Your Questions About Invest In Gold Bullion

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Donald asks…

Bullion vs Semi-Numismatic?

The Dollar is going into the toilet, and I don’t want to be in a bread line… I want to invest in 1oz silver pieces or 1gram gold pieces.

But first of all I know S-N’s are not reported and cannot be confiscated, but what about bullion? I really want to buy bullion bars because I have heard that they are the easiest to convert to other currencies, but I have no clue about this stuff. Is it better to invest in S-N coins, bullion bars, or bullion coins? Also is it wiser to go for the 1gram gold (which is about $40-$50) or to buy the 1oz silver (which is about $18-$20)?

Please only respond if you know this subject well! And thanks in advance!!!
Semi-Numismatics are the happy medium between graded Numismatic coins which carries a high premium above the market spot price and the bullion coin which carries the lowest premium above the spot market price. Semi-Numismatic coins offer the most Gold and/or Silver content for your money, which under current law provides privacy from government reporting as well as full protection from confiscation.

Semi-Numismatic Coins have all the investment benefits (privacy) of a Graded coin without the high markup in premium along with an unlimited upside profit potential. Semi-Numismatic coins have just enough of a premium above their melt value to qualify for exemption of government reporting and confiscation.

Example of Semi-Numismatic coins are: Swiss 20 Francs, U.S. $20 Liberty, British Sovereigns etc..

Semi-Numismatic metals: are NON-Reportable to the Government. 1099s are not generated for their transactions.

Semi- Numismatic metals : are NON-Confiscatable by Gov.

Justin answers:

I am not familiar with the term semi-numismatic. Could you please enlighten me?

Robert asks…

Am I on the right track to become rich?

I’m a 21 year old guy who is totally focussed on becoming wealthy! I am obsessed with checking daily news about specific companies in which I invest in.

Here is my current situation:
I work hard at my job which I love and can’t wait to get to work each day 🙂
Each month I invest $500 into my share portfolio, I haven’t given myself a payday for 6 weeks now and have invested all my pay into my shares in solid quality companies.
I used to invest $125 per week but I was losing too much money per month with brokerage buying assets each week.

Here is my portfolio:

1) Berkshire Hathaway (B) $5,100

2) Coca-cola Co $5,150 (beverage and liquor)

Australian companies

1) Woolworths $10,200 (Grocery, Liquor and fuel)

2) Coca-Cola Amatil $17,000 (beverages and soon to be liquor distributors)

3) $1,000 in ASX 200 fund (foundation)

4) $1,000 in Hire / rental / loans businesses.

5) Gold bullion coins – $2,500

6) Online businesses – $50-100 per month ($5,000)

I have no debt and all of my shares have FULL dividend reinvestment plans in place.

If I continue like this, will I be wealthy? I am determined to be!

Thanks

Justin answers:

Nice portfolio, your doing much better then 90% of people. I commend you.

Also i commend you on taking your investment in your own hands, the truth is that “Experts”, while they can invest for you and make you a modest return, however their priority is fees (which are taken no matter how much you gain / lose), not growing your wealth, they are also unable to move your investments to safer grounds, (IE CASH) in a downturn. Which loses you more money as the market drops.

I think that more important then you asking, or me advising if you have the right portfolio. More important is your education, your ability to invest well and keep it growing. Books and audio can be a good starting place, maybe as you get more indepth a course or mentor could take you to new heights, remember if you want to make heaps of money, you need to invest a little in your education.

Well done on the online businesses, keep that up. Businesses are the best way to amass a fortune,

your question will you be wealthy with this portfolio, i would say that depends on your expectations.

If you want to be making say 6 figure incomes before or by the time you retire. Then i would say your on the right track.. This is good because its regardless of your working status

If you want to be a high flying millionaire then you might need some more effort. Dont get me wrong, you have a great base to your wealth and you should keep it growing. But some more businesses and growth assets would be good.

The important thing is to start learning, learn about business, learn about Investing, learn about options and warrents, the more you learn the more you earn.

George asks…

Is buying Canadian stocks in the US via Pink Sheets a good idea?

I’ve noticed that some Canadian Companies have listings in the US on the pink sheets. I’m wondering what I should consider before I invest this way. It seems the price difference between the shares on the TSX (looked up on Canadian Yahoo, www.yahoo.ca) and the price of the shares on
the pink sheets (looked up on www.yahoo.com) is roughly the exchange rate between USD/CAD (I take the price of the Canadian Shares in C$ and multiply it by the exchange rate found on Yahoo which is the symbol CADUSD=X to get pretty close to the price of the shares on the pink sheets in US $.

For example if I’m interested in Laurentian Bank (symbol LB.TO on the finance page of yahoo.ca and traded in Toronto) and look at Laurentian Bank (symbol LRCDF.PK on the finance page of yahoo.com and traded on the pink sheets) am I essentially looking at the SAME shares? I’ve been watching several companies and it seems the Toronto price and the Pink Sheets price seem to move together and close to the exchange rate as the price difference. (Canadian share price,in C$ x (CADUSD=X) = Pink Sheet share price in US$).

Do you think liquidity could be an issue? It seems there is no news nor volume when I look on American Yahoo. Is it just not reported? Or are any shares bought this way included in the Toronto Volume?

Any thoughts on this? I’m looking at buying Claymore Gold Bullion ETF (CGL.TO and CGBLF.PK) to perhaps get a double whammy out of any price appreciation in gold. That is, if gold goes up, then the C$ goes up too. And then when I sell, it converts back as more US$ than had I bought and sold an American Gold ETF (such as GLD) .

Or am I totally wrong about these pink sheet shares? What problems do you see with my theory? Is lack of volume on the pink sheets a problem?

Thanks

Justin answers:

If you buy shares of just about any foreign company trading in the US, you are likely buying ADR’s (American Depository Receipts). The basic idea is that some American bank buys a bunch of shares in the foreign company and then you buy rights to those shares. As you point out ADR’s are priced in dollars, but the value is really the value of the underlying shares converted to USD.

A company would choose to trade on the pink sheets because they are either unsponsored (i.e., the company has nothing to do with it) or Tier I (the company won’t file any docs with the SEC and won’t do GAAP accounting but does have a relationship with the bank).

Liquidity in the pink sheets may be a big concern and they are almost certainly less liquid on pink sheets than their native exchange.

I think your play in Claymore is bush league. If you want leverage in gold, why deal with FX risk? Just buy CGL on margin or (better) buy gold futures or options on gold futures.

James asks…

Do you think it is worth getting a bit of insurance?

There is always the slight possibility that the electorate really are stupid enough to vote Gordon and his cronies back in to ruin the country, or Labour might try to rig a few ballots again as they did in Birmingham a few years back with forged postal votes.

Do you think it is worth investing in Gold now, as prices continued to rise after Gordon sold off our gold reserves?

This would protect yourself against the collapse of the Pound as Labours recession sends the country bankrupt?

I have already converted a few thousand to bullion to protect myself, and it is increasing in value at a better rate than money in the bank.
You are right Hal, Tories did sell off some utilities. So did Labour, but the Tories had a big Labour debt to pay off didnt they. Labour just wasted all money they raised from everywhere.

Justin answers:

Gold is always a sound investment for individuals no matter what govt gets in at the moment, I think I might get some myself. Let’s face it, if you stick your money in the bank it’s not going to make much more the way they keep printing the stuff and devaluing the pound.

It’s interesting that Brown sold all that gold, and he even told the WHOLE world what day he would sell it….. So the price came tumbling down. Can’t remember the figures, but we’re billions out of pocket now because the price has risen so much since then. But now, we have these huge advertising campaigns on UK telly urging you to ‘sell’ your old gold. I suspect that the govt is behind this realising it’s mistake and trying to increase it’s gold reserves again, though I just cannot prove it.

John asks…

How much forex reserves do US have?Why US is not there in the list of countries with most reserves?

I have heard that US reserves are on Gold Bullion In Fort Knox Texas.How many days will it lasts if affected by a crisis?

Why financially strong country like US ,Britain,Germany etc and others are not in the list in Wikipedia.But there are countries like China,India,Brazil,small countries like Singapore ,UAE etc
Another factor i have observed is there is Japan one of the financial power house in the list.
Can some one help me in the dilemma regarding why US etc does not believe in investing in resrves.Wht are the other alternatives.

On Wht grounds can we consider US as the richest nation?If it does not have enough resrves to counter any crisis?

Justin answers:

The U.S. Doesn’t need forex reserves. There are three kinds of official reserves: (1) precious metals, (2) foreign currencies on deposit with foreign central banks, and (3) foreign central banks’ deposits in domestic currency with the domestic central bank. Most of the U.S. Official reserves fall under (3); they are dollar deposits made by foreign central banks with the U.S. Federal Reserve.

As to “investing in reserves”, you are mistaken. Reserves are not an investment, they are a cost. The only reason for reserves to exist is to maintain an orderly flow of international payments without causing too much volatility in exchange rates.

On what grounds can we consider US as the richest nation? On the grounds that no other country has as much stuff (houses, factories, cars, airplanes, office buildings, freeways, etc.) as the U.S. Does… 🙂

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