Guard & Grow Your Wealth With the World’s Most

Overlooked Investments

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Preface

Dear Reader,

For the last 14 years, I’ve used my position as publisher for The Sovereign Society to recruit the world’s top experts on currencies, global investing, commodities and more.

In my years working alongside them and studying markets, it’s clear that a large part of any portfolio should be in stocks, bonds and currencies.

But these asset classes alone aren’t enough to shelter your wealth against inflation and the volatility that’s roiling financial markets these days.

If you’re concerned about the global economic situation and how it could impact your portfolio, some of our experts are recommending an overlooked investment any investor can use to maximize gains and reduce risk in these hectic markets.

I’m talking about collectibles.

This unusual asset class has the potential to save and make you money, and take the stress out of your retirement.

It sounds strange, I know… but these investments are essentially inflation proof — their values do not come from the dollar, but from demand.

Additionally, collectibles are used by only a small number of people — most of whom keep this investment quiet and to themselves, afraid someone else might cut into their share.

Collectibles investing can be so lucrative that Bill Gross, manager of the world’s largest bond fund, says, “It’s better than the stock market.”

Even the Queen of England is a collector.

A word of caution: Without knowing what you’re doing, investing in collectibles can be tough. I wouldn’t recommend anyone go it alone without proper guidance from experts.

So I prepared this special report, based on transcripts gathered from three of the world’s leading experts on collectibles investing — Geoff Anandappa, stamps, and David Hall, gold coins.

Please use this report as your roadmap to invest in the premium collectibles for the greatest asset protection and wealth growth potential.

In Wealth & Prosperity,

Erika Nolan, Executive ConsultantThe Sovereign Society

Stamps & Collectibles

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Stamps & Collectibles:

An Alternative Investment That Has Outperformed Gold

By Geoff Anandappa, Investment Portfolio Manager, Stanley Gibbons, Ltd.

ALL around the world, particularly these days in the Middle East and Africa, we see war and political instability, and their effects on commodities like oil and minerals. We have seen natural disasters in Japan, Thailand, Australia and New Zealand and their effects on currencies and stock markets.

We have seen ecological disasters hit very close to home and how they have affected both the environment and the share prices of blue chip companies like BP. And finally, we have seen the recent turmoil in the Eurozone and the devaluation of stable currencies like the Swiss Franc.

Even though I live in England, I have lots of friends in the United States and around the world. Many of them are doctors and successful businessmen. And they, like me, are worried about their investments. They are looking to shelter their assets from day to day volatility. They are looking for medium-to-long-term holdings to give them a little bit more stability — asset classes that don’t correlate with the traditional, mainstream investments like stocks, bonds and property.

Enter: collectibles, and rare stamps in particular. This is an asset class that you will not hear about anywhere else. It is unique to Stanley Gibbons as an investment, yet it is probably familiar to you. You may even have a stamp collection at home, perhaps inherited from your parents or your grandparents. There are many millions of collectors worldwide.

Stamps have been ignored as an investment asset class by all but the ultra-rich, including the Royal families of Europe. They have a long history of very stable returns, averaging around 10% per year. The Rare Stamp Index shows that they are uncorrelated with mainstream assets, and this investment is offered to you by Stanley Gibbons, the brand leaders worldwide for rare stamps and collectibles.

“Who the Heck Collects Stamps Anymore?”

Many people assume that stamp collecting is dying, confined to a few schoolchildren. That is certainly not the case. Some of the world’s biggest collections are owned by the Queen of England, and Bill Gross of PIMCO. Glamorous tennis star, Maria Sharapova, and France’s President Sarkozy have also “come out” as philatelists. John Lennon and President Roosevelt were also keen collectors.

There are thought to be around 50 million active stamp collectors in the world, and those are just the collectors that we know about. There are probably 10 times that number of collectors who are not registered with clubs or societies, quietly getting on with their hobby.

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About one-third of these collectors are based in China, and probably another third are based in India and the rest of Asia. And together, we believe collectors are spending around $10 or $20 billion on their hobby. Now remember, these are collectors, not investors.

The collector base in Asia is very different from those in Europe and North America. Over here, collectors are very well organized into societies and clubs. There is a lot of research and published material on the subject. These collectors tend to be mainly men who are approaching retirement with more time on their hands, and they tend to spend a significant part of their income on their hobby, usually thousands of dollars a year.

In Asia, the collector base is much younger. I was at a stamp show a couple of years ago in the provincial town of Luoyang, China. Three-quarters of a million collectors stopped in over the course of 10 days. More importantly, the many of the collectors were children, teenagers and young adults in their early 20s. I would say the average age of the collectors at that stamp show was probably around 25 years old.

Of course, Asian collectors are not spending thousands of dollars: they are spending just a few dollars at a time. But they are only just starting to get access to the Internet and to use personal credit cards to bid at online auctions. (Stamps, by the way, are the third most popular category on eBay.) I believe that the whole market for collectibles of all types, not just stamps, will shift to Asia in the next five to ten years.

The Royal CollectionI mentioned that the Queen of England has a stamp collection. She probably has the most comprehensive

collection of British and Commonwealth stamps in the world. This belongs to the Queen herself: it doesn’t belong to the state. And it is valued at hundreds of millions of dollars.

The Royal collection was built up by her grandfather, King George V, who was an avid stamp collector. He used to spend hours each day with his stamps, irrespective of what was happening in the country. If you have seen the film The King’s Speech, Colin Firth comments that his father was always meddling with his stamps.

George V awarded Stanley Gibbons with the Royal Warrant, which means that we are philatelists to the Royal Family, and we have held that honor since 1914. We are the only stamp company to hold the Royal Warrant.

One of George V’s most famous purchases is an early stamp from Mauritius, called the Two Penny “Post Office” Mauritius. It is a very rare stamp: there are only six known examples in unused condition. George V was

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determined to get this stamp, so he bought it anonymously at auction in the early 1900s. And he paid £1,450 to buy it, which at the time was a world record.

The story goes that the next morning, his private secretary approached him at breakfast and, knowing that the King was a keen stamp collector, said, “Your Majesty, did you hear that some damned fool has paid £1,400 for a stamp?” And the King replied, “Yes, I was that damned fool!”

Actually, he was not so foolish because if that stamp came up for auction today, it would undoubtedly break the world record price for a stamp. It would probably go for over £5 million.

The Queen herself is not a keen stamp collector, but she has an advisor, called the Keeper of the Royal Collection, who tells her what to buy and sell. One of her most recent purchases from Stanley Gibbons was a block of ten Penny Blacks used on an original letter. The Penny Black is the world’s first stamp and at the time, the postal rate was just one penny; so to find ten used stamps on an original letter is very unusual.

But what makes this a unique item is that it was used on the very first day of issue — May 6, 1840. You can see the postmark on the top left-hand side of the envelope. The Queen had to pay £250,000 to buy this from Stanley Gibbons in 2001. Today, it is probably worth £1 or £2 million if it came on the market, which it never will.

“It’s Better Than the Stock Market!”Some of you might know Bill Gross of PIMCO. He is the largest bond investor in the world, manages

hundreds of billions of U.S. dollars for his clients and has written several books on investing. But he also happens to be a stamp collector.

His most famous purchase was this block of four U.S. stamps called the Inverted Jenny. This is so called because the JN-4 bi-plane was printed upside down by mistake. And this only happened on one sheet of 100 stamps.

Gross had to pay nearly $3 million to buy this block of four stamps. He bought it not because he needed the stamps for his collection, but because he actually wanted to exchange them for a Benjamin Franklin 1868 one-cent stamp called the Z-Grill. There are only two known examples of the Z-Grill, and the other one is in the NY Public Library. Gross needed this stamp to complete his U.S. stamp collection, so, he ended up having to pay nearly $3 million to get this stamp, making it the most expensive stamp in the world today.

A few years ago, Gross made headlines again after auctioning off his British stamp collection for charity. He

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donated the proceeds to Doctors without Borders. This caught the financial media’s attention because his stamps were actually set to outperform his bonds!

He says he spent around $2 million on his British stamps, and estimates for the auction proceeds were around $5 million. But Gross’ stamps exceeded expectations.

And at the end of the sale, the total realizations were twice the estimates, over $10 million. “It’s four times the profit,” Gross said. “It’s better than the stock market!”

Are Stamps Recession Proof?The Great Depressions was one of the boom times for stamp collecting in the US. President F D Roosevelt was

a passionate collector and he inspired many Americans to take up the hobby. Many US stamp dealers, societies and periodicals started up during the 1930s.

And even in the current recession, stamps have been selling for record prices.

• Since 2008, a U.S. stamp collection sold for $15 million, breaking the world record price for a U.S. collection.

• Just last year, Stanley Gibbons sold the most expensive single British stamp, and Edward VII sixpenny “Official”, for £375,000.

• In 2010, the world record price for a Chinese stamp was broken three times.

• The world record price for an Indian stamp was twice in the past year.

• And earlier this year, Stanley Gibbons sold “the Crown Jewel of Hong Kong Philately” a block of four 96 cent Queen Victoria stamps, for £750,000.

How to Measure the Performance of Stamps Stanley Gibbons have been issuing price lists or catalogs for stamps since the 1860s. So for any stamp, you can

go back through our catalogs and track the value over a hundred years or more.

Of course, for investors, this is not easy to do. So, to make it easier for you, we have put together an index of rare stamps called the GB30 Rare Stamp Index, which is listed on Bloomberg.

The GB30 Rare Stamp Index tracks the value of 30 of the rarest British stamps. Using this Index, we can compare how stamps have performed against other mainstream investments.

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Since 1995, it is immediately obvious that rare stamps have outperformed the Dow Jones, the FTSE 100, the property market and even gold. But more importantly, this chart show that stamps are a much more stable investment than stock markets, and do not correlate with these other asset classes. Take a look at 2008-2009 — while stocks, housing prices and gold all plunged, stamps were still going up.

The Index has shown consistent growth for a very long period of time. It has averaged nearly 10% per year for more than half a century — 9.6% since 1954, to be precise. And in that period, it has never fallen in value. In 2008, the Index was up 38% when everything else was falling sharply.

Now, I must stress that this only applies to rare stamps. We have about three million stamps in our shop in London available for collectors to buy. But investment-grade stamps usually number just 100-150 at any one time. That is what I mean by “rare.”

And rare stamps like this have proven to be very stable investments.

How to Invest in StampsIf you buy through Stanley Gibbons, you can buy stamps with capital protection. We guarantee that you will

not lose money over the investment period. And although your downside is limited, your upside is unlimited. You can use our expertise to build up a portfolio of investment-grade stamps.

We offer free storage in our secure facilities and free insurance if you require it. And we do not have any management fees or charges of any kind. All you do is pay for the stamps, and that is it.

The price that you pay as investors is exactly the same as collectors pay - because all of our prices are listed in our catalogs, and every stamp that we have for sale is on our website.

If you make an investment in rare stamps through Stanley Gibbons, I recommend our Capital Protected Growth Plan, which is a good way to start off investing in stamps. You will get your own portfolio of rare stamps: probably five to seven examples, individually-selected for you.

The recommended investment period is five to 10 years, so it is a medium- to long-term investment. Depending on the amount of funds you have to invest, you can get a five to 10% discount on our prices.

A typical investment would be around $50,000. But again, the more you can invest, the better the quality of the stamps will be. You will start off with five to seven stamps whether you are investing $10,000 or $100,000. So it stands to reason that for $100,000 you would get rarer, better quality stamps.

Remember, we offer 100% capital security. If the stamps fall in value, you can just claim your money back from Stanley Gibbons and there are no charges. At the end of the five-year investment term, you can ask Stanley Gibbons to sell the stamps for you. We have a database of hundreds of thousands of collectors, and we will offer your stamps to our collectors through our website and our mailing lists. Our fee for this service is

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30% of the profit. You get your original investment back, plus 70% of the profit, and Stanley Gibbons keeps 30% of the profit as our fee for selling the stamps.

However, you do not have to sell the stamps through Stanley Gibbons. You can also sell the stamps through our auctions. We have public auctions throughout the year, and you can sell them commission free. You can decide to sell the stamps privately, or you can decide to give them to your children or grandchildren. And you can also roll over or extend the contract, subject to the terms available at the time.

If you take any of these other options, you need not pay Stanley Gibbons anything. You only pay us commission if we sell the stamps for you.

Although this is recommended as a five-year investment, there are early-exit options built in. You can decide you want to sell the stamps any time after one year. The penalty is that the profits are shared 50/50 rather than 70/30. So if you need the money early, there is a way to close out your investment.

Building a Balanced Portfolio of StampsThis is a typical investment portfolio of five stamps, which will cost you £45,000 today.

The first is a Penny Black. In unused condition, a Penny Black is very rare and of course every collector wants to have the world’s first stamp. Over the last 15 years, this stamp has gone up over 200%.

The second stamp is from George V’s time, called a Cyprus Green. It is actually quite a common stamp, but in a rare shade. It has increased over 350% over the last 15 years.

The Two Shillings Brown is a high-value stamp from Queen Victoria. Very few were printed, and it has gone up over 200% in the last 15 years.

The fourth stamp is an Edward VII Official Board of Education stamp. These stamps were specifically used by government departments. Some collectors collect only these stamps and nothing else. The value of this particular stamp has gone up an incredible 700% in 15 years.

The fifth stamp is a Queen Elizabeth II stamp that was printed in the 1960s. This is relatively modern from our point of view, but the stamp is rare because of a printing error. Since 1995, its value has appreciated over 560%.

This is a well diversified portfolio of stamps because each of these five stamps appeals to four or five different collectors.

To recap:

• 1840 Penny Black, up 238% since 1995

• 1914 Cyprus Green, up 357% since 1995

• 1880 Two Shillings Brown, up 208% since 1995

• 1902 Official Board of Education, up 700% since 1995

• 1961 Queen Elizabeth printing error, up 567% since 1995

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This Portfolio has Averaged 19% Per Year over 15 YearsNow, the return on your portfolio will vary because you will only have five or six stamps. The return may be as

little as 5% or 10% per year or it may be as much as 30%, 40% or 50% per year.

But you know that your worst-case scenario is that you’ll get your money back.

And you can see that none of these stamps has fallen in value. All the stamps that we offer for investments have been very stable for 50 years or more.

Consult With an Expert before Making Your Investment There are lots of other stamp dealers around the world, but Stanley Gibbons is the oldest, established in

1856. We hold the Royal Warrant, which means we are the only company to be philatelists to the Queen’s collection. And we are the market leader because we offer a complete service to philatelists. We publish all the books, catalogs and magazines that collectors use every day. We hold public auctions, and we have the largest philatelic website and stamp shop in the world.

The first step to investing in collectibles is to find the right dealer — someone you can trust, someone with integrity, a good reputation and a good range of investment-grade items to offer you.

Once you have found that dealer, rely on their advice and their guidance, and trust in their expertise to put together a good investment-grade portfolio for you.

You do not have to worry about fakes and forgeries when you are buying from Stanley Gibbons because we offer a life-time guarantee of authenticity.

We have a dedicated investment department based in London, Hong Kong and the Channel Islands. We work with investors like you who have no particular interest in collecting stamps, but only want stamps as an asset class, as an investment.

Remember, we do not charge management fees, and we offer free storage.

Finally, it is important to know that Stanley Gibbons is a public company, quoted on the London Stock Exchange (AIM). So you can go online and check our annual reports and you will see that we are also a debt-free company.

Six Steps to Invest with Stanley Gibbons1. Decide on the amount of your investment

The first step is to decide how much you want to invest. There is no simple answer for this... you need to

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decide how much you want to invest in rare stamps based on your own financial situation.

I certainly do not recommend that you put all of your investments into stamps. Typically, I advise my clients to invest between 1% and 5% of their total investments into alternatives like collectibles.

If you can comfortably afford to invest £50,000 or more, you will get a 5% discount on our catalog prices. That equates to around $80,000 at the current exchange rates. If you can afford to invest £100,000 or more, you will get a 10% discount. And remember, the more you can afford to invest, the better the quality of the stamps you will get.

2. Instruct Stanley Gibbons: send in Application Form, proof of ID/address

Once you have decided on how much to invest, you can send me an e-mail, and there is a simple two-page application form. We require proof of identity and proof of address — typically a copy of your driving license or passport, and a copy of your utility bill. That is all we need.

You can also invest jointly with your partner or your children. You can make the investment through a trust, or do it in the name of a company or an LLC. The application form is slightly more involved, and we will require more documentation, but it is certainly possible to invest through other entities.

3. View Portfolio on-line and discuss if necessary

Once we receive your application, we will put together a portfolio of stamps for you. Remember, we have very limited investment-grade stocks available, so it may be several weeks before we can put together a suitable portfolio.

But once we have something, we will e-mail you with details. You can look at the stamps online. I can call you up and discuss the stamps and explain exactly why we selected these particular examples for you.

4. Wire funds to Stanley Gibbons’ bank.

Once you are happy with the portfolio, you just wire the money to our bank.

5. Contract, Invoice, colour scans of Portfolio sent by mail.

Once the wire transfer is complete, we will then send you the paperwork through the mail, including a signed contract, color scans and descriptions of all the stamps you own, an itemized invoice with every single stamp listed, so you have full proof of ownership of the stamps. Of course, you can decide if you want to take possession of the stamps yourself.

6. Sit back and relax — secure in the knowledge that this is one investment you don’t have to worry about!

Once you purchase the portfolio, you can look at the portfolio online (with a password) and check out the current valuations. We will update the valuations every year when the catalogs are published.

Are Stamps the Right Investment for You? Collectibles are a much undervalued asset class. If you consider that the world’s most expensive stamp is $3

million, and yet every day you hear about paintings or antiques going for many times that sum, collectibles have a very long way to go before they achieve their true value.

Collectibles also do not correlate with other asset classes that we can find. They have shown consistent, 10% growth over the last 50 years. And if you buy stamps through Stanley Gibbons, you can buy them with capital protection, so you are guaranteed not to lose money on the investment.

Investing in stamps is also a very good way to diversify currency. All of our stamps are priced in British pounds, so it is a very good way to diversify out of the U.S. dollar. And the British pound is very cheap against the U.S. dollar at the moment.

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However, if you want to take currency fluctuations out of the picture, you can invest through our Hong Kong office, with capital protection in Hong Kong dollars. HKD is currently linked to USD — so, essentially, you will have a USD capital guarantee.

Finally, our rare stamps are considered an offshore investment because your stamps will be stored in Guernsey in the Channel Islands, or in Hong Kong.

What Next?If you think this might be the right investment for you, please e-mail me. I will be happy to send you further

information, or telephone you at your convenience to talk it through.

If you decide to take it further, I will put together a Portfolio of rare stamps for your consideration — with no obligation on your part.

I look forward to hearing from you.

Geoff Anandappa, Investment Portfolio ManagerStanley Gibbons Ltd.E-mail: ganandappa@stanleygibbons.com London: +44 20 7557 4442Hong Kong: +852 3975 2988

Gold & Silver

Coins

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Financial Survival Coins…An Insider’s Perspective on How the Gold and

Silver Coin Markets Work and Which Coins Offer the Most Bang for Your Buck!

By David Hall, President, David Hall Rare Coins

I specialize in an area of the collectibles market that is near and dear to most investors’ hearts... old-school, hold-it-in-your-hand gold and silver bullion coins.

I sold my first gold coins in 1966 — an uncirculated St. Gaudens for $48, and a Mexican 50 peso gold coin for $52. I was 19 years old at the time, and I’ve been buying and selling gold and silver coins every day since then.

I am not an expert on stocks, bonds or mutual funds. But I do know the inner workings of the gold and silver bullion market. I talk to the largest bullion dealers in the world almost on a daily basis.

There is a lot of emotion surrounding gold and silver, particularly at a time when the world is facing a global economic slowdown. Precious metals offer investors and collectors the comfort of knowing that these real-value assets can withstand — even appreciate — during economic collapses.

Is it still possible to find value in the gold and silver coin market at a moment in history when prices for the metals are so high? The answer is yes, and I will tell you all about those opportunities in just a moment.

But first, I want to review a few facts you may not know about gold and silver prices, and how the market works.

The Systematic Devaluation of the DollarOn April 5, 1933, President Franklin D. Roosevelt banned gold ownership by U.S. citizens.

American gold owners were required to deliver all of their gold coins, gold bullion and gold certificates to the Federal Reserve in exchange for $20.67 an ounce.

Very interestingly, in his proclamation recalling gold, Roosevelt said, “The order is limited to the period of the emergency.” In other words, the order is enforceable for just a limited time — like Social Security, like income tax, like everything. And it lasted, of course, through 1974.

I have a side story I would like to share since we are talking about gold. It has to do with gold coins. Have you ever seen a $20 gold piece? They were minted in the United States, but most of them now come from Europe. There is about $200 million-worth of U.S. gold coins that are imported every year from Europe to the United States.

The coins shifted overseas to Europe in the early 1900s, the ’20s, ’30s, ’40s, ’50s, and ’60s as foreign governments demanded payment or redemption of their dollars for gold. Additionally, the few people who did not turn in their gold to the U.S. government at $20.67 an ounce also shipped it overseas.

Paris is the center of the gold market in Europe. It is the only coin auto park in the world.

In the United States, our auto parks belong to Ford, Chevy and Toyota. But there is one in Paris. It is a coin auto park on Rue Vivienne, right across the street from the old French Stock Exchange, La Bourse.

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There are literally 40 coin dealers, all lined up one after another. They change money; they deal in bullion; and they deal in rare coins from around the world. Interestingly, many of the pre-1934 U.S. gold coins that you can buy from a dealer, including me and my partner, Van Simmons, come from Europe today.

Fifteen years ago, I was in a coin shop in Paris in the financial district, and the coin dealer said, “We are a relatively new shop. We have only been here 150 years. And we bought the shop 30 years ago, and here is what I found...”

He showed me a little book. It had four daily prices written in pencil for the four internationally traded coins at the time: the U.S. $20 gold piece, French 20 franc, Swiss 20 franc, and the English gold sovereign. They were the daily prices from 1940 through 1944.

At the time, of course, France had some visitors. These visitors had a rule — you could not own more than seven grams of gold, about the size of a big man’s wedding ring. The penalty for breaking this rule was death. It was a capital offense. We know, of course, that the Nazis were not casual about law enforcement. And yet, even with the threat of death, underneath the boots of the Nazis in the basement of this coin shop that I was in, these French coin dealers traded gold every single day.

I offered the dealer $10,000 for the book, but he turned me down. I later shared this story with a friend of mine, who is one of the biggest commodity traders in the world. He said, “David, next time offer him $50,000.”

But I am sure the coin dealer would not sell it. That is the power of gold.

The second point is, in 1943, there were only two places in the world where it was illegal to own gold, Nazi-occupied Europe and the United States of America. Take a moment to think about that.

Now back to the systematic devaluation of the U.S. dollar...

A few months after the U.S. government’s gold recall, Roosevelt raised the official price of gold to $35 an ounce. As a result, America realized a dollar devaluation of 59%.

Next comes the Coinage Act of 1965 that removed all silver from quarters and dimes, which were 90% silver prior to the act.

If you were around in 1965, you might recall the little stickers on cash registers at supermarkets that said, “Please use exact change.”

On July 23, 1965, President Lyndon Johnson gave a speech at the signing of the Coinage Act on national television:

“Some of you asked whether our silver coins would disappear. The answer is very definitely, ‘No.’ Our present silver coins won’t disappear, and they won’t even become rarities. We estimated that there are now 12 billion — I repeat, 12 billion silver dimes and quarters and half-dollars that are not outstanding. We will make another billion before we halt production, and they will be used side-by-side with our new coins.

Since the life of a silver coin is about 25 years, we expect our traditional silver coins to be with us in large numbers for a long time. If anybody has any idea of hoarding silver coins, let me say this... The Treasury has a lot of silver on hand, and it can be and will be used to keep the value of silver in line with the value of our present coins. There will be no profit in holding them out of circulation for the value of their silver content.”

President Johnson was either lying, or clueless about the silver market, or maybe both. But there were still silver certificates in circulation. So on June 24, 1967, the Treasury Department announced it would redeem the certificates until June 24, 1968.

Redemptions were made at the U.S. Assay Offices in San Francisco, and in New York. During the final days of redemption, long lines of certificate holders lined the sidewalks around the assay offices to trade notes for silver before the deadline.

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And then the coup de grace of our dollar’s devaluation occurred on August 15, 1971 when the Bretton Woods system collapse. In his Sunday night address, President Richard Nixon announced that the U.S. was removing the gold backing from the dollar.

The commitment by the U.S. to redeem international dollar holdings at the rate of $35 per ounce had formed the central foundation of the post-war international financial system put in place as the Bretton Woods conference in 1944.

“It’s not the American working public that has caused these problems; it’s the international speculators,” President Nixon said. He continued, “Your dollar will be just as valuable tomorrow as it is today.”

Just like President Johnson, Nixon was either clueless about the gold markets, or lying, or both. And he directed the Secretary of the Treasury in his words to “temporarily suspend the redemption of dollars for gold.”

I can only assume Nixon had a very broad definition of “temporary” because it is now 40 years later and we are still unable to redeem dollars for gold.

Finally, pennies minted prior to 1982 are disappearing because they contained 95% copper with only 5% other metals such as zinc and/or tin. Any penny dated after 1982 contains just a small (approximately 2.5%) amount of copper.

In other words, even the pennies in your pocket are no longer real money.

Understanding the Gold PriceIf you want to buy gold and silver coins, you have two very good choices: the U.S. Gold Eagle and the

Canadian Maple Leaf. I recommend the 1 oz. coins. You can count them very easily since one coin equals 1 oz.

There are seven big firms in the United States that buy the coins wholesale from the U.S. Mint. For Eagles, these firms pay 3% over gold’s price.

One thing you may not realize is that there is no such thing as the spot price of gold. All trading is based on the futures market.

Say the active market is December. If I call up a big wholesaler and want to place an order, he’ll take the December price and he’ll quote me a 70-cent spread. His buy price will be 40 cents under the December market, and his sell price will be 30 cents over the December market. Since gold is $1,650-plus, that is a miniscule spread, but that is how they do it.

There is no such thing as a price of gold. Today, it is an implied price from the December spot. And that changes as the most active market changes. The firms buy the gold coins from the Mint at 3%. Then they sell them to me, another dealer, at about 3.5%. Then we sell them to you at 4% to 4.5%, depending upon quantity ordered.

If you want to buy Gold Eagles, you will have to pay at least 4%. That is okay because when you sell, you can probably get at least 3%, so it is a very tight market.

Gold Eagles are 90% gold, 10% copper. Canadian Maple Leafs are .9999 fine, making them some of the purest gold coins in the world. They are very popular in Asia.

Those are the two coins I recommend for straight gold bullion purchases.

For silver coins, I recommend the Silver Eagles and the Canadian Silver Maple Leafs. They trade at a cost over the price of silver.

Interestingly, silver has been very volatile. In the last year, for instance, the white metal would move over $4 in a day. Silver cost less than $4 an ounce in 1991 at its low. And in 2001, the silver price did not move $1 for the whole year!

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The premiums charged for silver coins can change somewhat depending on market conditions. For example, a few months ago, the large wholesalers raised my cost by about 75 cents an ounce on Silver Eagles, even though I’m considered a big customer. And supplies were so short that I was getting quoted a 30-day delivery. Today, premiums are back down, but when Silver Eagle premiums are high, you might want to consider “junk silver”, the 90% silver coins: U.S. dimes, quarters, half-dollars minted before 1965.

There has been no premium increase on Gold Eagles. (Delete this sentence -You are paying a premium on silver.) Other gold coins to consider are the pre-1934 gold coins and the $20 gold piece, the same gold pieces that French coin dealers traded under the boots of the Nazis.

The coins are internationally recognized. You can take them anywhere in the world, and depending on the grade — the better the grade, the greater the value — you can buy them for 15%, 20% or 30% over the bullion price, depending upon grade. People who buy these coins pay attention to the premiums. The premiums are now at an all-time low.

Financial Survival CoinsIf you are thinking about wealth preservation, we have a resource called Financial Survival Gold and Silver. We

can show you how to use gold and silver coins to protect your net worth and hedge against the inevitable decline and possible destruction of the value of the U.S. dollar.

Rare coins are a great form of concentrated wealth.

For a list of coins that are internationally known and could help to ensure your economic survival, click here.

There are about 20 or 30 other rare coins worth $5,000 to $500,000 that you can literally slip into your pocket and easily transport to the far reaches of the globe.

A single $100K-coin is literally 2.5 times the size of a $20 gold piece. It is big, thick and heavy. But you can take it with you anywhere in the world. Additionally, these coins are also internationally recognized. In fact, in the 1970s, the biggest buyer of these coins was a Japanese firm. They literally bought every single one.

As an insider who has been following the gold and silver bullion markets for 45 years, there is one last point I would like to address...

I personally never pay attention to the price of gold. It is not the number I care about. If gold goes up, I am happy because I own some. If gold goes down, I buy more. The only number I care about is how many ounces I have. That is the number you should want to grow.

David Hall, PresidentDavid Hall Rare CoinsE-mail: info@davidhall.comVan Simmons: van@davidhall.com Tel.: 1-800-759-7575Tel.: 1-949-567-1325Fax: 1-949-231-1293

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