This is the 4^th installment in a series of 16 articles on acquiring gold and silver for your investment portfolio. Professional  precious metals advisor, Pat Gorman will  share some of his expertise with you to help you make better investment decisions. The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.
 

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 Phone: (800) 494-4149 or 480-820-5877  Fax: 480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management. Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

Pat will Keep It Super Simple!

The 10 Most Asked Questions about Precious Metals

Many people have been conditioned to believe paper money is the ideal means of “storing” of their work’s value. They simply don’t understand the historic appeal and value of precious metals to those who are preparing for the uncertain financial future. Here are ten (10) of the most often asked questions about metals and coins we’ve encountered over the past 25 years.

Hopefully, the answers to these questions will provide both a working knowledge and some insight into the intrinsic value of precious metals, as well as why and how they provide long-term stability to their owner.

1. What Makes Precious Metals So Valuable?

2. What Determines the Value of Precious Metals?

3. How Much Gold and Silver Should Be in My Portfolio?

4. Do You Have A Suggested Portfolio of Precious Metals for Everyone?

5. I’ve Never Owned Precious Metals––What Items Do You Suggest?

6. What Forms of Precious Metals Should I Avoid?

7. Where Do I Store My Precious Metals and How Do I Protect Them?

8. What Are the “Rules of the Game” So I Don’t Violate the Law?

9. Just How Liquid Are Precious Metals in A Crisis Situation?

10. When Things Get Ugly, How Do I Use My Coins for the Things I Need?

The next blog post will start the explanations for the questions above.

It’s as simple as that!

Till next time…

Related Posts:

Should I Be Acquiring Gold and Silver?
Financial Preparedness: Why Gold?
What About Investing in Silver and Platinum?
Self Reliance: Make Sure You Have Some Junk
The Capstone of the Readiness Pyramid

This is the 3^rd installment in a series of 16 articles on acquiring gold and silver for your investment portfolio.  The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 (800) 494-4149 or 480-820-5877 6480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

Silver––Everyman’s Money

Silver has also been a monetary* means of exchange for several thousands of years. Silver is much more abundant than gold, and therefore less costly and valuable. Yet, silver is considered by many to be the form of reserve money that most of us can afford. Silver is more accessible to the average person. Until 1965, the US government produced most of its coins with at least 90% silver content, but this practice was abandoned that year. Perhaps one of the reasons the government changed this policy was to protect itself from being fiscally responsible to the public for reserves of silver to support the paper money. You probably don’t recall when the bills were silver certificates––and could be redeemed––by law––for silver.

From the current indicators in the marketplace, fall of 2009, there seem to be several factors that make this a most propitious time to accumulate silver bullion coins before silver becomes a scarce commodity: inventories are lower than any time since 1950. Demand for silver is exceeding supply at this time, unequalled since 1978.

Platinum––For the Serious Investor

Platinum is the most precious metal**, and is five (5) times scarcer than gold. Platinum is used primarily in automotive catalytic converters, and utilization has increased more than 50% over the last ten years. Now that the whole world is concerned about air pollution, its use in the auto industry will continue to grow. However, now the largest market for platinum is for jewelry––more than 35% of the total platinum utilized today. Increased purchases should occur as platinum bullion coins are being minted and circulated at a low premium.

* However, it is not now a “monetary” metal, and probably will never be again in our lifetime––except in India. Silver is strictly an industrial metal and most likely will fall dramatically with other commodities during the next depression. There is lots of silver and it’s very unlikely that it will ever be scarce, though it may rise in price for a short period––i.e., in a time of hyperinflation––but during the next depression, it may just as well drop to the price of $0.25/oz.

**The previous paragraph may also apply to platinum. It would probably appreciate faster than gold if inflation occurs in the economy as inflation occurs in the monetary system. However, if the economy has seen the largest proportion of inflation that’s expected and also experiences a deflation of the economy––while the Federal Bank hyper-inflates the monetary system (paper currencies) in an attempt to keep the worldwide economy from crashing––then platinum and silver would most likely drop in value while gold rises. When the next depression occurs, platinum would drop while gold would retain a relatively high relationship to all commodities.

Related Posts:

Financial Preparedness: Why Gold?
Should I Be Acquiring Gold and Silver?
Self Reliance: Make Sure You Have Some Junk
The Capstone of the Readiness Pyramid

This is the 2nd installment in a series of 16 articles on acquiring gold and silver for your investment portfolio. The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 (800) 494-4149 or 480-820-5877. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

What is Gold?

“The value of gold is the only constant that can keep a government from inflating a currency substitute into oblivion. Gold is a yardstick of value that keeps governments in line; governments staffed by power-crazy and greedy men whom––as history has proven––cannot be kept in control by any other means.” Otto Scott, Otto Scott’s Compass

Do you recall the expression “Good as gold?” For thousands of years, civilizations have looked upon gold as the ultimate form of money. No other substance embodies the unsurpassed luster and beauty of gold. Gold has unique characteristics in ease of workability for jewelry, excellent conductivity for electronic manufacturing, and is virtually indestructible.

Gold is a rare substance––during all recorded history, approximately 125,000 tons have been mined! Based on that figure, all the gold ever produced in history could fit in a cube with approximately 60-ft. sides––about the size of two hay barns on a typical farm. Gold production fulfills approximately 60% of the free-world demand for it.

Gold loans, forward selling, gold scrap, and gold from former USSR countries meet the free-world gold supply shortfall. Africa produces approximately one-third of the world’s annual production of gold, the former Soviet Union countries about one-sixth, the US produces about 10%-11%, while Australia and Canada together produce another 15%. These supply-side facts certainly explain why increased demand for gold at the current price level creates a strong upward pressure on gold prices––there’s just not enough of it to go around!

Additionally, worldwide gold demand has increased steadily, due to increased utilization by the jewelry industry, central bank purchases (to assure their ability to make international payments), gold investors, electronics manufacturing, dentistry, minting of official coins, government treasuries, and miscellaneous industry applications. There is also another indicator created by the Chinese peasants who are now able to have savings accrue privately. These people have been buying gold through the Chinese government, even though they are charged a price that is twice that of the free world price!

In the last several years, the Federal Reserve Bank (the US Central Bank) and the Federal government have tended to decry gold––because using gold as the reserve backing for the issuance of paper currency requires these entities to be accountable for adequate amounts of gold bullion in reserve. As you could agree, it seems the Federal government has chosen not to be accountable for their financial actions in the past several decades!

In 1933, President Roosevelt confiscated gold from American citizens. In 1934, after trusting citizens had turned their gold in, he raised the price 69%, to $35. None of the citizens participated in that profit, yet they reelected him three times! Is it any wonder we’re in such a fiscal mess? It was not until 1974 that American citizens could own gold again. The scramble to get a piece of real money began in earnest, and continues today for those investors who seek long-term security. Indeed, when future monetary dislocation begins due to the loss of faith in and acceptance of the almighty dollar, gold coins may be the only form of money that will have enduring value.

Through continued government and banking market manipulation over the past years, most investors have ignored precious metals for the high-flying equity (stocks and bonds) markets. That market trend is now changing. More people are realizing the ultimate safety and monetary insurance that precious metals provide. In fact, since the market crash of 2008, demand for precious metals has increased three fold, by the regular investment public, searching safety for their diminishing dollar assets.

Based on industry reports, the precious metals vendors currently enjoy an inrush of new purchasers––it seems no one wants to sell their personal holdings. As available precious metals inventory is diminished, there will be increased selling pressure on institutions that hold precious metals in inventory. This will cause a volatile rise, creating wealth and protecting wealth that many people have built up over the years. Remember, Gold is the ultimate insurance policy for wealth.

Remember this: “…the only valuable money Government has to spend is that money taxed or borrowed out of the people’s earnings. When Government decides to spend more than it has thus received, that extra unearned money is created out of thin air, through the banks. When spent, this unearned money takes on value only by reducing the value of all money, savings, and insurance of the people.” From: The Ten Pillars of Economic Wisdom

Related Posts:

Should I Be Acquiring Gold and Silver?
Self Reliance: Make Sure You Have Some Junk
The Emergency Preparedness and Disaster Survival Readiness Pyramid
The Capstone of the Readiness Pyramid

Pat Gorman, President & Owner of Resource Consultants, will provide you an education on the subject of precious metals investing. There is such a concern about the economy, I felt this subject could use some light, instead of smoke and heat.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 ‘(800) 494-4149 or 480-820-5877 6480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

What Is Precious Metal?

While getting your pantry ready for the unexpected, there is more to consider than just food, shelter, and clothing. We strongly recommend that you invest in yourself and your family by providing a financial cushion that contains a years’ supply of reserves for housing and/or shelter for your family. In a financial emergency, when the entire fiat (paper money) system fails, there may be a need for a medium of exchange that is both effective and outside the fiat money utilized at the present time. This allows an effective and continuing medium of exchange with intrinsic value recognized by those with whom we deal.

Any tangible asset that another will accept for goods or services will suffice, but those reserves that are recognized worldwide have always been precious metals.

Webster’s dictionary defines the term precious metal very simply as a metal of the gold, silver, or platinum group. Some guidelines for understanding precious metals and their value in an investment portfolio are provided as they are utilized in context.

Our intent is to inspire all our readers to learn about the generalities of investing in precious metals. Specific advice is not offered by this book, its author, publisher, or distributors––nor is any course of action recommended for the individual reader. In fact, we urge you to always seek expert advice and consult with a professional investment counselor prior to making any investments.

Review the credentials of those investment consultants to assure they have the background and training to give competent advice about the acquisition and utilization of precious metals in your portfolio.

Precious metals are a real and enduring asset of true wealth and power. Gold’s richness is attested to by the fact that it was used to decorate the temples of the Egyptian gods more than 3,000 years ago. Today when one sees new gold coins in brokers’ showrooms, their luster and beauty capture the imagination with their richness and powerful warmth.

Knowledgeable investors have always valued the tangible and symbolic significance of precious metals. Both silver and gold were used as coins as early as the 6^th century. Rulers struck gold coins or stamped bars with their personal heraldic emblems to create “coin of the realm” or legal tender for trade within their area of influence.

Precious metals have been used as money in the past and can be kept in reserve as money for the future.

What is money?

Money is defined here as stored-up work. It can take the form of anything anyone will accept in payment for goods and services rendered.

Throughout history, people have accepted many things as money (e.g.: seashells, animal teeth, livestock, salt, sugar, furs, slaves, wives, gemstones, and precious metals), too many to mention individually. Some of these forms of money have proven to be much more enduring than others. In all of history, however, precious metals––usually in the form of gold and silver––have best served to determine the value of one’s stored-up work.

A note of caution, by their nature, precious metals markets can be very volatile, and can trap the unwary.

Related Posts:

Self Reliance: Make Sure You Have Some Junk
The Emergency Preparedness and Disaster Survival Readiness Pyramid
The Capstone of the Readiness Pyramid
Financial Preparedness: Why Gold?