Positioning Yourself For Inflation

It is very possible for the value of gold to increase for the third straight day as investors continue to look at interest rates and the weakening dollar. The US Dollar is now at 79.76; not long ago, when the dollar was down in the 74 range, gold reached a all-time high of $1,227. As we see the dollar moving lower, it leads me to believe that people need to continue to buy. I’ve heard many prognosticators say gold will be $1,500 an ounce by the end of the year-some are even sticking to their guns and saying $3,000 per ounce.

To be a good steward of your money, I would continue to err on the conservative side while keeping in mind that the government is changing things that have long been the status quo. As the US debt continues to rise and inflation fears increase, it is very possible that we could see a dramatic rise in gold this year. Many prognosticators believe that once the dollar starts to drop, it will drop fast. This is when you will see gold rise dramatically. Make sure you’re positioned for this move. If you need any information or have questions, feel free to call me.

Thank you for your patience with the lack of blogs I’ve entered over the winter. Our office has been extremely busy with the volatility of the market and incoming collections. I’m still actively pursuing collections and trying to buy rare coins. We are seeing a few rare coins in Oklahoma City but not near enough to wet my appetite in the numismatic market. However, over the weekend I did buy a 1891 Carson City $10 gold piece that was a very satisfying purchase. I look forward to updating this blog another time this week and will try to get back in the groove of doing two to three blogs per week. Please call for you numismatic or bullion needs and/or any questions you might have.

Bullion Coins Versus Numismatic Coins

Today I’m going to focus on the reason not to send in bullion coins. The question is when you pay $24 to $34 dollars to certify you generic gold coin, are you getting your money’s worth?

In my opinion, the answer is no. At the time of this writing, gold is at $952.20 with the upside potential of over $1,000. If you divide $952.20 by $34.00 to slab it, you have wasted money. When I see a justified need for PCGS I get excited but when I see a wasted grading I have to ask why.

It is extremely important to have a knowledgeable dealer that knows what to send in and when.

Within the past few weeks, I have sent in 11 coins. Only seven came back graded, the other four were deemed to have be cleaned.

One of my jobs is to know about coins, that is where I can help you. Help yourself by listening to my advice to not have bullion coins slabbed. If you still feel the need to have them slabbed, call or email me so I can give you more information.

Next week we’ll talk about the whys and hows of numismatic coins being sent in.

End of the week 3-14-09

Thank you for your readership. Some days it’s hard for me to do a blog because the office is so busy so I apologize for any lengthy absence.

We have just completed some major sales this week. The biggest was 40 gold pieces being sold. We also have a customer we’re working with that is trying to buy a million dollars worth of gold which we will be able to help with this. We have a few of our big companies we’ve dealt with for years that have large stockpiles of gold in order to speed up the transaction

In our upcoming blog, we will talk about the shortage of physical gold and the Europeans driving up the price of silver. 

A Crazy Week

 

A week in review:

What a monster week it has been in the metals market. The lows or standards people projected  were blown away; on Friday, gold was within $30 of the all-time high. Normally, when you see gold and silver make a run the way they did at the end of last week, you can expect a sell-off at the end of the day. Despite the intensity throughout the day, the sell-off was relatively light on Friday. I believe that at any given moment this week, the all-time high might be reached. 

The sell-off this morning occurred between 7 and 8 a.m. CST–Gold was down as much as $24, silver was down $.29 and platinum was down $34. They have since rebounded, putting Gold at $990.30, silver at $14.49 and platinum at $1034. The sky is the limit this week. The dealers have talked about this for a year with all of the economic problems in the U.S. and worldwide, investors are still looking for a hedge against inflation. The safe haven right now seems to be gold, although I still feel that silver has more legs. By this I mean the upside potential is so much greater with a smaller investment or outlay of cash. 

Metals will continue to dip and rise, which is easily timed by a dealer but not so easy for a consumer. I don’t pretend to know everything there is about buying; I am constantly learning new things about the market. However, if you do study every day as I do, you get a feel for the rhythm of the market and can gauge the potential for a sell-off and when the bottom of the market for that week is about to occur. 

As the bickering continues in Congress, I can’t help but think that the struggle for power is holding up a few of the needed correction in our economy. This is why metals are a safe investment for your money. Stock market analysts are saying that there are some great buys in the stock market right now, but the questions is do we really know which ones are the best buys. I’m really bullish on metals at this time. I am certain this is where I want many of my investments to  be versus the stock market where greed has run rampant and the billion dollar pay-outs are more important than the legitimate business buys.

Stay tuned!

Is the Stimulus Plan Stimulating You?

 After watching an hour of economic stimulus talk last night, I started to think I might as well have been watching another program. I don’t mean to sound hyper-critical but sometimes it appears we’re grasping at straws to correct our economic problems.

On a different note, when I got up this morning and turned on my computer, I saw that metals were up considerably. It seems that overall metal buyers believe there is not going to be an answer coming from Capitol Hill. Gold is up $22.70 this morning, silver is up $30 and platinum is up $40. As per a blog I wrote last week, this jump can be attributed to the delayed sell-off day; Monday instead of Friday. We can easily see gold and silver continue to climb because of the lack of real answers from the economy.

In summation, without answers, our economy is in serious trouble. The most reassuring part is the fact that gold and silver have stood the test of time. More to come soon. But while you wait, feel free to visit my website for more information.

We Can Preserve Your Assets Together

Last week in my blog about the importance of tangible assets, I mentioned providing you with information on how to preserve your assets while making money on your investment. When perusing numerous websites about gold and silver being a hedge against inflation, I continually read about preserving your assets being a better decision than making money and being too aggressive with your assets. Many people have had experience with some stock brokers being too aggressive with their assets. I would like you to understand that we are trying to preserve your assets with gold and silver bullion.

Since the stock market crash (34%) in 2008, Gold has stayed within $100 of its all-time high in spite of margin call sell-offs. Some might say the word crash is a little aggressive but when many retirees have lost their savings, it seems less aggressive. If half of said retirees’ assets had been in gold and silver, they would be in good shape instead of the state of chaos they’re in right now. At this point, many 65 to 80 year-olds are considering going back to work because at some point they invested too much money and faith in a stock market that has come up short.

So I reiterate; it is so important to preserve your assets.

One thing I am considering for 2009 is passing on the savings from collections I buy to my clientele in Oklahoma City. As of right now, I sell primarily to other dealers but due to the current economic crisis I may start selling to the public. I will make you money the old fashioned way-by buying right. I try to run an honest business and this is something I may incorporate in the coming months.

I want to personally thank you for being involved in my business and trying to build something that we can all get ahead on. I will be glad to use my 45 years of experience to help you preserve your assets. I want to welcome any feedback from you in the form of comments, phone calls or emails. Thank you and look forward to hearing from you!

Tangible Assets vs. Stock Market Paper

Thursday, January 29, 2009

As I said in 2008, it has never been more important to hold a tangible or hard asset instead of a piece of paper, the importance of which has been magnified by stock market debacle. Anytime the question arises, I encourage people to take possession of a gold or silver coin instead of a piece of a piece of paper or receipt. It is so important to hold your wealth in your hand in the midst of this unstable economy. The average consumer that can control his or her own money versus a broker will be in much better shape in 2009. 

I chose to blog about this subject today because this morning on my talk radio spot the question of diversification of assets came up. I can sit here and tell you my opinion, but my opinion is not what should sway you. Im only hoping to inspire you to do some research on the matter and draw your own conclusions. There are many studies by men and women who have been in it 40 or 50 years and have seen first-hand the ups and downs of the stock market. There are also numerous, credible commentaries on the Internet. These studies are my backing for my opinion that the consumer in a cash or liquid position with tangible assets will be in much better shape in 2009 than speculating in a market that is already down 34% 

In closing, as I encourage all my close friends, I encourage you, my new friends to get your assets in hand-it will make for a better year in 2009! Later, I’ll blog about preserving your assets in comparison to making money. 

Grapevine Coin Show

January 3-4, 2009

Grapevine is always a very active show. You could tell that many of the dealers enjoyed their two weeks off around the holidays but were anxious to get back to work-I know I was! 

As you may or may not know, coin shows are prodiminently wholesale shows when it is a dealer-to-dealer transaction. At a 70 table show such as Grapevine, I will usually deal with approximately 20 dealers. My main objective is to find something close to bid in a slabbed form such as a PCGS coin. The Grapevine show produced two coins for me that were bought right, one gold and one silver. When going to a show like this, I usually try to buy 20 of each gold and silver type but the prices were too much this time. The prices people were asking for were very high, almost as if they were setting a tone for the new year. In a future blog I will lay out how I could buy for you at these shows.

Rod’s favorite part: Seeing dealers I’ve done business with for 25 years-it’s like seeing family on a holiday. Also the Ham and Cheese sandwich from Diane with MADD coins outside of Conroe TX. Thanks Diane! 

The Year in Review

2008 was a very good year. Although the economy in general suffered its ups and downs, the numismatic industry and community was impressively strong. Some close friends of mine who’s businesses generate $30,000,000 saw a great response to their efforts. In dealing with these companies for 25 years, I can tell you it was a good year. Although it was good to be a numismatist in 2008, I did see a few unfortunate circumstances caused by the deepening economic situation. The most striking situation to me was when dealers with investments were forced to sell many of their coins at a loss just to break even. These sell-offs to cover margin calls have affected some very prominent coin dealers. This is happening now more than ever because in past years dealers have been trying to diversify their earnings with the stock market.

This reason, among others, is why I believe in tangible assets. Later in my blog, I will address the importance and beneficial differences of holding that coin in your hand as opposed to a piece of paper issued by the stock market. 

I’m looking forward to a great year in 2009!!