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For the Seventh Consecutive Year Gold Outperformed the DOW Industrial Stock Index Gold is trading today at all-time highs surpassing the $850 mark by a wide margin. This year Gold has traded over $1,000. Today, many people are buying Gold for the first time– others are adding substantially to their holdings. We feel there are a number of things you must know before you buy Gold. Having a complete understanding of why and how to buy Gold will assure that you avoid novice mistakes, reduce risky types of Gold investments, and assure that the Gold you buy meets your expectations. It's very important to buy the right Gold to ensure your complete privacy and avoid I.R.S. reporting when you get ready to sell years from now. Why Buy Gold Today? Historically, Gold has been recognized for its safety, security, privacy, as a hedge against inflation, and as insurance against falling stock prices and falling interest rates. We'd like to make the case for Gold based on one word– greed. Since the high-tech stock bubble and crash of 2000, we have believed that Gold is an investment whose time has come again. ![]() Over the past seven years, Gold has been in a raging bull market. Owning Gold today is about making money– more money than you could in money market funds, Bank CD's, or investing in the major U.S. Stock Indexes. For a fact, Gold has outperformed the DOW Industrials by a wide margin since 2002. Gold Up 31% in 2007 Last year Gold increased in value 31%. This chart clearly illustrates the incredible gains for Gold year after year for the past six years. An investment of $100,000 in Gold on January 1 of 2002, would be worth $390,700 today. Despite, the success of Gold investors, we'll bet that your stock broker has never mentioned or recommended Gold to you. In fact, the official line is that "Gold is not an investment." If Gold is not an investment, then what is it? What other investment do you own that can compare the more than 200% gains of Gold since early 2002? Gold is Often Under-Appreciated
Gold is the one single investment that increases in value as all other investments fail. When there is confusion or uncertainty as to what paper currencies are worth, Gold acts as the money of last resort, the most reliable medium of exchange. Gold is not for everyone. Gold provides you no returns while you hold it. However, Gold profits are tax deferred until you sell, unlike money market funds or Bank CD’s where taxes are due annually on your income. In a crisis, like the current Sub-Prime Mortgage debacle, investors look to Gold for added safety and security. In a worst case condition, when the unthinkable happens– like the collapse of the U.S. Dollar, an implosion of the modern banking system, a liquidity crisis, or an all-out stock market crash, Gold becomes the investment of last resort. We believe that any one of these events (which may already been in progress) could cause Gold to increase in value by 24 times the 2001 lows. This number was not picked arbitrarily, but is an historical fact. From 1971 to 1980 Gold investors gained 2,428% while inflation raged, the economy was in recession, and the Federal Reserve stood helplessly by, unable to get stagflation under control. Fundamental Reasons to Own Gold Gold rising by 2,428% represents a worst case condition when everything goes wrong at once. To make an investment in a new area like Gold you must set aside emotions and consider the basic fundamentals of why Gold increased in value by 31% in 2007 and what you should reasonably expect in the years ahead if we do not face a panic in the markets. First the fundamentals. The price of Gold is demand driven and the supply is somewhat fixed and limited. As the demand for Gold exceeds the readily available supply, the price of Gold is bid up by industrial users, jewelry manufacturers, and investors. Right now, we see a dramatically increasing demand for Gold from investors and Central Banks in China, Russia, and Arab countries. Many nations and individuals are trading paper U.S. Dollars for Gold. As a result, this has taken the price of Gold to historic highs over $1,000 since the first of the year. Fresh, Growing Gold Demand Worldwide This fresh, new demand comes on top of the steady Gold demand by the electronic industry, manufacturers, jewelry, and private investors. A major factor in the rising demand for Gold and the subsequent price increase has come from China. In 2004 the Chinese government again legalized the private ownership of Gold. This has created a dramatic and unprecedented demand for Gold in China that is unlike the world has ever seen before. However, on January 9, China unleashed a program that is virtually guaranteed to create demand for million of ounces of Gold every year, for years to come. In China, trading on gold futures contracts began on the Shanghai Futures Exchange recently. "This is the biggest event in the market since the launch of the gold exchange traded funds over the past few years as a (Shanghai) gold future will allow leveraged investment from Chinese investors and speculators," said John Reade of UBS: "We could see a few million ounces of gold bought via futures over the course of the next few months, but it is entirely possible that interest will exceed this." How to Buy and Hold GoldThese are just a few of most logical and valid reasons you should own Gold today. We believe in this changing world, owning Gold is just good common sense. Over the next four years, the world is going to change dramatically. If Hillary Clinton is elected President, taxes will increase on the rich. Capitol gains taxes may quickly go back above 50%. Rich, wealthy, investors will be the primary target of the Democrats, but you can be sure that your life savings will also be at risk. Today we see a combination of increasing inflation destroying buying power and the Federal Reserve forcing down interest rates again. We may be looking at interest rates back at 1.75% again soon. We agree with Congressman Ron Paul who told the Federal Reserve Chief Ben Bernanke that, "People's money is being stolen. People who've saved are being robbed." Time to Move Your Money We believe that investors must move their money now to assure themselves of the best returns in the years ahead. Last year, my Mother had a Bank CD paying her 5%. As that rolls over later this year, the bank may offer her 4%, 3.5%, or even less. It wasn't long ago that 1.75% on money market funds was all you could get. It looks very much like we are headed that direction again. Only this year, inflation may very well be two or three times higher than your interest rate. For many of us, the facts above only serve to reinforce that gut feeling we have that things are wrong, very wrong, in America. The banks, Wall Street, and our elected politicians are serving their own selfish interest and taking the economy in the wrong direction. We see little hope ahead regardless of whether a Republican or Democrat is elected President. Right now, you should know that you are not alone in feeling that only you can take care of your future. If you leave it up to Washington or your stock broker, you may be leaving your life savings at risk. Gold serves as the single best indicator we've found that inflation is rising and the U.S. Dollar is at serious risk of no longer being the world's reserve currency. It is no coincidence that last year Gold rose in value by 31% as investors traded paper dollars for Gold. Many of us feel helpless at the loss of buying power. We know that as the cost of drugs, doctor bills, gasoline, and food continue to rise year after year we need to earn more, now, from our savings. One alternative is clearly Gold. Instead of leaving cash in the bank losing buying power, we suggest you trade some of those paper dollars for a roll of Gold coins that you keep stashed away at the bank, in your own private, safety deposit box. Doing nothing could be the worst decision of all. What You Must Know Now Before You Buy Gold As Gold Specialists, we feel you don't have to understand the complexities of the Gold market to take advantage of the current trend of rising prices. Gold requires a minimum of research. In fact, it takes only five minutes to buy $100K to a million dollars worth of Gold. Here's what you need to know.
It's always cheaper to call for cash and quantity discounts at Austin Rare Coins & Bullion. Our Gold Specialists are on call from 9am till 9pm seven days a week to answer all your questions. In Business for 19 Years, Serving Investors and Collectors Buying Gold today is about making money, perhaps dramatic gains if history repeats itself. Whether your goals are profits, a hedge against inflation, insurance from a failing U.S. Dollar, to avoid the Sub-Prime Mortgage disaster, or privacy, we believe that owning, real, tangible, government insured Gold in your vault is the best solution. Austin Rare Coins & Bullion has added additional Gold Specialists to better serve our clients seven days a week from 9am to 9pm. They are available to answer questions, send you additional information, take orders, and lock in Gold prices during trading hours. Be sure to ask for our latest "2008 Gold Profit Report" finished only days ago. Call 1-800-928-6468 now. It’s free and full of Gold Research and ideas about how to balance and diversify your Gold Holdings. This is especially important to read if you are investing $100,000 to a million dollars in Gold right away. We would be remiss if we did not remind you of this. The price of Gold fluctuates in value over time. Gold goes down as well as up in value. Past performance is no guarantee of future returns. With that said, the time to buy Gold is when you understand the unique benefits and profitability of Gold. Remember this: A Bull Market in Gold like the one we’re in today comes along only once or twice in a lifetime. The remarkable 2,428% gains for Gold in the 1970s may or may not repeat in this current bull market for Gold, but if they do, you don't want to be left out of the profits. Questions? Call a Gold Specialist at 1-800-928-6468
Austin Rare Coins, Inc. Serving Investors & Rare Coin Collectors since 1989 7200 North Mopac • Austin TX 78731
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