11,722, using official government inflation numbers over the past six years of 3% inflation. Using the 'real-world' inflation number of 6% the Dow must rise to 15,700 to make a new high.

Most importantly, the Dow has not had one single 10% correction since the touching a bottom of 7,500 in March of 2003 - that's over 1,300 days and counting!

"The current advance is among the five longest uncorrected advances on record. The key is that the market's ability to defy valuations is ultimately temporary," write Dr. John Hussman, President of Hussman Investment Trust.

"If we repeat the last secular bear market in stocks, it might be another 23 years (2029) before the inflation adjusted Dow exceeds its January 2000 peak," reports

Missing the trade of the decade
Bottom line: commodities have been in a secular bull market since 2001, while stocks have been in a secular bear market since 2001. Sure, there are bear market rallies and bull market pull-backs, but metals are and remain, "The trade of the decade" as Bill Bonner said in his first bestseller, Financial Reckoning Day.

Not that I mind the mass media's misinterpretations. So far it's has a positive effect by keeping the masses away from precious metals, which translates into a slower moving bull market, that offers more opportunity for latecomers to participate.

But with more and more frequency, gold experts are being given a voice in the media. In fact, we found dozens of widely respected financial gurus who all see gold headed over $1,000/oz. in the years ahead -- with a total average projection of $2,200 per ounce gold. (See Four-Digit Gold, page 1)

Even Jim Cramer, founder of and host of CNBC's Mad Money now recommends a 10% portfolio allocation to the gold sector.

Mr. Cramer wrote in New York Magazine,"Gold could reach $1,000 if the Chinese stop buying out paper. Once the levee to the Treasuries breaks, the east high ground worth gaining will be gold. Any portfolio designed to counter government-mandated inflation has to be bedrocked in gold" -Oct. 10, 2005

Numismatic Opportunities
The secular bull market in commodities has driven gold bullion up 20% in the last year, from $475/oz. to $625/oz. -- yet the prices of numismatic (rare) gold and silver coins are only up a fraction of that in the last year.

Why the lag in the growth of numismatic gold coins compared to gold bullion? First, keep in mind that investment-grade coins are not a commodity, they are a collectible. So while the bull market in precious metals may help to propel rare coin prices upward, buying an investment-grade coin is not the same as buying a commodity; like sugar, wheat or even gold bullion.

Have you ever seen a 100 oz. bar of gold? Some bars are ugly and beat up and some bars are brand new and shiny, but they both trade for the exact same value. Not so with collectible coins. High quality are rarity are the primary drivers.

Second, because the investment-grade coin market is smaller than the bullion market, it is less prone to speculation and more geared toward being a long-term hold. Rare coins also have a history of lagging behind the dramatic upward moves in the bullion markets. This means rare coins are the one of the least volatile forms of gold to own.

The collector appeal of rare U.S. gold coins is growing tremendously creating more demand than the available supply will accommodate. This basic law of supply and demand can cause rare coin prices to rise -- even if gold bullion prices drop.

Gem-quality numismatic gold and silver coins are in a long-term bull market, like precious metals, but as I said; rare coins tend to move up and down more gradually. Perhaps this stability is one of the reasons WSJ, Marketwatch and other mainstream news outlets have been so positive about this market niche in recent years.

Investment grade U.S. gold and silver coins are fast becoming a new American icon because they offer investors financial stability and profit potential. In addition, U.S. rare coins offer privacy of ownership, a feature more and more investors are looking for every day. (See Privatize your Wealth Today, page 14)

A classic golden double-play
The commodity boom is here to stay, but it could be a bumpy ride upward. Because U.S. investment-grade coins are both a collectible and a precious metal they offer investors a classic golden double-play.

Jim Rogers, who foresaw the start of a commodity rally in 1999, told Bloomberg in 2006 that the boom in energy and raw material prices will endure, driving gold to a record $1,000 an ounce. "The shortest bull market for commodities laster 15 years, the longest 23 years, so if history is any guide, they've got a long way to go. This is not a bubble."

U.S. rare coins offer as much, or more, upside potential for growth as bullion over the long term -- without the daily volatility of the bullion markets prone to wild speculation. Imagine buying a leveraged futures contract one day, then having to meet a margin call the next. Who needs the headache? In contrast, numismatic coins offer investors some well-deserves peace of mind.

The current price levels of most U.S. rare coins are still extremely low, adjusted for inflation and compared to their historical highs, but not for long! A potentially huge demand for these gem investment-grade gold coins is on the horizon today, so don't wait too long to get started. Contact a Swiss America broker to discuss further this golden opportunity. -CRS


December 18, 2006
By Nick Timiaraos
The Wall Street Journal

Six years ago, New York investment adviser Robert Beckwitt was looking for a new alternative to the increasingly expensive equity market. While other investors were busy scooping up real estate, Mr. Beckwitt returned to an old love -- rare coins. One of his first big purchases: a red 1909 Lincoln penny, part of the first issue of U.S. coins to include a portrait. Also featured on this particular coin was a feature that the mint removed from subsequent issues:the initials of the portrait's sculptor.

Mr. Beckwitt paid a New Jersey coin dealer $10,000 for his pretty penny five years ago. His investment today has grown tenfold, thanks to a hot rare-coin market fueled by hungry collectors, greater transparency in the market on the Web, and the surging price of precious metals, especially gold, which earlier this year hit a 26-year high.

Indeed, the 48-year-old Mr. Beckwitt reflects growing ranks of wealthy baby boomers whose desire for alternative assets has led them to invest in a hobby they discovered as a child. Mr. Beckwitt, who started collecting coins at the age of 8, sorting for old pennies in bowls of spare change, says he owes his interest in coin collecting to his "love for the history and the idea of finding something rare."

Among collectors and investors at large, rising gold prices and publicity generated by record-breaking coin sales have piqued interest as well. In a 2002 auction, a 1933 double-eagle gold coin sold for $7.6 million -- a price widely acknowledged by people familiar with the market as the highest ever paid for a coin in a public auction. the 1933 double-eagle coins were never issues, and nearly all of them were melted down during the Great Depression, after President Roosevelt discontinued the gold standard.

Perhaps the biggest boost to coin investing, though, has come from the market's greater transparency -- a state owed largely to the rise of Web sites that display price histories and sell rare coins inspected and rated by coin-grading services. The two major services, the Professional Coin Grading Service of Newport Beach, Calif., a unit of Collectors Universe Inc., also of Newport Beach, and Numismatic Guaranty Corp. of Sarasota, Fla., were established in the 1980s to reduce counterfeit coins and make the trading of coins more liquid by establishing uniform standards for grading. Collectors bring their coins to services, which rate them on a scale representing poor to mint conditions, then seal them in see-through cases that state their grade.

Fully story posted at

America and the Dollar Illusion

By Gabor Steingart

The dollar is still the world's reserve currency, even though is hasn't deserved this status for a long time. The devaluation of the dollar can't be stopped -- it can only be deferred. The result could be a world economic crisis.

The two things investors crave most are high yields and high security. Since you can never have both at the same time, the moods of investors are like an emotional roller coaster. They shift constantly from fear to greed and back -- although major investors, like corporations and states, clearly prefer security over fancy returns. Their fear is stronger than their greed. They'll freely relinquish the really fat profits as long as the stability of their billions is guaranteed. They're afraid of political unrest, they loathe overly dramatic changes in currency value and the mere thought of creeping inflation sends them into a state of panic.

Few countries are able to provide the greatest possible security in the face of these dangers. They include the United States and Switzerland. Indeed, this security is why the dollar isn't just used in trading and investment, but also functions as the world's reserve currency. Almost every country in the world distrusts its own currency to the extent that it prefers to invest the money from its treasury in the United States.

One can almost completely rule out the possibility of political unrest in the United States. Inflation is combated by the Federal Reserve Bank. Given the size of the currency's spread and the quantity of dollars circulating worldwide, speculators have no cause to get overly anxious about the dollar.

Thus, those who have money prefer to keep it in dollars. The United States disposes of a virtual monopoly on the commodity called security. For many investors, purchasing a US government bond is nothing other than a way of preserving their money. In 2005, only 20 percent of all currency reserves in the world were held in euros, whereas more than 60 percent were held in dollars.

The introduction of the euro was a considerable success, and one should not downplay it. Nevertheless, the dollar has remained the world's currency anchor. As long as this anchor rests firmly on the ocean floor, stability is guaranteed for the national economies that invest in the dollar.

But if that anchor should tear itself loose and begin to drift freely in the ocean of global finance, the chaos that ensues would result in trouble for more than just exchange rates.

Buying to avoid selling

But why are the same traders who used to purchase products now so mad about dollar bills? Why do they rely on the good called security -- a commodity whose quantity cannot be increased at all? Doesn't every business student learn that the currency of a country is only as stable -- and hence as valuable -- as what the national economy of that country has to offer and produces? Does no one see that the tension between the dream and the reality is increasing and that this tension will snap, leading to suffering for millions?

Of course they see it! Investors can see what is happening. They wonder about it and shake their heads. It even scares them a little, sending chills down their spine. But they keep buying dollar as though possessed. The greater their doubts, the more greedily they order dollars. Indeed, that's exactly what is so crazy about these investors and their behavior:

the client isn't just a client. He creates the security he's purchasing by the very act of purchasing it. If he were to stop buying dollars tomorrow, suspicion about the currency would spread and insecurity would grow. Then the dream would end. The dollar would start to falter and all the wealth held in dollars would lose its value. Of course, that's not something investors want to see happen.

The only was to fight a weak dollar is to strengthen it. Many people no longer care whether the US currency still justifies the faith people seem to have in it. The new game, which amounts to playing with fire, works exactly the other way around: The dollar deserves the faith it gets because otherwise it loses that faith. Dollars are bought so they don't have to be sold. The dollar is strong because that's the only thing that can prevent it form growing weak. Reality is ignored because only by ignoring it can the dream come true. Or, to put it still more clearly: Behaving irrationally has become rational behavior.

Trust in Gold, market style

For capital investors, reality isn't reality until the majority of investors are convinced it is reality and have begun reacting accordingly. Right now, everyone is watching everyone else closely. Everyone knows the dream of the stable economic superpower has ended, but everyone is keeping his eyes shut just a little longer.

Government bonds and shares don't have any objective value -- nothing you can see, weigh, taste or even eat. Their value is measured by investors' faith that the purchasing power of $1 million will still be $1 million 10 years from now, rather than having been reduced by half. This faith is measured on the markets almost every second -- and the measure used is nothing but the faith of other investors. As long as the faithful outnumber the skeptics, everything works out fine for the dollar (and the world economy). The trouble starts the day the scales begins to tip.

The process is complicated by the fact that investors aren't driven by blind faith alone. In part, it seems, hard facts also push them to extend their credit of trust a little longer.

US economic growth -- an impressive figure on paper -- is an important benchmark. When it is high, investors feel reassured in their faith in the power of the US domestic economy to perform well. True, the trade balance deficit has skyrocketed since it first appeared in the mid-1970s. But the economy is growing steady anyway, as the dreamers note with growing self-confidence. It may not be growing as rapidly as the Chinese economy, but it is growing twice as fast as the European economy.

And yet this benchmark is not as reliable as it seems. The faith investors have in the figure has actually helped create it. After all, the purchasing price of a government bond feeds almost directly into state consumption, just as the purchasing price of a share makes companies more inclined to consume. It also extends the credit basis of millions of private households -- which in turn boosts consumption. In this way, the expectation that the United States will continue to grow -- transform into certainties almost all by themselves.

In other words, the capital of trust creates the very growth rates it needs in order to justify itself. US economic growth, in fact, is fueled by ever-increasing consumer spending -- puzzling given that American wages are dropping as is industrial output. Still, everyone knows the answer to this riddle. The rise in consumption isn't based on an expansion of production, a rise in wages or even an increase in exports. To a large extent, it's based on the growing debt. But why do banks keep issuing credit? Because they accept the ever-increasing prices of stocks and real estate as a kind of collateral. A closed circuit of miraculous money minting has been created.

The extent of this self-delusion can be read in the balance sheets of the banks: Almost no one is saving money in the United States today. The US foreign debt grows by about $1.5 billion every weekday and has now reached about $3 trillion. Private household debt, both at home and abroad, has reached $9 trillion -- and 40 percent of these debts has been incurred since 2001.

The Americans are enjoying the present at the cost of selling off even larger chunks of their future. Arguably, the imminent economic crisis is the most thoroughly predicted one in recent history. Rather than refuting the crisis, the current US economic boom merely heralds it.

Biologists have observed similar phenomena in plants contaminated by toxins. Before they wither, they produce one last batch of healthy shoots -- to the point that they can hardly be distinguished from healthy plants. Some speak of a panic bloom.

So who will be the first to destroy the dollar illusion? Aren't all investors bound together by an invisible link, since every attack on the key currency would lead to a loss of value for them, perhaps even destroying a large part of their financial assets? Why should the central banks of Japan or Beijing throw their dollars onto the market? What could make US pension funds willfully destroy their wealth, held in dollars? What sense would it make to send the United States into a deep crisis when that crisis could drag all the other states along?

The underlying motive is the same as the one that once prompted investors to buy dollars -- fear. This time it is fear that someone else may be faster, fear that the dollar's strength won't last, fear that every day spent waiting may be one day too long. It's fear that the herd instinct of global financial markets will set in and overtake those who can't keep up.

Weaker than they say

These days, the dollar is making a lot of people uncomfortable. One morning many dollar-owners will wake up and look at the facts about the US economy without their rose-colored glasses -- just as private investors woke up one day and took an unflinching look at the New Economy, only to see companies whose market value couldn't be justified by even the most dramatic of profit increases. Some of the revenue forecasts that had been issued far exceeded the total value of the market.

The NASDAQ presented the spectacle of a stock market whose added value increased by 1,000 percent in just a few years, when the nominal growth of the US economy during the same period was only 25 percent.

Greed triumphed over fear for a few years -- but then fear came back. The value of high-tech shares plummeted by more than 70 percent in just a few months, and they're still less than half as high as they were then. Even the Dow Jones, a stock market index based on the value of the largest US companies, was devalued by some 40 percent.

Much the same fate is in store for the dollar and for dollar loans. The United States has sold more security than it has to offer. The expectations traded will turn out to be valueless because they can't be met.

Just as the New Economy was unable to provide investors with either the growth or the profits that had been predicted for investors, currency traders will one day have to admit that they economy backing the currency they sold is weaker than they claimed.

The crash can be deferred, but not stopped

The dependence of foreign central banks on the dollar will defer its crash, but it won't prevent it. Today's snowdrift will become tomorrow's avalanche. The masses of snow are already accumulating at breathtaking speed. The avalanche could happen tomorrow, in a few months or years from now. Much of what people today think is immortal will be buried by the global currency crisis -- perhaps even the leadership role of the United States.

Incidentally, the commission that former US President Bill Clinton created to investigate the negative balance of trade concluded in clear terms that the government has to do whatever it can to put an end to the growing disparity between imports and exports. It demanded that the public give up its optimism and return to realism, that people start saving again and that the state reduce its imports in order to prevent too hard a crash landing.

None of that has been done. In fact, what is being done is the opposite of everything the experts recommended. Debt is growing, imports are increasing and an optimism now lacking every basis in reality has become official state policy. Lester Thurow, a member of Clinton's commission, draws the sober conclusion that no one will believe that US balance of trade could produce a crisis "until it happens."

Editor's Note: This essay has been excerpted from the German bestseller World War for Wealth: The Global Grab for Power and Prosperity by SPIEGEL editor.

Replace the Dollar with the 'Amero'?
By Jerome R. Corsi, Author

The idea to form the North American Union as a super NAFTA, knitting together Canada, the united States and Mexico into a super-regional political and economic entity, was a key agreement resulting from the March 2005 meeting held at Baylor University in Waco, Tex., between President Bush, President Fox and Prime Minister Martin.

A joint statement published by the three presidents following their Baylor University summit announced the formation of an initial entity called, "The Security and Prosperity Partnership of North America" (SPP). The joint statement termed the SPP a "trilateral partnership" that was aimed at producing a North American security plan as well as providing free market movement of people, capital, and trade across the borders between the three NAFTA partners.

In his June 2005 testimony to the U.S. Senate Foreign Relations Committee, Robert Pastor, the Director of the Center for North American Studies at American University, stated clearly the view that the North American Union would need a super-regional governance board to make sure the United States does not dominate the proposed North American Union once it is formed.

Pastor's 2001 book Toward a North American Community called for the creation of a North American Union that would perfect the defects Pastor believes limit the progress of the European Union. Pastor has also called for the creation of a new currency which he has coined the "Amero," a currency that is proposed to replace the U.S. dollar, the Canadian dollar, and the Mexican peso.

The speculation on the future of a new North American currency came amid a major U.S. dollar sell-off worldwide that began in late November 2006. In an interview with CNBC, a vice president for a prominent London investment firm urged a move away from the dollar to the Amero.

Mr. Corsi is the author of several books, including Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil (with Craig R. Smith), Atomic Iran: How the Terrorist Regime Bought the Bomb and the American Politicians, and most recently, Minutemen: The Battle to Secure America's Borders. He will soon author a book on the SPPNA and the prospect of the forthcoming North American Union.

Derivatives Debacle: Little Big Bubbles

By Bill Bonner, Author, Editor, Daily Reckoning
December 1, 2006

The derivatives market, in which hedge funds tend to speculate, has reached a face value of $480 trillion...30 times the size of the U.S. economy ... and 12 times the size of the entire world economy. Trading in derivatives has become not merely a huge boom or even a large bubble - but the mother of a whole tribe of bubbles... dripping little big bubbles throughout the entire financial sector.

In this late, degenerate imperial age, no one get richer faster than hedge fund managers. Last year, Edward Lampert, of ESL Investments (a hedge fund business), set the pace with $1.02 billion in compensation. Compared to him, James Simons of Renaissance Technologies Corp. must have felt like a charity case, with only a bit more than $600 million in take-home. But he still did better than Bruce Kovner, at Caxton Associates, who earned $550 million.

We do not report those figures out of jealousy, but simply puzzlement and amusement. Every penny had to come from somewhere. And every penny had to come from clients' money. Investors in leading hedge funds must be among the richest, smartest people in the world. Still, with no gun to their heads, they turned over billions of dollars' worth of earnings to slick hedge fund promoters.

What do you need to to do to get that kind of work? Well, it helps to be good with complicated math. Then, you can join other hedge fund managers who trade derivative contracts that the clients cannot understand, such as the recently launched CPDO, the Constant Proportion Debt Obligation. According to Grant's Interest Rate Observer, the CPDO may be an innovation, but it is hardly a new idea. It is remarkably similar to the CPPI, or Constant Proportion Portfolio Insurance, which made its debut 20 years earlier.

The CPDO is meant to protect investors against the risk of investment-grade credit defaults. CPPI was meant to protect investors from a stock market crash, using a complex formula that clients also couldn't quite understand. Then in 1987, only about a year after the CPPI was introduced, the stock market crashed and investors finally figured out how they worked. Sifting through the debris, analysts determined that CPPI has not protected investors; instead its fancy programmed trading features actually magnified the losses.

We don't know how the CPDO will hold up under pressure, but we can barely wait to find out. Whenever the higher math and the greater greed come together, there are bound to be thrills.

The twitty quants at big investment firms invent the complex derivative contract...give them a jolt of juice... and then the abominations spring to life. The next thing you know, the hedge fund whizzes are building big houses in Greenwich, Connecticut - and there are billions of dollars... no trillions.. in CPDO and other contracts, in the hands of buyers who don't quite understand the elaborate equations behind the contract...and (here we are just guessing) who will be surprised when they find out.

But neither financial wizardry... nor any complex instrument... can protect a whole market. The whole market can't protect itself from itself. The more people climb onto an investment platform - whether it is derivatives, dot.coms, dollars or dirigibles - the more it creaks and cracks, and the more damage it does when it finally gives way.

But buyers of CME (the Chicago Mercantile Exchange) don't seem to notice. Google, the newest, hottest technology stock of late 2006, trades at a forward P/E of 36... CME trades at an astounding 51. CME is where futures and derivatives trade. The stock came out three years ago at $39. Since then it's gone up 14 times, to more than $550. In New York, meanwhile, the NYSE gets half its daily volume from hedge fund trading. Its stock too, has been on a roll, now trading at 10 times sales, 119 times trailing earnings, and 46 times forward earnings.

If you want to profit from hedge funds, the best way is to become a hedge fund manager. Or, if you want really want to get into hedge funds, but wish to retain your dignity, you could consider investing in a hedge fund company. At least two hedge fund companies have sold shares to the public on the London market.

But with returns falling... and customers beginning to ask questions... more hedge fund impresarios are likely to want to get out while the getting is good. As the funds become less profitable, in other words, more will probably be sold to strangers who don't know any better.

And then, someday - perhaps someday soon- a peak in the credit cycle will come. The mother of all bubbles will finally pop and then the 'little big bubbles' in the financial industry will pop. The Dow will come down - the dollar too. Junk bonds will sink. Builders in Greenwich will notice that their phones aren't ringing as often. NYX and CME will crash. And 5,000 hedge fund managers will be on the streets... looking for the next big thing. When will it happen? How? We don't know. But our guess is that when the history of this bubble cycle is finally written, derivatives will get a special 'tipping point' place... like the Hindenburg in the history of the Zeppelin business.. or the Little Big Horn in the life of George Armstrong Custer.

Editor's Note: Bill Bonner is the founder and editor of The Daily Reckoning. He is also the author, with Addison Wiggin, of The Wall Street Journal best seller Financial Reckoning Day: Surviving the Soft Depression of the 21st century and Empire of Debt: The Rise of an Epic Financial Crisis.

In Defense of Numismatic Gold

By Richard Daughty,
The Mogambo Guru
November 8, 2006

I am not a collector, and thus have no appreciation for the premium that "collectible coins" routinely sell for, often as some seemingly-insane multiple of the actual gold or silver content.

A big, BIG reason in their favor is, perhaps, the "collector mentality" that is a function of a yet-undiscovered "hunter/gatherer" gene that means actual survival, and collectors are merely following those innate instincts to hunt down rare coins and gather them.

But I assume it is this instinctual drive which compels collectors to pay such premiums for a mere rarity, even though there are lots and lots of rare things all over the world and nobody is collecting them, much less paying through the nose to get them.

So, while I am generally opposed to buying numismatic coins, I cannot not argue against the fact that they DO sell for those high prices, and there is no reason that I can think of to make me suspect that it will be any different in the future, collectors being what they are, and genetics being what it is. And, too, one day the Chinese, who will be the rich people of the world, will experience a fad of collecting old American numismatic coins.

One other, recurrent argument for buying numismatic coins is that the Constitution says that the government has to pay you the market value to confiscate your gold, or silver, or both, or anything else you have the government wants. Thus, numismatic coins were exempted when the arch-villain FDR confiscated all the gold in 1933 simply because it was seen as folly to buy up 99% of all the gold at $35 an ounce, and then buy the last teensy fraction of 1 % that was contained in numismatic coins by paying their market value, representing (as it did, thanks to collectors) thousands of dollars per ounce. "Let the babies have their precious numismatic coins", you can almost hear then sniff. "it ain't worth the hassle!"

Privatize Your Wealth Today

By Jim Burg, Sr. Broker, SATC

Your right to privacy has been called "the civil rights issue of the information age," reports Minnesota Public Radio.

"Today Americans enjoy unlimited benefits from new technologies in our wired world. But those wires send information in two directions, and the access to our personal data has never been more open for abuse."

The same is true of your financial information. Your holdings in stocks, bonds, cash, even gold (in most cases) are literally on display for the world to see today, unless you take some specific (and legal) steps to privatize your wealth.

While gold bugs boast of the wonders of gold ownership in today's mixed-up financial world, those who stick with only gold stocks, gold or silver ETFs or even gold and silver bullion coins have no more privacy than they do in equities, bonds, real estate or cash.

In today's world of ultra-transparent investment, it may surprise you to discover that there are only a few legitimate investment niches that offer the small investor 100% privacy of ownership.

A Shining Alternative
An excellent example is investment-grade United States gold and silver coins. In addition to being completely invisible to anyone's prying eyes, these gems provide better average returns than gold and silver bullion historically.

Unlike most other major asset classes, investment-grade U.S. coins do not require a Social Security number or 1099 IRS reporting upon either the purchase or sale.

America could witness a modern banking crisis or even a cyber-attack at the hand of terrorists.

A 1933 Executive Order is still on the books which authorized President F.D. Roosevelt to declare a National Emergency and confiscate all gold coins, unless they could be shown to have "a recognizable special value to collectors or rare and unusual coins."

In addition to being 100% private, U.S. rare coins are also very portable. You can easily put a million dollars worth of rare coins in a briefcase and go anywhere in the world to convert them into the currency of your choice.

What other tangible asset offers such a great combination of 100% privacy and 100% portability? Diamonds and other raw gems may meet these criteria, but are not nearly as liquid as rare coins. With over 5,000 U.S. rare coin dealers in the U.S. alone, liquidation is merely a phone call away.

Gold stocks may be a great long-term growth asset, but whenever you are dependent upon a company's solvency or a mutual or exchange fund to maintain liquidity, you have added another layer or risk and given up privacy.

Owning paper promises for real assets can pay off, but in today's increasingly paperless world, your assets could also be wiped out with the stroke of a key on a computer keyboard. Your wealth could become illiquid at the very moment you need it, unless you have something "outside the system" so to speak.

Physical ownership of rare gold alone allows you the opportunity to have 100% ownership and 100% control of your gold assets without a single worry that your gold may also become someone else's liability.

A Collectible, Not a Commodity
Investment-grade U.S. gold and silver coins are not a commodity, they are a collectible. So while the bull market in precious metals may help to propel rare coin prices upward, buying an investment-grade coin is not the same as buying a commodity.

The investment-grade coin market is one of the least volatile forms of gold to own. Gold ETFs may be a great new product for some, but I'm recommending that clients hold physical at the foundation of their diversified portfolio,

Thankfully the prices are still reasonable. Virtually every person in America has the ability to put themselves on a personal gold standard bu simply purchasing some physical U.S. gold and silver coins.

Technology is bringing us closer together, but the fragments of information about you are also becoming much easier to piece together. Unless you take steps to privatize a portion of your wealth today you may be revealing the most intimate details of your life.

Investment grade U.S. gold and silver coins are fast becoming a new American icon because they offer investors privacy of ownership, a feature that more and more investors are looking for every day, with the added bonus of financial stability and profit potential.


Steady growth despite gold market volatility
By Tom Rodriguez, Sr. Broker, Swiss America

U.S. Gold Commemoratives have been overlooked in recent years as demand for precious metals has consistently increased.

Since I last wrote about U.S. Gold Commemoratives in May 2004, we've seen an average of a 30% price increase in grades MS64, MS65 and MS66, with several dates increasing 45% to over 50%!

This niche of the U.S. rare coin market offers a true diversification on your portfolio of tangible assets. Due to the increase in demand and limited availability of high quality "sight-seen" coins, we expect this series to continue performing for several years to come.

With only 11 coins in the set (excluding the 1915-S $50 Round and $50 Octagonal), U.S. Gold Commemoratives are extremely popular with collectors, investors and beginners.

The Lewis and Clark gold commemorative coins were the only two-headed U.S. coins ever minted. They were originally sold in 1904 for two dollars at a Portland, Oregon fair celebrating the famous expedition.

Despite the recent volatility in the gold bullion and lower grade generic $20 gold piece markets, U.S. Gold Commemorative coin prices have remained steadfast without a downward correction. Why? To quote another major national coin dealer;

"Gold Commemoratives bridge the gap between gold bullion and the ultra-rare condition census coins. U.S. Gold Commemoratives are influenced by factors, which are independent of the price of gold. For example, collector motivation can be a significant source of demand for these coins, a factor completely absent in the bullion market. These factors have enabled these sectors to appreciate during bear markets for gold bullion."

The U.S. Gold Commemorative series is one of only a handful of rare coin collections, especially in U.S. gold coins that allow an individual to put together a complete set without paying a king's ransom.

These golden gems represent outstanding value, both as a long-term investment and as a currently undervalued asset. U.S. Gold Commemorative coin prices start for less than a common-date, gem-quality $20 gold piece! I personally know of a gentleman who put together five sets of U.S. Gold Commemoratives for each of his five children's trusts.

Swiss America only deals in "Sight-seen" (hand-selected) U.S. Gold Commemoratives. The reason is that they historically command the highest premium at resale or liquidation. Call your Swiss America broker today at 1-800-289-2646 to discuss specific recommendations, pricing and availability.

Owning GOLD in your Retirement Plan

Most individuals currently saving for retirement may qualify for a precious metal IRA or 401(k) however, many are not aware that this choice even exists.

*Since 1986, the IRS has allowed individuals to hold precious metals within their IRA. Physical metal, over time, has always offered a hedge against the plague of stock market volatility.

*In 1995, Dr. Raymond Lombra, presented a 40 page report to Congress on the use of gold and rare coins in IRAs for the Coalition of Equitable Taxation. Dr. Lombra stated; "A detailed analysis of hypothetical portfolios reveals that over the 1974-1993 period a portfolio consisting of 5% coins, 5% gold and the rest stocks, Treasury bonds, Treasury bills would have increased portfolio returns at the same time decreased overall portfolio risk.

FAQs about a Gold or Silver IRA
Q: Will I physically hold the metal?
A: No. If you purchase gold or silver within your existing IRA you will not take possession of the metal. It is stored at a depository in your name. Once you reach the age of 59 1/2 you may then take delivery without penalty, The depository, American Church Trust, uses HSBC bank USA (Formerly Republic National Bank of New York), a major long-standing bank, well respected in the area of precious metals depository services.

Q: How long does the transfer process take?
A: Each application is unique and may vary. On average, the process is completed in two weeks. Using your existing IRA information, we will help you complete the paperwork so it will seem effortless on your end.

Q:Will I have a tax implication?
A: No, there are no tax implications for transferring assets from one qualified retirement plan into another

Q:Will I incur a penalty?
A: No, there are no penalties incurred for transferring assets from one qualified retirement plan into another.

Q: Is this expensive to set up?
A: On average, the setup fees range from $150 to $325. These fees are solely based on the amount being transferred.

Q: Is there a minimum amount I must transfer?
A: Yes, your start up amount must be $5000 or greater.

Q: What types of metals are allowed in retirement accounts?
A: All Gold, Silver and Platinum American Eagles coins and certain other bullion coins or bars that meet IRS requirements.

Please call us for more details. Once you have established an interest in a Gold IRA or 401(k): please call your Swiss America representative at (800) 289-2646. They will be happy to help you get the answers to any questions you may have regarding a precious metals IRA.

A Final Word
By Craig R. Smith, CEO SATC

So far in the 21st century most Americans are going nowhere fast financially, based on; bad advice, bad strategies and bad debt.

What's missing? Assets and advisers that are inspiring.

Inspired investing means developing a diversification strategy that withstands the test of time, yet is flexible enough to adapt to a changing financial world.

Inspired investing also means identifying assets which offer an important combination of safety, profit potential and privacy in today's risky world of investment.

2007 marks Swiss America's 25th Anniversary. Our mission over the years has been rather simple; to inspire Americans to rediscover gold -- yet the obstacles have been great. As recently as 1999, misinformed voices in the mass media declared gold was dead.

Yet since the new millennium began, no other asset has served as a better portfolio cornerstone than gold. Having more than doubles in relative value, gold has outperformed almost every other asset class so far in the 21st century - and the most exciting 'public era' of the gold rush is still yet to begin.

We aim to continue telling you the truth about the economy, the markets and gold in new and exciting way over the next 25 years.

P.S. Special thanks to the tens of thousands of clients who've put their trust in gold... and in Swiss America over the years. We've grown and matured with you. Serving you has become both out dedication and our inspiration.

Craig R. Smith
CEO, Swiss America


So far in the 21st century, gold ad silver coins have outperformed almost every other asset class, such as stocks, bonds, CDs, and mutual funds. September 11, 2001 changed the economic landscape dramatically, yet many financial "experts" have not yet changed their recommendations to include tangible assets, like gold and silver coins.

Building a financial portfolio that is able to withstand the storms of life is not easy. Every financial advisor has a little different perspective on which assets offer the best return and safety, but wise counselors now recommend gold and silver as portfolio hedges.

Swiss America would like to help you make sure that your 'investment pyramid' is secured with a solid foundation, but first we need some honest answers to the following important questions...

1. How long do you plan to hold your investment?
2. What level of return do you hope to achieve?
3. What degree of risk are you prepared to accept?

Based on your personal choices, you should adjust your portfolio to fit your goals. Swiss America offers a two-way liquid market in all U.S. gold and silver coins and bullion related products.

The best way to determine the percentage of your portfolio to be allocated into tangible assets is to discuss your goals with a Swiss America broker at 1-800-289-2646.

High Risk category could include tech, high growth stocks, aggressive growth mutual funds. emerging markets, high-yield (junk) bonds, art, commodity future contracts, venture capital, gemstones, etc.

Medium Risk category could include blue chip stocks, preferred stocks, mutual funds, stock/index options, leveraged real estate, equity partnerships, etc.

Limited Risk category can only include residence, retirement plans, Treasury bonds etc. SATC recommends investment grade U.S. gold and silver coins in this category.

Low Risk category to include trash, T-bills, CDs, money market funds, annuities, etc. SATC recommends gold and silver bullion coins in the category.

Call Us Now For a Consultation 1 (800) BUY-COIN