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Jan. 17, 1994 - Bill Cooper
01:00:18
Gene Miller, Metal Report
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Thank you.
Welcome to the hour of the times to all of you around the world.
I'm Carolyn Nelson.
We're in Cooper, isn't feeling well enough to join us this evening, and he's asked Gene Miller, our regular Monday night representative from our sponsors, Swiss America Trading in Phoenix, to join us for the whole hour.
Hello, Gene.
Hello.
Have you two something earthquaking to tell us tonight?
Well, I hope so.
I understand there's some people that are kind of hurting out in Southern California, and those that may be lifting tonight by a short way that are out there.
You certainly have my well wishes and my prayers with you, and I certainly hope that nothing tragic has happened to you and that all is well, and I also want to wish Mr. Cooper, a quick recovery and that he gets his voice back and he gets to feeling better.
And I was talking to him this afternoon and he sounded kind of puny.
But I'm sure he'll be back in short order, so he has my prayers as well.
I just want to start out tonight and Normally, I try to get so much crammed into such a short period of time, I generally probably talk way too fast, so I'll try to slow things down here and give you an education.
We're going to talk about the metals tonight, talk about what's going on in both gold, silver, rare coins, numismatic coins, some recommendation, what's happening in the stock market, and just kind of take this hour to Educate you a little bit about the market and give you some review of where we went and maybe some look off into the future a little bit where we might be headed.
As far as today though, gold had a high of $3.9320 and a low of $3.9140 to close at $3.9150.
That was up $2.10.
to close at $3.9150, that was up $2.10.
Silver had a high of $5.35 and a low of $5.30 to close at $5.35.
Very strong.
Platinum, likewise, had a high of $3.94.50 and a low of $3.92.60.
To close at $3.93.50 up $4.70.
Likewise, had a high of $3.9450 and a low of $3.9260 to close at $3.9350, up $4.70.
The Dow Jones had a high of $38.7810 and a low of $3,856.50 to close at $38.7020.
That was down $3.10.
What I wanted to do first of all here is kind of give a review as to what's going on with the metals market.
And just looking at some of the material I've got, I found something I think is very...
Very appropriate and also very good.
I don't have a crystal ball.
I rely on numerous sources of information to recommend metals to my clients.
This is one of the ones I read a lot and subscribe to.
I'm going to read you a part of the article here.
It's from the Reaper from R.E.
McMasters.
I imagine many of you have heard of him and maybe even subscribe to his
newsletter.
This was the January 4th issue and I think it's appropriate starting out the new year
to kind of look at what's going on in the metals and kind of why it did what it did
last year, why it should do what it's going to do this year and when we know some of those
types of things, why things are happening, it kind of gives us a better idea of what
we should do and help us to make those decisions in doing that.
Start out with platinum.
This is the big political events of 1994, which could send platinum prices skyrocketing or more political turmoil in Russia and political upheaval in South Africa.
Regarding South Africa, we'll monitor events this spring when the transition in government is made to the blacks.
This could negatively impact or even stop the export of platinum from South Africa.
Russia is again close to revolution.
Over 90% of the platinum in the world is mined in either Siberia or South Africa.
Next, if the Japanese economy bottoms and moves up, platinum demand for both auto catalysts and jewelry will increase.
Ditto if the European economy picks up.
40% of all platinum produced each year is sold as jewelry.
Platinum is the purest and rarest of all precious metals.
There is only enough Above ground stocks of platinum to satisfy two years of essential use.
20 times more gold is produced each year than platinum.
Moreover, it takes 10 tons of raw ore to produce just one ounce of platinum.
Johnson-Maffei is expected platinum supplies in 1993 to hit a record 4.21 million ounces
in an increase of 10% over 1992.
South African supplies were expected to increase by 500,000 ounces to 3.25 million ounces in
1993.
This more than compensates for the 100,000 ounces decline in Russian platinum production to 650,000 ounces.
It was the boost in production that helped hold platinum prices in check last year.
Demand for platinum was expected to grow by 6% in 1993, To 4.02 million ounces, the platinum supply surplus in 1993 was expected to grow from 20,000 ounces to 190,000 ounces.
Demand for platinum for its uses in autocatalysts was expected to rise by 12% to 1.7 million ounces.
Jewelry demand for platinum was projected to grow by 5% to 1.5 million ounces, while
industrial demand weakened by 45,000 ounces to 685,000 ounces due to the global recession.
Investment demand overall was expected to rise by 12% to 285,000 ounces in 1993.
Regarding silver, in 1993, for the fourth straight year, silver usage outpaced supply.
Silver usage was expected to reach 625 million ounces, while supply from all sources was
only 481 million ounces, leaving a deficit of $493.
No wonder silver is doing so well.
From carefully watching market prices, price action, and FWN news flashes over the past couple of months, I'm increasingly coming to the conclusion that the Middle East sources may be intending to do what the Hubs tried to accomplish in the late 70s, corner the silver market.
The available inventory of silver is only four to six million ounces.
That's a drop in the bucket, a pittance to the mega-buck Middle East money.
They keep buying and buying and buying.
Production of silver is increasing in Peru, Russia, Canada, and the U.S., but is increasing in Mexico.
Primary silver consumption is in the industrial use, cornage, and investment.
In the industrial use of silver, photography is the main consumer, followed by jewelry and silverware, and then electronics.
Photography used 185.6 million ounces in 1992.
Jewelry and silverware, 84.9 million ounces in 1992.
Electronics and batteries consumed 62.2 million ounces.
Other uses of silver total 77.3 million ounces.
ounces in 1992, electronics and batteries consumed 62.2 million ounces, other uses of
the silver total 77.3 million ounces.
Coinage of silver reached 29.4 million ounces.
Investors absorbed 60 million ounces of silver.
Beginning in 1990, silver supplies failed to keep pace with industrial coinage demand, and the shortfall reached 41.9 million ounces that year.
The deficit widened to 85.8 and 88.6 million ounces in 1991 and 92.
and 88.6 million ounces in 1991 and 92.
The 1993 silver deficit is projected to be 143.2 million ounces.
The U.S.
government's stockpile of silver will be depleted by 1996 or 1998.
India is now an importer of silver.
There are only 250 million ounces of silver in the U.S.
warehouses for commodity exchanges, which at $5 an ounce would cost only $1.25 billion,
a little over one day's federal deficit.
Only $5.4 billion will buy all of the silver in the world at just under $10 an ounce.
Big Middle East money knows that's just one week of the U.S.
federal deficit.
Concerning gold, increasing distrust of currency, generally globally among investors, is a primary reason why gold demand is soaring.
One-third of the Western world's gold supply comes from South Africa.
This is down from two-thirds produced there just ten years ago.
The shortfall of gold production globally will be 1,800 tons by 1998.
Long-term demand for gold could rise to 5,000 tons per year, which is twice the annual scrap and mine supply.
Gold production could fall short by consumption by 1,000 tons for the next three years.
Only about a month's increase in the U.S.
money supply equals the value of the world's annual gold production.
From this perspective, gold is cheap.
All the world's mines are worth only about $40 billion, equal to about half the value of Coca-Cola.
U.S.
mutual funds manage $1.8 trillion in assets.
If 10% moved into gold, It would amount to five times the total capitalization of gold stocks.
This is one of the reasons why gold stocks have led bullion prices higher.
Demand for gold has picked up substantially in the Far East, particularly among the Chinese.
In 1993, the price of gold in China at one time hit over $700 an ounce.
Folks, we're not far behind.
Long-term gold is real money.
Compare gold to the total of 15 to 17 trillion dollars in debt in this country alone.
Central Bank selling of gold was not able to pressure it in 1993.
The western central banks hold 30% of the world's total gold supply,
which is equal to about 20 years of gold mining production in the west.
This amounts to 35,000 tons, but it is increasingly unlikely that the central banks are going to sell gold into
a bull market.
Moreover, like the Russians, the likes of Russia has backed some of its bonds with gold.
Gold will need to clear $400 an ounce to make a great deal of the investing world believers.
There has been stiff selling at approximately $400 an ounce.
Jewelry demand dropped off significantly at $400 an ounce in 1993.
In early 1993, Singapore, Hong Kong, Malaysia, Taiwan, South Korea, and China purchased half a year's gold supply.
The above-ground gold is worth $1.2 trillion, just slightly over the daily volume of one day's currency trading.
Central banks own a third of the world's gold.
People wear a third of it in jewelry, and a third of it is held as real money.
Gold in real terms, calculating the depreciation of the value of the U.S.
dollar and inflation, is priced at just above $100 an ounce.
The present demand for gold is 300 metric tons a month, while supplies are only 200 metric tons a month.
The 1992 jewelry demand for gold was 2,500 tons, exceeding annual global production.
Western selling of gold is effectively exhausted, Primary producers are reluctant to sell gold short now.
Central banks are unlikely to sell.
Since 1800, the value of the U.S.
dollar has dropped to 9 cents.
Can't understand why people even keep this stuff.
By contrast, gold is real money.
Since the early 1970s, the spread between the dollar and gold has widened With gold moving substantially higher and the dollar significantly lower.
There is a correlation between the hate cycle that tops in 1998 and the 5.6 year and the 64 year gold cycles projected to peak in 1998.
in 1998 and the 5.6 year and the 64 year gold cycles projected to peak in 1998.
The 5.6 year cycle in the gold bottomed in February of 1993.
This is projected to move higher into 1996, our war cycle time frame with the 64 year
gold cycle projecting a major high in 1998 to 1999.
That's when we should have a major monetary crisis as well.
According to cycles, the synthesis of monthly cycles of gold bottomed in early 1993, projected
to move higher into 1996, a war cycle time frame with the 64 year gold cycle projecting
a major high in 1998 to 1999.
That's when we should have a major monetary crisis as well.
According to cycles, the synthesis of monthly cycles of gold bottomed in early 1993 and
are now moving higher.
The major cycles in gold, the 8.98 month cycle, the 40 month cycle, the 5.6 year cycle are
now all moving clearly higher.
This is very bullish.
Because of the interest in financial assets as opposed to real assets, the price of gold shares has soared so far Uh, compared to the gold, the price of gold.
This could continue into the first quarter of this year.
The monthly bar charts of gold, silver, and platinum sharply revealed the underlying technical technological bullishness of these markets.
Gold has clearly bottomed and turned up on the monthly continuation chart bar charts with both the moving averages and the elastic indicators giving all clear buy signals.
The next strong close above $400 an ounce and specifically above $410 should accelerate the uptrend in gold.
Likewise, silver has turned very bullish on the monthly continuation bar charts with a high level bullish turn up on the elastic indicator and a moving average buy signal.
The close above $5 silver and silver is very bullish.
Silver could accelerate up on the next strong close above $5.50.
Platinum on the other hand is not as bullish but is building a nice softer bottom.
The next strong close by Platinum above $400 will establish a trend with Platinum with most probably accelerating up on the next strong close above $420.
In summary, From a long-term, fundamental, and technological perspective, it's not too late to buy the precious metals, gold, silver, and platinum.
Either bullion, or coin, or stock.
In fact, just the opposite is true.
Technologically and fundamentally, the precious metals move is just beginning.
And that is what Ari McMasters is telling us.
what is happening in the metals market.
He also wrote, I'm gonna read a little bit later on as far as what's going on in the stock market as well.
And, but it gives us a good clear indication that, and we've been telling you this all along,
that now is the time to be buying into this market.
You can sit and wait and watch and, you know, it's gonna fluctuate up and down,
a penny here, a dime here, a dollar there.
But the overall trend is up.
And the mistake that so many people make, and I guess it kind of agrees me, at the height of a bull market, that there are so many people buying in then, that ultimately they're paying far, far, far too much.
It's like people buying into the stock market at this point.
They're buying in stocks that are so incredibly overvalued, That when this thing turns on the stock market level, there's going to be a slaughter.
Before we take a quick break, I want to read one other article in regards to where gold is headed and some of the reasons why.
This comes from Brendan Boyd, Investment Digest.
It says, we're telling our subscribers that this is the time to have a position in gold and gold shares.
Says one of the oldest investment newsletters in the business, Dow Theory Letters.
Spain recently devalued its paceta by 8%.
Their third devaluation in the last year.
Portugal followed by devaluating its escondido by 6.5%.
One by one, the fiat paper currencies of the world are devaluing.
We think this trend of competitive devaluation is going to continue, possibly even accelerate.
Almost all the nations now are running deficits.
And as night follows day, deficits are solved via inflation, says Dow Theory Letters.
There are really huge moves in gold and gold shares lie ahead.
But we feel a bit ashamed of talking about the best to come for gold because what this really means is a further and perhaps climactic collapse in the dollar's purchasing power.
But we don't want to mince words.
We're afraid we'll see the time when fixed income securities denominated in dollars are a dirty word or a dirty phrase.
As enthusiastic as the public is today for bonds, that's how much they'll hate bonds as the dollar suffers crushing losses in its purchasing power, concludes Dow Theory Letters.
Folks, I'm going to give you our number.
We do have some material.
I've got much more to share with you.
We're going to take a quick break here.
Our number is 1-800-289-2646.
Let the experts at Swiss American Trading like myself show you what's going on, get you educated, and get some material.
The material is free.
The education is free.
And show you what to do, and how to do it, and how to get started in this stuff, in protecting your future.
Clearly the signs are there that the metals are a sound investment.
The indications are, by what we're reading, that the supply is going to be down, the demand is going to be up.
We're looking into seeing much higher prices.
Buy it now, Wise Chief, and so call us while we Take this quick break and leave your name and number.
Let us know that you listen to the Way of Cooper show and we'll get back to you.
We'll get some material out to you.
Anyhow, we'll take a quick break here.
Carolyn, you with me?
I'm right here, Gene.
And when you come back, will you remind us again about the value of the dollar?
You said it dropped to nine cents?
Yes, I'll do that.
1800 or 1900 or whenever it was, you can tell us.
Okay.
There'll be blue days over, and wildest dreams come true, tonight.
Just a little bit of you, there'll be love, and a little bit of you.
And I'll be there, just like the wind, when you're gone.
There'll be light at the end, and peace forever after.
to my love when the world is gray
and soft as the candy stream I know that's how it's gonna be in a day
until you're back to me and darling, you know that
now that I'm here to die with my love
to die with my love just to leave you free
just to leave you free oh, leave you free
It's just a movie scene There is no such thing as love
There is no such thing as love There is no such thing as love
There is no such thing as love There is no such thing as love
Well James, that's what we're working on to make the world free
There we go.
Not a task in front of us, but certainly can be done if people pull their heads out of the sand and start paying attention to what's going on around them and realize that they've been part of one of the biggest, I guess, conspiracies that has ever been put upon mankind by our own wonderful federal government.
You mentioned about the devaluation of the dollar.
Up until 1933 is actually when we really began to see some trouble in the dollar.
It started to decay a little bit, but not so much so because the dollar up to that point was based on gold.
In other words, gold was $20 an ounce.
They had both printed money and gold and they were equal in value.
A $20 bill, like you may have in your back pocket right now, Uh, was exchangeable for one ounce of gold that was worth $20.
They were one and the same.
And, uh, your dollar, as the saying was back then, was as good as gold.
There was nothing stronger, uh, on the planet because it was totally 100% backed by gold.
Well, in 1933, uh, our president, uh, Mr. Roosevelt, decided, uh, to recall all the gold And this is where really things began to escalate on a financial level.
The Federal Reserve had already been established and had their hooks into the American people.
And they took the gold away from everybody.
Everybody that had $20 gold pieces, because back then they were classified as bullion.
The President himself, though, had what he would call numismatic gold.
Or collectible type gold, people in power like the Rothschilds and the Rockefellers and people that were influential in politics and in overall perpetuating this New World Order scheme.
They had forms of gold that were non-confiscatable, which are by the way available today.
And so their gold wasn't taken, but the American people, by and large, every one of those, their gold was taken.
From that point on they raised the price of gold to $35 an ounce.
Thus began the initial devaluating of our money.
From that point on it just began to get worse and worse.
There's a, from 1940, if you look at a chart, it almost begins to just go straight down from there
until now your value of your dollar is worth 9 cents as compared to basically around 1914.
In other words, it takes about a little over 10 times as much money to buy the same item as it did back then.
Whether it be eggs, milk, bread, you name it, it costs about ten times as much to buy the same thing.
Where on the other hand, gold has been consistent clear across the timeline, even going back hundreds and thousands of years before that.
An ounce of gold will still buy the same thing, whether it's a loaf of bread, Whether it's an ounce of eggs, or whether it's milk, whatever it may be.
An example we always use here, a hundred years ago, you could take an ounce of gold and buy 350 loaves of bread.
Today, you can take an ounce of gold and buy 350 loaves of bread.
Maybe even a little more now.
A hundred years from now, you'll be able to do the same.
Is the bread any better?
No.
I mean, it's like you could compare it to eggs.
Eggs are the same.
That chicken didn't become any more advanced.
Some people say, well, you can make an argument about cars or anything because cars are more technologically advanced.
So they have to cost more.
They got computers.
But let's forget all that.
An egg is an egg.
That chicken isn't any smarter.
It isn't any dumber.
He's the same.
I mean, they may have hybrid them as far as being a little larger or a little smaller.
But the egg is, in essence, the same.
And yet, with an ounce of gold, I can purchase the same amount of eggs as I could A hundred years ago and a hundred years from now I'll still be able to do the same because the purchasing power of gold will always remain constant.
There'll be highs in the market such as like in 1979 through 80 where gold went up to $875 an ounce and then gold at that point was in in relationship to the price of goods and everything was actually a little overvalued.
Right now it's actually a little undervalued.
When we put it into a relationship with like the S&P 500 Uh, and how it's tracked along time with that, uh, gold should be, uh, somewhere between five and six hundred dollars an ounce.
And this is according to Barron's Magazine.
And so, gold is cheap right now, as Ari McMaster's, uh, said, and it's a terrific buy.
I think coming down the road when we get into the mid to late nineties, uh, should all of us still be here?
And, uh, who knows?
I mean the debt of our nation is growing at such a rapid pace that we could see the collapse
before then, but even all things put together, I think we're going to see gold go into the
thousands of dollars of an ounce.
And that's even the consensus of John Esther, who was part of the Federal Reserve at one
point and part of their gold desk.
And he is strongly, strongly recommending people to buy gold now because it's as cheap
as you're going to see.
Gene?
Yes?
Can I turn on just a little more music and ask you to think about telling us about that
nine cents that the dollar is valued at now?
How many more years is it going to take for that to go down to zero if it took from 1914 to 1993 for it to go from one dollar down to nine cents?
Well, I can answer that pretty easily just from projection.
They say in the next five years or three to five years that the value of the dollar that's left is going to lose anywhere from 65 to 75% of its value.
So in other words, it's at .09 cents.
You take that times 75% and you subtract it, that means in about five years,
the value of our dollar, three to five years, is gonna be worth about 2.3 cents.
I'm gonna let everyone think about that for a minute.
So let's take a look at that.
Okay.
Well, Gene, nine cents.
How many more years do we have to go until we reach zero?
Well, it can't ever get totally to zero.
They always have some fractional value to it.
What happens though, it just takes more and more and more and more dollars to buy the same item.
And what ends up is you end up getting into a hyperinflation scenario.
I have sent to me from a client a bill from Germany in the Weimar Republic back in 1923.
The bill is a 50 million mark bill.
Now, if we would have went 15, 10, 15 years prior to that, and I might have had that bill, I'd have been phenomenally rich having 50 million marks.
At the time that that was issued, they were taking wheelbarrows full of it, To the grocery store to buy groceries because it had become so worthless.
It literally, just as our dollar bill, wasn't worth the paper and the ink that it was written on.
But the inflation had gotten so out of control and there was nothing there to stop it.
They just kept printing and printing and printing more money with nothing to back it.
And that's, you know, we're in the same situation.
Argentina, who at one time was the sixth largest manufacturing country in the world.
People don't realize that.
They think of Argentina as one of the third world countries.
Some people make fun.
They call it a banana republic and so on and so forth.
But at one point, it was the sixth largest manufacturing country in the world.
Massive assets, but they got themselves, they did the exact same thing that we are doing.
Overspending and having not enough revenue to pay the debt.
It finally collapsed on top of them.
They went into a hyperinflation situation where inflation would soar up into the 2,000 percentile range.
And right now, because of it, because of all this base being eroded, they now are about the 70th.
in manufacturing production in the world.
So it totally destroyed a country.
And yet, I think that the powers that are at hand understand what's going on.
I think that they know very well what they're doing, but the American people need to wake up and realize that we are in serious, serious trouble, and you better not be calling... I mean, there's no point in wishing and hoping, I think, for them to turn around and say, whoops, we made a mistake, you're all right, we're all wrong.
And let's do it your way.
I think that you better start doing it on a personal level, protecting your family and protecting your family's assets.
And so I think that's kind of what we're in store for.
What else can people do, Gene, to let other people know?
Those people that won't listen?
Well, start doing something for yourself, number one, and then just start passing the word on, and all you can do is just You know, listen to this program, listen to William Cooper, take notes, dive tapes, and make them listen.
Sit down and make them listen.
One of the things I wanted to talk about, because I talk to hundreds of people every week, and people are, I don't know, they've got their eyes in the stars or something when it comes to the stock market.
They think that there's no end to what's going on in the stock market.
And yet, there is.
There's going to be a correction.
I wanted to read you just a small little part here from Ari McMasters in regards to the stocks.
Now, we talked about the metals.
Let's talk about the stock market.
Where it's been.
Where it's headed.
What we can look for in the near future as far as the stock market.
So far, the Dow Jones Industrials and the Stock Market Index futures topped on December 29, 1993.
This minor high should shape up as an intermediate high.
March is the last month when the stock market could make a final high.
March 10th keeps coming up as the key date in my turning point work.
As of December 1993, the bull market in stocks was 38 months old.
The only stock market run that was longer was the 39-month run which occurred just prior to the 1929 crash.
Could stock markets crash in March?
Keep an eye on the brokerage stocks.
They tend to fall before a general stock market sell-off.
Brokerage stocks have been weak for the past couple of months.
Contrary opinion still argues to sell socks.
The Wall Street Journal called the record net U.S.
purchase of foreign stocks $445.3 billion in the third quarter of 1993 a feeding frenzy.
There were record sales of foreign stock funds in December, too.
The December 12 International Herald-Tribune discussed discount brokers It's way too frothy for my taste.
Yes, there have been some voices of moderation.
A recent cover of Fortune magazine warned about the new perilous stock market.
The Wall Street Journal in its December 23rd edition also noted mutual funds set up fire drills to deal with heated crisis selling.
The December 23 USA Today warned, stocks seemingly are overvalued and overpriced and doomsdayers are flourishing.
But USA Today also stated, never before has a bull market been so orderly, so painless, so well predictable.
That's the temperament of investors in the stocks with whom I have visited lately.
They are complacent and when one One looks at the Dow Jones Industrial Weekly trend line, one can see why.
Stocks have trudged boringly higher since October of 1992.
But while the investors are waiting to sell stocks short, as the December 28th Money and Investing session of the Wall Street Journal pointed out, short sellers are set to catch tumbling overvalued stocks.
Remember, there are now just over 4,300 mutual funds in stocks.
Over 400 major stocks have been making new 52-week lows.
Most stocks topped out in October.
The record pace of public offerings was the last time this great just prior to the 1987 crash.
And by the way, it crashed 500 points that time.
The Dow is only yielding 2.68%.
This is the longest the stock market has been this overvalued.
Advanced decline indicators are iffy.
Breadth is poor.
There is technical deterioration all around.
The Dow Industrials are already extremely weak.
The Dow Utilities normally leave the Industrials down by a couple of months.
The Dow Utilities have been declining since September.
A weak close below 222 points should send the Dow Utilities even lower and the Dow Industrials tumbling off at least 10-15%.
Recall too that 38% of the New York Stock Exchange listed stocks are interest rate sensitive with the Dow Utilities falling and the Pbonds futures breaking to new recent lows These listed stocks are under tremendous pressure.
To discern relative strength, it will be important to see how far these stocks can rally when there is a bear market rally in T-bond futures.
Pension fund cash is still scraping bottom.
Stock markets abroad have helped support U.S.
stocks.
European stocks set new records high in a year-end rally.
Moreover, four Asian stock markets hit record highs on December 27th.
Singapore, Thailand, Malaysia, and the Philippines.
But then again, that was the time frame when U.S.
stocks peaked.
The New York Stock Exchange is still the key stock exchange to monitor.
That's where 83% of the U.S.
$5.4 trillion of common stock are traded.
The Dow Jones transports have made a rounded top The value line is still firm.
Mutual fund managers are still looking for overseas stocks that grew by nearly 40% in 1993.
My preference remains in the gold mining shares, which rose on an average 80% last year.
Anyhow, the stock market, in general, is what we're talking about here, is extremely overvalued.
It's just a matter of time As to when that is going to take a dip, or take a major correction.
And what I tell people, well, and they tell me I made so much money in the stock market, why should I get out?
Well, that's fine.
If you love the stock market so bad, or so much, keep your stock, but take some of your profits out of there, and put your profits aside so that when it does correct, you're not going to lose your profits.
And if I go into Vegas, which I don't do, and I tell my class, I just don't gamble.
I hate to gamble.
I can't see any point in it.
I'm not against anybody that does or condemns them, but it's just not for me.
But if I was, and if I was winning at one of the tables, the thing to do is you take your winnings and you pull them aside and you just keep betting with your initial principle and you just keep pulling your winnings aside so that you can't lose your winnings.
But it's the person who keeps putting his winnings back on the table, keeps putting it on, keeps doubling up, and so on and so forth, that eventually something turns, their luck turns, and boom, they end up losing it all.
Question that's posed to me, what kind of gold or silver Do I recommend?
What do I recommend doing?
Well, let me explain quickly here.
We're getting down here to the last 15 minutes, so I need to hurry up here a little bit.
There's two kinds of gold or silver that you can get into.
One is what we're most familiar with, and that's bullion, such as an American Eagle, South African Cougaran, Canadian Maple Leaf, or even in the silver level, Junk Silver, or American Silver Eagles.
It's got some pluses, and it's got some minuses.
The pluses is, when you're buying metals, bullion is by far the cheapest thing to buy.
Its minuses are, though, that on a bullion level, it is reportable.
In other words, it comes with a paper trail.
And most of us are trying to stay away from paper trails, but bullion does come with a paper trail.
And it is, as we saw in 1993, confiscatable.
If the government, in a crisis which I think is impending, Uh, should decide to recall it.
Whatever you may have, uh, could be confiscated.
That's not to say that most of us, or some of us, may just use it on a black market back-jolly-with-our-neighbor type of business, but you need to be aware of what can happen so that you can't come out and say, well, wait a minute.
Nobody told me that this stuff could be taken.
It can be taken.
I imagine back in 1930, nobody dreamed.
Nobody had a wildest imagination.
That their girl that they had in their cookie jar back at home on the farm one day wouldn't be any good.
That they couldn't take it to the store and buy wheat or rice or whatever that one day that they would be confiscated.
Nobody dreamed that it would ever happen then and nobody will dream that it will happen again in the future but I believe that it will ultimately be confiscated.
So you need to be aware of that.
That bullion items are confiscatable and reportable.
They come with the paper trail.
They know you have it and so if they want to they could come looking for it.
Number two, the other form of gold or silver that you can own is what we call numismatic gold.
It's pluses and minuses.
It's minuses are that it costs a little more than bullion.
It will cost slightly higher than bullion prices depending on the grade and the quality of the coin that you get.
It's pluses are, as I said, it is extremely liquid.
You can convert it back into cash anywhere.
Not only with us, with our guaranteed buyback policy, but there are thousands of other places, thousands of other dealers, auctions you can go to, all kinds of options to be able to convert it back into cash if you have to do it.
I can't understand why anybody would want to put it into cash because cash is losing its value, but, you know, you need to be aware of its liquidity.
There's no paper trail involved.
There's no reporting of it.
There's no 1099 forms.
There's no W9 forms.
There's nothing.
Whether you're buying it or selling it, it is a paperless, non-reportable item versus bullion.
It is non-confiscatable.
Because back when President Roosevelt recalled gold and he had collectible type gold in his possession and didn't want to give it up, he made an exception to the rule which most of us take advantage of today because the rule still stands and the same type of people own it because, let's face it, the central banks around the world hold gold as their reserve.
They don't hold stocks, they don't hold mutual funds, they don't hold any kind of paper assets.
They hold gold as their reserve because they know that when Everything falls apart and the dust all settles, it'll be the gold that survives.
Now, they don't have to worry about it because the central banks, who's going to confiscate their gold?
They're the ones that are going to be confiscating your gold.
So, numismatic gold is non-confiscatable.
And lastly, when you're looking at it just on an investment level, the investment return on numismatic products is always much greater than the investment value on bullion.
Gene, I can't wait to ask you about junk dimes and how far could one get with say $100, $200?
Okay.
Junk dimes are what they call junk silver and it comes in dimes, it comes in quarters, and it comes in half dollars.
It is pre-1964 coinage.
Before 1964, coins were minted in diced quarters and heads.
They were minted in 90% silver and 10% copper.
And that's since it's not a pure silver item, they call it a junk silver
because there's some junk alloys mixed in with it.
So, certainly not junk, but it's just a name that got tagged onto it in the industry.
You say, only rivals?
It will track, just like bullion, with silver prices going up and down.
It'll track right along with it.
They generally come in a full bag.
$1,000 face value.
In other words, if you're talking about dimes, there would be 10,000 dimes in a full bag, 4,000 quarters, or 2,050 cent pieces.
They will, right now, for a full bag, which by the way, there are 715 ounces Of pure silver.
In other words, if you took the junk bag of silver, took all those dimes or quarters or halves, and you put it in a melting pot, melted it all off, and pulled off all the copper, what you would have left is 715 ounces of pure silver.
So there's $1,000 base value, there's 715 ounces of pure silver.
Right now, a full bag of junk silver will run right around the $4,000 level.
But, you can get in for much smaller levels, because what you can do, They will split up bags.
They will split it up into half a bag.
They will split it up into quarter bags.
They'll go down as far as a tenth of a bag of junk silver.
Now, a lot of us go to these, you know, if I could see it, raise a hand, how many go out to flea markets?
Well, most people go to these little flea markets or these swap and shops.
And generally speaking, there's people there that are selling that stuff.
Often times you can find vendors that are willing to sell their junk silver Uh, if you can get it for like three times its face value right now, uh, or up to about 3.5, probably no more than four times its face value, uh, you would be getting a good deal.
Uh, uh, some people will take, and I, I gave this out a lot of the time when I was on the radio, and I have clients that do this.
They'll take whatever money they have, they'll go to the bank and say, let me have X number, roll the quarters.
And I found that you can buy more quarters than you can anything else, and they'll buy 10 rolls of quarters, or 50 rolls of quarters, whatever they have money for, they'll go through it and pull out the pre-1963 quarters out of there, and set them aside, and then they'll take the rest of the quarters back and get their money back, as far as cash.
And they may pull out a half a roll, or whatever, you know, they may be in there, but there's one way to get them for nothing, or to buy a junk quarter at 25 cents, when in reality it's worth a dollar.
So that's one way you can do it.
Otherwise, you just split up a bag of silver, split up a junk bag, and get however much you can afford to get for your dollar amount.
Gene, it sounds like $400 will buy you the one-tenth of a bag?
Yeah, it's approximately $400.
The problem with splitting up a bag, and this comes from our suppliers, we don't actually split them up here at our office.
They come to us and we just say, you know, we want a tenth bag, we want a half bag, and from our supplier, they split them up.
And the unfortunate thing is they tack on a little bit of a surcharge so it's always cheaper to buy a full bag versus having a split up because there's a I guess an extra surcharge involved for them taking it and dividing it out and counting it out and all this and that.
Right.
It sounds like a group should get together and purchase a full bag.
Yeah.
If you have a bunch of people and you all chip in and buy one you're going to save some money by doing that.
Doing it that way.
What I do as far as people ask me well okay there's brilliant and there's new mistake and now I'm all confused.
What do I do?
What's the best thing to do Gene?
What would you have if you're looking at a collapse?
Well here's what I tell people and those of you that have bought from me and are listening to me you'll know this is exactly what I tell you.
I think that in a collapse that when Everything breaks loose and the dollar is totally in the toilet and the debt is collapsed on top of this and we've got hyperinflation and the whole black cloud scenario.
Let's hope it doesn't happen.
Let's play the devil's advocate and say this is what we're into.
I think at that day and age the best thing possible may be the cheapest thing possible.
And whether that be bullion gold or you can buy numismatic gold at bullion prices when you're buying low-grade, very low-grade, non-compensatable stuff.
Coins are graded on a scale of 1 to 70.
1 being an unrecognizable flux, 70 being perfection.
The higher you go in the coins, the more they cost.
So there's a line that you cross over that it goes from bullion to numismatics.
There's a 15% rule meaning that the bullion or the base value or the wholesale value of the coin has to be at least 15% above bullion to be classified as numismatics.
Some people will want just the very cheapest numismatic coins available.
Some people will want bullion.
But, in that collapse, the best thing possible will probably be the cheapest thing, because what can happen, and what may happen, is an ounce of gold is an ounce of gold, and an ounce of silver is an ounce of silver.
Whether it's 100 years old, whether it's brand new.
So, in that time, you may not want to be sitting on and holding on to an ounce of gold that costs you $2,000, or $1,000, or whatever.
You may want it just to have Only it's gold value because that may be all it's worth.
Now again keep in mind I'm painting the worst case possible scenario because even in 1929 during the depression gold coins and numismatic coins continued to go up in value they didn't go down in value but I'm just painting the worst case possible scenario.
What I tell my clients to do and what I do myself is in the meantime New Mathematic Coins because the market, we haven't collapsed, the market is strong, we're in a bull market, they go up much higher and faster than the bullion does.
And when I tell my clients, we're not going to keep these things, let's temporarily park ourselves in New Mathematic Gold Coins, whether it be St.
whether it be Liberties, whether it be Morgan Silver Dollars, whether it be Peace Dollars,
but get a nice coin, what you can afford for your money, park it in there temporarily,
ride the market up, sell it off at a high, go back down and buy your bullion then, because
it did not go up nearly as high, or nearly as fast as the Numismatic did, and literally
you will walk away with more bullion, whether it be bullion or whether it be very low grade
Numismatics, but you will walk away with more quantity than what you could have bought if
you had just taken your money and bought it originally.
It is called ratio trading, and it is buying something, both items are at a low, one will
go higher and one will go up as far as movement, will move faster and go higher, you take it
temporarily, park it in there, you pull it out at that high, you go back down to the
other one which has not moved nearly as much, and you literally buy it then, but you got
so much more capital, more equity to go in and buy more bullion for your money, so it
is literally like buying two for the price of one at the ratio that we are working at
right now, and I tell my clients and I tell myself, and don't fall in love with this stuff,
because we are not going to keep it, we are most likely going to trade it off and sell
it and go back down and get what really will ultimately be possibly the best protection
that you can get.
Well, Gene, we're going to have to thank you.
Thank you for coming tonight and answering questions and I have a few more questions.
Maybe one time we'll have to have a call in because I know people do call me and ask questions and I just tell them to call you at 1-800-BUY-COINS.
We're going to close now and thank you again Gene for coming.
One last thing.
We do have a brand new newsletter.
Just came off the press.
Do give us a call.
They're free.
We've got all kinds of brochures.
We've got an article called The Right to Own Gold.
Some other literature on the coins.
Give us a call 1-800-289-2646.
I'll be glad to answer any questions that you may have that I may have not answered tonight and spend as much time with you on the phone as I need to.
But give us a call tonight or tomorrow and I'll be more than happy to get back to you.
Do leave your name and number and tell us that you listened to the William Cooper Show.
That is important to us to know that people are listening and I think it's important to Bill that he knows that you're listening as well.
Thank you for letting me be on here tonight, Carol, and again, Miss Cooper, God bless you, get well, and I'll be back in touch, and we'll see you next week.
Thank you, Dean, and good night, everyone.
Good night.
You realize this dollar bill you pay Ain't hardly worth the pages printed on The reason is it isn't lawful money.
And the truth is stated plainly in this song.
Paid for money.
Paid for money.
It's a federal trick without a treat.
It's the source of all inflation.
And the reasons why your hands don't meet Our Founding Fathers wrote our Constitution Which states that only Congress has the right To print up dollars packed by gold and silver Which guarantee the future Then Congress signed the contracts with some banksters.
This happened back in 1910 for strings.
For those bankers said, we'll guard your gold and silver And if you pay for money for a fee
Pay for money, won't despise It's a proven, true, and loud history
It's a sin, it is Proud to greet you.
As it leads you down to Tierney.
So now we've got this private corporation.
Which calls itself the Federal Reserve.
Whose purpose was to strangle our creations and thunder from us the wealth they don't deserve.
Now those banks who stood on top of our old fears, then warned us not to crack this gallery.
Then charge us compound interest on some papers, which they print of any kind they feel the need.
Paper money, worthless money.
With the nation's curse and times of old Things won't ever get no better
Till we make the Fed give back the gold So banksers talk about a new world order
And why the UN says you play their game Well it's throw them traitors out and lock the borders
Before we only have ourselves to blame.
Pay for money.
Funny money, it's a ticket stuck to charity.
Gold and silver is the answer.
It will reinstate our liberty.
We the people have the power.
We can reinstate our liberty.
We can reinstate our liberty We can reinstate our liberty
It's coming down Oh
It's coming down.
and down. Ten world orders, raining on our ground. With soldiers drenched in black and blue sweat.
To aim the crock hell of their guns at the end.
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