| The thrill of this way of diversified investing is that | | | | time and the economic downturn, the choice of |
| you are actually investing using one of the oldest | | | | the Smart Money Crowd was Krugerrands. They |
| ways in the world-gold and silver coins. The thing | | | | were easily available of high quality (.917 purity) |
| is that gold for certain is one of the stablest | | | | and the government permitted their purchase. |
| mediums in the world. Imagine that you and | | | | All though the American Government did not allow |
| Croesus the king of Lydia who lived from 595 BC | | | | private ownership of what was termed "bullion" |
| and died 546 BC actually share something, a | | | | but did allow ownership of foreign coins this soon |
| desire to store wealth through acquiring gold coins. | | | | became an all-time favorite of many professional |
| Actually I will be talking more about coins then | | | | men and women.. The Krugerrand was first |
| bullion but it is equally as financially stable to collect | | | | minted in about 1967 and soon fulfilled the need |
| but doesn't have the numismatic value of coins. | | | | for a stable and easily portable one ounce coin |
| So what we are looking at is an investment in a | | | | with a purity factor of .917. Its sort of amusing to |
| product that you can hold in your hand, has stable | | | | me that Paul Kruger's likeness was on a coin |
| value and can be a hedge against severe market | | | | which was probably made from the gold |
| or especially economic downturns. Cool huh? | | | | discovered at Witwatersrand in South Africa and |
| Can you imagine getting the same thrill from a | | | | for which he once said that the discovery " will |
| beautiful and expensive gold piece and then hold a | | | | cause our land to be soaked in blood." How right |
| notice of the purchase of stock. Although ones | | | | he was. But gold has always had that reputation. |
| value may at that moment be more valuable than | | | | A careful check of the spot market for gold on |
| the other-for sheer awe nothing beats the feel of | | | | the day this article was written shows that the |
| a gold coin. a Speaking of awe at the sight of a | | | | bid was $662.83 and the ask was $665.63. To |
| gold coin, my wife and I visited Charleston, SC | | | | give you some thoughts about the stability and |
| last month and were privileged to visit the | | | | usefulness as a hedge against economic fears-this |
| restoration of the CSS Hunley. For those who | | | | comment came from a precious metal trader in |
| don't know, the CSS Hunley was the first | | | | Europe, "if we can get above the resistance to an |
| recorded combat submarine that actually sunk a | | | | increase in gold prices from 667.00 it should easily |
| wooden hulled vessel off Charleston Harbor during | | | | run up to the $700.00s in price." And a comment |
| the war between the states. One of the | | | | from a bank in Europe suggested that recently |
| recovered artifacts was a gold $20.00 piece that | | | | precious metals fell somewhat due to the |
| the owner had had in his pocket during the battle | | | | quarter-end squaring by funds (that invest heavily |
| of Shiloh. He had been shot in the hip the bullet | | | | in metals) after the metals failed to break above |
| hitting the coin in his pocket. The coin saved his | | | | the resistance levels. Further the situation |
| life but was bent. The owner had a jeweler write | | | | surrounding the incident of the seizures of the |
| on the coin the date and circumstances of the | | | | British Navy personnel by Iran continued to fuel |
| battle that stated that the coin saved his life.. We | | | | safe-haven interests and supply concerns for |
| saw this coin 143 years later just as shiny as new | | | | crude oil should the situation escalate." For what it |
| but with the marks from the bullet. What do you | | | | is worth most analysts are bullish on the |
| think that a coin like that was worth? Priceless? It | | | | near-term effects of the bid and ask prices of |
| certainly was then to its owner. Or could you | | | | gold and take the longer view that gold remains |
| even place a price on it? | | | | the place for the safe-haven of money during |
| Now for anyone to find the idea of gold coin | | | | troubled times. And I might add a worthy asset |
| collecting as a means of diversified investing, | | | | to your diversified investment portfolio. |
| archaic and very old fashioned let me further | | | | Check back if you will to this website because I |
| relate events that occurred in the 1980s, not so | | | | am going to continue to read and write about |
| long ago. During the four years of President | | | | gold, silver, platinum and palladium as havens for |
| Carter one of the favorite hedges to inflation and | | | | safe money during troubled times. A final thought |
| the general instability of the economy at that | | | | or two. Ask any family in Europe whose |
| time was gold coins. | | | | grandparents had to flee from invading armies |
| The coins most easily available in large lots was | | | | what is the one thing that always has worth and I |
| the Krugerrand from South Africa. I am sure that | | | | suspect they would say, gold. Paper money is |
| you are aware that during the height of the | | | | easily devalued and debased by printing without |
| inflation that occurred in the Carter years, the | | | | pause, but gold? |
| severe rationing of gas from OPEC during that | | | | |