GB; "A lot of people wonder why I buy gold coins and a lot of people think my answer is
crazy. Can you explain what FDR did with his 1933 Executive Order, and why it's so important to
own gold coins?"
MA; "Glenn, what you know but many people don't is that in 1933, FDR signed an Executive Order
making it illegal for Americans to own gold bullion and certain gold coins. The reason why the
President wanted to confiscate America's gold was that he wanted to inflate our dollars. Among
the only people who were allowed to keep their gold were those who owned coins with special
collector value. The lucky few who had collectible gold coins saw the price of gold go up 75% in
a matter of days while the value of the dollar went down. You're not alone in believing our
country may have to dig itself out of our current financial crisis through another gold
confiscation. Just recently, we've seen our "allies" talk about creating a new world currency
that abandons the U.S. dollar. Russia wants that currency to be partly backed by gold. That's
very bad news for the dollar. Many of our clients believe that history has a tendency to repeat
itself so they purchase coins with some collector value believing that the premium for those
coins may be worth the potential protection against a 1933 type confiscation."
GB; "How can someone know which gold coins are the right ones to buy?"
MA; "When choosing a gold coin, it's important to understand the features and benefits. For
example, some gold coins offer privacy, meaning when you sell the coin, you don't have to give
your name, social security number or home address. With identity theft one of the fastest growing
crimes, many gold owners are reluctant to provide this kind of information to a stranger and will
therefore choose a private coin. Many gold coin investors are concerned that the coin has some
collector value because of that potential protection against a 1933 confiscation. Some people
prefer smaller gold coins. At Goldline, we offer you a wide variety to meet your specific
interests."
GB; "Since 2002, gold has skyrocketed while the dollar has plummeted. People are now saying
‘gee, Glenn, it can't go up any higher, so why should I get gold now?' ...how do you explain to
someone like that why they should buy gold now?"
MA; "As you know, people don't own gold just for its profit potential. Many people are looking
for something that can diversify their portfolio, especially something that may move up while
other assets move down. People who are especially concerned about inflation like gold because it
tends to move up when inflation moves up. As we pump more and more dollars into our money supply,
I think you'll hear even more about hyperinflation. There's just going to be too many dollars
floating around and I believe we're going to face serious inflation as we spend ourselves out of
our recession. But perhaps most importantly, I believe that diversification is really the key to
investing. Consider gold as your safe haven asset that can never go to zero."
GB; "Explain how having gold may protect you during times of economic stress and
hardship."
MA; "I think what causes economic stress and hardship is having all of your assets go down
together. A lot of investors have learned that having all of our money in stocks or all of our
money in real estate or all of our money in any one place just doesn't make sense. Having a
balanced portfolio, which includes most asset classes like stocks, real estate and gold, makes
sense for most people. Interesting that we've seen gold move up as much as four times since 2001
and other assets drop in value. If you believe that times are only going to get worse, gold has a
tendency to perform well in uncertain times."
GB; "The average Joe, who's working hard, and has a little, but not a ton, of money to put
into investments, will he benefit from smaller investments of gold too?"
MA; "We treat all of our clients the same, both large and small. I suggest that people have
some cash on hand before they start thinking about investing in gold. We don't want people taking
their last or only dollar and investing in gold. Rather, we recommend people consider investing
somewhere between 5% - 20% of their investment dollars in precious metals based upon their
individual circumstances. What's most important is that you choose the amount that is right for
you."
*This interview was reprinted from the Special Advertising section of Fusion Entertainment
and Enlightenment's June 2009 Program for Glenn Beck's Common Sense Comedy Tour. Glenn Beck is a
radio sponsor for Goldline.
There's no reason to miss a single issue. Get a FREE 1-year subscription by clicking here.
Some limitations apply.
You can also purchase a subscription online by
clicking here.
To read more articles from a previous American Advisor newsletter, please
click here.
