sample of "how to buy and invest in physical gold and silver bullion"

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Protecting yourself from the coming

hyperinflationary depression

Contrarian Investors' Journal



The physical edition (ISBN: 978-1-4452-0919-7) andelectronic edition of this book can be purchased at:

http://investbuygoldbullion.inspiriting.com/BuyTheBook.html



Published by:

Inspiriting.comPostal Address: PO Box 427, Blacktown, NSW 2148, AustraliaEmail Contact: [email protected]

Website: http://inspiriting.com

All rights reserved. No part of this book may be reproduced or transmitted inany form or by any means, electronic, mechanical or otherwise, including photocopying, recording or by any information storage and retrieval system, without prior permission from the author, except for the inclusion of brief quotations in a review.

Every effort has been made to ensure that this book is free from error or

omissions. However, the Publisher, the Authors, the Editor or their respectiveemployees or agents, shall not accept responsibility for injury, loss or damageoccasioned to any person acting or refraining from action as a result of material in this book whether or not such injury, loss or damage is in any way due to any negligent act or omission, breach of duty or default on the part othe Publisher, the Authors, the Editor or their respective employees or agents.

This publication is general information only, which means it does not take intoaccount your investment objectives, financial situation or needs. You shouldtherefore consider whether any recommendations are appropriate for your

needs before acting on them. Nothing contained herein constitutes, isintended, or deemed to be — either implied or otherwise — investmentadvice. This publication reflects the personal views and opinions of its authorsand that is all it purports to be. It is prepared from a wide variety of sources, which to the best of its knowledge and belief, considers accurate. You shouldmake your own enquiries about any published information and we strongly suggest you seek advice and conduct due diligences before acting upon any recommendations.

Un-attributed quotations are by Contrarian Investors' Journal

Copyright © 2009 by Contrarian Investors' Journal. All rights reserved.



Table of Contents

PREFACE ................................................................................................................................1

CONVENTION........................................................................................................................2

A BRIEF HISTORY OF MONEY..........................................................................................3

BARTERING ............................................................................................................................3 I NDIRECT EXCHANGE .............................................................................................................4 COMMODITY MONEY .............................................................................................................4 GOLD AND SILVER AS MONEY ...............................................................................................4

Monetary unit.....................................................................................................................5 PRIVATE COINAGE SYSTEM....................................................................................................5 GOVERNMENT MINTAGE ........................................................................................................5 WAREHOUSE R ECEIPTS FOR GOLD .........................................................................................6

CENTRAL BANKING ................................................................................................................6 THE BREAKDOWN OF MONEY.........................................................................................7

CLASSICAL GOLD STANDARD (1815 – 1914)..........................................................................7 WORLD WAR 1 AND AFTER (1914 – 1925).............................................................................8 GOLD EXCHANGE STANDARD (1926 – 1931)..........................................................................8 FLUCTUATING FIAT MONEY (1931 – 1945)............................................................................9 BRETTON WOODS AND THE NEW GOLD EXCHANGE STANDARD (1945-1968) .......................9 U NRAVELLING OF THE BRETTON WOODS (1968 – 1971)......................................................10 BREAKDOWN OF THE BRETTON WOODS (AUGUST – DECEMBER 1971)................................10 THE SMITHSONIAN AGREEMENT (DECEMBER 1971 – FEBRUARY 1973)...............................10 FLUCTUATING FIAT MONEY (MARCH 1973 – ?) ...................................................................10

WHAT IS INFLATION AND DEFLATION?.....................................................................11 MAINSTREAM DEFINITION OF I NFLATION.............................................................................11 CORRECT U NDERSTANDING OF I NFLATION ..........................................................................12

What is fiat money?..........................................................................................................12 Correct definition of inflation ..........................................................................................13

WHY SHOULD YOU INVEST IN GOLD AND SILVER?...............................................15

A N U NRELIABLE SCALE .......................................................................................................15 USING THE WRONG SCALE...................................................................................................16 IS GOLD A BUBBLE SINCE IT HAS NOT MUCH I NTRINSIC VALUE? .......................................17 FUNDAMENTAL R EASONS FOR ACCUMULATING GOLD........................................................18

Lack of confidence in fiat money......................................................................................18 Lack of trust in the financial system.................................................................................19 HOW SHOULD YOU SEE GOLD? HEDGE/I NSURANCE OR I NVESTMENT? ...............................20 IS GOLD A PRICE I NFLATION HEDGE? ..................................................................................22

GLOBAL FINANCIAL CRISIS, PANIC OF 2008 AND WHAT HAPPENS NEXT? .....23

CREDIT I NFLATION ...............................................................................................................24 DEFLATION IN THE GLOBAL FINANCIAL CRISIS ...................................................................24 WHAT COMES NEXT? HIGH INFLATION OR DEFLATION?......................................................25 IS THE GFC THE FINAL CRISIS?.............................................................................................27



WHY PHYSICAL INSTEAD OF PAPER?.........................................................................29

MAINTAINING YOUR I NTERNAL CONSISTENCY ....................................................................29 WHY YOU MAY WANT TO DISTRUST PAPER GOLD/SILVER .................................................30 OTHER R EASONS FOR GOING PHYSICAL ..............................................................................30

STORING YOUR GOLD AND SILVER.............................................................................32

BURY/HIDE U NDER A SECRET LOCATION ............................................................................32 AT HOME .............................................................................................................................33 BANK ’S SAFE DEPOSIT BOX .................................................................................................33 SEGREGATED BULLION VAULT STORAGE ............................................................................34 U NALLOCATED VAULT STORAGE.........................................................................................35

TYPES OF PHYSICAL GOLD AND SILVER...................................................................36

JEWELLERY ..........................................................................................................................36 BULLION COIN .....................................................................................................................37

Bullion Coin Issues ..........................................................................................................37 Premium Over Spot Price ................................................................................................37 Difference Between Proof and Un-circulated Coins ........................................................38 Foreign Bullion Coins......................................................................................................38

BULLION BAR .......................................................................................................................38 NUGGETS .............................................................................................................................39 NUMISMATIC COINS .............................................................................................................39 WHICH PHYSICAL FORMS OF GOLD AND SILVER SHOULD YOU I NVEST I N?.........................39

Advantages of Bullion Coins............................................................................................39 Advantages of Bullion Bars..............................................................................................40 If You Decide to Go For Bullion Bars..............................................................................40

DISCERNING FOOLS’ GOLD FROM REAL GOLD ......................................................41

THREE IMPORTANT QUALITIES OF BULLION ........................................................................41 Specific Gravity................................................................................................................42 Colour..............................................................................................................................44 Sound ...............................................................................................................................44

FLUSHING OUT THE FAKES ..................................................................................................45 Quick and Dirty Method of Measuring SG.......................................................................45 Touchstone Testing ..........................................................................................................46

Know Your Bullion Coins’ Specification..........................................................................46 Using the Fisch Instruments.............................................................................................46

PROFESSIONAL ASSAYING METHODS ...................................................................................47 Fire Testing......................................................................................................................47 Coupled Plasma Spectrometry (ICP) ...............................................................................47

X-ray fluorescence (XRF) ................................................................................................47 FINALLY…...........................................................................................................................47

BULLION COIN SPECIFICATIONS .................................................................................48 AUSTRALIA ..........................................................................................................................48 AUSTRIA...............................................................................................................................49 BELGIUM ..............................................................................................................................49 CANADA...............................................................................................................................49 CHILE ...................................................................................................................................50 CHINA ..................................................................................................................................50 COLUMBIA ...........................................................................................................................50 FRANCE ................................................................................................................................50 GERMANY ............................................................................................................................50



GREAT BRITAIN....................................................................................................................51 HUNGARY ............................................................................................................................51 ISLE OF MAN ........................................................................................................................51 ITALY ...................................................................................................................................52 MEXICO................................................................................................................................52

NETHERLANDS .....................................................................................................................52 PERU ....................................................................................................................................52 SOUTH AFRICA .....................................................................................................................52 SWITZERLAND ......................................................................................................................53 U NITED STATES....................................................................................................................53 USSR...................................................................................................................................54

THE SILVER LINING..........................................................................................................55

BRIEF HISTORY OF SILVER ...................................................................................................55 USAGES OF SILVER ...............................................................................................................56 WHY YOU WILL PROFIT MORE FROM I NVESTING IN SILVER THAN I N GOLD.......................57

Is Silver Rarer Than Gold?..............................................................................................57 Third Turning Point—Net Buying Of Silver.....................................................................58 Can Mining Supply Of Silver Fulfil Global Needs? .........................................................58

Possible Fuses That Can Ignite Silver Prices...................................................................59 TYPES OF PHYSICAL SILVER .................................................................................................62

Sterling Silver ..................................................................................................................62 Britannia Silver................................................................................................................62 Fine Silver........................................................................................................................63

WHICH TYPE OF SILVER TO I NVEST I N? ...............................................................................63

A TAX TRICK.......................................................................................................................64

DISCLAIMER .........................................................................................................................64 VIENNA PHILHARMONIC SILVER COIN .................................................................................64 CIRCUMVENTION OF CURRENCY IMPORT R EGULATIONS .....................................................65

TAKING THE FIRST STEP ................................................................................................66 K NOW THE MARKET PRICE ..................................................................................................66 FIND A DEALER ....................................................................................................................66

Bullion Dealers................................................................................................................67 Coin Shops.......................................................................................................................67

CREDIT IS OUT, CASH IS I N ..................................................................................................67

WHERE TO LEARN MORE ...............................................................................................68

SUBSCRIBE TO THE CONTRARIAN I NVESTORS’ JOURNAL .....................................................68 TAKE PART I N THE CONTRARIAN I NVESTORS’ GOLD FORUM ..............................................69 SIGN UP AT I NVESTBUYGOLDBULLION.COM FOR ADDITIONAL MATERIALS ......................69

REFERENCES ......................................................................................................................70



1

PPPr r r eeef f f aaaccceee With regard to the money of Kambalu the great be called a perfect alchymist for he makes it himself He orders people to collect the bark of a whose leaves are eaten by the worms that spin silk thin rind between the bark and the interior wood is taken and from it cards are formed like those of paper all black He then causes them to be cut into pieces and each is declared worth respectively half a livre a whole one a silver grosso of Venice and so on to the value of ten bezants All these cards are stamped with his seal and so many are fabricated that they would buy all the treasuries in the world He makes all his payments in them and circulates them through the kingdoms and provinces over which he holds dominion and none dares to refuse them under pain of death All the nations under his sway receive and pay this money for their merchandise gold silver precious stones and whatever they transport buy or sell The merchants often bring to him goods worth 400,000 bezants and he pays them all in these cards which they willingly accept because they can make purchases with them

throughout the whole empire He frequently commands those who have gold silver cloths of silk and gold or other precious commodities to bring them to him Then he calls twelve men skilful in these matters and commands them to look at the articles and fix their price Whatever they name is paid in these cards which the merchant cordially receives In this manner the great sire possesses all the gold silver pearls and precious stones in his dominions When any of the cards are torn or spoiled the owner carries them to the place whence they were issued and receives fresh ones with a deduction of 3

per cent If a man wishes gold or silver to make plate girdles or other ornaments he goes to the office carrying a sufficient number of cards and gives them in payment for the quantity which he requires.This is the reason why the khan has more treasure than other lord in the world nay all the princes in the together have not an equal amount.

Chapter XXVI, Paper Money Immense Wealth of the Great Khan,The Travels of Marco Polo



2

CCCooonnnvvveeennntttiiiooonnn In this book, the following convention will be used:

C O N V E N T I O N K E Y

[ Further Reading ] – To illustrate certain an idea further with examples, you can look up in

Further Reading, in which its source can be obtained in the Reference section of this book..

[ Material ] – If you are curious about the origin of an idea, you can look up in

Material, in which its source can be obtained in the Reference section of this book.

[ Section ] – This tells you that an idea is related to another idea that is mentioned

in Section of this book.



AAA bbbr r r iiieeef f f hhhiiissstttooor r r yyy ooof f f

mmmooonnneeeyyy The origins of money

n this chapter, we will take a highly simplified look at how money developedinto what it is today over the course of history [ What has governmentdone to our money? ]. Without this background understanding, one cannotunderstand gold.

BarteringIn the beginning of history, mankind simply used barter for economic exchange.Obviously, such direct exchange of goods and services will not let an economy develop beyond the primitive level. There are two practical problems with barter:

• Coincidence of wants—Exchange can only occur if you have something that I want, and I have something that you want. However, if you havesomething else, no exchange will occur. Therefore, much energy will beexpended in searching for coincidental wants, which is hardly productive.

• Indivisibility—Suppose I have a horse and I want eggs, bread, shoes andclothes, how can I divide my horse to exchange for more than one thing?

Because of the limitation of bartering, another method of economic exchange wasdeveloped (through trial and error) to accommodate a greater economy.

Chapter

1

I



TTThhheee bbbr r r eeeaaakkkdddooowwwnnn ooof f f

mmmooonnneeeyyy From the classical gold standard to fiat money (1815 - current)

e will continue from the previous chapter and take a look at how theglobal monetary system broke down over the course of two centuriesinto what it is today [ What has government done to our

money? ].

Classical Gold Standard (1815 – 1914) At that time, the world was in a classical gold standard. Each national currency (e.g.franc, pound, dollar, etc) was merely a name for a pre-defined weight of gold. Forexample, the dollar was defined as 1/20 of an ounce of gold while the pound wasdefined as slightly less than ¼ of an ounce. Therefore, the ‘exchange rates’ betweenthe currencies were fixed by definition.

Every nation’s money was pegged to gold, which means that in effect, there wasonly one monetary medium.

One very important point to remember is that gold was not arbitrarily chosen andagreed upon by governments. Instead, it was the choice of the free-market over thecourse of centuries. The gold standard acted as automatic stabiliser to keep balanceof payment in balance since each national currency was pegged against gold. Acountry that

Chapter

2

W



WWWhhhaaattt iiisss iiinnnf f f lllaaatttiiiooonnn

aaannnddd dddeeef f f lllaaatttiiiooonnn??? Understanding the true meaning of inflation and deflation

ow that you have understood how money developed and how themonetary system broke down over 60 years, we will look at afrequently misunderstood phenomenon—inflation (and its much rarer

counterpart, deflation).

Mainstream Definition of InflationInflation is defined as the general and persistent rise in prices (which include wages) by mainstream economics. Another way to look at inflation is to see it as thedecreasing purchasing power of money.

This generation has the idea that prices for everything will rise in the long run. All of

us assume that a dollar in twenty years time will buy less than a dollar today. Although a million dollars may be enough for retiring today, obviously it will not beenough for young working adults who plan to retire in 40 years time.

What is surprising is that in 6000 years of human civilisation history, most of thephenomenon of net inflation occurred in the late 1940s to around 1990. The worstof the inflation occurred in the 1960s to early 1990s. The idea that prices foreverything will have to rise continuously every year is a relatively new one.

Why is this so?

Chapter

3

N



WWWhhhyyy ssshhhooouuulllddd yyyooouuu

iiinnnvvveeesssttt iiinnn gggooolllddd aaannnddd

sssiiilllvvveeer r r ???

Becoming a contrarian gold and silver investor and not be a speculator who ‘invest’ in gold and silver

ith a firm foundation in the history of money and the correctunderstanding of inflation/deflation, we will look at what should bethe fundamental reason for investing in gold and silver. Many of those who ‘invest’ in gold and silver are actually speculators. Those

who truly understand the fundamental reason are contrarian investors.

An Unreliable Scale

Let’s suppose you want to compare the length of two boxes. You may use a ruler tomeasure their lengths and from the results of your measurement, conclude whichone of them is longer. A ruler can do such a job because its length is reasonably consistent for the foreseeable future.

Now, imagine that ruler is as elastic as a rubber band. Do you think it is still a usefultool to measure the length of the boxes? An elastic ruler is useless because you canalways make up the measurement of the boxes to whatever you please just by stretching the ruler such that the edge of the box is aligned to any intendedmeasurement markings in the ruler.

Chapter

4

W



GGGlllooobbbaaalll FFFiiinnnaaannnccciiiaaalll CCCr r r iiisssiiisss,,, PPPaaannniiiccc ooof f f

222000000888 aaannnddd wwwhhhaaattt

hhhaaappppppeeennnsss nnneeexxxttt???

Can there be hyperinflation?

he Global Financial Crisis (GFC) began with sub-prime mortgage lossesin the US in 2007. Back then, many financial market pundits andeconomists believed that it was just a storm in a teacup.

How wrong were they!

The problem grew bigger, culminating into the Panic of 2008 as commodity and

stock prices fell into a tailspin during the second half of 2008. Global trade and thereal economy fell off a cliff too. The Baltic Dry Index, a barometer of world trade,plunged 90%. Oil prices fell from a high of almost US$150 to just over $30 over thespace of months.

What happened? What will be the future?

Chapter

5

T



WWWhhhyyy ppphhhyyysssiiicccaaalll

iiinnnsssttteeeaaaddd ooof f f pppaaapppeeer r r ??? Reasons for investing in physical gold/silver instead of paper gold/silver

here are many ways to invest in gold and silver. They can be broadly divided into two categories: paper gold/silver (e.g. gold ETFs, CFDs,futures, options, options on futures, gold certificates, and even gold

mining stocks) and physical gold/silver (e.g. bullion coins and bars). Why isinvesting in physical gold/silver preferred over paper gold/silver?

Maintaining Your Internal Consistency As was mentioned before, the two fundamental reasons for investing in gold are:

• Lack of confidence in fiat currency.

• Lack of trust in the financial system.

1. The problem with paper gold is that it is basically financial assets disguisedas gold. As with all financial assets, paper gold is someone else’s liability. The value of your paper gold asset is as good as someone else’s ability tohonour a promise (to return your physical gold) made to you. Therefore,your paper gold assets depend on the solvency and trustworthiness of yourcounter-party. Physical gold, on the other hand,

Chapter

6

T



SSStttooor r r iiinnnggg yyyooouuur r r gggooolllddd

aaannnddd sssiiilllvvveeer r r Keeping your investments physically safe

ith the advent of computers and the Internet, investing has become ahighly convenient activity, as buying and selling financial assets canbe done with a click of the mouse button because they are intangible.

In contrast, investing in physical gold and silver introduces a practical problem— how to store them securely at reasonable cost. Below are some of your storageoptions.

Bury/Hide Under a Secret Location This is like acting out Robert Louis Stevenson’s Treasure Island in real life. Since goldis an inert metal that does not corrode, you do not have to worry about rust anddecay. Silver, on the other hand, tarnishes. Therefore, it has to be properly sealedbefore burial. An ideal burial location should fulfil these properties:

1. Secret—obviously, no one should know where your gold and silver areburied.

2. Remote—it is easier to hide them as there are fewer people to watch you. Also, the fewer people around, the safer it is.

Chapter

7

W



TTTyyypppeeesss ooof f f ppphhhyyysssiiicccaaalll

gggooolllddd aaannnddd sssiiilllvvveeer r r Knowing the forms of physical gold and silver

ow that you have decided to invest in physical gold and silver and havea plan to store them, the next step is to understand the nature of their various physical forms so that you can make an informed investmentdecision.

Below are the various physical forms of gold and silver.

JewelleryOne of the greatest demands for gold comes from India in the form of jewellery. Inthe absence of a formal banking system in places like rural India, jewellery functionsas a store of wealth. Other reasons for wearing jewelleries include aestheticadornment, cultural expectations, social purposes, and so on.

Since pure gold is too soft and malleable for the wear and tear of everyday use, goldjewelleries are usually made up of alloys. The number of “carats” defines the purity of the gold alloy. For example, 24-carat is pure gold while 18-carat is 75% gold [ Carat (Purity) ].

The important thing about gold jewellery is that its cost is always at a large premiumfrom the market price (spot price) of the actual gold content. This is because largepart jewellery’s price comprises of the work and skills involved in fashioning it. Forthis reason, you may not want to invest in physical gold in the form of jewellery.

Chapter

8

N



DDDiiisssccceeer r r nnniiinnnggg f f f oooooolllsss’’’

gggooolllddd f f f r r r ooommm r r r eeeaaalll gggooolllddd How to tell whether the physical gold and silver is real or not

or beginners who are considering whether to invest in physical gold andsilver, their number one concern is protecting themselves fromunscrupulous bullion dealers. If you are facing such a concern, your

primary question will be: How do I tell the difference between counterfeitbullion from the real one?

This chapter will not turn you into a bullion expert who can smell fools’ gold from amile away. But, it will provide you with the basics to get you started in the rightdirection.

Three Important Qualities of Bullion

The number one rule is to stay away from numismatic coins!

Almost 99 percent of counterfeit coins are numismatic coins, not bullion coins. As we mention before, numismatic coins derive their value from other qualities such asrarity, beauty, purity, condition, age and so on. These qualities are subjective andmuch harder to verify and measure. Therefore, they are far easier to replicate.

Bullion coins, on the other hand, derive most of their value from the precious metalcontent. A counterfeiter must therefore imitate the precious metal by substituting it

Chapter

9

F



BBBuuulllllliiiooonnn CCCoooiiinnn SSSpppeeeccciiif f f iiicccaaatttiiiooonnnsss

The dimensions, weight, purity, face value of various bullion coins around the world

n this chapter, we will list the various specifications of bullion coins produced

by mints all over the world. Please note that the list is not exhaustive and may not include all the coins issued by their respective mints.

AustraliaCoin Face

ValueWeightof Gold

(oz)

Weight of

Coin(oz)

Diameter (mm)

Thickness

(mm)

GoldPurity

(%)

Lunar Series

1 oz

AU$

100

1.00 1.00 32.1 2.65 99.99

Lunar Series

½ oz

AU$

50

0.50 0.50 25.1 2.20 99.99

Lunar Series

¼ oz

AU$

25

0.25 0.25 20.1 1.80 99.99

Lunar Series

1/10 oz

AU$

15

0.10 0.10 16.1 1.30 99.99

Lunar Series

1/20 oz

AU$

5

0.05 0.05 14.1 1.40 99.99

Chapter

10

I



T H E S I L V E R L I N I N G

13

TTThhheee SSSiiilllvvveeer r r LLLiiinnniiinnnggg

Why silver will be a better investment than gold in the coming years

o far, we have focused on gold much more than its forgotten sister, silver.Many investors see silver as inferior to gold because it is much cheaper. Butignoring silver will be a big mistake because it is likely to make a muchgreater percentage gain than gold when the day of high inflation (or

hyperinflation) arrives. In this chapter, we will explain the reason.

Brief History of Silver Back in the first chapter, we mentioned that gold and silver were chosen by the freemarket to function as money.

In theory, a single metal (gold) can be established as money. But in reality, silverstubbornly remained to challenge gold. The free market used silver because being more abundant than gold, it was useful for small change. The ‘exchange rate’between gold and silver fluctuated, depending on supply and demand. Historically,

each unit of gold was priced as 12 units of silver on average. There were variationsacross different countries and time period.

Then governments intervened into the free market and fixed the exchange ratebetween gold and silver. By fixing the exchange ratio between them, it introducedthe situation whereby one will always be artificially undervalued or overvaluedrelative to each other as supply and demand fluctuated. When that happens,Gresham’s Law will start [ Artificially undervalued coins: governmentinterference cripples the free market ].

Chapter

11

S



AAA TTTaaaxxx TTTr r r iiiccckkk

Tax advantage of bullion coins exploited by the rich

s was mentioned before, bullion coins have legal tender value that is farbelow the market value of the precious metal content. This discrepancy is being exploited by some of the rich to avoid tax. In this chapter, you

will learn how they do it.

Disclaimer You must note that what follows in this chapter must NOT be construed asrecommendation or advice to follow the example of those who avoid tax. Instead,this chapter is meant to be for educational purpose only.

Taxation is a complex topic that is beyond the scope of this book. Therefore, pleaseseek professional advice before you try any of those tax tricks. Remember, if you want to play cat and mouse with the government, it pays to remember who themouse is.

Therefore, proceed at your own risk if you want to try any of the tax tricks.

Vienna Philharmonic Silver Coin Take a look at the silver bullion coin below:

Chapter

12

A



TTTaaakkkiiinnnggg ttthhheee f f f iiir r r sssttt

sssttteeeppp The first things to do if you decide to invest in

physical gold and silver bullion

f you have never invested in physical gold and silver bullion before, it can feellike a step into the unknown. Since financial assets and real estates are themore popular asset classes among the masses, there are plenty of books,

friends, clubs, Internet forums and courses for the budding investor toconsult. For the budding physical precious metals investor, he or she is more likely to be alone. Hence, this chapter is to help you make that first step into the world of physical bullion.

Know The Market PriceBefore you take the first step, you have to be kept up-to-date with the currentmarket prices of gold and silver. With that knowledge, you will be able to know

which dealer gives you the best value for money. Prices vary among dealers, so it isbest to shop around for the best value for money. You can obtain charts the pastand current market prices at http://cij.inspiriting.com/?page_id=748.

Find a Dealer The very first step is to find a trustworthy gold and silver dealer that will give yougood service and advice. This is where you have to rely on your street-smart skills tosniff out a good one that is suitable for you.

Chapter

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WWWhhheeer r r eee tttooo llleeeaaar r r nnn

mmmooor r r eee Continuing your education in investing

ince gold and silver prices are affected within the context of globaleconomic and political trends, it pays to understand what is going on in thebig picture.

Also, since physical gold and silver bullion investors are the minority among investors, it is more beneficial for the budding bullion investor to get in touch andnetwork together with other like-minded people.

Since this book is just the starting point for the budding bullion investor, there is alot more to learn. Therefore, below are some ways for you to further yourinvestment education.

Subscribe to The Contrarian Investors’

Journal A subscription to the Contrarian Investors’ Journal ( http://cij.inspiriting.com ) ishighly recommended. There, you will find the latest news and analysis on gold andsilver, among other investment topics.

The Contrarian Investors’ Journal is highly recommended because it is one of therare few investment publications that dare to think outside the box, violate thestatus quos, challenge conventional views, criticise mainstream opinions, and offer

Chapter

14

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W H E R E T O L E A R N M O R E

17

in-depth insights that are highly original in nature. Having said that, this is aninvestment journal not for everyone—its contrarian style of thought goes againstthe grain of conformist thinking and crowd emotions. But in the long run, it is suchkind of thinking that separates the legendary investors of excellence from theaverage. But for those who want to understand how the best of the very bests

investors think (and they think differently from the rest), this publication is highly recommended.

Take Part In The Contrarian Investors’

Gold ForumFor the readers of the Contrarian Investors’ Journal, there is a thriving community of discussion forum at the Contrarian Investors’ Forum( http://forum.inspiriting.com/viewforum.php?f=2 ) where they can ask questions,

debate, discuss, share ideas and network with each other.

Within this forum, there is a section for investors interested in gold, silver and otherprecious metals at http://forum.inspiriting.com/viewforum.php?f=16.

Sign Up At InvestBuyGoldBullion.com

For Additional Materials As additional learning materials and information on bullion investing are available,

they will be posted at www.investbuygoldbullion.com. Sign up to the mailing list tobe kept updated on their availability.



18

RRReeef f f eeer r r eeennnccceeesss A New Austrian Coin Trick

http://www.spiegel.de/international/europe/0,1518,633772,00.html

Artificially undervalued coins: government interference cripples the free

market http://cij.inspiriting.com/?p=56

Bernankeism and hyper-inflation

http://cij.inspiriting.com/?p=549

Buffett's Silver Streak

http://www.time.com/time/magazine/article/0,9171,138593,00.html

Carat (Purity)

http://en.wikipedia.org/wiki/Carat_(purity)#International_caratages_of_gold_jew

ellery

Demand for money, inflation/deflation & its implicationhttp://cij.inspiriting.com/?p=595

Epic, unprecedented inflation http://cij.inspiriting.com/?p=199

Guide to Investing in Gold and SilverMichael Maloney, Guide to Investing in Gold and Silver, Rich Dad’s Advisors,http://tinyurl.com/investgoldsilver

Human Action: A Treatise on Economics Ludwig von Mises, Human Action: A Treatise on Economics,http://tinyurl.com/nzvsrg

Inflation: An Unworkable Fiscal Policyhttp://www.mises.org/efandi/ch20.asp

Is the GFC the final crisis? http://cij.inspiriting.com/?p=693



19

LBMA: Good Delivery List of Acceptable Refiners: Gold http://www.lbma.org.uk/good_delivery_gold.html

Marc Faber vs Steve Keen in inflation/deflation debate- Part 1: Steve Keen’smodel


Marc Faber vs Steve Keen in inflation/deflation debate- Part 2: Marc Faber’s view http://cij.inspiriting.com/?p=657

Money for nothing http://news.silverseek.com/TedButler/1193161018.php

A painful cleansing or pain avoidance at all cost?


Properties of good money http://cij.inspiriting.com/?p=391

Recipe for hyperinflation http://cij.inspiriting.com/?p=337

Silver Leasing or Silver Fleecing http://tinyurl.com/silverfleecing

Surge in growth in gold ETF holdings has potential downside too http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=78322&sn=Detail

The difference between money and credit http://cij.inspiriting.com/?p=507

Why silver will be a better investment than gold in the coming years? http://cij.inspiriting.com/?page_id=668

What has government done to our money? Rothbard, Murray N., What has government done to our money?,http://tinyurl.com/governmentmoney

What should be your fundamental reason for accumulating gold? http://cij.inspiriting.com/?p=132



CATEGORY: Personal Finance, Investing

Are you prepared for the coming

hyperinflation?

The United States with ‘helicopter’ Ben Bernanke at the helm of

the Federal Reserve, is committed to money printing to solve

America’s economic woes. To the extent that the US dollar is

the world reserve currency, it will affect the rest of the world.

As Marc Faber, editor of the Gloom, Boom, Doom report said, “Had I been the

professor who had judged his thesis for his PhD, I would not have let him pass. I

would have told him actually, ‘Mr. Bernanke, I have one condition in which I let

you pass, and this is you never join a central bank, because you are a destroyer

of money as store-of-value function, of the function of money being a unit of

account. And I tell you Mr Bernanke with his monetary policy, he will destroy

the US dollar.”

How is that possible?

Since 1971, when President Nixon broke the final link between gold and the US

dollar, the global monetary system is running on a completely fiat basis for the

very first time in human history. Hence, the integrity of ‘money’ is as good asthe integrity of governments, central banks and the financial system (the Global

Financial Crisis showed how much integrity they have). Today, ‘money’ is an

abstract intangible that can be created out of thin air.

In this book, you will:

• Understand why the future of financial assets and fiat money are

doomed as the US government is facing bankruptcy and why you should

invest in physical gold and silver bullion to hedge yourself against that

• Learn how to store your gold and silver safely

•

Know the types of physical gold and silver and understand which onesto invest

• Tell the difference between the reals and the fakes

• Understand why silver can be a better investment than gold

• Discover a tax trick used by the rich

• Pitfalls and strategies on investing in physical gold and silver

You are either a contrarian or a victim. Be on the

winning side!

sample of "how to buy and invest in physical gold and silver bullion"

Documents