american bullion gold investing guide

7/28/2019 American Bullion Gold Investing Guide

http://slidepdf.com/reader/full/american-bullion-gold-investing-guide 1/13

“Piece of Gold, Peace of Mind”

®

Gold Guide

The trusted name in Gold IRA Rollovers.



800.531.6525 • www.americanbullion.com 1

The Shrinking U.S. Dollar

The U.S. Dollar iS Shrinkingin valUe. iT iS obvioUS ThaT aDollar DoeS noT bUy whaT iTUSeD To!

The U.S. Government is printing money at an

increasing rate and the Federal Reserve Money

Supply has doubled since 2008! The new global

economy, which has evolved over the last ten

years, has seen a boom in the development of

China, Brazil, India and Russia. The world is

awash in U.S. dollars as we have sent trillions of

dollars abroad to pay for products, services and

commodities.

According to a government report, the U.S.

Dollar Index is down 37% since 2001. Simply put, each and every year paper U.S.dollars buy you less and less goods and services.With the federal bailouts and economic stimuluspackages approved by Congress during 2008-2009, the U.S. Money Supply has skyrocketed. Asa result, the U.S. dollar is being “watered down”in value.

Gold, on the other hand, has steadily increased

in value over the last ten year cycle while theU.S. Money Supply has more than doubled.

Gold prices have increased approximately 456%

between 2000 and 2011. Many institutions

have purchased gold as insurance against

paper markets, including the 152 year old

Northwestern Mutual Insurance company, who in

2009 purchased $400 Million in physical gold for

portfolio protection.

$271An Ounce

$309An Ounce

$363An Ounce

$409An Ounce

$444An Ounce

$950An Ounce

$1750An Ounce

$282An Ounce

PriCe oF golD (2000-2012)

2 0 0 0

2 0 0 2

2 0 0 4

2 0 0 6

2 0 0 8

2 0 1 0

2 0 1 2

I n u

S D O l l A r S ( B I l l I O n S )

0

200

400

600

800

10001200

1400

1600

1800

2000

2200

2 0 0 0

2 0 0 2

2 0 0 4

2 0 0 6

2 0 0 8

2 0 1 0

2 0 1 2

U.S. Money SUPPly (2000-2012)

“Gold and silver are money. Everything else is credit.”J.P. Morgan



2

The loST DeCaDe...

T Mts: You may be shocked to learn how badly

U.S. stocks have performed in the rst

twelve years of the new century. A $100,000

investment into the NASDAQ Index on

January 1, 2000 would be worth only

$64,000 in January of 2012.

Or, a $100,000 investment into the S&P 500

Index would have lost more than 11% in the

same time frame and be worth only $89,000.

T U.S. D:$100,000 invested in U.S. dollars in 2000,

(see Gold vs. Dollar index chart) would

have lost $38,000 in purchasing power by

early 2011. Therefore, $100,000 in cash

would buy only $62,000 worth of goods

and services in early 2011.

T gd:It’s proven that it takes more than stocks

and bonds to build a rock-solid portfolio.

Considering how close the world has

come to a total nancial meltdown, it has

never been more important to own

physical gold to protect against the

shrinking U.S. dollar.

What does this mean? Physical gold provides

wh p p p

against U.S. federal bailouts which make

the U.S. dollar a depreciating asset. Hedge

yourself for the next 5-10 years and get

protection against ination and a global bear

market!

2 0 0 0

2 0 0 2

2 0 0 4

2 0 0 6

2 0 0 8

2 0 1 0

2 0 1 2

$100,000 inveSTeD in

golD vS. U.S. Dollar

$700,000

$650,000

$600,000

$550,000

$500,000

$450,000

$400,000

$350,000

$300,000$250,000

$200,000

$125,000

$100,000

$75,000

$50,000

golD

Dollar

Past Performance is not necessarily indicative of future results

naSDaq

S&P 500

Dow

Silver

golD

$64,000

$89,000

$109,000

$610,000

$614,000

reSUlTS on $100,000 inveSTeD ineaCh inSTrUMenT in JanUary 2000

800.531.6525 • www.americanbullion.com




The golD ira oPTion

A Gold IRA is a Self-Directed Individual Retirement Accountthat allows you to safely own physical precious metals in a

tax-deferred account. You are no longer conned to riskystocks and bonds but could instead have a physical assetinside your portfolio. The Self-Directed IRA gives you thepower to decide exactly what type of precious metals youinvest in. Whether you choose gold, silver, platinum or palladium, the physical asset is safely stored for you in asecure IRS-approved depository waiting for you when youretire.

hiSTory

From 1986 to 1998 the IRS limited IRA account holders tostoring only gold and silver American Eagles. However,changes in the IRS Tax Code in 1998 granted everyone theopportunity to hold a wider range of IRS-approved preciousmetal coins and bars within their IRAs. Today, an IRA canhold gold, silver, platinum and palladium bullion which meetcertain minimum neness requirements.

a SiMPle TranSaCTion

When working with American Bullion, the process of addinggold or other precious metals to your current IRA is a simpleand hassle-free transaction. You can choose to transfer your entire IRA account, or just a portion of it, into a newSelf-Directed Gold IRA. This common practice is knownas a “Direct Rollover” or a “Direct Transfer.” It is a tax-freetransaction — meaning the IRS allows you to move funds outof one IRA into another IRA, free of tax penalties.

Many individuals also have old 401K accounts, or other typesof retirement plans from previous employers suchas a 403b, 457b, Thrift Savings Plan, annuity, or pension.These, too, can be converted tax-free into a Gold IRA byrequesting a rollover. In most instances, one simple phonecall will allow the current custodian of your former 401K planto release these funds directly into your new Gold IRA. Thisprocess is a 100% tax-free transaction.

All transactions are

handled hassle-free

by our courteous,

knowledgeable

account executives.

whaT iS a golD ira?



4

how DoeS iT work?

Ct u ira fm 401k t gd ira s s s s 1-2-3:

oPen

We will help you open a new, self-directed Gold IRA account within 24 hours of receiving your application. The application requires only a few signatures and some basicinformation. Nearly everyone qualies and there are no up front out of pocket fees.

TranSFer / rollover

Once you complete the Direct Transfer or Rollover form with the help of our agents, our specialized IRA Department will handle the rest. We will submit your request to your

current IRA custodian and they will wire your funds directly into your new Gold IRA. Thisprocess is called a Direct Transfer or Rollover and it is a tax-free transaction. You aresimply moving money from one IRA account into another IRA account that is qualied tohold precious metals.

own golD

After the funds have transferred into your new Gold IRA account, with your authorization,we will purchase your precious metals and ship them directly to a private, IRS-approvedprecious metals depository. Quarterly statements and 24/7 online account access providedetailed information about your holdings and their value.

1

2

3

it’s T-F d hss-F!We understand that you have an active, busy life anddon’t like the hassle of making changes. We take pridein handling everything for our clients from startto nish, and we pledge to do it right the rst time.We will walk you through the simple application processand provide your new Gold IRA account number within24 hours. We will also take care of contacting your current nancial advisor or custodian to request theIRA transfer for you. Once we order your preciousmetals, we will ship them in a fully-insured parceldirectly to your new depository and provide you

with detailed tracking information.

Your satisfaction is guaranteed.




5

why ShoUlD i own golD in My ira?


Gold can reduce the overallvolatility of your retirement

portfolio and can help you createa safe, stable and profitable futurefor you and your loved ones.

TrUe DiverSiFiCaTion Physical gold and other precious metalsoffer true diversification, solid protectionand excellent profit potential for anyportfolio. During the past decade,precious metals IRAs have continuouslyout-performed traditional paper IRAs. Thepurchasing power of the U.S. dollar hasdeclined by about 90% since 1950. Gold,however, has shown tremendous growthin the same time span. When you secure

gold within your retirement portfolio,nothing comes between you and your physical asset. We believe it would be anoversight to rely solely on Gold ETF’s andmining stocks to gain true diversification.Some gold stocks represent only 1/10thof an ounce of gold, and mining stocksare often vulnerable to general economicheadwinds. Companies reporting hugeprofits one day and filing for bankruptcythe next, employees losing their jobs, and

investor’s taking huge hits to their portfoliosare some of the reasons to diversify awayfrom paper assets. When you own physicalprecious metals, you no longer have to relyon the sometimes questionable ethics andbusiness practices of a company’s officers.

liqUiDiTy Aside from being an excellent store of value,gold is considered a liquid asset. It can readilybe converted into cash or goods when neededbecause it is a globally recognized currency.

Tax DeFerreD growTh One of the most powerful benefits of owningphysical precious metals through a GoldIRA is the ability to accumulate growth from

your investment on a tax-deferred basis. Thispowerful incentive is not available throughtaxable investment vehicles, and provides aunique opportunity to build and preserve your retirement nest egg.

PUrChaSing Power ProTeCTion In the 1920s, an ounce of gold, worth $20,could easily purchase a high end tailor-made suit.Today, that one ounce of gold still buys

a high end tailor-made suit. The U.S. twentydollar bill, however, will not even cover thecost of a nice tie. Gold’s purchasing power andwealth preservation have a proven track record,even prior to the beginning of our modernfinancial system.

“gd s cstt. it’s t nt St.”

~ Steve Forbes, Forbes Magazine



6

golD ira FaqS

wt d m ira, pp ctfct t ctu psc sst? You will be the owner of physical precious metals. No paper certificates are involved.

w s m d std? Your gold is stored at an IRS-approved storage facility called the Delaware DepositoryService Company, located in Wilmington, Delaware. It is licensed by NYMEX, COMEXand NYSE-Life US

• Billion dollar “all-risk” insurance coverage by Lloyds of London • State-of-the-art inventory control and security systems monitored 24 hours per day,

365 days a year • Detailed physical asset holdings, account activity and shipping reports available

electronically or by mail • Competitive annual storage fee that allows you to store an unlimited amount of precious metals

D i ccss t t d m gd ira?

Yes. You may actually visit and inspect your precious metals at the Delaware Depository. If youwant to take possession of your metals through an IRA Distribution, you can simply have themshipped to you directly. Also, you can sell them in your account and have cash wired into your bank account.

w c’t i d pcus mts t m st ira?

Most banks and custodians are neither approved nor capable of offering the services necessary to facilitate

physical asset ownership. Most banks are only equipped for electronic trading and storing information.In most circumstances, all your financial advisor canprovide is assistance in purchasing Gold ETFs or sharesof a mining corporation. As discussed earlier, thesedo not provide the specific advantages of owningphysical metals. Opening a new self-directed Gold IRA allows you the freedom to hold physical goldand other precious metals directly within your qualified retirement account.

wt tp f tmt ccuts c ctd t gd ira?

• Traditional IRA

• SEP IRA

• OLD 401 K

• Pension Plan

• Tax - Sheltered Annuity

• Roth IRA

• Simple IRA

• 403 B

• TSP - Thrift Savings Plan

q:

q:

q:

q:

q:

a:

a:

a:

a:

a:

You can also hold precious

metals in Coverdell Savings

Accounts and Health Savings

Accounts. If you do not see

your account type listed

above, call us for advice.




7

PrivaTe ownerShiP oPTion


Pcus mts sp s’t mtd t utmt ccut. amc bu s s pd

tusds f cts t mmdt psc custdf t pcus mts.

i d’t tmt ccut ut i t t mts.h c i t u cmp? Easy! You can use funds from any one of your various financial accounts to obtain your ownprecious metals. Many people have been holding on to lagging financial products/instrumentsin brokerage or trading accounts, CDs (Certificates of Deposits), annuity products, or savings

accounts. Most investments can be easily liquidated and converted into cash to obtain preciousmetals.

h ds t ? It is a fast, secure and simple transaction. You can send the payment by wire from your localbank. Wires are sent via the Fedwire system which is operated by the United States FederalReserve. This system allows you to securely transfer funds from one bank account to another quickly and safely. We will process your order, insure and ship out your metals immediately upontheir availability.

is’t spp mts t m m s? h d u sp m mts?h i c m mts?

Each shipment of physical precious metals is delivered either through the United States PostalService or FedEx and is 100% fully-insured against loss or damage. Your shipment may bedelivered to any address you specify and will require an adult signature upon arrival. Thepackaging is discrete and the contents and our company name are never listed on any outsidelabeling.

w t u eTFs? o stcs m cmp? ETFs are simply paper products, fabricated by Wall Street investment banks to mimic theperformance of physical gold. Buried in the ETF’s prospectus and legalese you will find thespecific risks of holding a paper tracking stock, as compared to simply owning the real thing.Mining stocks do not even claim to mimic the performance of gold; you actually own theperformance of that specific company’s management. Thus, even when gold prices rise, miningstocks may remain flat or decline due to company specific expenses, charges, or a businessclimate that affects their earnings.

q:

a:

a:

a:

a:

q:

q:

q:



iS golD UnDer-owneD?

8

gd Tms f Ct b rss (%)

Germany France NetherlandsUnited States

74% 70% 65% 57%

Russia Turkey ChinaIndia

8% 7% 6% 2% worlD

13%


All data is collected from sources believed to be reliable and accurate.

- Ownership in Other Assets

Source: Siberjunge.de, Erste Group Research

Equities36.5%

AlternativeInvestment

4%

golD1.5%

MoneyMarkets

9%

FixedIncome

49%

Central banks in developed economies such as the United States and Germany hold the majority

of their assets in gold, not paper currencies. This is because paper currencies can literally be

printed at the discretion of bankers, diluting real wealth. Emerging market central banks such as

India and Russia have also begun to aggressively build their gold reserves amid uncertainity as to

the future of paper assets like the U.S. dollar. Notice that 1) Even a small percentage increase in

emerging market central bank demand for gold would have a signicant effect on demand at any

price and 2) Central banks, who control monetary policy, do not hold all of their assets in paper.Why should you?

act f wt

Td t s d tt ss t

2% f t d’s t s d

d. Ct s f dpdcuts d pcts f

t t d. lss dpd

cuts ss u

d t f sut; m s

sts d t sm.

- Ownership in Gold

DevelopedEconomies

EmergingMarket

Economies

Source: Bloomberg, Datastream, World Gold Council, Erste Research Group Research



Silver For yoUr ira anD For DireCT Delivery


It’s easy to convert your dollars into physical silver either through an IRA transfer or bydirect delivery to your home or business.

(Hypothetically $100,000 invested in silver in 2000 would be worth approximately $700,000 in 2012)

Throughout history silver has served mankind as the primary monetary metal and has even at

times outperformed gold. Silver’s unique properties make it difcult to substitute in industrial

applications and thus its global demand continues to rise.

Silver is the only precious metal that has not reached a new high over the last ten years. Today,

silver is priced lower then it was 30 years ago! Historically, the ratio of gold to silver prices

averages between 12 and 15 to 1. In this cyclical bull market the ratio peaked to 60:1 and has

currently tightened to 50:1. We believe this ratio will continue to tighten as investors use silver

as a hedge against ination, a devaluating US Dollar and global economic uncertainty.

Pf S amc e S amc e

$40.00

$35.00

$30.00

$25.00

$20.00

$15.00

$10.00

$5.00

$0.00

2000 2002 2004 2006 2008 2010 2012

Silver’s Price Has Increased 703% Since 2000

PRICE OF SILVER (2000 – 2012)



10

S amc e

The Silver American Eagle is an ofcial bullion coin authorized by

Congress and is guaranteed to contain one troy ounce of 99.9%

pure silver, the nest silver coins ever issued by the UnitedStates. A small amount of copper is used to add to the durability

of each coin. First released by the US Mint in 1986, they are only

offered in one troy ounce denomination. Silver Eagles are IRS-

approved and one of the most popular silver bullion coins used

to fund Individual Retirement Accounts (IRA).

PreFerreD ProDUCTS

gd amc e

The Gold American Eagle is an ofcial bullion coin, rst released

by the United States Mint in 1986. These coins are authorized by

Congress and guaranteed by the US Government to contain 22

karats of gold, which by law, must be mined from sources within

the United States. Small amounts of silver and copper are added

to increase the coin’s durability and help resist scratching. They

are offered in 1/10 oz., 1/4 oz., 1/2 oz. and 1 oz. denominations.

Gold American Eagles are authorized by the IRS to be held

within Individual Retirement Accounts (IRA).

P-1933 gd

Pre-1933 gold coins are among a scarce population of

rare coins that survived the Executive Order of 1933.

Certied high grade Pre-33 coins are protected within

sonically sealed, encapsulated holders and certied by

an independent laboratory and grading service, such

as PCGS (Professional Coin Grading Service) or NGC


(IRA Accepted)

(IRA Accepted)



12

800.531.6525www.americanbullion.com

NGCNumismatic Guaranty Corporation

800 531 6525 • www americanbullion com

irS aCCePTeD PreCioUS MeTalS For iras

why aMeriCan bUllion?

You can only put IRS accepted precious metals into Individual Retirement Accounts. American

Bullion offers a wide range of products that meet these requirements. You can choose your

metals from the list below.

• The TRUSTED name in Gold IRA Rollers

• We handle all the paperwork for you

• We insure and ship your metals fast and secure

• Listed Dealer for The United States Mint

• Member of American Numismatic Association (ANA)

• Member of Industry Council of Tangible Assets (ICTA)

• Member and Authorized Dealer of Professional Coin Grading Services (PCGS)

American EagleGold Bullion andProof coins

Canadian MapleLeaf coins

AustrianPhilharmonic coins

Gold bars fromvarious recognizedreners

American EagleGold Bullion andProof coins



Silver bars fromvarious recognizedreners

American Eaglecoins



Platinum bars fromvarious recognizedreners


Palladium bars fromvarious recognizedreners

Gold Silver Platinum Palladium

american bullion gold investing guide

Documents