Searching for Ten Baggers
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If You Want Cheap Gold Coins, Canada Has Them
By Tom Dyson
November 25, 2008
I don't trust my bank. And I don't trust the dollar.
As far as my savings are concerned, I'd rather keep them in gold. And I don't mean gold futures or gold certificates or gold mining shares. I'm talking about physical gold bullion in a safety deposit box.
My family thinks I'm taking a big risk. But as I see it, they're the ones taking the risk. I'm the one storing my money in the world's safest asset... the asset that's been used as money for 5,000 years... and the only money that's no one else's liability.
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Besides, what have I got to lose? My bank pays less than 3% on its savings accounts.
I'd advise you to own at least a couple of ounces of gold, too... if nothing else, for insurance purposes.
Coins are the best way for individuals to buy gold. They come in small denominations, they're portable, and you can exchange them for cash anywhere in the world at gold's international spot price.
Here's the thing: Right now, gold coins are hard to find. Even if you can find them, they're more expensive than usual.
In normal markets, you can buy silver coins below the spot price and gold at a 1% or 2% premium to the spot price. I've spoken to at least six gold coin dealers in the last week. Three of them were out of stock. Of the dealers still in stock, the cheapest gold coins I found were selling for a 5% premium to the gold price.
In other words, with gold at $800, you'd have to spend at least $840 on a one-ounce coin. The scarcity of silver coins is even worse. One dealer told me he was paying $16 for one-ounce silver coins, purchased in bulk. Right now, the spot price of silver is $9 an ounce. So the premium's almost 80%.
The financial crisis is the reason for this mispricing. Demand for coins, one-ounce bars, and other "retail" denominations of gold has outpaced the ability of fabricators to make them.
There is no shortage of physical gold. If you wanted to buy a kilo or a 100-ounce bar, you'd have no problem.
The shortage is just a short-term supply problem at the retail level. Gold producers will take advantage of the premium and ramp up production. So in a few months, the big mark-ups will disappear.
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That said, if you want to buy small quantities of gold right now, go to Canada.
The Bank of Nova Scotia is one of the world's largest precious-metals dealers. If you go to the Hollis Street branch in Halifax, Nova Scotia, or the King Street West branch in Toronto, they'll sell you Canadian Maple Leaf coins at a 3.7% premium to spot and one-ounce wafers at a 2.6% premium to spot.
Good investing,
Tom
P.S. Gold doesn't show up in airport security metal detectors. I've tested this with gold coins before. But if you're traveling across the border with more than $10,000 worth of gold or currency, you must declare it at the border. They'll run your name and make sure you're not a money launderer. That's it.
Editor's note: Tom Dyson is a regular contributor to DailyWealth, a free investment newsletter focused on the world's best contrarian opportunities. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments.
GOLD IS SOARING, YOU JUST DON'T REALIZE IT
This is "gold week" in Market Notes. We're devoting an entire week to showing you some amazing gold charts...
You might have watched gold fall from a high around $1,000 to below $725 and wondered what the heck was going on. Gold is known as a "crisis hedge"... an asset that soars when stocks, bonds, and the economy are performing terribly. The confusing thing is, investors have had a lifetime of crisis thrown their way in 2008, but gold has actually declined in price, right?
Actually, wrong. Yes, gold is down more than $170 an ounce from its summer highs. But that's when you measure it in U.S. dollars. Problem is, many folks around the world measure gold in different terms. Take the 300 million Europeans who use the euro as their currency.
Today's chart is the price of gold measured in euros. As you can see, gold is strong in the eyes of a European. Currencies tend to fall when their home economies weaken... when there aren't enough jobs or when folks get into too much debt. This is what's happening in Europe. The bull market in gold is alive and well... and we'll show you why this week
Gold producers are a good alternative.
Yes. Stock issuance will be done in connection with a financing.
Another nice read from Jonathan Lebed.
...I have been telling you to Sell Real Estate and Buy Gold since Gold was only about $400 per oz. At its current price of $800 per oz, Gold prices are only off about 20% from its all time high... compared to every other type of asset which has declined much more.
However, the true value of Gold is not $800 per oz. The average 1 oz Gold coin on eBay right now is selling for about $950 per oz. This disconnect between the paper and physical Gold markets is due to nothing more than forced liquidations from hedge funds. I predict we will see a big $150 rally in the paper Gold market back up to $950 per oz in the weeks ahead. This would send DGP from its current price of $15.40 up to about $21 per share. In my opinion, DGP could see $50 to $100 per share in 2009.
The talk on Wall Street today is deflation, but the fact is... throughout history whenever central banks have printed gigantic amounts of money it has always led to inflation. Unfortunately, these short-term liquidations due to deleveraging of hedge funds have fooled Bernanke into believing deflation is the problem... and he is fighting the wrong war. By lowering interest rates to only 1%, he is insuring not only will we see inflation... but we will see hyperinflation that will destroy the value of the Dollar.
Bernanke has destroyed the balance sheet of the Federal Reserve while Paulson has destroyed the balance sheet of the U.S. Government. Our national debt is now approaching $11 trillion and we can`t pay any of that money back because our country doesn`t produce anything. With China likely to begin selling U.S. treasuries soon to fund their $586 billion stimulus, nobody is going to loan the U.S. anymore money and we will have to print trillions of Dollars out of thin air.
Ron Paul asked Bernanke last week if in his discussions with other central banks, the subject ever comes up of a new international reserve currency and if Gold is ever discussed to restore the confidence in currency. Bernanke had the audacity to lie and say that the subject of a new reserve currency never comes up and the only discussion of Gold is "sales that central banks are planning".
How is it possible for central banks to meet during this crisis and not discuss the reserve status of the U.S. Dollar and the possibility of returning to a Gold standard I guarantee it is one of their main topics of discussion right now and Bernanke is afraid to admit they are talking about it.
Let`s hope that Ford, GM, and Chrysler are allowed to go bankrupt. Believe me, $25 billion would only keep them in business for a couple of months. We would need to fund them hundreds of billions every year to keep them in business and never get any of that money back. Their healthcare/pension costs are out of control. At least in bankruptcy, competent people can acquire their assets and create new profitable automobile companies... that`s how capitalism is supposed to work. By the government interfering, they are making the situation much worse.
It`s possible that we have seen a selling climax in the DOW and it could make a major short-term rally, but ultimately... it will go much lower. What is important is not what price the DOW is at... but the price of the DOW when priced in Gold. The DOW is worth ten ounces of Gold right now... but eventually I believe it will be worth only one ounce of Gold. Gold is getting ready to pass the S&P 500, then it will pass the NASDAQ, and in a few years we could see Gold $5,000 per oz and DOW 5,000.
You need to invest where the fundamentals are unimpaired. While Best Buy might look cheap at 6 times earnings, major losses are ahead for the company. I predicted the bankruptcy of Circuit City earlier this year, and Best Buy will likely go bankrupt down the road. There are going to be thousands of U.S. businesses going bankrupt in the years ahead. Most companies connected to the U.S. consumer will go bankrupt unless they downsize and raise their prices.
Fortunes will be made during the next few years in commodities. Right now it is difficult for farmers and miners to get loans which is shrinking the supply of commodities... at the same time as major growth in China and India is increasing the demand.
I believe the biggest gains will be in Gold... because Gold is real money and will deserve a large monetary premium. Gold Mania is coming soon... it will be bigger than the dot-com and Real Estate booms. Once again, I believe the safest way to play it while still being aggressive is with DGP... but there are some Gold stocks I like that could make 1,000% to 10,000% gains in the years ahead.
Dear Market Forecast Investor,
Hand out all of the $700 billion, or risk a severe recession. That's the choice Fed Chairman Bernanke and the President-elect Obama new economic team face.
It's really a choice between avoiding a depression or inflaming tomorrow’s inflation. Since the $700 billion will surely be spilled into the economy in one for or another, it will definitely cause inflation.
For investors like us, the choice is especially grim. Inflation will shrink the value of your money, your stocks, and your bonds. On the other hand, a recession/depression could lead to deflation, in which the value of all your assets shrink.
I don't know for certain which nightmare scenario to expect, (though I lean towards inflation). But I do know an easy way for you to protect your savings from both possibilities, and make very hefty profit over the next few years, regardless what Congress decides.
The way to protect yourself is with gold – the one asset that can thrive in both deflation and inflation. Gold prices have tripled in the past decade, and they're just getting warmed up.
But guess what, there's something even better...
You see, right now some gold miners are incredibly cheap. But once Congress' decision starts impacting on the economy, and gold prices enter the next phase of their bull market, these stocks will start to play catch-up.
As it happens, I've now zeroed in on one gold stock with truly outstanding potential. It is the world's largest primary gold producer, and its output is rising very quickly. More importantly, this company produces gold for far lower costs than most, which means it would remain very profitable even if gold prices dipped a little.
It also means that every increase in the price of gold goes straight to this company's earnings.
Whatever happens from now on – whether inflation, deflation, recession, or stagflation – this company's shares will offer you protection and profits.
Best of all, the stock is particularly inexpensive right now – but it won't stay cheap for long, especially if gold prices continue recovering from their recent low.
I wish I could include this stock in your next issue, but unfortunately, I suspect by the time it comes out the stock will be nowhere near as cheap.
If you want to get it now while the price is still low, you need to act fast.
If you don't mind snapping up bargains the moment they arise, and would like to learn about this and other low-priced shares with outstanding potential, I have a special service called Ground Floor Trader. There's no options trading involved with this service – no risky derivatives of any kind. Just unique opportunities to buy stocks for far less than their potential value – opportunities I can't otherwise share with my monthly readers.
And there's no need to worry – you can try this service for up to 60 days, and get a full refund if you change your mind. As for your profits, they're yours to keep.
To get in on this trade, just click on this link... Leeb's Ground Floor Trader <http://www.completeinvestor.com/subscribeIPO/GF1108_landing.html?s=INTRO112508>
As soon as I hear from you, I'll rush you the details on this gold miner, so you can gain protection against the turbulent economy at genuine bargain rates.
Sincerely,
<http://www.completeinvestor.com/images//01_Leeb-sig.gif>
Stephen Leeb, Ph.D.
Research Chairman
Finally some sense
Nice move today. Just the start.
I will be watching. Good luck to all.
Agreed. I was just wondering why people are so enthusiastic about the stock.
Any idea what the target might look like? Any leaks?
This is going to be crazy tomorrow!
Stock woke up last week.
WOw. What a good read !! Right place right time.
Here you loud and clear. I guess I will sell.
Yuck. I will put in a stop loss.
Gold will be the only real store of wealth.
I like your insight. I gues we are all getting ready for the ride higher.
Yamana could be a beast when we move to $1500 an ounce.
From S&A Digest Investment news letter:
"Why are 1 oz. Kuggerands selling at 790 bucks and the price of gold is 740 an once? These are not exact figures but close. The cost of shipping is 28 bucks additional. I got these figures the other day from blanchard." – Paid-up subscriber Virginia
Ferris comment: As we've been saying for several weeks now, the physical gold market is very tight. Demand for coins is especially high now. The futures market, however, continues to feel the pressure of a global mad rush to sell everything and get to cash. Gold will go up---much higher !
The rally in gold is just a matter of time.
At least volume is low.
Hopefully we can get to 9416.0162
Holding and watching
When the manipulation ceases , the price will rocket?
Is LBSU still good for next week?
We had a sudden drop at the end of the week.
In for the long run now baby. I hope it moves to .005 +.
Where do you see a top?
I think we are going to see $1500 before the dust setlles.
I got in at .002. I guess it is sit and wait now.
I hope Metro plays ball here. I know the company has big plans. There are a few acquisitions in the pipe.
This could be a good play when the sales cycle starts delivering results.
This has got to be a good sign. It shows commitment.
http://www.sun-sentinel.com/news/local/southflorida/sfl-flbnorcross0625sbjun25,0,7937166.story
The spike in gold was impressive on Friday.
New low. Bargain?
Another strong close.
.35 close. Nice move on VTLP today.
We are quiet again.
I might buy some here. Just a taste.