An Investors Guide To Precious Metals

Transcription

1 An Investors Guide To Precious Metals 7033 E. Greenway Pkwy #280 Scottsdale, Arizona CALL US NOW! Toll Free Phone:

2 Precious Metals: The Smart Choice For Your Portfolio You want your investments to be as close to a sure thing as possible. So why would you hang your investment portfolio solely on the whim of the market, a space where uncertainty is inevitable? By investing in precious metals you re free to put your money in a physical asset with true value. The Your Investment Insurance Plan Why are precious metals a wise investment? Simply put, they reduce the volatility of your investment portfolio. We buy gold and hundreds of thousands of others like us buy gold because we re looking for an investment that will offer something different virtually the exact opposite of paper. What s wrong with paper is that it has historically paper not performed anywhere close to expectations, backstopping stocks and bonds because it reacted entirely differently than investors hoped. Every major economy in the world bases the value of its currency on a figured determined by a government entity, a Fiat money system. This system only works if the government makes the right choices, at the right times: if they don t print too much money or too little money and if they don t borrow too much. Sounding familiar? Value of gold, silver and other precious metals is founded on a set of solidly identifiable factors not elected or appointed officials. And, gold is much less likely to lose its value. Choose an Investment that Works Harder than You DO We ve all witnessed the volatility of stocks and bonds and how easily fluctuations in currency value can send the market into a tailspin. For centuries, civilization after civilization has shown us that value in real assets, real wealth, real money is the surest, smartest, safest way to build wealth. It s time to think about your investments in a new light. An investment in precious metals is one that s accessible to investors at any level and under your control at all times. Scottsdale Gold and Silver is your precious metal investment advisor. We ve spent more than a decade in the precious metals investment market. Our goal, always, is to help empower you in your investment decisions so that you feel comfortable any time you make changes to your investment portfolio or precious metals collection. 2

3 The Basics of Precious Metal Investing Bullion Available in: bar and coin, silver, gold and platinum Value: precious metal content & cost fabrication Unique quality: Require social security number for liquidation above certain minimums Examples: South African Krugerrand, the Canadian maple Leaf and the American Eagle Low Grade Investment Coins Made up of: precious metals Unique quality: Do not require social security number upon liquidation and potentially exempt from government confiscation Examples: Swiss 20 Franc, French 20 Franc, the British Sovereign, the Peace and Morgan silver dollars and Walking Liberty and Franklin silver half dollars High Grade Investment Coins Value: principally based on condition, grade, scarcity and demand (rather than precious metal content) Unique quality: potentially exempt from future government confiscation Examples: proof coins and those graded by Professional coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC) Proof Coins Considered a collectors version of mass-produced bullion coins, proof coins are minted through a unique process that uses select dyes struck multiple times to produce softly imprinted, detailed images. Each proof coin undergoes an inspection process to become designated as a proof coin. Proof coins, like the American Eagle, are issued with the official U.S. Mint Certificates of Authenticity. Proof coins are considered rare; they are minted on a limited basis with their value based on mintage, rarity, condition, age and demand. Historically, investors and collectors hold gold and silver as protection for their savings and for their wealth at large. Our nation has a storied history with precious metals, but whenever the purchasing power of the dollar has fallen the public has turned to gold and silver assets. Precious metals make good investments because you can use them as a hedge against inflation, deflation and currency devaluation, reducing the volatility of your portfolio. It sounds simple, but is a fact that could make a substantial impact on your earned wealth. If you think about portfolio diversification in terms of adding another new mutual fund or stock, you re still in the paper boat, you re not diversifying in the least. Knowing Your Coin Types and Terminology Before you turn to gold and silver or make any decisions about diversifying your portfolio, we want you to be fully educated about your investment options. The purity of a precious metal coin is guaranteed by a legal governing body the same entity that s responsible for completing the minting process. Coins are minted either for investment or numismatic (coincollecting) value and are sold in the form of gold, silver, platinum. Knowing the different types of coins will help guide your specific investment decisions. An Investors Guide To Precious Metals 3

4 Gold: The Gateway to a New World of Investing Demand For A Steady, Secure Investment Is Stronger Than Ever, Which Is Why Investors New And Seasoned Are Turning To Gold; It Has A 6,000- year Dependability Track Record And Is Currently Dominating The Investment Landscape. Our Currency, Much Like Most Others Across The Globe, Was Backed By Gold Until 1971 When President Nixon Converted Our Nation From A Gold Standard Currency To A Fiat Currency. Just Because Our Country Abandoned The Gold Standard Doesn t Mean, However, That Gold Can t Still Become The Backbone Of Your Investments. At A Time When Even The Historically Safe Investments Like Real Estate And 401ks Are Abandoning Their Value Left And Right You Need Reassurance That Your Investments Are Recession-proof. From Experienced Investors To Those Looking To Make Small But Significant Impacts On Their Future Wealth, Gold Should Be One Of The First Possible Assets To Consider. 3 Reasons To Buy Gold #1- Gold Has Universal Value Gold Has And Is Still Appreciated For Its Decorative Value, But Its Value As An Investment Is Something That s Recognized And Understood Across The World. #2 - Gold Is Real Money As Opposed To Paper Money, Gold Is An Asset And Not An Illusion Of Wealth; It Cannot Become A Government Liability Or A Representation Of Wealth Based On The Value Of Something Else. Gold s Value Is What It Is And Will Always Be. #3 - Gold Is Liquid One Way To Determine The Value Of An Asset Is Based On Its Liquidity. Unlike A Real Estate Or Long-term Retirement Investment, Gold Can Be Sold For Virtually Any Other Currency Without Delay Because Of Its Transparent Value. And Because It Can Be Considered Private Wealth, It s Not Taxable Until Sold For A Profit. European Gold Some of them most popular gold coins are a cross between bullion and rare collector quality coins called semi-numismatic including the European 20 Franc. They are considered to be liquid, affordable, capable of delivering more gold per dollar invested than American gold, and more than likely safe from confiscation. United States Gold American gold coins are popular for both investors and collectors because they can be independently certified and graded. U.S. gold coins date back between 1795 and 1933 can be valued between $1 and $20. The supply of original mintages is scarce due to official and private sector melting; only a limited percentage of these coins is accessible to collectors and investors at any given time. U.S. gold is available in low grade investment coins, high grade investment coins and bullion coins. 4 4

5 The Silver Lining to Your Investment Portfolio While gold is the most popular precious metal investment option, silver has the advantage of being accessible to both small- and large-scale investors and has historically outperformed gold on returns. Estimates point to evidence that 95 percent of minted silver has already been leveraged for industrial purposes. Compared to more than a century ago when approximately 12 billion ounces of silver existed, today that figure has dropped to 300 million ounces. Based on market trends and limited accessibility to the metal, silver is considered one of the most important commodities and most logical investment opportunities. United States Silver Sold in 1-, 10-, 100- and 1,000 troy ounce bars, silver is valued much like gold in that cost is determined, most importantly, by the purity and issuer of the coin. The spot price is typically, however, lower than gold. Silver is one of the most affordable choices for investment in precious metals. The United States began minting silver dollars in 1792 and is still doing so today. Two coins stand out as the most popular in U.S. silver coin history: the Morgan and Peace series. 5

6 Do You Know How to Best Protect your Retirement Assets? Lesser Known Metals Don t Indicate Lesser Value Platinum Platinum is one of the rarest and scarcest precious metals more than 15 times rarer than gold. Due to its hardness, platinum has more industrial uses than gold and silver, increasing its demand. The Platinum Eagle, originally produced by the U.S. mint in 1997, became one of the most popular platinum coins the world over. Palladium Palladium, much like platinum, has more industrial uses than the more commonly found gold and silver precious metals. It can absorb 900 times its weight in harmful gases, making it a combatant for pollution. But the metal is more commonly found in automobile catalytic converters 60 percent of the total palladium reserve is used in the automobile industry alone. Sold in 1-, 10-, 100- and 1,000 troy ounce bars, silver is valued much like gold in that cost is determined, most importantly, by the purity and issuer of the coin. The spot price is typically, however, lower than gold. Investing in stocks and bonds can be some of the riskiest investments you can make. And when you re investing for your future through a traditional IRA, risk cannot be a good feeling. With a precious metals custodial IRA, establish by Congress 1997 by the Taxpayer Relief Act, you can harness the benefits of gold and investments in the form of a retirement fund. A gold or silver IRA allows you to buy and sell gold, silver and other precious metals in a special custodial IRA account, harnessing the power of your precious metal investments for your retirement. Silver is one of the most affordable choices for investment in precious metals. The United States began minting silver dollars in 1792 and is still doing so today. Two coins stand out as the most popular in U.S. silver coin history: the Morgan and Peace series. What Does a Precious Metals IRA Mean for You? With a precious metals IRA you can now transform your retirement investment into a tax-deferred asset. And, gold investments for IRA funds from 1997 have increased in value 30-fold as of 2015 over a traditional investments. To open a custodial IRA begin by selecting a specially designated investment firm who will store your assets in an approved precious metals depository. The custodian will file the required reporting period paperwork on our behalf, but you are in complete control of your investments, directing the custodian when and how to buy and sell. Once established, your custodial IRA can be made up of gold as well as cash assets, including those transferred from an existing IRA account. All custodial IRA assets are held in a depository and managed by the custodian. A limited number of silver coins as well as platinum, palladium and platinum bullion can be invested. And you can take possession of your coins or liquidate your investment at any time. Gold IRA With a custodial account you can designate your gold investments to the privacy and security of an IRA. Any Roth, SEP or traditional IRA account can house precious metal investments. You re only limited to U.S. coins weighted at 1 oz., ½ oz., ¼ oz and 1/10 oz. Silver IRA With a lower spot price than gold, silver is easier to obtain when starting a silver IRA. You can include 1 oz. silver U.S. coins and a limited number of Royal Canadian minted coins. 6

7 Your Guide to Buying Gold and Silver We know from our clients that the biggest barrier to begin investing in precious metals is just the logistics. It s foreign territory, so we understand our clients need guidance from the beginning to the end of the process. Fist things first, we like our clients to understand the philosophy that precious metal are a key aspect to building a balanced investment portfolio because they are more insulated from the volatility of traditional investment vehicles and can provide a steadying influence on any existing portfolio. NOTE: Investment coins should not beconfused with collector coins; the value of an investment coin is based onscarcity, certified condition and market demand. Ready to Invest? There are four factors to consider when making your precious metals investment selections: 1. The origin: Which government entity minted the coin 2. The issuer: Who is selling the coin 3. The divisibility: Coins are more easily liquidated in increments smaller than 1 oz. 4. The potential for confiscation: Gold bullion and coins can traditionally be confiscated by the government (an exception: those coins that have a recognized special value to collectors ) Choosing Your Coins Once you ve determined the type of investment you re going to make, it s time to think about quantity. We typically recommend allocating a certain percent of your tangible asset portfolio to precious metals based on the term-length you determine for your investments: short, medium and long-term. Short-Term Investments Hold for 1 to 3 years Allocate percent of your portfolio to bullion and investment-grade gold Example: St. Gaudens $20 Double Eagles Medium-Term Investments Hold for 2 to 5 years Allocate percent of you portfolio in mint state gold Example: Indian and Liberty coins Long-Term Investments Hold for a 5-year minimum Allocate percent of portfolio in rare coins Example: better Date and Key Date rarities Whether you re selecting gold, silver, platinum or palladium you can choose to complete an all-cash or financed purchase. Your purchase will be delivered right to your door via registered U.S. mail or stored by a secure, independent U.S. bank or depository. 7

8 About Scottsdale Gold and Silver SGS is a precious metals brokerage based in Scottsdale, AZ. Our mission is to provide the highest quality precious metal investment opportunities and advise our clients fairly and accurately as possible. As a Scottsdale Gold and Silver client you receive personal hands-on service as well as: Comprehensive information, risks and rewards of gold, silver and other precious metal investments. An understanding of how precious metals investments can operate in a portfolio to limit risk. An understanding of the precious metals market, and how world events can affect the price of precious metals. A venue to sell and buy gold, silver and other investment-grade precious metals in coin or bullion form. Information about gold IRA, a silver IRA or a precious metal retirement investment strategies. A trusted source of information for investment-grade gold coins, silver coins, and bullion. We work with some of the top precious metals investment firms in the country, ensuring that you have access to a wide variety of precious metal investment assets. Our established relationship with the premier custodial IRA makes it easy for you to pursue your retirement investment interests. Who You ll Work With Your certified wealth coach, is an expert in the field with more than a decade worth of experience, including working with some of the top investment firms in the country. Precious metals investing is not just our business, it s our passion and our passion is contagious you ll experience our excitement in the first few seconds working with us. Your Wealth coach understands that your investment decisions are a personal and important matter to you, which is why you will work hand in hand to build a retirement and personal investment strategy that s right for you. \ Contact us today info@scottsdalegoldandsilver.com or 1(800)

9 Precious Metal Investment Terminology Every investment sector has its own set of terminology and precious metals is no exception. Your investment advisor should be able to provide you with the guidance you need, but when doing research on your own these precious metals investment terminology should help give you a solid foundation. Ask: the coin or bar s selling price Bid: the coin or bar s buyback price Coin Grading: the system used to describe the condition of the coin (typically on a low-to-high scale of 1-70) Markup: the amount to a coin or bar s cost to reach the selling price Melt Value: the value of a coin or bar based on the precious metal content then multiplied by the price of the metal. Obverse: the front or head side of the coin Premium: the amount charged above a coin or bar s melt value Reverse: the back or tail side of a coin Spread: the difference between what a coin or bar s asking price and the bid price Spot Price: The price paid for a precious metal with immediate delivery (may be referred to as the ask, selling, bid or buyback price) 9