Acquiring Precious Metals

Since precious metals are the only monetary asset that is not someone else’s liability, all paper currencies are depreciating, and since we liken paper currencies to elevators going up and down on the Titanic, one should have the following:

Minimum in precious metals - 30% - 35% of total assets
Maximum in precious metals - 50% - 55% of total assets

Silver:

Silver prices are about to be driven by tight supply and demand situations, which have combined to cut world bullion inventories by more than 60% over the past six years.  Plainly put, silver is about to get scarce.  Already, total world above ground supply, including silver held by investors in coin form, represents less than a year’s current fabrication demand.  There has been a critical shift in ownership of silver away from individuals to financial institutions.  Less than $1 billion will buy all the silver in the New York Commodity Exchange warehouses at current prices.  We recommend silver holdings be in the following silver coins rather than silver bars.  Silver bars were confiscated under the Silver Coinage Act of 1934, however, silver bullion coins were exempted from confiscation.

Gold:

We live in times of tumultuous change: borders shift, economies and businesses collapse, wars flare up.  Amid all this global turmoil, gold stands firm.  Paper assets can soar or sink so low they are considered worthless.  But gold is desirable because of its intrinsic value.  In more than 5,000 years, no one has ever been able to say of gold, “It’s not worth the paper it’s printed on.”  However, because of provisions of the Emergency Powers Act we recommend that you have the right kind of gold.  The following U.S. gold coins minted prior to 1933 in AU (about uncirculated) or better condition are exempted from confiscation under Section II(b) of the Emergency Powers Act.  Any coin trading at 15% premium or better above gold bullion price is considered a collectible for the purposes of the Act and is exempt from confiscation.