Gold and Silver

GOLD & SILVER

by Michael Piromgraipakd
09/15/2011
MikePiro.com

I started investing in physical gold and silver in late 2007, early 2008. It didn’t occur to me how much of an impact it would have on my life 3 years later. But as I did further research on precious metals, I began to realize a deep understanding of what the government was up to. You could say that I decided to swallow the “RED PILL” and of the many things that I discovered, one interestingly, was that the inflation of food, fuel, commodities, assets are not necessarily a “natural” phenomenon.

To make a long story short, when government prints money or devalues it’s currency, assets such as gold and silver go up in relation to the dollar. I’m not sure if you’ve noticed lately, but there has been a lot of money creation by the government in the form of bailouts, stimulus and quantitative easing. And If you’re not from the U.S., I’m willing to bet that your government is doing the same with whatever currency you have.

Alarmingly, this has done nothing to improve the state of the economy, yet it still causes inflation. TRILLIONS of dollars and nothing… This has resulted in major, even catastrophic events around the world such as the massive uprisings and “Arab Springs” and the cancer is now spreading to the United States by way of the collapse of the Euro.

The people most effected by money creation and inflation are obviously the poor because their daily necessities rise in price and i’m sure their incomes do not keep pace. With that said, it is safe to say that investing in precious metals is an excellent way to hedge against inflation. When the dollar loses value, it takes more devalued dollars to buy gold and silver. Therefore when you exchange your fiat dollars for gold and silver, a lasting asset, you actually preserve your wealth and earnings that you work hard for.

Now take that concept and consider, if you will, that the government will never stop printing dollars, until of course, the dollar is worth nothing. With each newly printed dollar, each existing dollar goes down in value. This is a very important concept not many grasp. Let me repeat that. With each NEWLY printed dollar that the government prints, each EXISTING dollar (like the ones sitting in your bank account) will decrease in value. This is also called, the “Silent Tax” because as the government prints more money, they are essentially taking a portion of your dollars, without actually physically taking a single dollar away from you, brilliant isn’t it?

If inflation rate is at 10% and your bank savings yields for you .03 %, do the math… Now keep in mind, those that get the money first benefit most from money printing during an inflationary economy. So the banks that got the bailouts from taxpayers got the most benefit from the situation because they were, are, or will be the ones who inflate the value of assets they purchase. Guess who loses most? Yes, the tax payer. So the key to winning this “game” is finding something, an asset (i.e. precious metals) that you can purchase first before they do, or before the money that flows into the economy finds its way to the asset that you expect to rise. This is called a wealth transfer and we are going through THE greatest wealth transfer this world will ever see. Why do I say that? No time in history has their been TRILLIONS of dollars unleashed on, not one country, but the entire world.

If you read my introduction page HERE, I describe one instance in history where inflation took a very bad turn and caused severe hyperinflation. But Zimbabwe wasn’t the only one that experienced this phenomena, there was the Weimar Republic of Germany that resulted in the rise of Hitler, Chile, Vietnam, etc. but in each case, the inflation contagion was limited to one country. Pretty much, any country exercising a fiat currency eventually went into hyperinflation and it typically happened over a 40-50 year period.

The U.S. Dollar became a true fiat currency on August 15, 1971 when President Nixon ended the Bretton Woods Agreement and removed any ties the dollar had to Gold or Silver. It is now exactly 40 years later and we are beginning to see signs of severe inflation. Protection from inflation will always come in the form of precious metals, gold and silver. It is the ultimate safe haven when you consider money.

Now, when I first started investing in Silver, the price for one ounce was $16. The price of Gold was about $900. So it took roughly 60 ounces of Silver to purchase one ounce of Gold. Historically Silver has always maintained a 15:1 ratio with Gold, where it would take 15 ounces of Silver to purchase 1 ounce of Gold. Not the case today as Gold is now at $1820 per ounce and Silver is at $42 per ounce. That’s about a 43:1 ratio. So in 2008 when the Gold/Silver ratio was 60:1 Silver was an excellent buy. Today that ratio is at 43:1, however Silver is still a good buy if it should return to a 15:1 relationship with Gold, this is not taking into account the effects of inflation and the silver manipulation in the derivative markets. In conclusion, Silver is most likely going to outperform Gold by leaps and there fore is an excellent investment and hedge on inflation.

I’ve most recently been purchasing Gold and Silver Numismatic coins.

What is “Numismatic”?

The word “numismatic” means the study and collecting of money. Numismatic coins are legal tender coins that are sought after by collectors and investors alike. These include everything from the ancient coins used as currency from the beginning of civilization, to the official coins minted by the Roman Empire, through today’s modern issue silver and gold coins produced by the world’s government mints. Much like collecting baseball cards, comic books or grading diamonds, there is value in collecting coins for their obvious silver or gold content, rarity, condition and beauty. These graded coins have actually been shown to out perform normal bullion coins.

A good example that may relate to men is when I go out and look for a Hank Aaron Rookie Baseball Card, I am looking for one that is in the BEST condition possible. A 1954 Hank Aaron Rookie card that is in bad condition and is ungraded can go for under $800. However, when that card is graded by a certified world class grading institution that card sells for $4000-$5000 dollars.

An example for the ladies suggests that the same principal can be said for diamonds. The clearer, less inclusions, more pristine a diamond is, the more it is worth. These attributes cannot be assured unless it is “Certified” by a grading company that is recognized around the world. And so the same is true for Gold and Silver coins.

In the videos above I described for you what this means. Keep in mind I did these videos in 2010 and the price of Gold was at $1240 an ounce. Today, September 15, 2011 the price of Gold is now $1830 an ounce and this same coin is worth over $2000. I do not expect this to stop, as I do not expect the government to stop printing money or loaning money at 0% interest. I fully expect the same that happened to Zimbabwe to eventually happen to the U.S. as history has, 100% of the time, shown that a fiat currency eventually fails in Hyperinflation. I stated earlier that on August 15, 1971 the Bretton Woods Agreement was negated by President Nixon, thus sending the U.S. Dollar into Fiat Currency Hell.

As well, same applies to silver. An ungraded Silver American Eagle coin is valued only by the silver content of the coin. In the video above, the “2006″ .999 pure Silver American Eagle “ungraded” was worth about $18 per ounce at the time. Today, that same coin is worth $40+ an ounce because the spot price of Silver has gone up. Now take that same coin and grade it at MS70 and the price rises DRAMATICALLY over time. There is no denying the value of a coins rarity, metal content, purity, and beauty:

There are 3 top grading companies in the entire world. Those three are PCGS, NGC and ANACS. The company ANACS, was created by the American Numismatic Association (ANA) in 1972 and is the oldest grading company of the three. ANACS or American Numismatic Association Certification Service actually GUARANTEES that all of their graded MS70 coins will be graded at MS70 by other world grading companies as well, which is why I choose ANACS as my grading source.

You’re probably wondering what MS70 means. All coins are graded by these top tier grading associations on what’s called a Sheldon Scale from 1-70. Numbers 1-60 mean these coins are “Circulated” coins, or they are used and damaged to the point they are not considered “collectible” quality, however, older coins have been known to hold value because of it’s rarity and quality is not as significant. Now MS-60 through MS-70 are considered “Collectible” quality and have more value than their MS-59 and below counterparts. Here is a link to the U.S. Mints website describing each level of grade HERE.

Now, as if this wasn’t enough value already, imagine being able to go into business for yourself selling these Numismatic Coins and buying them as well, to protect your wealth. And as you were buying them, you were able to “write off” all the costs associated with them as a business expense on your annual taxes. So instead of giving your money to Uncle Sam, you were able to put that money that would have gone to the government, into a lasting investment or asset involved with your business, say maybe a Numismatic Coin?

According to the IRS:

“To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.”

These expenses can be:

Business start-up cost (Cost to start the business, obviously)
Business assets (Purchasing these lasting assets)
Improvements (Maybe a home office?)

In addition to these tax savings, what if you were able to make a legitimate income from a business in gold and silver as well. What if… what ever you bought in precious metals, you were able to sell back to the company in 5 years at what ever cost you purchased it for, just in case, say the markets for precious metals crashed and the value of these coins were less than what you bought them for? You obviously would need to start up a business, one with minimal overhead, but one that was efficient, for instance one that was a fully functional internet business.

However, going into business for yourself brings a lot of risk and knowing what to do and where to start is a hard task as it is, let alone understanding how to design an online store. Then, of course, you would need start up capital. I would think in the range of about $100,000 to be conservative. That doesn’t include the headaches of overhead and having to hire a staff of employees. Well what if all of the above already existed and you didn’t need to spend over $100,000 to get started? I believe I have found the perfect solution. And it doesn’t matter whether you are a seasoned collector or buying your very first graded silver or gold coin.

I’m sure you’ve already guessed that I’ve actually already found and am a part of this unique company. It’s called Numis Network. “Numis” specializes in the highest grade, modern issue coins produced by leading government mints from around the world. This enables us to offer an ever-expanding selection of the most beautiful and valuable silver and gold coins that everyone wants.

Best of all, you will enjoy total confidence in knowing that you are buying the very highest grade silver and gold collectible coins there are, because Numis Network only sells coins which have been certified by the largest and most trusted coin grading services: ANACS, NGC, and PCGS. The obvious advantage is that graded coins are certified and ultrasonically encapsulated for preservation, presentation and long term value.

As I said before, “Graded” silver and gold numismatic coins are not ordinary, they are special. The value of these collectible coins is based not only on their precious metal content, but also on rarity, collector demand, and their actual condition. The fact that they are certified and graded by recognized experts makes them more valuable and desirable than ordinary, ungraded silver or gold bullion type coins.

When you purchase any coin graded MS70 from Numis Network, you can be proud to know that you are obtaining a coin that is both beautiful and valuable… a coin to be treasured, because it is treasure!

Let me introduce you to one of the owners of Numis Network, Chris Kent as he discusses how it all came about:

If it hasn’t occurred to you yet, it is essential to have a network marketing business to receive the tax benefits that large corporations enjoy, only you don’t have to pay the large costs and headaches that they do not enjoy… I don’t usually buy into network marketing businesses, but when this opportunity came across my desk, it just made WAY too much sense to me.

I know exactly what you’re thinking, because it’s exactly what I thought too when I was presented with this. The concept is awesome, but it’s network marketing. The question isn’t if a network marketing business model works or not, because there are hordes of millionaires who are products of this type of business. It’s whether or not you have the ability or courage to sell or not correct? And that’s what is so amazing about network marketing… You don’t need to know how to sell.

Look, there’s is no hiding the fact that this opportunity is an unconventional business model, so let’s get that out of the way. But ask yourself why you have reservations. Was it the way that these “opportunities” did business or was it the products they pushed? If it was the products, let me assure you, Gold and Silver? BEST PRODUCT OUT THERE… God makes it. If it’s how they do business? Well how is it any different than any other business? If I find a good product that I believe in, I recommend it to friends and family. If they don’t agree, well… they don’t buy it right?

On a recent episode of the tonight show, Donald Trump was asked what he would do if he had the choice to go back and do it all over again. From a guy who made millions, went bankrupt and then returned as a real estate mogul with multiple business ventures, do you know what his response was? Here it is: “NETWORK MARKETING” loud and clear. The audience gave out a long sigh and snickered. Donald, without missing a beat turned to them and said, “That’s why I’m up here and YOU’RE still sitting out there. In a world where job security isn’t secure CREATE your plan B and turn it into your Plan A! It’s the wave of the future.” And you know what? He’s right. No business model in the entire world allows you the flexibility, minimal overhead, leverage and wealth producing power as network marketing. Now couple that with a product that actually makes sense and you get a BUSINESS like no other in the entire world… Think “OUTSIDE OF THE BOX…” BRILLIANT!

Keep this in mind, costs are rising because of inflation. If costs rise and you have a business with employees, you can bet that you will have to raise their wages as well. With Numis Network you don’t have to worry about this. With Gold and Silver you are recommending to others that they protect themselves from inflation by exchanging paper dollars that are losing value for assets that are increasing in value. What a concept…

What I just described to you is the reasons why the actual product, gold and silver numismatic coins, are ideal for a business and the business model itself is perfect for this economic environment. In other networking opportunities you are required to purchase overpriced juices, vitamins, or consumables that are simply either consumed and flushed away as waste or they sit in your garage and they spoil away. With Gold and Silver, if you bought a garage full that you were not able to sell, well… I think you’re a happy camper, especially when it doubles, triples or quadruples in value. Am I right? And if they don’t, well you sell it back to the company at the price you paid for it, because Numis Network guarantees that any coin purchased through the Silver Coin of the Month Club is guaranteed or they will purchase them back from you for the cost that you paid for them. That’s what I call a no risk opportunity.

As Chris Kent described in the video above, he and his partner Ian Cordell own a company called IDSTC (Don’t ask me what it stands for) that actually designs and sells compensation software for other network marketing companies. So you can be rest assured, through their experience and research, that Numis Networks compensation plan is THE best in the industry. Numis utilizes what is termed a “Hybrid Binary” Compensation plan, where you can earn through direct commissions as well as a residual income. Also because the “Comp plan” is binary in nature, you enjoy the efforts of your team.

Here is top earner in Numis Network, Ambassador Ray Higdon:

Before you go any further, here’s an interesting thing to remember, Facebook is social networking correct? It’s basically a GIANT network, or… a GIANT network marketing company, only you DON’T get paid for this network. Facebook gets paid. Wouldn’t it be awesome to be affiliated with a network marketing company that pays you all while utilizing the tools from the network marketing company that doesn’t pay you?

So you have a choice to make, choose not to act and continue with status quo. Or… Act and join me in utilizing these vast networks called Facebook, Twitter, Google+, YouTube to explode a business encouraging others to exchange their fiat dollars for lasting assets that will go up in value.

Now, if this isn’t enough information for you to make an informed decision about whether you’d like to join Numis Network, give me a call at (909) 781-4632. If however, this resonates with you and you are ready to get to work, then click the link below and you will be directed to the secured webpage to join me in Numis Network below.