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Reliably Scarce Vs. Predicatively Plentiful – What’s In Your Wallet? | Precious Metals Blog

Ron Miller : October 5, 2011 5:16 pm : Precious Metals, Uncategorized

After much reading and study I have come to the realization that the property that most differentiates gold bullion money from paper money is the reliable scarcity of gold. In general, things that are rare have more value than things that are plentiful. Also, things that are rare are more likely to retain value or increase in value while things that are plentiful are more likely to lose value as they become more plentiful. Seems simple enough, but its often the simple truths that are the hardest to accept because we think we need to understand them at depths that are not necessary.

In a free market, money is whatever people want it to be, and given a choice, what they want it to be is something that has value and has a reasonable expectation of retaining value should they want to save it for future expenditures. In today’s world, money is what each country’s government says it is and the predominant form of money in every country is that country’s paper currency. This is so, because each country defines their paper money as the only form of money that can be used in the exchange of goods and services. This is referred to as a fiat monetary system. As an example, the US Dollar is money because it is declared to be so by the federal government, not because it arose out of a free market consensus. This current “fiat” monetary system has been in existence for 40 years – since 1971. It will stay in existence for as long as people have confidence in the value of paper money. Stated differently, it will end when that confidence is lost. That confidence will be lost should people believe paper fiat money is not likely to retain value and they see an alternative to it.

Approximately three percent of the US population has started to lose confidence in the US Dollar and have found an alternative. These are the people who have taken some of their paper US Dollars and exchanged them for ounces of gold and silver coins.

Paper money, like everything else, loses value the more of it there is. Paper money that is added to the fiat monetary system comes in the form of governments spending more money than they collect in taxes – otherwise known as budget deficits or deficit spending. The longer the government engages in deficit spending the more the value of paper money decreases. For the most part, people who buy and own gold and silver bullion do so because they don’t see an end to deficit spending and the resulting devaluation of paper money. They also know that gold and silver was money before governments decided to replace gold and silver money with paper money. Governments do not want to use gold and silver as money because politicians want to be able to spend money they do not have. Gold and silver bullion are real tangible substances – you either have them or you don’t – you cannot make gold and silver from nothing. You have to find it, get it out of the ground and form it into coins. This is a very expensive and time consuming process. It takes years to do. This is why gold and silver coins retain value over long periods of time. Paper money can be produced quickly, cheaply and without limitation. This is why paper money loses value over relatively short periods of time.

Truth is a funny thing. It favors neither prince nor pauper. It takes no sides. It does not matter what I think, what you think, what your neighbor thinks or what your friend or co-worker thinks. Truth will reveal itself whether a lot of people understand it or a few people understand it. Above all, it does not matter what politicians say and think. After all, they created the current system, have done well in it and want it to continue. All you can do is try to become as well informed as you can and then take time to think and continue along this path. Most importantly you need to be open minded and let information speak for itself.

My path has led me to believe that uninterrupted deficit spending with no end in site has consequences. I believe it will result in the devaluation of paper money and its replacement by a tangible substance – something people can rely on for long term stability of value. Indeed, something whose most important property is that of being “reliably scarce” – most likely gold and silver bullion.

The people at greatest risk of paper money devaluation are those who have a lot of paper money and are depending on it having value for the rest of their life and the rest of their loved ones’ life. If this describes you and you have not yet diversified into physical gold and silver, now is the time to think seriously about doing so.

If you have any questions, feel free to give me a call. I will be glad to help you.

Ron Miller, Founder – Atlantic Precious Metals LLC

Phone: 1 (800) APM-GUIDE  or 1 (800) 276-4843

Email: rmiller@1800apmguide.com

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Gold Down – What’s Up? | Precious Metals Blog

Ron Miller : September 23, 2011 3:21 pm : Precious Metals, Uncategorized

With gold down about $100 today (at last look) and about $150 over the past two days, many people are asking what’s going on and many more are taking a deep sigh of relief congratulating themselves for not getting into this gold frenzy thing. To address the first group of people (what’s happening?), my honest answer to that question is – “I don’t know”. I could speculate and offer intelligent sounding explanations but I have a tendency to err on humility and intellectual honesty. The financial markets are so complex that I simply do not have the ability to understand what drives them over short periods of time and I suspect those taking self congratulatory sighs of relief are mere mortals like me, in their cognitive skills – whether they know it or not.

A couple of APM blog posts ago I wrote an article titled – “It’s Time For Critical Thinking About Gold”. In the article and throughout various sections of the APM website (e.g. “Why Own Gold”), I put forth my observations as to why I believe that everyone should have some portion of their long term savings in the form of gold and silver bullion. My Critical Thinking article encouraged everyone to think critically about making the decision to buy or not buy gold and silver bullion for long term wealth preservation. I still firmly believe in my observations. A 3000 year track record of uninterrupted purchasing power is not something to be dismissed lightly, especially when contrasted to the 40 year uninterrupted declining value of paper money not backed by gold. But do your own critical thinking. Also, please feel free to review the APM website, the APM blog postings and the relatively new APM YouTube Channel as sources of information. That’s their purpose. If you come to my conclusion, please give me a call and I will help you.

One final note. I felt compelled to publish this post today because I think it is important that if you believe something to be true based on the best of your abilities you need to stay anchored in those beliefs even during times when it may not be popular. As I have said throughout my professional career, “its okay to be honestly wrong, but it is not okay to be intellectually dishonest”. For all I know, gold may have dropped another $100 during the time it has taken me to draft this post. I still firmly believe that especially during these turbulent financial times, everyone should hold some percentage of their long term savings in the form of physical gold and silver bullion.

Ron Miller – Founder, Atlantic Precious Metals LLC

Phone: 1-800-APM-GUIDE  (1-800-276-4843)

Email: rmiller@1800apmguide.com

 

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What if ………… | Precious Metals Blog

Ron Miller : September 8, 2011 1:52 pm : Precious Metals, Uncategorized

What if:

  • The biggest bubble to burst turns out to be one no one is talking about – the arrogance and hubris of leadership seeking to be served by others, being replaced by the humility and genuineness of leaders seeking to serve others?
  • Those who curry the favor of leaders are as bad as those leaders who seek the adulation?
  • My Dad was right – “You’re rich when you know you have enough” and the world is wrong – “You never have enough”?
  • The Wizard was right when he told the Tin Man to “Always remember that a heart is not judged by how much you love but by how much you are loved by others”?
  • The long term unemployed and under-employed gain at least one advantage over others – they learn a lot about people and really do get to know who their friends are?
  • The 56,000 U.S. soldiers and the hundreds of thousands of Vietnamese who died in an unnecessary “Vietnam War” could tell their story and no more lives would be lost in unnecessary foreign military interventions?
  • Marriage was left to churches to define and contracts between people were left to government courts to enforce?
  • The immoral practice of idolatry was understood to include the moral condemnation of others by religious people based strictly on a lifestyle that poses harm to absolutely no one?
  • The greatest threat to the U.S. is not from terrorists and foreign powers but the debt driven collapse of our currency, the centralization of power in the federal government and the loss of our liberties brought about by the irresponsible fear of terrorists and foreign powers?
  • The U.S. can only be defeated from within and that is what is happening today?
  • It really is true that the value of fiat paper money can go to zero but the value of real tangible assets such as gold and silver bullion and real estate cannot?
  • A return to the gold standard is inevitable and an ounce of gold is defined at a price much higher than an ounce of gold can be purchased today.
  • Conclusions are where the mind comes to rest, but truth is found where the mind pauses to think?

Ron Miller – Founder, Atlantic Precious Metals LLC

1-800-APM-GUIDE  (276-4843)

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Taking the Anxiety Out of Buying Gold and Silver | Precious Metals Blog

Ron Miller : September 2, 2011 1:38 am : Precious Metals, Uncategorized

At APM we have developed an innovative approach for customers to buy gold, silver and platinum bullion. Basically, we will purchase at your predetermined price or return the funds to you. Here’s how it works.

  • You call and we quote you the current price. If this price is within the range you are willing to pay we will complete a price authorization form and email it to you. This form is your documentation that we will only place the purchase order at or below your authorized price.

The price of gold, silver and platinum changes by the second. APM’s price authorization process protects you against sudden jumps in price between the time you call for a quote and the time APM receives your wired funds and places your order. It also give you the full benefit of any sudden drop in price before we are able to place your order. If we cannot make the purchase at or below your authorized predetermined price we simply return all of your funds to you.

No one wants the experience of calling the precious metals dealer, locking into a price, getting off the phone and then watch the gold price drop $50 an ounce before they even have a chance to wire the higher, locked in purchase price funds to the dealer. The APM price authorization procedure relieves this anxiety because we provide you written documentation of your authorized price via email before you wire the purchase funds to us.

With APM’s unique price authorization purchasing process you are assured of one of the following three outcomes.

  • We place the order at your authorized price
  • We place the order below your authorized price and refund the difference to you; or
  • We return all of the funds to you because we are unable to place the purchase order at or below your authorized price.

At APM we know that as more people take an interest in buying precious metals for asset diversification and long term wealth preservation they will not know how to buy it or who to buy it from. At APM we are all about relieving the anxiety of the first time gold and silver buyer. We try to identify all potential stress points in the precious metals purchasing process and address them so that you have a good experience when buying precious metals from APM. We look forward to talking to you and earning your business.

If you have any questions, concerns or suggestions, please call and let us know.

Ron Miller: President, Atlantic Precious Metals

1 (800) APM-GUIDE   (800) 276-4843

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Gold Bullion Coins Versus Gold Numismatic Coins | Precious Metals Blog

Ron Miller : August 31, 2011 2:10 am : Precious Metals

Beware of precious metal dealers advertising to diversify your portfolio with gold, who then go on to talk about gold bullion coins and rare/collectible gold coins as if they were one and the same. There is a huge difference between these two types of gold coins and you need to understand the difference before purchasing any gold coins. Here’s the difference:

Gold Bullion Coins – These are the coins fabricated by the U.S. and other national mints as a means for people to own physical gold. These coins sell for the spot price of gold plus a  percentage over spot to cover the expense of fabrication, distribution and sale to the public. Depending on market conditions, these coins retail in the range of 5% – 9% over the spot price of gold. Examples are the American Gold Eagle and Canadian Gold Maple Leaf Coins.

Rare/Collectible Gold Coins – This category of gold coins includes coins that are no longer in production and coins produced for a limited period of time in small quantities. These coins sell for the spot price of gold plus a percentage over spot to cover the expense of fabrication, distribution and sale to the public, PLUS a premium percentage representing the coin’s value as a collectible. Retail sale prices up to 30% and more over the spot price is not uncommon, including gold dealer fees which are multiples of the dealer fees charged for gold bullion coins. These types of coins are also referred to as numismatic coins.

Dealers love to sell rare/collectible gold coins because they make a lot of money on these coins. However unless you are a very knowledgeable coin collector, this is not the right product if your interest in buying gold coins is for portfolio diversification.

When you call Atlantic Precious Metals we will answer all of your questions and guide you in your selection of gold bullion coins. You will never be talked into buying rare/collectible gold coins.

Ron Miller – President, Atlantic Precious Metals LLC

1-800-APM-GUIDE  (1-800-276-4843)

 

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Do You Own The Gold You’ve Been Sold? | Precious Metals Blog

Ron Miller : August 27, 2011 12:27 am : Precious Metals

People are wise to start having an interest in buying gold. Unfortunately many first time gold purchasers are buying gold the wrong way.

First of all, your gut feeling about buying gold makes perfect sense. Wherever you live – whatever country (especially in the debt ridden countries of the USA, Spain, Italy and Greece), you see your paper currency declining in purchasing power. Your paper money does not buy what it use to buy and you do not know how low it will go or if in fact it will ultimately retain any purchasing power value at all. You know gold has been around for 3000 years and has never lost purchasing power. So you decide to trade some of your paper currency for direct physical ownership of gold bullion, in the form of gold coins and/or gold bars. But understandably you have some concern about having your gold shipped to your home. You don’t know where or how to store it. And as more people take an interest in buying gold because paper currency continues to decline in value, you don’t want your home and family to be a target for thieves. So you decide to buy gold but have it stored on your behalf at a secure precious metals storage facility. No question about it – Rock solid judgement up to this point. But here’s where things break down.

You contact a precious metals dealer. He gives you a price for Gold American Eagles or Canadian Maple Leafs, but tells you, you can buy more gold for your money while also eliminating your storage concern by buying a certificate of gold ownership, buying gold on a financed/leveraged basis or buying into a storage of generic bulk gold bullion. The price seems competitive so you end up buying twenty-five ounces of gold but you never actually selected any particular gold coins to purchase. Many people are buying gold in this manner. The problem is when you buy gold this way you do not actually own any gold in an unencumbered, outright direct manner. How could you – you have not even selected what type and weight of gold coins or gold bars to purchase? True, your account will show you have purchased so many ounces of gold. However, what you actually own is the future promise to convert your “virtual gold” ounces into actual gold coins or bars at an additional cost referred to as a “fabrication cost” or “bar charge cost”. Stop and think about that for a minute. Your motivation for buying gold is to own the most risk free asset (in terms of purchasing power), known to man in the past 3000 years – but in reality you have not eliminated all the risk because you are still relying on another party’s promise to convert your cash into gold bullion at some future time – perhaps at a time when events have reached the point that drove you to the decision to buy gold in the first place. A time when your paper currency has lost all or most of its purchasing power and everyone is rushing into direct physical ownership of gold coins and gold bars – your original intention all along. Also, keep in mind the fabrication/bar charge costs will be determined by market demand for gold coins and bars at the time you elect to convert from virtual ounces to physical gold bullion ounces, not to mention that you are taking a risk that the bulk gold stored on behalf of all “virtual ounce” purchasers may not represent enough gold to meet the demands of everyone wanting to convert to physical gold ownership at the same time.

Folks – You only own gold when you pay for specific pieces of gold bullion (coins or bars) and either have the gold coins or bars delivered to you for storage or have it stored in a precious metals storage facility. If you buy gold in any other manner you are not actually buying gold – rather, you are buying another party’s promise to sell you physical gold bullion at a future time for an additional cost to be determined at that time, if in fact there is enough gold in storage to meet your request and the request of everyone else in your same situation.

As mentioned before. a lot of the gold being purchased today, especially by first time gold buyers, is the “virtual ounce” type described above. This is perfectly fine to do if this is what you intend to do. Perhaps you only wish to have an exposure to gold for a short period of time because you are an active gold trader and like to speculate on short term fluctuations in the gold market. If that’s the case then you should look into this type of product. However, my observation is that this is not the intention of most people who are now starting to have an interest in diversifying into ownership of physical gold bullion. If your purpose in buying gold is to exchange some paper currency for a physical asset that has never been without purchasing power your best product is physical gold bullion in the form of gold coins or gold bars. Why not buy specific gold coins and/or gold bars in the first place, if your purpose in buying gold is to reduce as much future risk as possible?

Point is – You need to understand your motivation for buying gold, you need to buy from a dealer you trust and you need to know, with specificity, exactly what you are buying.

If purchased the right way, gold can be relied on for long term wealth preservation. But be careful who you do business with. Unfortunately some precious metals dealers do not take the time to educate first time gold buyers and match them with the right product.

Atlantic Precious Metals (APM), specializes in providing gold coins and gold bars to first time gold buyers. We work directly with authorized distributors of the US and other national Mints and we only sell gold coins and gold bars that are Mint certified for weight and fineness. We will also help you arrange storage for your gold bullion if you do not want it shipped to your home. APM does not sell gold certificates and we do not talk people into buying “virtual gold”.

If you have any questions, please call 1-800-APM-GUIDE (1-800-276-4843). We will be glad to take the time to answer all of your questions and discuss any of your concerns.

Ron Miller, President
Atlantic Precious Metals LLC

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