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The Secrets of Gold Investing Today
• Thinking of Gold as Financial Insurance
• Gold as a Portfolio Diversifier
• Insisting on Private, Non-Reportable Gold
• Using Gold as a Profit Generator
You can ask anyone about investing in Gold and you would be surprised at the answers. Precious metals are often one of the least understood sectors of investing, especially among Stock Brokers and Financial Advisors. In part, that's because they are only trained to sell Stocks and Bonds. Much of the general lack of understanding comes because of the unique role Gold investments (and Silver) historically serve in a portfolio.
This "Austin Report" is a primer on Gold investing. We hope to show you why you should invest in Gold today...and a little Silver too. Inside, we'll discuss the role of investing in Gold as insurance, a portfolio stabilizer, and Gold as an alternative way to grow your wealth. At times, we will refer to Gold investments alone– but the benefits will most often apply to holding both precious metals– Gold and Silver. To start, let's compare and contrast Stocks and Bonds with investing in Gold.
Gold Investments Are Very Different
Gold is unlike a bond. Gold pays no interest. But, Gold cannot become worthless like a bond can. The values of both rise and fall in free market trading. Gold is also not a stock. Unlike corporations, Gold has no employees, no unions, pays no health insurance, has no overpaid CEO, has no need to borrow money from a bank, and is recession-proof.
Gold simply sits there in your vault quietly doing its job. You can see why for the average stock broker or financial advisor, Gold remains a total mystery.
Impressive Year-Over-Year Gold Gains
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Sadly for their clients, stock brokers seldom recommend investing in Gold or Silver. Despite the remarkable year-over-year gains, they continue to ignore the gains being generated during the current bull market.
We believe there is a time and place in every portfolio for Stocks, Bonds, Real Estate, Commodities, Cash, and Precious Metals. There are very good reasons why this is true.
Gold Investing as a True Diversifier
Stocks and Bonds prosper in strong economic times and bear higher risks in bad times. By contrast, Gold ignores recessions and does well when these and other
traditional investments fail.
Gold investments also act as an anti-currency. Here at home, Gold soars in value when the U.S. Dollar is falling. Better still, Gold loves and thrives on inflation– events that Bonds hate. Inflation destroys the future buying power of cash, Bank CDs, any debt instruments, and even money hidden under your mattress isn't safe.
And last, but not least, Gold investments are among the last private investments– safe from the prying eyes of Government agencies.
Maximum Profits Investing in Gold
In uncertain times, like we find ourselves in today, precious metals will act more like a currency– preserving wealth and resisting deflation forces. There have always been unique periods in American history in which Gold and Silver suddenly act if they were the most scarce commodity on the planet!
During those decades, the investment demand for precious metals exceeds the supply, prices are bid up, and the profits can be dramatic. Let's take for example the last bull market for precious metals in the 1970s. The price of Gold multiplied by 24 times while Silver multiplied over 30 times. With gains on that scale, Gold and Silver are hard to resist as pure profit plays.
Gold Survives & Prospers in Bad Times
In fact, in recent years, the price of Gold and Silver have more than quadrupled. Impressive indeed! Yet, those are far from the 24 to 30 times gains of the past. That leaves us with the opinion that the best profits are still ahead.
By contrast, Stocks, Bonds, and Real Estate all depend on the U.S. and World economy to be strong and growing. Right now, it's not. The U.S. is barely struggling out of a severe two year recession, the mortgage crisis still continues, the Government still owns huge chunks of the nation's banks, runs the entire mortgage industry, manages the world's largest insurer, and barely saved General Motors.
The Best of Times, the Worst of Times
With apologies to Charles Dickens, these are clearly not the best of times. That is exactly why Gold investments (and Silver) make remarkable gains during the worst of times.
1. Wartime – Historically, precious metals rise in price during times of war, acting much like a commodity. The more uncertain the future, the better Gold performs. The Federal Goverment increases deficit spending and borrowing to pay for expensive wars. At present, the U.S. continues in a seven year war in Iraq, a war in Afghanistan, and a war on terrorism with no end in sight.
2. Recessions – Precious metals increase in value during periods of persistent recessions or depressions. During weak economic times when there's high unemployment, the Government borrows heavily to stimulate the economy. Debt is justified in an attempt to replace the lack of consumer/business spending with inefficient Government spending programs.
3. Monetary Inflation – Politicians typically create pork-barrel spending programs, expand the monetary supply dramatically, increase the debt of future generations, and eventually create rising inflation problems.
4. Low Interest Rates – Everyone with savings held in banks suffers today from artificially low interest rates. In times like these, many investors turn to Gold and Silver to replace the missing returns from traditional cash investments.
Investors hate uncertainty. No one knows what to expect from Washington except higher taxes on the investment class while we're alive, higher death taxes, and years of inflation.
We All Will Pay for the Bailouts
Wealthy Americans realize they will be forced to pay for Washington's excessive spending with dramatically higher income taxes.
What most Americans have failed to realize is that they also will be paying for the bailouts, stimulus, and health care programs. All tax rates are bound to go up, especially that often ignored "hidden tax" called inflation that's coming. Inflation is a result of excess Government spending, borrowing, and money creation.
It hits a while after a crisis and down the road from when the Government pumps up the money supply. Since we know for a fact that Ben Bernanke and the Federal Reserve have more than doubled the supply of U.S. Dollars, we also know that inflation is inevitable.
All Americans will be hit with inflation, resulting in a loss of buying power. Simply put: today's dollars will be worth less tomorrow. The more money you have accumulated in savings, the more you will lose– unless you begin now to hedge against the coming waves of inflation.
Gold Investments as Financial Insurance
No matter how much you've put away for retirement or education funding, if inflation is rising faster than the returns on your money– you lose. Food will cost more, gas prices will rise, energy prices will soar, and anyone on a fixed income will be in big trouble.
Nowhere has the need to hold Gold been more obvious to the average American than in the past two years.
1. Gold Thrived While Stocks Crashed– Gold was one of the few investments that prospered in 2008, rising in value by 6% while Stocks, Bonds, and Real Estate all crashed and Americans lost over $14 Trillion Dollars. Less than one-third of the losses have been recovered despite the recent rise in U.S. Stocks. Gold thrived again in 2009, rising in value over 24%.
2. Gold Survived the Financial Shock– In response to the massive financial crisis, the Federal Government seized control of the U.S. Banking industry, Mortgage Bankers, the world's largest insurer, and General Motors. After the financial shock subsided, massive debts and bailout costs were transferred from the worst run businesses in America to the U.S. taxpayer.
Gold and Silver Far Out-Perform
All Major U.S. Stocks Indexes Over the Past 10 Years
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Stock and Bond Risks Became Apparent
For the past two decades, the markets have played down the inherent risks every investor faces owning Stocks. The perception before the financial crisis was the U.S. economy was strong and vibrant which meant U.S. Stocks and Bonds were safe, no risk investments that could not crash.
The crisis exposed the true nature of the risk and rewards in the Stock Markets– but not before Americans had lost some $14 Trillion Dollars in financial assets. This was exactly the kind of crash that the Austin Report had warned our readers about over the previous five years.
While the major U.S. Stock indexes have failed to grow and prosper during the 21st Century, the price of Gold has quadrupled since 2001. Likewise for Silver.
A comparison on $100,000 invested in each of the major U.S. Stock indexes versus Gold versus Silver may be quite surprising to you.
While that is impressive, during the last Bull Market for Gold in the 1970s, the price of Gold multiplied by more than 24 times its starting price. While past performance is no guarantee of future value, even stock brokers and financial advisors will be challenged to find a safer or more profitable investment than Gold has been in the 21st century.
Now is the Time to Buy Gold
We believe that the facts and figures we've presented are quite persuasive in reporting the benefits of owning and holding Gold in recent years. You and I both know that past performance is no guarantee of future results.
But, at some point, everyone must decide for themselves whether Gold makes sense for 5%, 10%, or a larger portion of their immediately liquid assets. Like any investment, your core holdings in Gold should be balanced in a way that makes sense for you.
Investing in Gold
If you've never purchased Gold, Silver, or other hard assets before, let's walk you through the process.
Gold bullion can be purchased in many forms including modern Gold bullion coins and bars. You can make purchases in virtually any amount, ranging from a fraction of an ounce upward. We prefer Gold Coins over Gold Bars because there's no paperwork or Government reporting required with the types of Gold Coins that we recommend.
The weight and purity of Gold Coins are precisely controlled and standardized by internationally recognized refiners and official government mints, allowing you to buy with confidence and sell with ease. This is true for Gold Coins minted from the 1800s to 1933 and for all modern issues.
This link to "Today's Best Gold Buys" will lead you to our online catalog of the most popular forms of physical Gold, in stock, for immediate delivery. You can order Gold Coins and Silver Dollars online using your credit card right now. Once your order is accepted, your package will be shipped to you registered and insured via the U.S. Postal Service where it will be delivered directly to your door or P.O. Box.
Our Austin shipping team has carefully secured each package and it is identified on the outside only as coming from ARCI. No one, not even your postman, will have a hint of the valuable contents.
Call for Cash & Quantity Discounts
Typically, new buyers of Gold will have questions they need answered before they buy. Our team of Austin Gold Specialists is on call seven days a week from 9am till 9pm. You can call them at 1-800-668-8771.
We will be happy to recommend today's best Gold buys that are completely private, non-reportable, and not subject to confiscation. You'll also receive the lowest prices when you pay with check or bank wire on larger orders.
21 Years of Outstanding Service
Our firm is absolutely devoted to building a strong, honest relationship with our clients. Our goal is to walk you through all the steps to getting started, stay with you along the way, and to be here anytime you get ready to sell your Gold and take your profits.
 The Gold Information Network is a division of Austin Rare Coins & Bullion serving investors, collectors, and fellow coin dealers since 1989. In the past 21 years, we have never had a single outstanding complaint. We proudly maintain an A+ standing with the Better Business Bureau. That's the best indication you can find about how we do business.
In conclusion: Once you understand the value of Silver and Gold investments in your portfolio and how easy they are to buy, sell, and trade, we urge you put away more precious metals while the bull market is going strong and opportunity is ripe.
Questions? Call 1-800-668-8771 to speak with a Gold Specialist
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Disclaimers: Austin Rare Coins & Bullion has prepared information on this site for the private use of our readers. It should not be taken as personal financial advice. The information herein is obtained from a variety of sources that we believe to be reliable, but we cannot guarantee the accuracy or that information has not been condensed or may be incomplete. All opinions expressed by the editors of The Austin Report and those expressing opinions are subject to change without notice. We are not financial advisors. The information about future predictions, projections, or financial advice could prove to be unprofitable. This firm is specifically in the business of selling Gold, Silver, platinum and rare coins to the public and offers its opinions from that viewpoint. We generally make available news and opinions that relate positively to our markets and do not seek to present a balanced view of the investment markets. We advise that you seek out information from a variety of news sources before making any investment decisions. It’s important to always remember that past performance is no guarantee of future value. These products may not be suitable for every individual as the value of Gold, Silver, and rare coins go down as well as up in value.
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