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Jan. 6, 1995 - Bill Cooper
58:40
Gene Miller #2
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*Piano music* Once upon a time, there was a little boy.
He was a little boy.
See you.
See you.
you you are listening to the hour of the time
I'm Pete Lesbrince, and tonight we'll be talking to Gene Miller once again after this short little music break.
I walk in the middle of the silence Like a fire, fire, fire, fire You were there like a throat so it's burning I want to see the city of the little sun And so tired of the meeting So many things that I could see
Promise myself I'll be One more time that I couldn't see If no one can help me now, I'll be deep in the way out.
And really let myself restrain.
Run away, pain never goes back.
Long way on a one-way side.
Seems like a dream you can't do somewhere.
Come call me the end of the day.
When you tell me remember how to smile.
Make yourself hard seem worthwhile.
How on earth did I get through a chain?
Life's just a piece of magic.
I can show what no one else can show.
I know what no one else knows.
Here I am, just a drowning in the rain.
Just a ticket for a runaway train.
If it can be sure as I, day and night, earth and sky, so I just don't be there.
Alright, and we're back with Gene Miller from Swiss America Trading.
Good evening.
How are you doing tonight, Pete?
Pretty good.
How about you?
Not too bad.
Feeling a little better than I did last night.
Once again, I just want to thank Bill for the opportunity of being on the I hope you're having a good trip down there in Kansas City.
Again, before I get going too far here, I want to offer the book that we've been talking about last night.
We'll be talking a little bit about it again tonight, and that's the book Economic Solutions by Peter Kershoff, the incredible story of How you and America are being bankrupt and what you can do to avoid it.
The name of the book is called Economic Solutions.
And if you give us a call, 1-800-289-2646 or 1-800-BUYCOIN.
And mention that you heard us on Bill Cooper's show, Hour of the Time, or just William Cooper.
And we would be more than happy to get you out a free copy.
Just leave your name and your phone number or your address.
I do want to mention that I had several calls from existing clients of mine that called in and left messages.
I personally just want to apologize.
I did not have time to get back to you today.
The phone was just ringing off the hook, but I did get your message and I did get a book out to you.
I'm thinking a couple people in particular, Richard in Texas, Dorothy in Texas, if you're listening, I got your message and a book will be coming forward, and there were several others, and you'll all get one.
But give us a call, and you can call later on tonight during the program, or tomorrow through the weekend or whatever, or call Monday when we get back to work, but we'll be more than happy to get you a book.
I can't recommend this book enough.
It is very well written, written by a legal researcher and written in terms that everybody can understand.
It really isn't a book of his opinions.
It is more as it is a book of really just getting right down to the facts of things and explaining in black and white in terms that everyone can understand where this thing is, where we got, Well, we are today, and how bad the situation is.
So I want to take up where we left off last night, what we were talking about last night.
We were talking about, just in brief review here, what money was, what the Constitution says money is, which says that it's coins, gold and silver coins, and how that has changed into what the Federal Reserve says money is.
And they don't even call it real money, they just call it near money.
and how the value of our money has lost 96% of its purchasing power, and how we've gotten ourselves into debt, approximately approaching $5 trillion in debt, well over the $4 trillion mark.
How our currency has lost value against foreign currency since 1970 and has not recovered since then.
How the Fed, when they need more money, they just basically create it out of thin air.
They just print it.
And they charge you and I the bill for doing so.
And we look at the safety of our money.
How safe is our money?
We looked at banks.
We saw an instance where a woman had deposited money into a regular bank in a passbook savings account and how there was no safety in it.
She basically had no recourse at this point and she lost half of her savings.
We looked at money market accounts and saw how they aren't safe.
A couple of other things that we'll look at tonight that I know the people that we're talking to tonight have money in.
That's the stock market.
How safe is your money in the stock market?
article here on the Arizona Republic that came out January the 6th from the Associated Press.
It says, breaking even was hard to do last year.
Stock mutual funds lost money, Burms says.
New York, just breaking even was better than average performance for a stock mutual fund in 1994.
The average general purpose equity fund fell 1.69% in 1994, even after reimbursements of dividends.
The research firm of Lipper Analytical Service Incorporated reported Wednesday.
That marked for the first year since 1990 that the typical fund lost money, Lipper said.
It also was the first time in four years that such funds failed to match the return rate on short-term money market funds.
Yields on money funds which earned their returns from interest payments on such investments as Treasury bills rolled steadily as interest rates climbed during 1994, pushing past 5% in December.
Well, there was another...
It was in Richard Weiss' report a few weeks back, but basically about 75% of all stocks in the stock market lost money last year.
And some of them...
I've lost as much as 20%.
And then we got the bond market.
If you had bonds, you know exactly what we're talking about.
In the Wall Street Journal, and this was December the 30th, it says, after plunging in 1994, bond prices may take a long time to recover.
For many bond investors, this year was the worst.
It wasn't just A bad hangover after a wild party?
It was the financial equivalent to waking up and finding out that your arm was missing.
Now comes more bad news.
The pain may linger for a surprisingly long time.
In a sickening one-year dive to mid-October, holders of 30-year Treasury bonds lost nearly 24% of their principal.
A bigger drop than the stock market 22% plus plunge on Black Monday in 1987.
It was the bond market's version of more than a 900 point loss in the Dow Jones Industrial Average.
Investors big and small got burned.
Don't even mention the name bond fund in my presence as Richard Rodriguez Uh, 43, a Los Angeles business owner who lost $6,300 in 11 months in a bond mutual fund.
The whole thing has shocked me so much that I'm afraid to do anything, says Mildred Kaplan, a retired, a retiree in Boca Raton, Florida who lost more than $50,000 as she looked for better bond returns.
We're just trying to protect our investments and have money to live on.
And this is just some of the common, typical things that went on this last year.
What people thought as they searched high and low to park their money into something that would not only give them a return, but have some sort of safety, and they found out there wasn't any safety in it at all.
And so 1994 will be chalked up as a, really as in the stock market, the bond market.
Let's look at California.
Good ol' Orange County.
Uh, one of the most affluent counties in the country, and yet one of the most conservative counties in the country.
And yet, now this county is in such disarray because of the derivative market, And the geniuses there that invested all this billions of dollars in derivatives and now they've lost their shorts.
They're literally hinging on the fact that they don't have money to pay the county employees, the school teachers, the bus drivers, the people that are employed by the county.
And yet, here people put their confidence into this system and found out that There was absolutely no safety in it at all.
The question that rises, and one we have to, I guess, look at, is what's going to happen?
Is it just going to keep on going back and forth in typical cycles, or are we eventually heading for some sort of climactic or catastrophic collapse?
I'll give you a couple of scenarios.
You know, whether it's going to be this year, next year, I think this is the inevitable end of what's going to take place.
Now, I think that we could see some periodic rallies in the stock market, or the bond market, or this market, or whatever, but I think there's going to be an ultimate climactic, some sort of collapse in that.
You know, we'll discuss a couple possible scenarios.
One of them, and I think it's going to be one of the two things, But I believe, and I'll give you my opinion here in a moment, which one I really believe it will be.
According to Richard Russell, who puts out Dow Theory Letters, and he's been doing this since 1958, pretty much a conservative financial analyst.
And he just puts out a newsletter called Dow Theory Letters out of La Jolla, California.
Very good newsletter.
And he talks about the stock market, the bond market, the money market, the gold market.
He talks about it all.
This gives pretty much an unbiased opinion on it.
But this is what he summed up he saw happening to the economy of our country.
Let me take a drink here.
There we go.
He says, but first, in order to get a glimpse of the future, it's necessary to go back into some of the mysteries of U.S.
government finance.
In 1970, federal spending consumed about 20% of this nation's gross domestic product.
This year, the figure is nearly 30%.
Again, in 1963, so-called entitlement programs ate up 29% of all government spending.
This year the figure is nearly 30%.
Again, in 1963, so-called entitlement programs ate up 29% of all government spending.
Interest on the national debt consumed 6.9%, leaving a large 70.4% for discretionary spending.
In other words, they had a lot of money left over.
But the picture has changed, and drastically.
By 1993, entitlement spending hit $864 billion, or 61% of the total federal budget.
Interest on the federal debt took 14.1%, leaving only 24.4% for discretionary spending.
How about the future?
Total federal budget.
Interest on the federal debt took 14.1%, leaving only 24.4% for discretionary spending.
How about the future?
By 2003, entitlement spending will eat up 72% Interest will eat up 13.8%, leaving a mere 14.2% for discretionary spending.
So the U.S.
faces a number of incredible problems.
Number one, the federal deficits are continuing to the tune of roughly approximately over $300 billion a year, while at the same time, the national debt pushes ever closer to $5 trillion.
Number two, a few years from now, the federal deficits are slated to accelerate upward again, and rising interest rates will add tens of billions of dollars to the total.
Number three, entitlements, namely Social Security, Medicare, and Medicaid, are eating up this nation alive.
Add interest costs, and there isn't a lot left over for discretionary spending.
Washington keeps coming up with new spending plans, but there's no new money for new spending.
There's not enough money for all spending.
For your interest and edification, please study these entitlements and their cost in 1994.
Social Security, $317 billion.
Medicare, $158 billion.
Medicaid, $84 billion.
Unemployment Compensation, $27 billion.
Medicare, $158 billion.
Medicaid, $84 billion.
Unemployment compensation, $27 billion.
Food stamps, $27 billion.
And every one of these entitlements has a huge constituency following behind them, Politicians are afraid to even hint at cutting any one of them.
It's clear, at least to me, that the federal deficits and rising entitlements and interest costs are moving the U.S.
toward bankruptcy.
Something has to give.
What is it going to be?
Answer.
There is no magic, painless solution.
But the fact is, one or more of the above items must be cut.
Entitlements, mainly Social Security, must be cut.
But can they?
Taxes must be raised.
But the politics of this is explosive.
Our government spending across the board must be cut.
And this represents still another daunting political problem.
But here's the crux of it.
In the end, Any or all of these solutions will lead to deflation.
You can't cut spending.
You can't raise taxes.
You can't cut entitlements without deflationary implications.
This, then, is the deflation time bomb that is ticking away in America.
As older subscribers well know, I used to think that we could inflate our way out of our debt problems, and I dramatized this With my oft-repeated adage that the U.S.
must inflate or die.
I no longer think that the inflation half of this equation is possible.
Why?
The reason is that the bond vigilantes, owners of hundreds of billions of dollars of bonds, will not stand for inflation.
The fact is that the money markets will have become huge And that too is deflationary.
so at any hint of inflation, the bonds head south and the interest rates head up again.
A collapsing bond market translates into gigantic losses, and we've seen that this year, and that's deflationary.
And rising interest rates means rising costs of doing business, and that too is deflationary.
No, there's no way that this nation can inflate its way out of trouble.
Maybe we could have done it 20 or 15 years ago, but not today.
The fact is that we've built an unbelievable giant credit and debt bubble, and I believe that what we're seeing now is the very early beginnings of a collapse of the bubble.
The debt buildup, the credit explosion, it can't be sustained.
The pin has been thrust into the debt bubble, and as the air wheezes out of the bubble, we will feel the hot breath of deflation.
All this is obviously not occurring in a vacuum.
Wise investors, knowledgeable investors from around the world see what's happening, and they're wondering how, in the face of the coming debt collapse, the dollar can hold up or survive for that matter.
Remember, all that stands behind the dollar is confidence.
We talked about that yesterday.
If confidence goes, the dollar goes.
As you well know, the dollar has been going down.
I always test my thoughts and theories against what's happening in the real world.
The world of reality and economics is the marketplace.
And I'm wondering, is the deflation scenario what's stopping the precious metals from taking off on the upside?
And what's the deflation scenario standing behind the dollar, tumbling to the low, to low after low?
I'm afraid that's exactly what's happening.
Deflation.
It's the concept that nobody wants to think about or accept.
Deflation, the event that nobody's prepared for, But the facts remain that the U.S.
has spent its future.
We've been spending it ever since World War II.
The U.S.
has spent my kids' inheritance and your grandkids' inheritance.
The U.S.
has spent itself into a black hole, and I honestly don't know how we're going to get out of it.
What does all this add up to?
I primarily It adds up to a primary bear market in the dollar with periodic rallies.
I think it adds up to a primary bear market in the stocks and bonds with periodic rallies.
I think it adds up to continuing anger and frustration on the parts of the American people as it slowly dawns on them that 50 years of spending the future must end in pain.
Americans are just beginning to feel that pain now.
And that's what they're so angry about.
So that's one scenario.
And I guess the other scenario is what we call inflation or hyperinflation.
Now I think, in my personal opinion, that's what we're eventually going to head into is a hyperinflation situation.
And one of the reasons is, as Richard Russell points out, something must be cut.
Well, knowing politicians and, you know, they're in there for their own political well-being, they don't want to cut entitlements because if they do, they're afraid they're not going to get voted on.
So they promise all these new entitlements and they're going to do this and that for this person and that group of people.
And so they don't want to cut entitlements.
And yet, then again, they don't want to raise taxes.
And the point is, We're out of money and we're going into debt at the rate of about a billion dollars a day.
So what happens is the debt keeps growing and growing and growing.
It takes more and more of our income tax money that we're spending or sending in every year to pay the interest payments on the debt.
As we take more and more of that money, that means there's less and less money for those entitlement programs.
Well, since they're not willing to cut those entitlement programs, what do they have to do?
They have to come up with the money somehow.
Well, the only way that they've been able to come up with the money is to keep borrowing more.
And they keep printing more money.
Let me give you a scenario of what happened in Germany.
because I believe what we saw happen in Germany in the early 1900s from 1919 through 1923 is a predecessor of what's going to happen in our very own country.
We've seen it not only happen in Germany.
We've seen it happen in Argentina and various other countries.
Argentina was literally one of the major economic and industrial nations of the world until they did what we are doing, And they got themselves so far in debt that they had to keep printing money to keep being able to borrow it and to pay back the loans and pay the interest payments.
But as they did, the money became more and more and more devalued and they went eventually into a hyperinflation situation.
In the book Economic Solutions, on page 13, It says, in the early 1920s, Germany experienced hyperinflation.
In 1915, the highest denominated German mark, note, was 100 marks.
And the mark was roughly equivalent to the value of the U.S.
dollar.
By October 1923, notes denominated in 100 billion marks, or 100 millardins, as they call them, were common, and the Minister of Finance was not able to have them printed fast enough.
In 1936, In 1915, get a load of this, in 1915, a retired person could live comfortably off interest from 50,000 marks in a bank savings account.
By 1923, The banks were closing those accounts for having insufficient funds to justify keeping them open.
Put that into perspective.
That's less than, that's what?
Eight years?
And within eight years, $50,000 wasn't even enough to justify keeping an account open, where eight years prior to that, a person could have that in the bank and retire and live off the interest.
When the banks mailed the now worthless 50,000 marks, it required 2 million marks for postage.
German marks were so worthless that Germans literally heated their homes and cooked their food with them.
Hyperinflation is truly one of the economic catastrophes that's worse than bankruptcy.
It is also worse than depression.
There has never been a paper money system that has not failed.
Let me say that again.
There has never been a paper money system that has not failed.
And there has never been a hard money system that has failed.
Right now, America is sitting on the worst hyperinflation powder keg in world history.
And when it ignites, our currency will become absolutely worthless in a very brief period of time.
The outcome will likely be even worse than Germany's.
And the reason being is because we're much, much, much farther in debt.
Here's a quote from a congressman just not even two years ago.
It says, We are now in Chapter 11.
Members of Congress are official trustees presiding over the greatest reorganization of any bankrupt entity in world history.
The United States government.
We are setting forth, hopefully, a blueprint for our future.
There are some who say that it is a coroner's report that will lead to our demise.
And this was Congressman James Chaffetzkin, House Record 1303, March 17, 1993.
And I believe that's where we're going to be headed.
Somewhere, eventually, that's the type of thing that I believe that this country has to look forward to.
It's going to be some sort of hyperinflation situation, and one of the reasons I truly believe that that's what we're headed for, and I happen to believe what the Bible says.
And if you go and look at the Bible, and whether you like it or not, the Bible has not been wrong.
You can go back through history and see what the Bible has said, and it's been Accurate in every prediction that is made, and it talks about the end times.
It talks about the last days.
And in those last days, and if we happen to be in that time, it says specifically that we will go into what will be devised as a hyperinflation situation.
It talks about the price of a loaf of bread being an astronomical amount of money.
And people literally not being able to afford it.
And the money system The paper money system of this world will become worthless.
Well, that's a perfect picture of a hyperinflation situation.
Now, there are people that are listening to me tonight that have their money tucked away in CDs, money markets, stock markets, bond markets, and they're all set to retire, or they've been saving up their money for retirement.
And there are $500,000 that they may have to live comfortably for the rest of their life for $200,000 or $300,000 or whatever they may have set aside in paper money to have to retire on, which right now they figure,
"Well, I'm getting so much interest a month or a year and it's compounded and so on and so forth that I need X amount of income to be able to sustain my lifestyle to the end of what should be projected to my life and everything should be fine." Well, so did the German people, but all of a sudden hyperinflation set in and their money became worthless.
It lost all its value.
In other words, it lost its purchasing power.
Now, we've already been seeing that happen over the last 40, 50 years since we pulled ourselves off a gold standard.
As I said, showed you last night, We've lost 96% of our purchasing power in our dollar.
The unfortunate thing, or I guess maybe the fortunate thing, however you want to look at it, is that it didn't just happen overnight.
It happened over a long period of time until it was kind of like a tree growing.
We didn't see it happen until, if we look at it in retrospect over the last 40, 50 years, now we can see how much the money has become devalued.
But as we begin to print more and more money to keep up with the interest payments on the debt, to keep up with the entitlement programs, because, you know, it's politically incorrect to raise taxes.
In fact, President Clinton, after the Republicans gained control of the Congress, came on the television and promptly said that there's going to be a tax cut.
Well, I got news for you, folks.
That tax cut, ultimately, is going to cost you a lot of money.
Because it's going to cause interest rates to go up, and the rise in interest rates will ultimately offset any tax cut you're going to get anyhow, so there's no free lunch.
Excuse me, Gene.
We've got to go to a break right now.
Okay, let's take a break.
And remember again, about the book, call us at 1-800-289-2546.
Ask for the Economic Solutions book.
Make sure you mention that you listened to us on Will Cooper.
We'll be back right after the break.
We'll be back.
We'll be back.
Everybody prays that the doctor's mad.
Everybody's asking for food again.
Dr. Palmer, all the drugs you've got.
Everybody's hands are in their pockets.
Everybody wants a box of sunsets and a long test tube.
Everybody knows.
Thank you.
That's how it goes Everybody knows
And we are back Thank you.
One of the other things I wanted to bring out about this deal with Germany, and in the book you'll see that, they made a comparison of gold during that time when the money became devalued.
They had the 50,000 marks set aside for the retirement that all of a sudden became worthless.
Had they put it in the gold, they'd have been fine.
In January of 1919, before this thing really started taking off and getting ugly, an ounce of gold back then was 170 marks.
170 marks.
By November of 1923, an ounce of gold had become 87 trillion marks.
So you can figure it out for yourself.
Do the math.
If you had 50,000 marks, and you divide that by 170, that would tell you how many ounces of gold you have.
And if you take that, and factor it into what an ounce of gold was worth in November of 1922 at 87 trillion dollars, or 87 trillion marks per ounce, you can see that Your gold, I guess the whole point is, the purchasing power of the gold went up with the devaluation of the dollar or the mark going down.
And so, I guess the question is posed, knowing what's going to lie ahead, I believe that we are going to go eventually into a hyperinflation situation.
When it's going to happen, I don't know.
I think it'll be in my lifetime, I do believe that.
Uh, and if it doesn't happen, well, I guess I didn't really get hurt by protecting my money.
It's like having fire insurance on my house.
You know, I hope my house never burns down, to be quite frankly.
I have fire insurance on it, in case it ever did, but, you know, I guess I'm not going to light my house on fire to see if I can correct, and I hope the dollar tree never burns down.
And you know, I'd be happy as a lark if somehow some miraculous thing happened and they turned this thing around and we got back onto a constitutional gold standard of money, gold and silver standard, and they turned this economy around and they turned this debt situation around, but I don't see it happening and I guess I'm going to prepare myself for that happening.
So the question is, what do you do?
If this is what we've got to face for our future, and our kids' inheritance has been spent, our grandchildren's inheritance has been spent, and our currency has been devalued, and it's going to get worse, and we're facing some sort of imminent collapse of our economy, what do you do?
How do you prepare for it?
How do you get ready for it?
Well, number one, I think that is important, is you get out of debt.
Don't be creating more of a problem for yourself.
Get yourself out of debt so that you can be liquid and mobile at any given time.
And secondly, put your money aside into something that inflation cannot erode.
In other words, that's inflation proof.
And that's going to be hard assets.
History has showed us that hard assets, gold and silver coins, have been inflation proof.
They have stood the test of time.
When the money system became devalued, when the money system became more and more worthless, gold, coins in particular, have held their value, have held their purchasing power.
Gold, literally and in essence, is a storehouse of value.
Read you something here again from the same article from Richard Russell who says What do we investors do?
We try to survive.
The initial reaction, and I'm talking about investors in the U.S.
and around the world, is to move out of the dollar and into stronger currencies, and that's what's been happening.
The yen, the deutschmark, the Swiss franc, the British pound have all been moving up strongly against the dollar.
Gold has been pretty much forsaken in this early phase as investors exit the dollar.
Gold has really not gone down, mind you.
It has just been forsaken.
Somewhere ahead, it will be seen that if the dollar is an outcast, all fiat paper currencies will also be suspect.
That will bring in gradual, then increasingly accumulating of real money.
Gold.
Increasingly I am opting for actual ownership of gold coins.
I don't mean gold in a fund or gold held at a dealer or gold at a brokerage account.
I mean paid up gold coins in a place where you can put your hands and nobody else's on them.
As the dollar weakens and the bear market continues, I'm thinking that the war against gold will intensify.
Gold.
It says, the metal... I'm advocating mainly accumulating gold coins.
Gold, the metal that represents riskless wealth.
Riskless because gold has no debt against it.
Therefore, it cannot go bankrupt.
And it's wealth that you control, since you physically own it, or you own it physically in your own possession.
As it stands, if gold can't advance above 400 and make persistent outside progress from there, I would guess that gold will simply be a holding position.
He goes on to say, that in and of itself is in the case for holding gold.
And that's my best and most considered view of the future.
Gold is money.
Gold is intrinsic.
Gold can't go bankrupt because it has no debt against it.
When you hold gold, you don't need confidence.
See, we need confidence in the paper money to hold together.
That's really the only thing that's held this paper system together.
But in gold, you don't need confidence.
All you need is time, and that's the way it's been throughout history.
And that's the way it will be in the future.
The abysmal finances of the U.S.
literally guarantee it.
For the last few minutes here, before we close here tonight, I want to talk a little bit about gold and silver coins and some of the common questions that come up.
Being the senior broker there, I get a lot of people that call in order and Yeah, but they all have questions, and these are some of the common questions that come across, and maybe if we answer some of these, it'll help you understand a little bit what's going on.
So, number one, what are the forms of gold and silver that are out there?
Number one, there's two types of gold, and silver applies to, but I'll just refer to it as gold to make it a little bit simpler here.
There's bullion form, and then there's numismatic form.
Bullion forms are such things as Your South African Cougarlands, your Canadian Maple Leafs, your American Gold Eagles, they also can be gold bars by Englehart or Johnson Massey, and as well as silver.
The other form of gold is what they call Numismatic Gold, and it would be such things as your $20 gold pieces, $2.50, $5, $10 gold pieces, your Indian Series and your Liberty Series.
In other words, it's more of the It's the gold coins that were, if we go back in time, it's the gold coins that we used to use as currency back in the 18 and early 1900s.
And when they stopped making it in 1923, much of it was recalled and melted down and turned into gold bars.
So in other words, it's the gold that they no longer make anymore, and because of such it has a collectible value.
And that's where this numismatic term was derived.
The difference is, I guess the pros and cons to both.
A million gold is by far the cheapest form of gold to buy, but as such it has reporting requirements to the government.
If you buy or particularly sell amounts of gold back to a dealer or cash it in or take capital gains, All that is automatically reported through a 1099 and your social security number must be given and there's just literal reporting requirements to the government.
So you lose a lack of privacy in the bullion forms of gold.
Bullion forms of gold via a A presidential order in all it actually takes is the signature of the Secretary of Treasury.
It doesn't take an act of Congress, it doesn't need the President, it just needs the Secretary of Treasury, literally.
And he can recall all forms of bullion gold.
I think it would be better known as, they just shut the window down.
They just close the gold window, they suspend all buying and trading in gold, and any gold that you have at that present time, they'll probably, and I think that's a real possibility in the future, Uh, that could happen, and, uh, they'll just close the window.
They'll give you so much time that any form of bullying gold that you have, that you can, you know, turn it in and convert it back into Federal Reserve notes.
I think one of the reasons that they do this is, as Richard Russell points out, that as the dollar becomes more and more expensive to collapsing, people will bail out of it, and they'll go into gold.
Well, they really can't afford for it to totally collapse, and so to keep people from bailing out of dollars and going into gold, they stop people from buying gold and force you back in to pay for money and hopefully suspend or hold up the dollar and prop it back up to keep it from free-falling they stop people from buying gold and force you back in to pay for money and hopefully So I think that they will probably close the gold window somewhere along down the line.
Numismatic gold, on the other hand, is nonreportable in dealing with dealerships, brokerage firms, what not.
If you buy and sell, there's no reporting requirements.
In other words, you have a lot more privacy involved in owning numismatic gold.
It is non-confiscatable.
If they ever did recall gold to law, we've got this point that numismatic coins are exempt from confiscation.
And the question always comes up, well, will this probably change the rules?
Well, that's a possibility, but The reason that the exemption was made in the first place was, number one, the president and political leaders at the time, when they did recall gold back in 1933, they had collectible forms of gold coins in their personal portfolios, and they didn't want to give them up, and so they made an exemption to the rule.
And that exists today as well.
The gold, the numismatic market is a fairly thinly capitalized market.
There's not a lot of, in other words, there's not a lot of it out there.
If you took all the gold and silver coins and added them all up, it would amount to about three billion dollars, which is three days of deficit spending.
And it's just a fraction if we compare it to, say, the stock market that takes in ten to fifteen billion dollars a month.
It's just a very, very small fraction.
And they may not even consider it worth their while to even try and collect it.
And then number two, they don't even know who has it because of it being in the snack.
There is that privacy part, and there's no records that have been forwarded to the government as far as who has what.
So I think it would create some definite problems.
Numismatic coins are all classified into the same thing, like rare paintings and anything that has a collectible value.
So it would be a paperwork nightmare for them to try and collect it.
Thank you.
So those are the difference of the two types of coins, bullion and numismatic.
Another question that comes up, how are coins graded?
And now they're referring to numismatic coins here, and they're graded on a scale of 1 to 70, 1 being an unrecognizable slug, 70 being an absolute profession, neither one exists.
Uncirculated coins are coins that are MS-60 and above.
All our coins are graded by one of two services.
PCGS, which stands for Professional Coin Grading Service, and NGC, Numismatic Guarantee Corporation.
They are by and large, by and far, the top two grading companies in the country, and they stand behind their coins.
Any coins that come out of the grading services They literally guarantee that great no matter where you take that coin They will literally stand behind as if they put it in an mf-64 Holders for example no matter where you take that they will stand behind it that coin is an mf-64 Here's a good question isn't billion gold or silver or junk silver junk silver is coins silver coins that were minted in
Well, here's what I believe, and this is what I practice, and this is what I tell my clients.
with 90% silver, and so that's the term they gave it, is junk silver because it's not pure silver.
But the question I get is, isn't that type of stuff better for survival than owning numismatic or collectible or rare coins?
Well, here's what I believe, and this is what I practice, and this is what I tell my clients.
If we face a catastrophic collapse of our economy and we're literally forced to be buying and selling and doing trade or business with gold or silver coins, and this is coming from a very conservative perspective.
Uh, perspective, because if we even look back in history, even during the depression, rare coins went up in value, because people recognized that they were something that would hold the value that, be like paintings.
Even in Germany, when the, when they're collapsed, people tried to latch on to anything of, of real wealth, and those type of things went up in value.
But I look at it on a real conservative worst-case scenario, and it could be that in that day and age, and I tell this to my clients, it could be in that day and age that nobody will care whether it is a high-end collectible coin or a low-end type coin or if it's just bullion.
If, let's say, for example, that bullion's not confiscated, it may come to it that the best thing possible will be the cheapest thing possible.
All anybody's going to care about is how much gold is in that coin.
Or how much silver is in it?
How much does it weigh?
And what is the market value at that time?
Which obviously is going to be higher.
But what is the market value?
And that's what we're going to pay you according to what the market value of gold and silver is.
And if that's the case, then obviously at that day and age, you want to own the cheapest thing possible.
You may not want to own high-end, collectible, rare-type coins.
But, as I tell every one of them, we're not there yet.
We're not there.
And you can't spend junk silver.
I mean, you could, but it wouldn't be very smart.
I mean, it wouldn't be very wise to take a 1964 quarter and stick it in a pop machine when you consider that quarter's worth about a dollar because of its silver content.
So you're putting it aside for survival purposes for some day in the future.
And so you can't spend it now.
So, since you can't spend it now and it's used for protection purposes, why not have your money still be protected, but have it working for you?
And I guess that's my purpose of owning higher quality numismatic coins right now, because in the market, they will grow much, much faster than its bullion counterparts.
Or even lower grade numismatic coins, the low grade 60s or 61s or your common date stuff.
If we go into higher quality stuff where there's a little bit more of a rarity factor, in a market driven by supply and demand, coins that have a much smaller supply and the demand has been very very strong, they have a much better chance of going up higher in value and a much smaller downside risk.
And so, It's a two part question.
Yeah, in the end, it may be that the survival type coins will be better to have.
But if we can take and invest it correctly into higher quality coins, we can in turn take our profits and our initial principal and then roll it over into survival stuff that may not have gone up nearly as much and end up in the long run owning a whole lot more gold or silver.
An example I'll give you, this happened last year between April 23rd and May the 28th, gold moved up 9.7%.
During that same, and that was a 35 day period, during that same period of time, MS64 Liberties moved up 56%.
Well, it doesn't take a rocket scientist to know that I can take 56% profit, roll it back into something that's only went up 9.7% and buy a whole lot more of it in the same period of time.
Next question is, I don't care about if the government does confiscate my gold, I just won't turn it in.
Hey, fine.
But here, let me give you an example.
Government confiscates gold, and you don't turn it in.
You've got two grams in one hand, and in your second hand, you've got a low-grade numismatic coin.
And let's say gold is now $1,500 an ounce, and since nobody cares if it's a collectible gold coin or just a bullion coin, both coins are worth $1,500.
You go to a farmer and say, I want to buy a side of beef.
And he happens to say, OK, a side of beef today is an ounce of gold.
And he says, OK, well, I got in one hand a billion coin that is illegal, outlawed.
He's got to figure out some way of getting rid of it because it's an illegal coin.
But in the other hand, he's got a legal coin, a 61 Liberty, for example.
Which one do you think he's going to more likely want to take, the one that's legal or the one that's illegal?
Now, if he decides to take the illegal one, he may say, I'll take, I'll tell you what, I'll take your koozaran, but you give me two of those koozaran, since it's illegal, and it may end up costing you twice as much.
So that's one thing that you have to consider.
Uh, next question.
Uh, why shouldn't I buy coins at the cheapest price possible?
Good question.
Well, there's three things that people want when they buy anything.
They want the cheapest price, but they also want the best quality, Well, I've got news for you folks.
You can't have all three.
It's just impossible.
If you're going to have the cheapest price, you're going to sacrifice either the best quality or you're going to sacrifice the best service or a portion of both.
And if you want the best quality and you want the best service, it may end up costing you a little bit better.
If your physical health, let's say an emergency came up and you had to have some Emergency surgery.
Would you look for the cheapest, most inexperienced doctor that just opened up an office to get your physical health back in shape if you need heart surgery or something?
No, you go to the most experienced one you can find.
If it costs a little more, I guess your life is worth it.
Folks, we may be a little bit more than some places.
I know we're not the highest and I know we're not the lowest.
We offer the best quality.
All our coins are sight seen versus sight unseen.
And that makes a big difference when it comes to selling your coins.
And I know we're running out of time here, and we have the best service.
We have a buyback policy.
We can get you liquid at any time.
We're not going to call you up, or you're not going to call up and say, whoops, we're sorry, we're going to stop buying coins today.
At any time you want to get liquid, we can get you liquid.
And we're going to be here at the, in the, In the long run, in the good times and the bad times, we're going to beat here.
And so, we offer the best service.
We offer the best quality.
And those are things that you have to consider.
I guess, you know, how far would O.J.
Simpson have gotten if he went and got the cheapest lawyer?
You know, I'm not here to say whether he's guilty or if he's innocent.
I have no idea.
That's not for me to decide.
But I know one thing.
I know he wouldn't stand a chance.
He wouldn't have a prayer if he went and found the cheapest lawyer that he could go with.
Yeah, he went and found the best, and the best cost him a little bit more money, but he's got a much better chance of getting off, or getting acquitted, or getting a mistrial, or whatever he wants to happen by having the best lawyers.
Last question is, what do I recommend today?
Today, right now, in what's happening in the market, I recommend dated saints and libs.
$20 gold pieces that have a little bit better date than just your common dates.
Our common date coins are going to have populations of say anywhere from 20,000 to 30,000 pieces but if we can get into a little bit better dated piece then they have populations of three or four or five hundred pieces which is you know anywhere from 50 to 100 times rarer than the common date ones and right now because it was
Coming off the end of the year from November around Thanksgiving time to the end of the year and then the first couple three weeks of January you'll see prices reduced by 10 to 20 percent because all the dealers are wanting and wholesalers are wanting to get rid of their inventory so they don't face any inventory taxes at the end of the year.
So we go out and we buy up coins that we get substantial savings on and we end up passing them on to our clients.
If you have gotten material, call your broker.
If you're already a client, call your broker and ask them about what they have in Dated Saints and Dated Liberties right now.
We can get some of these Dated Saints and Dated Liberties for almost the same price as we can get the common day stuff.
We can get a coin that's two, three hundred times rarer in a market driven by supply and demand.
You figure it out.
If there's 20,000 coins in a common date and there's 300 coins in the dated piece in a market driven by supply and demand, which one of those supplies do you think is going to dry up a lot faster and your coin grow up quicker?
Doesn't take a lot of scientists to figure out.
And those markets right now are very, very good.
And I would highly recommend that if you haven't done a portfolio, do it today.
The prices are not going to be any cheaper than what they are right now.
We've got great, just a great opportunity to take advantage of the markets at this particular time in the cycle.
And number two, if you've already put a portfolio together and you haven't added to it, and this is the best time of the year to do so.
In conclusion, and I need to wrap this up here, the difference between, and I hope this doesn't offend you, but I hope it drives the point home because there's hundreds and hundreds of people that have gotten information from it.
Maybe even thousands and hundreds and hundreds of people that have not done anything.
I thank the ones that have and I congratulate you that you've done something to better your future.
But for those of you that haven't, do something.
The difference between a moron and an intelligent person is they both receive information.
They analyze the information.
They know what they need to do, but the moron doesn't do anything.
It's like he stands in front of a railroad track and he sees this train coming and splat.
He just doesn't move.
He's just frozen on the track and he's like a deer standing in the road.
He sees those headlights and he just gets petrified and freezes and he doesn't do anything and boom, it's on top of him and he's dead.
Well, that's what's going to happen financially to those people that do not act.
Where the intelligent person hears the facts, sees it, and then begins to act upon it.
Hey, even if it's a little bit.
Do something.
Call your broker.
Call for the book.
1-800-289-2646.
1-800-BUY-COIN.
Call tonight.
Call over the weekend.
Call Monday.
Call next week.
Call your broker.
And get yourself started.
And get yourself protected.
Because it's going to happen.
Sooner or later it will happen.
And you need to be protected.
Thanks folks.
Thanks Bill if you're listening for letting me be on the program and God bless you all.
Have a great weekend and I will probably be talking to you next week sometime in the middle of the week when we do the market update.
Thank you Gene Miller.
Well that wraps up another show folks.
Good night and God bless.
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