Another way to play gold.... Give me your opinion on article...Submitted by Kagiman on Wed, 10/15/2008 - 14:47
THE BEST-KEPT MONEY MAKING SECRET IN THE GOLD BUSINESS MAY BE THE $20 SAINT GAUDENS!
In this Special Report I explore inside facts and figures that few people have considered.
"Key" critical insight that provides strong evidence of profit potential in America's most beautiful gold coin.
This is the fascinating story of a virtually overlooked "Double Play" investment in gold. A temporary investment opportunity I have identified in one of the world's most prized gold coins that now offers you 5 times the profit potential of bullion--at no greater risk!
My opening statement is sensational because my investment idea is one of the best values on the market today. Based on work I have completed there is little doubt in my mind that what I'm about to suggest will make you nothing but money over time. So read on as I explore and expand on this inside information.
I believe this particular coin is destined to move dramatically higher. Perhaps even in the near future. Moreover I'm convinced that getting in now offers you so little downside, and such enormous upside potential, it would be silly not to give serious consideration to this plan.
In my 20 years of rare coin and precious metals experience I have written a number of investment letters. Some better than others, but this particular letter is easily the most important. It goes to the front of the line because there are strongly evident investment fundamentals which all focus on one particular gold coin. I can't remember a better situation bringing together the right coin at the right buying time. All of this backed by a gold market ready to explode and a popular new book written by well known author David Bowers. This reference will provide new insight into why the $20 gold piece holds a unique place in rare coin investing.
And this coin is the cornerstone of all investment rare coins. Always in demand - not some obscure rarity. The coin I'm talking about is America's $20 Saint Gaudens gold piece minted from 1907 through 1933. Few collectors and investors realize that almost without exception this coin already ranks among their first choices. It's a natural first choice when you consider that the $20 gold piece not only stood for wealth, it defined wealth since the Civil War. Most everyone owns them, or wants to own them because they have the broadest appeal of any coin ever issued by our government for reasons I will soon cover. And the best part of this investment idea is that these incredible coins are now selling near the lowest prices I have seen in the past 10 years!
I have analyzed, plotted and condensed the performance of the $20 Saint Gaudens in three separate phases in order to bring you this money-making plan:
The absurd increase in value documented in 1978 through 1980. Believe me this investment time frame provides impressive evidence of how investors turned crisis into profits as these gold coins moved higher and then doubled in price. This period exceeded even my wildest expectations.
From the market bottom in 1982 through 1985. A time frame that clearly illustrates the rock-solid value there is in the PCGS MS-64 and MS-65 Saint Gaudens today.
And finally from 1986 to the present date. This is the most advantageous time frame for today's investor because it focuses on when true independent 3rd party grading began. Since 1986 the condition of a coin, and therefore its value, has been defined by PCGS (The Professional Coin Grading Service). This final phase is the most dynamic because the independent grading of this coin has shifted the profits made by the rare coin dealer to now favor the investor.
What I'm about to say is surprising for even I didn't realize it until after I studied the charts. I believe now is the time to exploit a glaring fact that seems to be overlooked by virtually every writer: The prices for the $20 Saint Gaudens in PCGS MS-64 and MS-65 are compressed like a coiled spring. Ready for a giant move upward as gold moves to its next higher trading region.
So why do we pick this particular gold coin in these two grades? First, the $20 gold piece has easily the widest appeal of all US rare coins and is recognized by everyone. Second, these two grades magnify and exploit a natural market position. Add to this powerful market appeal another investment feature which few consider: The $20 gold piece provides a "Double Play" advantage because of its high gold content. I call this "investment leverage" because any reasonable upward move in gold bullion will make you money. If gold takes off experts believe the $20 Saint Gaudens market will bring sensational money.
SIX COMPELLING REASONS TO INVEST IN $20 SAINT GAUDENS TODAY
I've already said the Saint Gaudens is the most universally traded. It is also the most universally owned and creates the most phenomenal demand both in this country and abroad. Great collectors, wealthy royalty and government treasuries all typically own the Saint Gaudens. They are not stupid for there are good reasons behind their choice. They know market after market this coin holds value. Rather than owning just bullion, major governments and astute foreign powers also put their money into United States $20 gold pieces. Do they know something you don't? Maybe, maybe not. What they do know is that for the safest hard asset hedge, in good times and in bad, this coin holds a number of advantages. Advantages you can exploited in a rising market.
Another reason to invest in this coin is so obvious you will have to bear with me for a moment. Have you ever really looked at one? Studied it? I have seen virtually every coin produced by the United States from colonial times to the present day, literally hundreds of different types and you know what? The Saint Gaudens design, with its beautiful relief, is the most majestic.
This coin is a stand-alone art form and is historically significant as well. My investment point is critical. Sooner or later the average guy on the street is going to realize the financial trap our government has created with the unlimited printing of paper money. When this happens the public will look and buy this coin because of its beauty, its weight, and its history. Velocity of sales at that point could cause supplies to dry up in a few months. We could see a runaway market. Think my point is exaggerated? If one in 20 people who view our web site alone purchased 5 PCGS MS-64 Saint Gaudens, all the coins graded since 1986 would be gone in 4 months. If that same one in 20 people invested in PCGS MS-65 examples the coins would be gone in a month! How is that for growing your profit potential?
I've told you about this coin's high gold content, but let's be more specific. Every $20 Saint Gaudens contains nearly one ounce of pure gold which means, at the very least, if gold moves up $100 this coin will follow. In an upward market its weight alone can cause the coin to double or triple in price.
But there is more than weight working for you in our favorite gold choice. This coin combines rarity and exploits a well-established collector and investor market. This combination creates a kind of legal "squeeze-play". When rarity and demand meet head-on the price movements can be explosive. History has shown that this price movement is magnified when owning a gold coin this popular. A psychological momentum develops as scarcity creates volatility and investors become more aggressive. The upward price movement is not a one to one function. It's more likely (based on previous moves) that the price of high grade $20 Saints will move 2 or 3 times the relative price of gold bullion. This price action comes from the combination of rarity, and the notion that the investing public will "lose their chance to buy". This interaction between rarity, weight, and demand should compel gold bullion buyers to at least consider options before investing. Now I'm not saying this will happen by tomorrow morning. But I believe the smart money is positioning itself now to take advantage of this market momentum.
This popular gold coin just got more publicity than any other in rare coin history. The one available 1933 Saint Gaudens just sold at public auction for $7.59 million dollars! This is a world record price for a famous coin, but my point is that the publicity generated benefits all Saint Gaudens. Why? The public will be drawn into the debate as this breakthrough price is publicized and debated.
Another important point. In case you're unaware our government considers the United States $20 gold piece a rare coin even though premiums on high-grade coins are ridiculously low. That's important because it is not subject to the normal reporting requirements associated with ordinary bullion coins. This, of course, adds unconditional security and privacy. These factors combine, adding another dimension to demand. People who are privacy oriented will clamor for this coin instead of bullion.
I believe the move by our government to record (IRS Form 1099B) names, mailing addresses, and social security numbers of bullion sellers is only the beginning. The Krugerrand and Maple Leaf gold bullion coins were targeted first. It is inevitable that further and more severe government controls will be placed on gold bullion. It could even be confiscated. Many experts believe that if this happens the Saint Gaudens will become everyone's gold coin of choice because they are not subject to confiscation.
The recent collapse in stocks provides another source of fresh money to push prices higher. Many confirmed stock players are now actively looking for alternative investments. And with interest rates at 20-year lows who wants to keep their money in a savings account? Finally, remember that the big real estate increases we see today also happened in the 1970's, just before gold shot through the roof.
TWO REASONS THE SAINT GAUDENS IS A UNIQUE TRADING VEHICLE
The suitability of the "Double Eagle" in large deals is outstanding because everyone recognizes and admires this large gold coin. It is also available in large enough numbers to create a trading pool. A pool lends itself to cost averaging, large promotion, and provides the benefit of size which brings in the big money everyone is looking for to move the general market higher.
The money paid over the actual gold content is absurdly low, which encourages new investors who have only considered gold bullion coins. These people understand that you will never get rich following the crowd. The Choice Uncirculated MS-64 Saints sell for about twice their gold content and the Gem Uncirculated MS-65 example is near its lowest price since PCGS began grading in 1986.
With all high-grade $20 Saints having such enormous upside potential, ask a question which could "ratchet-up" your entire investment strategy:
Why in the world would you want all your money sitting in bullion, when for a modest amount more you can purchase a universally accepted "blue chip" rare coin? A world-class gold piece, which is trading at abnormally low prices, and has a proven track record. Now help yourself to an important extra: The difference between the buying and selling price of these beauties is the smallest of all rare coins traded today. This economy and convenience of size is what helped develop the modern stock market.
THESE 2 GRAPHS CLEARLY DETAIL THE LARGE PROFIT POTENTIAL
I'm using these graphs because they explain and clearly illustrate the explosive potential I have detailed. I'm so convinced my plan is a long term winner that I'm recommending the following: If you believe in the power of gold to make you money, move 25% to 50% of your bullion holdings into Saint Gaudens $20 gold pieces in PCGS MS-64 (Choice Uncirculated) or MS-65 (Gem Uncirculated). I call it my "Saint Gaudens Double Play Strategy". The dynamics are powerful because the investor benefits from scarcity, weight and psychological demand. What follows are 2 graphs of the wholesale price of $20 Saint Gaudens. The first graph is the MS-64 example, which hit a high of $2100. The second considers the MS-65 coin, which reached a high of $4000. Today, both coins are selling for a fraction of these numbers, which is why you should act now. Included are price histories since 1980 to illustrate that if either coin just goes back to old highs you could profit handsomely!
7 MORE REASONS THIS COIN PROVIDES PROTECTION & MONEY MAKING POTENTIAL
Unconditional grading has forever changed investment in rare coins. It has replaced uncertainty with cash buying power in the real world. The Saint Gaudens I recommend have been professionally graded by the most fiercely independent, the most impartial and highly respected grading organization in the world: The Professional Coin Grading Service or PCGS. This point is essential: There are a number of so-called independent grading services, many of which fall short in their promise to deliver consistent results. Why take chances? Insist on your investment coins being graded by The Professional Coin Grading Service. You won't be sorry when you're ready to cash in.
Owning United States twenties graded by PCGS allows the investor to define his own investment strategy as to grade and price. He or she is in control of the transaction. For the first time in coin history you get to call the shots. This marketability adds an entire new dimension to this gold coin because you no longer have to be dependent on any dealer.
Few $20's today are assigned such spectacular grades for almost all Saint Gaudens fall below this investment standard. To be placed in such a high category requires 3 PCGS world-class graders to independently agree on grade and a "Finalizer" to approve.
The coin is then assigned its own unique identification number and is tracked by computer in the PCGS Population Report. After all of this it is sonically sealed in inert plastic and protected by hologram in a secret process that PCGS owner David Hall won't talk about for security reasons!
This coin is then accepted and embraced by over 500 dealers nationwide. That means you are never tied down to any particular geographical area. We are always just a phone call away, but should you decide to move there are dozens of local dealers eager to purchase your PCGS gold for top dollar, thus ensuring fair prices no matter where you or your family members call home.
I have just described how relatively few high grade $20's remain, but let's look at some real numbers. Add up the mintages and assume that 90% of these coins are still around. From experience this is close. Now from the Population Report figure how many MS-64 and MS-65 coins have been graded. The percentages are impressive! Less than 2/10 of 1% of all Saint Gaudens have been graded MS-63 or above. In other words less than 1 coin in 500 would qualify!
Also for the first time the serious rare coin limited partnership is a reality. Since the advent of PCGS (1986) my reliable sources indicate that dozens of very large trading funds and limited partnerships have been formed (some in the $50 to $150 million range). All buy and sell the $20 Saint Gaudens. Many believe such pooling of money is just beginning in rare coins as people pull money out of stocks.
The $20 gold coin market is quoted and traded daily over a satellite-controlled computer trading network called The Certified Coin Exchange (CCE). Because of this interactive system instant price quotes are available. That means you will always know what your coins are worth because we provide a toll-free number to call any time you want to buy or sell. It also means when prices begin to move and then soar the results will be seen immediately. That is why I urge every reader to act quickly.
Let's talk about rare coin value and highlight the $20 Saint Gaudens in particular. Value is not abstract. It is a function of demand, investor base and weight. There are other important considerations like beauty, rarity, affordability and profit potential. All of which have a direct bearing on a coin's worth. Of the things that positively impact the value of any coin the $20 Saint satisfies 95% of them.
Of all the coins I could recommend to you there are a number that sell at very advantageous prices. Some are very beautiful and some are very rare. Ironically, the ones which are the most rare might not be the safest to own because there are only a handful of people who can afford them.
In this country today there are more than 20 million coin investors. The U.S. $20 market is international in scope so add perhaps 10 times that number beyond our borders. Who knows exactly, but the point is that of the millions of potential buyers, the majority would like to own this gold coin! For every 10,000 new customers who enter this market 8,000 want to own and can afford a Saint Gaudens!
There is a limited number of PCGS graded Saint Gaudens, and I believe this inelastic supply coupled with affordability and small buy/sell spreads will cause a price explosion. There is also more market depth in this coin than in any other rare coin in today's market. This is important because it means that you could sell 1 coin, 50 coins, or 2000 coins in short order. We believe this no-nonsense marketing advantage puts this coin in a class by itself and develops an easy to use action-plan.
Most everyone knows that past performance does not necessarily predict the future. I think, however, that history is a good place to begin and you've got to peg your investment strategies to some realistic measuring stick. As the premium on $20 gold coins falls its overall price becomes a better and better value. Sooner or later an investment plateau is reached and everyone begins buying. I truly believe we have reached that level today.
We haven't yet considered a sleeping giant. Inflation. Today's investor has become seriously complacent by accepting the "conventional wisdom" that inflation is no longer a problem. Inflation is actually more dangerous now because the size of the US money supply and trade imbalances are in the stratosphere. That is why the Federal Reserve Board is up nights figuring and reassuring Congress.
In my opinion inflation is so serious it will change our very way of life, just as it has for many countries that have institutionalized the printing press. Some Americans have been lulled to sleep by the huge increase in our money supply. I believe this stack of I.O.U.'s will come crashing back in the form of sustained inflation and the price of high-grade $20 gold pieces could double and then double again!
I know this report is long, but there are a few more points that may make a difference. Whether my special gold coin increases 30% or 300% over time I can't say for sure. Common sense will tell you that the future is uncertain, but since man has printed paper money wise people have turned to gold to preserve purchasing power. It is difficult to say if we will ever see the frenzied buying of years past, but even if we don't there is a ton of profit built into these gold coins at current levels.
I have left protection from world problems, ultimate financial security, and privacy for last. These powerful qualities actually transcend profit. Now we don't subscribe to an Armageddon world-view, but there is a threat from terrorists that could create oil shock, social chaos or biological terror. Believe me, holding graded Saint Gaudens provides a feeling of security that is unequalled in a world turned on its head. These gold coins do not answer to any government, placing you in complete control when holding them in your own hands or when they are placed in your private safe deposit box.
CONSIDER ONE OF MY FOUR INVESTMENT STRATEGIES
I have worked diligently at distilling my thoughts and research because I believe this opportunity won't last forever. If, after reading and doing some of your own homework, you believe as I do simply follow my conservative approach. You don't need to mortgage your home to get in on this idea. I'm not even suggesting that you go to the bank and borrow $25,000. What I am suggesting is one or a combination of the following:
If you are considering an investment in bullion gold coins, rethink your basic strategy to include rarity and optimize your dollars. Place up to 50% of that money into either PCGS MS-64 or PCGS MS-65 Saint Gaudens. I honestly believe the profit potential in this integrated approach is too good to pass up. And if you act now there are few investors who can claim they beat you to the punch.
If you already own gold bullion coins (Eagles, Maple Leafs or Krugerrands), I strongly suggest taking a portion of this investment and converting it into PCGS graded Saint Gaudens in MS-64 or MS-65. We offer a special higher buy price on all bullion coins used in trade for PCGS graded Saint Gaudens, because we believe this trade will be a dynamic money maker in the longer term.
If you already own PCGS graded twenties consider adding to your holdings at these attractive levels. You won't be sorry when inflation and rising gold turn your coins into a money machine.
If investing in gold bullion is not for you consider placing a few well-selected PCGS graded $20's in your portfolio. I use the term "well-selected" because the choice depends on your goals. We can make the right suggestions depending on the type of leverage you want, and the length of time you wish to be in the market. The specifics of your purchase, however, can wait until you have become better informed. For the moment I recommend that you give me a call. Ask all questions you might have, including the most probing and the ones I may have overlooked in this report. I will give you the most straightforward answers including some potential pitfalls. You see, there is no investment that's without its blemishes, and you should understand there are always some flaws if you do it wrong. I will share my 20 years experience and explain how to avoid the wrong way. I can give you my best reasons about what you should own and why it makes sense now. All before you spend one dime. Then you decide.
Do this before the $20 gold piece market begins to move upward once again. We have built our reputation on credible information and excellent national pricing, so take the time to call and get all the facts on this developing market. Thanks for reading my special report.
Stanford Coin & Bullion