Monday, June 13, 2011

Four Ways to Preserve Your Wealth and Make Some Profits!

" Trust but Verify " - Ronald Reagan

A "How To" guide on owning tangible assets with 3rd party resources, educational tools and some red flags in the precious metals and rare coin industries

Your first option is bullion coins such as gold, silver platinum, bars, modern day coins (post 1932) or rounds.  When you purchase precious metals you should not be paying more than 4 - 10%  above the spot price of the metal and you should be able to sell for around the spot price.  These prices usually include shipping, handling and insurance. If you are being charged considerably more or offered less, you are probably paying too much. It happens a lot in this industry, veryify everything. You can also check out our other free report, Red Flags Report and 3rd Part Educational Tools.

Gold is being pushed by fear, a bad economy and television marketing. Ten years ago the ratio between silver gold and platinum was 17 ounces of silver to one ounce of gold  and three ounces of gold to ounce of platinum. That ratio has stayed pretty static over 50 year. Today, the ratio is 59 ounces of silver to one ounce of gold and 1.2 ounces of gold to once ounce of platinum.  The golden rule is to buy low and sell high, Gold is at an all time high. Will it go higher?? Probably! But at some point it wil turn and when it does, gold will drop rapidly! If you have gold or are thinking of buying gold, you need to follow the economy very closely. Watch for noiticeable improvment int he business sector and GDP, new job hires in the business sector, the end of government bailouts and the end of spending.  This is when gold will start to drop.

Silver is undervalued and has a lot more potential to go up short term than gold. Silver was 75 ounces to one  ounce of gold two years ago.  Today it is 59 ounces of silver to one ounce of gold. Silver has outperformed gold for the last two years, as long as you can handle the weight and volume of silver, it's a good investment. A $100,000 investment in silver would weigh 370 punds and take up the space of twenty shoe boxes of storage. Silver is mainly used for manufaturing and there is a shortage.  When the economy starts to recover Silver will drop at a slower rate than gold.

Platinum is also undervalued, but for different reasons. 67% of the platinum and palladium mined goes into cataytic converters for the auto industry and the industrial sized catalytic converters for the oil industry.  When the economy collapsed, the auto and oil industry followed and as a result the demand for platinum dropped drastically.  Platinum was going for $2,500 and ounce three years ago. Today, its at about $1,700 per ounce.  When the economy starts to recover, including the auto and oil industry, the demand for Platinum and Palladium will go throught he roof - driving teh prices up!

If you are betting on a long term economic recovery, buy silver.  If you think the econmony will turn around quickly, buy platinum.  If youjust do not want to deal witht eh Patriot Act, buy gold, silver or platinum American Eagles.  These items are non-reportable so you can sella s many of these coins as you want and the purchaser does not have to fill out a 1099B form or give their Social Security Number.

Your second option is generic numismatic coins.  There  were millions of coins minted between 1880 and 1932 that have survived. The common numismatic coins have premiums ranging from 20 - 200 % or more depending on the spot value, grade and supply and demand.  About a year a go the premiums on these coins were at an all time high. Gold resellers heavily marketed these coins.  Supply was down and demand was up.  Then Europe's debt exploded in January of 2010. When the premiums hit an all time high in late 2009 and Europe needed cash, they dumped a large supply of these coins into the US market.. Gold resellers moved away from mar keting numismatic coins to non-reportable European Fractional Gold, American Eagles and Buffalos. These actions pushed suplly up and forced demand down. Premiums collapsed and hit rock bottoma round August of 2010. Supply is slowly being brought up.

Note: In 1933 FDR confiscated. The US dollar was immediately devalued by 40%. Europe wanted US gold, not US dollars.  By 1936 tons of gold, including a large supply of common numismatic coins had been sent to Europe.

If you are betting on a long term economic recovery abd think the gold resellers will start remarketing these coins again, invest in numismatic coins. The premiums are way down and large profits may be attained if the premiums go up. These coins are non-reportable, fall under 1031 deferred exchanges and becasue of a line in the constitution that staes " nor shall private property be taken for public use, without just compensation" these coins would be logistically impossible to confiscate.  You can also check out Rare Coine Wholesalers Gold confiscation report for more information.

Your third option was created by Rare Coin Wholesalers and was specifically designed for the pure investor.  In 2009 Rare Coin Wholesalers began offereing our products to the general public. Our strategy was simple: offer our product to the general public at the same price levels that we offer to the numismatic trade. Investors have different goals than collectors. Collectors want to "seek Out", buy, hold and possess a piece of history. Investors want to use RCW's expertise and buying power to help them generate profits while preserving their wealth.  We have been informally managing some of our largest collector's portfolio of rare coins for over 5 years. In 2009 RCW decided to foramlize the program and offer it to investors. Its called a Numismatic Trading Account (NTA).

The trading accounts most people are commomly familiar witha re stocks. theya re paper and can evaporate. A client can lose everything and the broker will still get paid.  RCW's NTA is different than other trading accounts in the fact that it consists of rare coins; a tangible, hard asset.  This account can not just evaporate.  The client owns the coins.

One of the perks of RCW's NTA account is that that the profits are tax deferred until the client takes proceeds out of the account.  This is accomplished because numismatic coins fall under the 1031 exchange rule. Numismatic coinsa re treated as " Real Property" which means that as long as you trade one coin for another, your taxes are deferred.  This means that you have an opportunity to let your account grow without paying taxes every year.  If you have a cost basis of $10,000 into a coin in your NTA we sell your coin , this leaves you with a total of $11,000 in your account.  By allowing RCW to reinvest the $11,000 into another numismatic rare coin this is considered a 1031 exchange and you DO NOT have to pay any capital gains for the transaction.

If you are looking for wealth preservation adn want expert help to maximize your short and long term profits, RCW will manage your protfolio of rare numismatic coins.  Give us a call for more details rgarding an NTA account.

There are three types of tangilble assests.  Real Estate, Commodities (similar to precious metals) and True Rarities. Collectors Universe, a leading source in information for the coin industry, deatils how rare coins have averaged a 12% appreciation in value annually for the past 40 years.  Thertrick is to buy the right rare coin at the right price and have a n exit strategy.  Working closely with experts you have personally verified makesa huge difference on making sure you get the the right coin at the right price, there are many third party resources to verify coins, prices, companies and owners. In addition to the investment potential, you also have the knowledge and pride of ownership of owning a piece of US History.

If you are seeking wealth preservation and to make some good long term profits, buy rare numismatic coins. remember, rare coins are not tied to the ups and downs of the precious metals market. 

Visit Rare Coin Wholesalers online

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