The golden rule safe strategies of sage investors

Table of Contents Title Page Copyright Page Dedication PREFACE THE GOLDEN RULE A “CUSTOMER’S MAN” MERRILL LYNCH FEDERAL SECURITIES TRUST FROM MERRILL TO THE HERON INN—REJUVENATION THROUGH SWEAT EQUITY A SAGE HARD MONEY LENDER STUDYING AND THE ERIS SOCIETY IT’S TIME TO MEET THE WHOS IT’S YOUR TURN Acknowledgements Introduction PART I - BROKERS/MONEY MANAGERS CHAPTER - GOLD REMAINS THE STANDARD FINANCIAL CRISIS TURNING BACK THE CLOCK GOLD IN THE FUTURE CHAPTER - LONG-TERM FUNDAMENTALS STILL GOOD FOR GOLD CHAPTER - A GOOD INVESTMENT STRATEGY, BUY GOLD OUR INVESTMENT STRATEGY DON’T BE AFRAID, BUY GOLD CHAPTER - THE BEAR MARKET IS YOUR FRIEND—FOUR WAYS TO WIN STOCK MARKET AND OTHER MARKETS A BEAR MARKET IS A CLEARANCE SALE HOT TIPS REAL ASSET INCOME CLOSELY HELD VALUE JUNK DEBT IS REALLY GREAT QUALITY PRIVATE PLACEMENTS CHAPTER - THE TALE OF TAELS—A HARD LESSON IN HARD MONEY A DAY THAT CHANGED MY LIFE A LIFETIME OF SAVINGS, NOW WORTHLESS IS THE TALE OF TAELS STILL RELEVANT TODAY? GET READY FOR FIREWORKS IN THE GOLD MARKET PART II - INVESTMENT NEWSLETTER WRITERS CHAPTER - THE GREATER DEPRESSION WHAT HAPPENED REDUX BANKRUPTCY ON SEVERAL LEVELS WHAT SHOULD THE GOVERNMENT DO? WHAT THE GOVERNMENT WILL ACTUALLY DO GOOD NEWS? WHAT SHOULD YOU DO? WHAT WENT WRONG? POLITICAL RISK? CHAPTER - BET AGAINST A FALSE PREMISE SAID THE JOKER TO THE THIEF CHAPTER - UNDERVALUED COMPANIES AND GOLD IDENTIFYING THE TRUE CULPRIT BIRTH OF A BUBBLE A PYRAMID OF IOUS IN SEARCH OF THE BOTTOM CHAPTER - GOLD DÉJÀ VU CHAPTER 10 - THE TRIAL OF GOLD ANDREW CUOMO CROSS-EXAMINES MR GOLD THE GHOST OF MURRAY ROTHBARD TERRY COXON FOR THE DEFENSE JEFF CLARK FOR THE DEFENSE LOUIS JAMES’S OUTBURST AND TESTIMONY THE DEFENSE CALLS DAVID GALLAND CHAPTER 11 - BULLION AND BEYOND A HISTORY OF VALUE THE TRILLION-DOLLAR SINKHOLE HOW CAN PUSH-BUTTON MONEY HAVE VALUE? LOST CONFIDENCE IN THE DOLLAR IS SPREADING APPROACHING “PEAK GOLD” NINE WAYS TO MOVE INTO GOLD THE EASIEST WAY TO OWN GOLD THE STOCK MARKET’S TICKET TO EASY GOLD OWNERSHIP RUN WITH THE BIG BOYS ADD ANOTHER SENIOR A ZERO-COST GOLD MINER THE NEXT GOLD RUSH CHAPTER 12 - GOLD IS TRULY PRECIOUS FINANCIAL CRISES OF THE PAST TODAY’S CRISIS: THE WORST YET GOLD WILL SHINE WHEN CHINA TALKS, IT PAYS TO LISTEN PART III - COIN AND BULLION BROKERS/DEALERS CHAPTER 13 - RARE COINS AND GOLD BULLION THE WORLD TODAY CHINA THE FED AND THE U.S DOLLAR THE RARE COIN MARKET FAMILY LESSONS CONCLUSION CHAPTER 14 - RARE COIN CANARDS CANARD 1: BUILDING A SET ENHANCES YOUR INVESTMENT CANARD 2: HIGH-GRADE, CERTIFIED GOLD EAGLES ARE WORTH MORE CANARD 3: ALL GRADING SERVICES ARE THE SAME CANARD 4: SHIPWRECK COINS ARE A GOOD INVESTMENT AGE CORE PRINCIPLES CHAPTER 15 - THE INTERNET GOLD AND CURRENCY PROVIDER HERSTATT RISK MONEY SUBSTITUTES PERSONAL COMPUTERS AND PATENTS GRESHAM’S LAW AND GOLDMONEY CONCLUSION CHAPTER 16 - GOLD, FIAT CURRENCY, AND INTEGRITY FIRST BUSINESS, ARKANSAS TRIALS MOVE TO TENNESSEE, VISIT FROM THE IRS SWAT RAID AND ARREST SECOND SET OF TRIALS WHY? POSTSCRIPT PART IV - THE MINERS CHAPTER 17 - SILVER—“POOR MAN’S GOLD” CHAPTER 18 - ANALYZING A GOLD MINING STOCK PEOPLE PROPERTY PAPER AND PHINANCING POLITICS PUSH PROMOTION PRICE CHAPTER 19 - LET’S TALK A BIT ABOUT GOLD AND GOLD EXPLORATION LET’S CONSIDER HOW MUCH METAL IS ACTUALLY BEING MINED AND FOUND CHAPTER 20 - MONEY IS GOLD, AND GOLD IS A NOBLE METAL A SHORT HISTORY OF MONEY THE MONEY MONOPOLY GOLD FOR THE POOR AND THE WORKING PERSON CONCLUSION PART V - GAME-CHANGING EDUCATORS CHAPTER 21 - WHAT THE PRICE OF GOLD IS TELLING US MEANING OF THE GOLD PRICE—SUMMATION CHAPTER 22 - THE GOLD PRICE FLOATING CURRENCIES RESERVE CURRENCIES THE END OF THE GOLD STANDARD DOLLARS FOR GOLD CLOSING THE GOLD WINDOW THE DOLLAR EXCHANGE RATE CURRENCY CRISES GOLD IN OTHER CURRENCIES THE THEORETICAL GOLD PRICE TRADE DEFICITS THE EURO GOLD, THE SAVIOR OF CAPITAL CONCLUSION A FEW LAST THOUGHTS CHAPTER 23 - BECOMING A TWENTY-FIRST-CENTURY GOLD GUERRILLA PLATINUM VERSUS GOLD GOLD VERSUS SILVER COINS BULLION VERSUS NUMISMATIC COINS U.S EAGLES VERSUS FOREIGN GOLD BULLION OUNCE OF FRACTIONAL WEIGHT? WHERE AND HOW TO BUY WHERE AND HOW TO STORE OR CACHE YOUR COINS HOW TO TRANSPORT YOUR COINS HOW TO TRADE YOUR GOLD BULLION WHERE AND HOW TO SELL WHAT ABOUT POSSIBLE CONFISCATION MEASURES IN THE FUTURE? CONCLUSION AUTHOR’S NOTE ABOUT THE AUTHOR ABOUT THE CONTRIBUTORS INDEX Rick Rule Global Resource Investments Ltd 7770 El Camion Real Carlsbad, CA 92009 1-800-477-7853 www.gril.net Dana Samuelson and Dr Bill Musgrave How could you not be impressed by a duo that must be nearing the half-billion-dollar mark in terms of value of the rare coins and bullion that they’ve traded? Several of the leading gold experts in this book always recommend Dana and Bill’s services when asked, myself included Contact Information Dana Samuelson and Dr Bill Musgrave American Gold Exchange, Inc P.O Box 9426 Austin, TX 78766-9426 1-800-613-9323 www.amergold.com Franklin Sanders Richard Maybury first steered me to Franklin, and in reading Franklin’s contribution, it’s easy to see why Whether you agree or not with his point of view, and I happen to wholeheartedly agree with it, Franklin’s willingness to stand by his convictions is what impresses me the most about him Additionally, Franklin’s knowledge in coins and bullions is second to none Contact Information Franklin Sanders The Moneychanger P.O Box 178 Westpoint, TN 38486 1-888-218-9226 www.the-moneychanger.com Peter Schiff Whether it’s via his books, his weekly columns, or in his speeches, Peter is always presenting original and thought-provoking considerations that every investor should keep in mind One report that I would like to particularly call your attention to is “The Collapsing Dollar: The Powerful Case for Investing in Foreign Equities,” which can easily be downloaded from the Euro Pacific Capital website It’s now official: Peter is running for the U.S Senate When asked about his apparent lack of political experience, he correctly pointed out that his inexperience was his “greatest attribute—the fact that I haven’t had experience ruining the country, that I haven’t brought the banking system to its knees, and helped destroy the health care system.” I couldn’t agree more While at Freedom Fest, I wished Peter good luck in his coming Senate campaign I so again here Contact Information Peter Schiff Euro Pacific Capital, Inc 88 Post Road West, 3rd Floor Westport, CT 06880 1-203-662-9700 1-800-727-7922 www.europac.net Van Simmons When I began investigating the rare coin and bullion coin market, several different sage investors mentioned here steered me toward Van, President of David Hall Rare Coins Now that I’ve met him, it’s easy to see why He is without a doubt one of the more personable people I’ve met More important, when it comes to gold coins and bullion, Van is one of the most knowledgeable folks in the numismatics business Contact Information Van Simmons David Hall Rare Coins P.O Box 6220 Newport Beach, CA 92658 1-800-754-7575 www.davidhall.com Eric Sprott I once invested in a “shell company,” a company with virtually no assets, which then got purchased by Sprott Resources, a company run by Eric I promptly doubled my money I can’t think of a better character reference that the fact that everyone in the know tries to get in early on Eric’s projects Eric personifies both the excellence of thought as well as excellence of character that Aristotle speaks of Contact Information Eric Sprott, Sprott Asset Management Royal Bank Plaza South Tower 200 Bay Street Suite 2700, P.O Box 27 Toronto, Ontario M5J2J1 1-888-362-7172 www.sprott.com James Turk I once asked James whom he would recommend a close relative use for advice on purchasing gold if James were on his deathbed Without hesitation he said, “given the circumstances you descr ibe, I would name just one, my oldest son Geoffrey.” The ability to pass your character and values on to the next generation says a lot about a person Fortunately, for you, his son is CEO of GoldMoney.com Contact Information James Turk Net Transactions Limited 1st Floor; 32 Commercial Street St Helier, Jersey JE2 3RU British Channel Islands (UK) Tel: 011-44-1534-511-977 www.goldmoney.com Paul van Eeden As a regular guest on radio and television shows throughout the world, Paul’s analysis and understanding on the price of gold is without peer In large measure, just so I can hear him speak, I make it a point of going to the Cambridge House Resource Investment Conferences and Agora’s Wealth Symposium where Paul is often a speaker As a result of hearing Paul’s lectures, I realized almost a hundred thousand dollars in profits on just one stock he kept mentioning I was so pleased by the results, and some others based on talks Paul’s given, that I can’t help but thank him every time we see each other Contact Information Paul van Eeden www.paulvaneeden.com Addison Wiggin I will always remember my first meeting with Addison It was just after he’d introduced the morning’s first speaker at an Agora Financial Investment Symposium I was attending He apologized for the brevity of our conversation, explaining that he’d been awake all night with some friends so they could watch the sun rise over Vancouver and needed to take a quick nap I think that experience captures the Addison Wiggin I’ve come to know He’s the kind of person who in his younger years would have stayed up many nights to watch the sunrise with some good friends and a bottle of wine Now in middle age, Addison still knows what matters in life Contact Information Addison Wiggin Agora Financial 808 St Paul Street Baltimore, MD 21202 1-800-708-1020 www.agorafinancial.com INDEX A Abrahams, Martin Aden, Pam and Mary Anne Aden Forecast, The Adrian Day Asset Management Adrian Day’s Global Analyst Agora Publishing Alexander the Great Allied Nevada Gold Corp Almaden Minerals American Century Global Gold (BGEIX) American Gold Exchange Asset Strategies International (ASI) B Bear market as clearance sale hot tips junk debt private placements real asset income stock market and other markets Bernanke, Ben Blanchard, Jim Bonner, Bill Boston T Party Bretton Woods Conference (1944) Buffett, Warren Bullion and beyond approaching “peak gold,” gold rush, the next lost confidence in the dollar moving into gold, nine ways to foreign gold companies and ADRs gold certificates gold futures gold mutual funds gold options gold shares junior gold stocks physical gold senior gold companies owning gold, the easiest way to printing more money senior gold companies stock market’s ticket to easy gold ownership trillion-dollar sinkhole value, history of zero-cost gold miner C Canadian Venture Exchange Cartier Resources Casey, Doug Casey Research Casey’s Daily Dispatch Checkan, Michael China, as U.S creditor Coinage Act (1792) Coins See also Rare coins and gold bullion bullion versus numismatic coins gold versus silver coins how to trade how to transport ounce of fractional weight possible confiscation measures in the future U.S Eagles versus foreign gold bullion where and how to buy where and how to sell where and how to store or cache Consumer Price Index (CPI) Cook, Brent Cranberry Capital Currency crises D “Daily Reckoning,” David Hall Rare Coins Day, Adrian Deak-Perera Group Depression, Greater bankruptcy on several levels cause political risk prognosis what the government should what the government will actually what you should what went wrong Dollar exchange rate E Early Warning Report Economic crisis, current massive historical bailout money and inflation more than history in the making Eris Society Euro Euro Pacific Capital EverBank Exploration Insights F Fairman, Bill False premise, betting against Federal Reserve Fiat currency Five-Minute Forecast, The Floating currencies Franco Nevada Corp Friedman, Milton G Galland, David Gittomer, Jeffry Global Resource Investments Ltd Gold as bear market investment as clearance sale hot tips junk debt private placements real asset income stock market and other markets bullion and beyond approaching “peak gold,” gold rush, the next lost confidence in the dollar moving into gold, nine ways to owning gold, the easiest way to printing more money senior gold companies stock market’s ticket to easy gold ownership trillion-dollar sinkhole value, history of zero-cost gold miner déjà vu exploration as good investment strategy historical importance of China, as U.S creditor financial crises of the past gold as inflation hedge today’s crisis leading experts on long-term fundamentals still good for as money gold for the poor and working person history of money money monopoly platinum versus price of closing the gold window currency crises dollar exchange rate dollars for gold euro floating currencies gold in other currencies Gold Standard, end of the meaning of reserve currencies theoretical gold price trade deficits rare coins and gold bullion China the Fed and the U.S dollar rare coin canards rare coin market the world today as standard financial crisis gold in the future turning back the clock taels the trial of and trust in the twenty-first century bullion versus numismatic coins gold versus silver coins how to trade how to transport ounce of fractional weight platinum versus gold possible confiscation measures in the future U.S Eagles versus foreign gold bullion where and how to buy where and how to sell where and how to store or cache Gold mining stock, analyzing paper and financing people politics price promotion property push Gold Standard, end of the Goldcorp GoldMoney Graham, Ben Great Depression Greenspan, Alan Gresham’s law H Heron Inn Herstatt risk Hupy Guy I Indian peasants gold and trust sage investors The Intelligent Investor (Graham) International Speculator International Tower Hill Mines (ITH) Internet gold and currency provider Gresham’s law and GoldMoney Herstatt risk money substitutes personal computers and patents Iranian Hostage Crisis (1979) J James, Louis K Kinross Gold Kitco Precious Metals L Livengood Lucara Diamond Corp M Maybury, Richard Merrill Lynch Federal Securities Trust (MLFST) Metals Select Account Metals Select Holding Account Midland Exploration Minter, Charlie Miranda Gold Corp Mitsui Moneychanger, The Motapa Diamonds Mundell, Robert Musgrave, Bill N Nadler, Jon Nixon, Richard Numismatic Guarantee Corporation O Oil prices Outstanding Investor Digest Owen, Barry P Patents, personal computers and Paul, Ron Paulsen, Jim Perth Mint Certificate Program Platinum versus gold Poliquin, Morgan Pontius, Jeffrey A Private investments in public equity (PIPE) Professional Coin Grading Service (PCGS) Pugsley, John Q Quartermain, Bob Quest Investments R Rare coins and gold bullion China the Fed and the U.S dollar rare coin canards rare coin market the world today Rimfire Minerals Corp Roosevelt, Franklin D Rothbard, Murray Royce, Kenneth W (aka Boston T Party) Rule, Rick S Sage investors Salvigsen, Stan Samuelson, Dana Sanders, Franklin Schiff, Peter Security Analysis (Graham) Silver Silver Standard, Inc Simmons, Van Sprott Asset Management Sprott, Eric Stealth Investor, The StreetTracks Gold Shares (GLD) T Taels Trade deficits Trial of Gold Turk, James U Undervalued companies and gold bottom, in search of the bubble, birth of IOUs, pyramid of true culprit, identifying V van Eeden, Paul Virginia Gold Mines Vista Gold W Wiggin, Addison Williams, John Y Yamana Gold Originally published by Jon Nadler in 2009 All rights reserved Originally published in Markets at a Glance on October 14, 2005, as “Gold Remains the Standard.” Originally published in The Gold Report on September 2, 2008, as “Adrian Day: Long-Term Fundamentals Still Good for Gold.” The Gold Report is an online report that features investment coverage of precious metals, base metals, and gems that is published by Streetwise Inc Originally published in Euro Pacific Economic Market Commentary on May 30, 2008, as “Don’t Be Afraid, Buy Gold,” and on the Euro Pacific website as “Our Investment Strategy.” This is a copy of a speech given at the October 2002 Gold Newsletter’s New Orleans Investment Conference Originally published in The Casey Report, January 5, 2009, as “The Greater Depression: Part 2.” This chapter consists of two articles that were written by Bill Bonner for The Daily Reckoning “Bet against a False Premise Buy Gold” was originally published on Tuesday, January 6, 2009, while Bill was in London, England The second article, “Said the Joker to the Thief,” was originally published in The Daily Reckoning on Friday, January 9, 2009, while Bill was in Paris, France Originally published in Early Warning Report in April 2008 as “The Bernanke Bomb.” In Senate Banking Committee testimony, February, 2008 10 “Dow Rallies , ” Wall Street Journal, March 12, 2008, p C1 11 Originally published in The Room on October 24, 2008, as “The Trial of Gold.” 12 Originally published in Agora Financial in 2008 as “Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!” 13 Originally published in The Velvet Tray on November 1, 2007, as “Van’s Two Cents Worth.” 14 Originally published as a Special Report in July 2004 on the American Gold Exchange website 15 Originally published in Freemarket Gold and Money Report on January 8, 2001, as “Gold in the New Economy.” 16 Originally published in Chronicles: A Magazine of American Culture, a publication of The Rockford Institute in Rockford, Illinois, in February 1997, as “Most Dangerous Man in the Mid South.” It has been reprinted with permission 17 Originally published in The Gold Report on June 20, 2008, as “The Outlook for Gold Is Still Sterling: An Interview with Robert Quartermain.” The Gold Report is an online report that features investment coverage of precious metals, base metals, and gems that is published by Streetwise Inc 18 Originally published Recommendation.” in International Speculator in November 2008 as “New Company 19 Rothbard, M., What Has Government Done to Our Money? Auburn, AL: Ludwig von Mises Institute, 1990 20 Mises, L., von, Human Action: Scholars Edition Auburn, AL: Mises Institute, 1999.; Rothbard, M., Man, Economy and State with Power and Market Auburn, AL.: Mises Institute, 2004 (1962, 1970) 21 Taken from the World Gold Council’s website: www.gold.org 22 Baker, L.M., “From the Gold Standard to the Credit Bubble: Gold’s Evolution as a Store of Value,” Austrian Scholars Conference 9, 2003 23 See the Gold Anti-Trust Action Committee (GATA) website, www.gata.org 24 “China Opens Up Gold Trade,” The Standard, September 8, 2004 25 This is a copy of a speech given before the U.S House of Representatives on April 25, 2006 26 Originally published in International Speculator, Volume XXIV, No 4, on April 1, 2003, as “The Gold Price.” ... toll of gold coins to make his way in the trunk of a car to the other side of town and be able reach the long line for the invaluable papers that may grant him safe passage He and three other... matter The end result was the same—I got to know a number of world-class, sage investors At one of these meetings, Doug recommended I use Rick Rule as my broker I have found Rick to be one of the. .. message of the book, that everyone should own gold, the message is timeless More important, with regard to the primary purpose of the book, allowing you to get to know and understand how the sage investors