California Woman Inherits Fortune in Gold Coins

December 19, 2012

Carson City officials say a substitute teacher from California is the only heir to a fortune of gold coins found in the home of reclusive cousin who died in June.

A court hearing in Carson City is scheduled Tuesday, when a judge is expected to certify first cousin Arlene Magdanz as the lone heir to the treasure valued at $7.4 million found in the home of Walter Samaszko Jr., Carson City Clerk-Recorder Alan Glover told the Nevada Appeal.

Samaszko, 69, lived a quiet life in Nevada’s capital city since the late 1960s and no one apparently knew of his wealth. Records show he withdrew just $500 a month from his stock accounts to pay modest bills, said Glover, who was handling Samaszko’s affairs as public administrator.

Samaszko apparently had no living family in Carson City, so genealogical researchers went to work to find relatives elsewhere. They found Arlene Magdanz is the only living heir. Magdanz could not immediately be reached for comment.

A crew hired by Glover to clean up the man’s house discovered the eye-popping stash: boxes of gold coins and bullion in the garage. More boxes were later found, and Glover said the gold coins, some neatly wrapped in foil and plastic cases, were enough to fill two wheelbarrows.

Appraiser Howard Herz filed his report several weeks ago listing a total of 2,695 coins appraised at more than $7.4 million.

http://sacramento.cbslocal.com/2012/12/14/california-woman-only-heir-to-fortune-of-gold-coins/

Liberty Gold

 

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What Goes Up, Must Come Down

November 16, 2012

Despite very questionable economic news, the stock market has appreciated in much of 2012. It was led principally by Apple Computer, the darling of the tech industry.

In case you haven’t noticed, Apple is in trouble now. It’s stock is down, way down from its highs. In fact, Apple shares have fallen 25% since late September. Yesterday the stock fell 2.4%.

Investors must consider whether or not Apple is the “canary in the mineshaft.”

How can a company whose shares investors chased up 74% in a year suddenly fall out of favor like it has?

Something is spooking investors. And we suggest that that something should not be viewed as exclusive to Apple. The stock market is vulnerable and investors should diversify into assets that are not closely correlated with stocks.

Rare gold coins are particularly useful in this regard.


Reuters: Higher Inflation on the Way for Americans in 2013

October 25, 2012

For quite some time, we’ve been warning that America‘s fiscal and monetary policies would eventually result in higher inflation.

Now the mainstream media has finally caught on. Reuters is warning of tough times for Americans in 2013 due to higher prices for many items. In other words, higher inflation is on its way:

Consumers will have to dig deeper into their pockets next year to pay for costlier healthcare, more expensive grocery bills and higher taxes, an extra drag on the country’s already slow-moving economy.

Rises in the prices of corn and soybeans and other field crops as a result of drought this year in the U.S. Midwest are expected to feed through into food prices late this year and in early 2013.

U.S. soybean prices jumped 40 percent over the summer, while wheat shot up about 50 percent. Prices have eased a bit since then, but the increases are expected to filter down to consumers.

http://www.reuters.com/article/2012/10/25/us-usa-economy-consumer-idUSBRE89O0LH20121025

The arrival of higher inflation also has serious implications for investors. Historically, periods of high inflation have been unfriendly for the stock and bond markets. On the other hand, gold investments tend to lead the way during periods of high inflation. This is true of a broad array of gold investments, not just gold bullion.

For example, rare gold coins tend to outperform gold bullion due to their added scarcity. They also offer security and privacy advantages over other forms of gold investment.


Marc Faber Issues a Warning to Investors on QE3, the Global Economy, Stocks and Bonds

September 27, 2012

Marc Faber is one of the most respected investment analysts and has for many years published the Gloom, Boom, & Doom Report. Faber is also a frequent guest on TV financial news networks.

Recently, Faber issued a warning that investors should pay close attention to…

On the QE3 program recently started by the US Federal Reserve:

“It is difficult to tell what will happen. I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don’t like bonds. I don’t particularly like equities, but I think equities are a better space to be in than bonds.”

“The fallacy of monetary policy in the U.S. is to believe this money will go to the man on the street. It won’t. It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols…Very happy. Very good for the Fed. Congratulations, Mr. Bernanke. I’m happy. My asset values go up but as a responsible citizen I have to say the monetary policies of the U.S. will destroy the world.”“I think there is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system. It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets and you have at the same time increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development. I don’t want to build a new business. But what I may do is look around the world, where are the distressed assets. So I will go and buy existing assets, takeovers. But takeovers don’t add to employment. They destroy employment.Secondly, I would just like to mention one thing. This money printing business, they have been saying that for the last 15 years that bailing out LTCM were necessary. Then they say the NASDAQ collapsed after March of 2000. We need to create another bubble, print money. They created a gigantic credit bubble and the misery that we have today.”

“I think there is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system. It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets and you have at the same time increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development. I don’t want to build a new business. But what I may do is look around the world, where are the distressed assets. So I will go and buy existing assets, takeovers. But takeovers don’t add to employment. They destroy employment.

“I think that the trend for gold prices will be steady, but the trend for the dollar and other currencies will be down. In other words, in dollar terms the price of gold will trend higher.How high it will go, you have to call Mr. Bernanke and at the Fed, there are other people actually that make Mr. Bernanke look like a hawk. So they are going to print money. And they have done it for ages already and where has it led? To record high unemployment essentially since the Great Depression and structural unemployment. Unemployment goes among low paying jobs, not high paying jobs. So, you ought to own some gold, but don’t store it in the U.S. because the Fed will take it away from you one day.”

Pay particular attention to the last line in Faber’s warning. He is predicting that the US Treasury will once again confiscate privately owned gold. He recommends owning gold outside the USA, but this is obviously both impractical and unwise. The better solution is to own gold in a manner that protects your wealth from gold confiscation laws.

Rare gold coins fall outside the provisions in the gold confiscation regulations.

 

Gold Soars to $37 to 6-month High on News of QE3

September 13, 2012

Against a backdrop of turmoil and violence in the Middle East, the Federal Reserve today announced a new round of monetary stimulus to jump start the stagnant US economy.

As a result of this announcement the price of gold shot up $37 per ounce to a six-month high, closing at just under $1,770 per ounce.

Stocks also soared in response to the announcement in hopes that the new Fed policy would succeed better than QE and QE2 in getting the US economy humming along again. The Dow finished higher by over 206 points.

The nature of QE3 amounts to the Fed going out in the open market and buying $40 billion worth of Treasury bonds every month, thus increasing demand for US Treasury securities and injecting more dollars into circulation.

We are not at all sure that this will result in a healthier US economy, but we are sure that it will result in a weaker dollar and higher inflation. Because of that, we expect that the current bullishness in stocks will eventually expire and the bullishness in gold investments will continue. A weaker dollar and higher inflation have historically been bearish for the stock market and bullish for gold.

Flooding the world with more dollars can only mean a weaker dollar and such stimulative monetary policies have historically led to higher inflation. We expect that inflation will make itself felt in the form of higher oil and gasoline prices in the short term and in other areas down the road.

All of this should prompt investors to buy gold investments now because it appears that gold has a ways to run. And the best way to take advantage of higher gold prices is to buy rare gold coins, which have added profit potential due to their scarcity.


Goldman Sachs, Bank of America, UBS all issue warnings to investors on US economy

September 10, 2012

What we’ve been seeing in the stock market in recent weeks and months could very well be the ultimate example of “irrational exuberance.”

Investors have been chasing the stock market higher in anticipation of the Federal Reserve turning on the money pumps and debasing the US dollar.

How is it that investors have come to expect a positive outcome from that?

Well, volumes could be filled answering that question, but we’d like to report a more useful exercise for your time: three of the world’s largest financial institutions have issued warnings about the US economy which can only be taken as a signal to get out of the stock market and get into safe havens.

Goldman Sachs, Bank of America and UBS have all issued such warnings in recent weeks and investors best pay attention. When folks in the business of being cheerleaders for the stock market start waving red flags, it is time to head for the exits before things get REALLY ugly…probably after election day in November.

UBS economist Drew Matus warned on Bloomberg TV that there are signs that the US economy is headed for its worst long-term decline in 60 years:

http://www.businessinsider.com/ubs-capital-stock-us-economic-decline-2012-8

Bank of America’s top economist, Ethan Harris, warns that current conditions are the equivalent of the “eye” of a hurricane. For those who don’t know, conditions are very calm and even serene inside the eye of the storm, but once it passes, the worst of the storm immediately rises up:

http://www.businessinsider.com/bofa-us-economy-eye-of-the-storm-2012-8

Finally, as if all that was not enough, Goldman Sachs chief US equity strategist, David Kostin, warns that the approaching “fiscal cliff” is a lot worse than investors realize and investors in the stock market are being set up for a nasty fall:

http://www.businessinsider.com/goldman-fund-managers-hope-and-ignoring-experience-fiscal-cliff-2012-8

What all this suggests is that investors need safe havens and alternative investments for the future. Rare coins and precious metals fit that bill nicely, since they have historically moved independently of stocks and are not subject to many of the risks that negatively impact paper assets…


Carson City 1873 Seated Liberty Dime Auctions for $1.6 million at ANA Show in Philadelphia

August 12, 2012

The market for truly rare coins continues to exhibit strength. Another ultra-rarity fetched an astonishing number at the Stack’s auction at the American Numismatic Association show in Philadelphia when a 1873-CC Seated Liberty Dime fetched $1.6 million, generating international news publicity for the rare coin market…

http://www.foxnews.com/us/2012/08/10/1873-dime-sells-for-16-million-at-philadelphia-auction/