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report By Marcus Matthews

3 Key Questions: 1. 2. 3.

Are the causes of the financial crisis now resolved? Do you trust government? Does the ‘money’ in your bank account buy you what it did last year? If you have answered ‘No’ to any of these questions, read on. 3 More Key Questions

1. 2. 3.

Would you like wealth protection and investment insurance? Would you like to have real money? Would you like to benefit from the greatest wealth transfer in 100 years?

If you answered “Yes’ to any of these then then you must consider having a minimum allocation to physical Gold and Silver in your possession as soon as possible.

The rest of this guide (and others in the series) explain more fully why a PERSONAL PHYSICAL holding of Precius Metals essential - whatever does or does not happen to the monetary system, the financial system and the economy. I will preface the report with the suggestion that deep down you already know that there is something fundamentally wrong with the current ‘money’ system and that you also inherently know the value of gold and silver. If you found a hidden cellar at your long lost uncle’s mansion with the two chests from 100 years ago in it , one full of paper currency and one full of gold and silver, and you could keep one of them which would you choose?

Why did you choose the gold and silver chest? Because you already know that paper ‘money’ loses its value over time and gold and silver doesn’t. “Why should I buy and hold physical Gold and Silver?” Gold and Silver has been – and still is – the longest serving real money on the planet, fulfilling this purpose for over 50,000 years. This is due to several key qualities: it cannot easily be created, there is a limited supply, it is consistent worldwide, and it is durable and testable for purity. The definition of something being money requires that has the following characteristics:  A Means of Exchange  A Unit of Measure  A Store of Value, and  Fungible (one unit is equivalent to another) Let’s compare fiat Money (i.e. made by government edict), monopoly money and gold and silver:

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Gold and Silver Bars and Coins

   

A means of exchange A Unit of Measure Fungible (one unit is equivalent to another) A Store of Value

Monopoly Money

   

Fiat Money (GBP, USD, Euro etc.)

   

Fiat Money does not qualify as Money as it is not a Store of Value.* (Even Monopoly money does better as the same money still buys the same properties on the board!). The reason GBP , Euro, USD etc. is not a store of value is because governments, central banks and private banks are creating more and more currency, thus devaluing the existing currency in circulation. In last 100 years the USD and the British pound have lost in excess of 97% of their value. In just the last 30 years these charts show the huge loss of value:

What is referred to as ‘Inflation’ in in fact DEVALUATION and is not a cause of rising prices - it is the RESULT of the unnecessary creation of more money. A sound money system (like for example in Lydian times around 500BC) does not need the creation of more money and has no inflation. * It is also not ‘money’ as it is in fact a debt note, a promissory note (as it states on the GBP version)

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If you can see that adding more money devalues your currency, then can you guess what will happen soon as result of the recent and planned massive increases of even more paper and digital money? This chart for the US up to 2009 is the scariest chart (for holders of fiat money assets) I have ever seen. The same is happening in the UK and since 2009 even more money has been created – with yet more ‘quantitative easing’ on the cards.

The extremely likely consequence is that we will have hyper-inflation, the value of fiat money will collapse and the price of Gold and Silver will sky-rocket. Unfortunately governments and politicians do not learn the lessons of history such as the exact same scenario in the Weimar Republic in Germany in 1919-23 (and other more recent examples in Hungary, Brazil, Argentina, Turkey and more). This chart shows the price of one ounce of gold in German Reichsmark during that period:

Towards the end of the hyper-inflation in Germany, those who had bought and held onto a few ounces of gold became multi-millionaires. 4

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In the history of the planet there has not been one successful fiat currency. The result has always been in accordance with Voltaire’s quote “Paper money eventually returns to its intrinsic value – zero”

Would you like to take these lessons and buy Gold and Silver now to protect your and your family’s wealth, and benefit from a huge potential profit? (if measured in fiat money terms) “What other reasons are there supporting a Gold and Silver price increase?”  After decades of selling, central banks are now BUYING Gold  Market manipulation of the Gold and Silver Futures prices (ie PAPER) will at some stage be fully exposed leading to a free-market price of PHYSICAL being much higher than the current price.  Silver stockpiles in the US are now ZERO  Silver is being used more and more in industry and is in a supply shortage  China is urging its citizens to buy Gold and as a government is massively buying Gold to diversify away from large holding in a depreciating US dollar  The price charts (measure in fiat currency) are pointing UP. Even with normal intermediate price falls and silver being more volatile than gold, the long term UP-trend trend is intact. While not recommended for paper ‘assets’ such as shares, the current ‘lower price’ of precious metals is a significant buying opportunity. An alternative or additional buy-point would be when the price again breaks their recent highs.

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“What is the difference between PRICE and VALUE?” The common mistake nearly everybody makes is only refer to the ‘price’ of gold. Price is a concept that depends on what you are measuring with. To measure sensibly one needs a fixed unit of measure. Distance is measured in meters. You might measure your desk with a fixed length ruler. How can you sensibly measure gold with a changing elastic devaluing unit of measure such as the USD or GBP? 100 years ago you could exchange one ounce of gold for the total effort in going into one hand-made woollen suit. Today one ounce of gold still get you a one hand-made woollen suit. The value of gold and the value of rearing sheep, shearing them making the wool and the suit has not changed much over time. What has changed is fiat money has drastically devalued so in 100 years ago the price was $25 and now it’s in the $1500 to $1900 range. Gold and Silver are the ultimate preservers of VALUE and this is the most important building block in your personal wealth protection. “What percentage of my assets should be allocated to Gold and Silver?” Given the current uncertainty in the financial system, excessive creation of fiat money and a possible depression it is the author’s view that minimum of 3%-8% of total assets should be allocated as a permanent personal physical precious metals holding. Then you could usefully consider an additional 10%45% i.e. as much as 50% of total assets as a medium term holding with an exit strategy for a sale in certain conditions. While this is significantly higher than most ‘advisor’ or mainstream commentators would suggest, and it is the individual’s responsibility to assess their asset allocation, it is the author’s sincere belief that this is a sound suggestion in these uncertain times. Further it is a win:win scenario as even if the major financial and economic events do not occur, the precious metals still retains its value as it has done for the last 50,000 years. PS . any drop in fiat ‘price’ can be addressed by a put-option insurance policy if desired. In terms of a split between the two metals, a suggested ratio is 50:50 Gold:Silver with a higher allocation to silver if you are open to the compelling case for silver having a higher capital gain potential. (see the GoldandSilverGlobal Special report “Stellar Silver – The best performing asset on the planet?”) 6

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“Why do investment advisors rarely recommend Precious Metals?” The vast majority of investment ‘experts’ are simply not experts in precious metals and more practically are not paid any commission for recommending a personal physical Gold and Silver holding. “What type of Gold and Silver holding should I consider?” 1. Real Physical Gold and Silver in your possession – HIGHLY RECOMMENDED The key form for wealth protection and investment purposes which this guide is promoting is physical ‘bullion’ which primarily means bars or ingots or pure investment coins (as opposed to commemorative coins). “If you cannot see it, touch it and feel it then you don’t have it!” Marcus Matthews

2. Real Physical Gold and Silver in storage for you – BACK-UP OPTION Some companies, even with a supposed good reputation and ‘government’-backed, claim to store gold for you in vaults shown in glossy pictures and save you the supposed hassle and cost of it being shipped for you to store yourself. However, the nice certificates that you receive may be all that you get, as many such schemes have proven to have little or no gold in any vaults and you just have a very expensive piece of paper. No doubt more such situations will come to light in the future. Even the couple of apparently reputable companies in the field, despite their good intentions, do not provide allocated and segregated storage with a separate storage container with your name on it. As with any third party storage it does not avoid the risk of some sort of government intervention or asset freeze. 3. Paper Gold and Silver – AVOID except as a trading tool There are many other forms of “Gold” and “Silver” you may come across the vast majority of which are NOT real physical Gold and Silver.

Paper Gold – or the real thing? The following are all PAPER assets and NOT real physical Gold and Silver:

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× Gold and Silver Futures Contracts Futures Contracts can be created at will in excess of any physical metal that they ostensibly give a right to have physical delivery of. These are not an investment in physical gold or silver until the balance has been paid and delivery requested and effected. × Gold and Silver Exchange Traded Funds (ETFs) or Exchange Traded Commodities ETF Prospectuses claim that you are investing in Gold or Silver. However, if you read the small print you will see there are many worrying exclusion clauses regarding third party custodian risk and other get out clauses. Even if they do own the gold they claim it is not allocated and segregated to you and you can never receive any physical metal, only fiat money. × Gold and Silver Mining Company shares Shares are a right to future profits of a company and are subject to management, political and economic risk none of which apply to Gold and Silver metal. Mining shares may be worth considering (with appropriate downside protection) as an additional investment once an allocation of physical gold has been acquired, but – despite appearances - they do not constitute and investment in physical Gold or Silver. × Gold and Silver Funds 99% of “Gold or Silver funds” are misleadingly titled and are NOT an investment in Gold or Silver. The majority are a selection of mining shares. The remainder are a selection of other forms of paper gold. (for the two funds that are exceptions contact GoldandSilverGlobal)

× Spread betting, CFDs Any financial trader-type accounts offering trading in “Gold” or “Silver” is an indirect exposure to the price of either paper futures contracts or ETFs or mining company shares described above and does not represent any investment in real Gold or Silver. Paper versions of Gold and Silver do not provide any of the risk-avoidance benefits of holding the real metal privately such as 100% guaranteed ownership, protection from bank or broker failure or government currency devaluation, and immediate access. Paper versions are useful for financial trading and price exposure in the fiat financial system (assuming you undertsand the risks) once real physical metal assets have been purchased. “Real Physical Gold and Silver Money – What format should I buy?” The recommended form to buy Gold and Silver for investing is bullion bars and well known investment coins. Avoid any commemorative or other fancy coins such as those in glossy Sunday Magazines or for the Olympics etc. as they have a very large price premium over the true metal value which will almost certainly be lost in any resale despite misleading advertising hype as to ‘collector’ or ‘rarity’ value. The larger bars are better value however until one is investing in the £50,000 plus range it is recommended to purchase smaller bars and coins due to the benefits of splitting the storage, ease of movement across borders (and easier resale if relevant).

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Remember, ultimately it does not really matter what pretty picture is on a bar or coin – it’s about obtaining pure 999.9 Purity 24 Karat Gold (or possibly 22 karat) or 999.9 purity Silver. For more details on which bars and coins to buy see the GoldandSilverGlobal.com’s “A practical Guide to Buying Gold and Silver Investment Bars and Coins”

“How much do I need to start? You can start investing from a little as one silver troy ounce coin a month for around £25 to £35 ( $35 - $ 50 (2012 price range). PS Technically it’s not an investment but an exchange of fiat ‘money’ into real money  “Where should I buy?” Buy from one of the small number of specialist Gold and Silver Bullion and Coin Dealers or Retailers – and take physical delivery. For further details on how to choose a supplier contact info:GoldandSilverGlobal.com

“Where do I store my Gold and Silver?” Store your precious metals in a private location, and for larger amounts ideally split between two locations in your home country and two locations overseas. The space required is minimal. Ideally keep it in a floor or wall safe in a locked metal box. Despite a natural reaction to the contrary, home storage can be perfectly safe and low-risk with sensible precautions and keeping quiet about the amount and location of any valuables that you have purchased. (Tip: give a sealed letter with details of your investment to a trusted family member or solicitor to be opened should anything unplanned happen to you.) If there are compelling reasons why it is not appropriate to store the metals at the private location then consider using one or two separate third-party storage companies. “Why should I not store precious metals in a bank?” Do you trust banks? Under existing legislation it possible for the government to declare a ‘state of emergency’ which allows them and/or the banks to freeze all accounts and “safety” (!) deposit boxes. Further, stories have recently emerged of banks not being able or willing to supply physical gold bought and/or stored with them by private individuals, with a strong suspicion that they either never held it or sold or leased it without your consent. “Can I protect myself from a price drop?” As the main reason for an initial holding in precious metals is a medium to long term preservation of value. The price measured in depreciating fiat currencies should not be a primary concern. For a larger holding it is possible to buy insurance against a price drop in the form of ‘put options’ which acts like investing inruance. This requires an options broking account and a basic understanding of which option to purchase for what period.

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“When should I sell?” It is suggested that you keep your core holding of 3%-8% indefinitely. It’s like asking when should you sell your GBP, Euro or USD – you don’t! You keep it! Well you have done until now – it is suggested that you exchange any surplus cash ‘ money’ as with an inflation rate of around 4% to 5% in the UK cash is a guaranteed loss-making asset. For any surplus over the core holding, you may wish to sell either when you have other real assets you would like to buy (e.g. agricultural land, real commodities) or you really are convinced that all the reasons for owning it have been addressed, the financial system is fully secure and sound and the price has fallen more than 25% from the latest high. “What about my friend’s gold necklace – should they sell?” Question: If one has three accidental investments in the attic and you find out one is going down in value, one is staying the same and one is going up, which ones should be sold? The correct answer is SELL the ones going down or sideways. So WHY would one be SELLING Gold and Silver when the prices are going up? Shouldn’t one be BUYING more? The simples investing methods are the best. “Let your winners run, cut your losses short” or to put it another way, sell assets which are depreciating and keep or buy more of assets which are increasing. The “Cash for Gold” Scam Have you noticed the increase in signs in the high street outside jewellers and in shopping malls offering “Cash for Gold!”?

= Ask yourself WHY all these have suddenly appeared? Could it be that they are making money out of you? Could it be that the gold price is going UP?

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If you test these buyers with a simple question, you may be shocked. First find out what the current gold price in your local currency and weight unit is (known as the spot price). This could be USD per troy ounce or GBP per gram. Understand that 9,12,18 etc. Karat is a percentage of pure 24 Karat gold eg 22 karat = 22/24 or 81.666% gold. Then ask them what percentage of the worldwide spot price they will offer you for the pure gold content of any item. You will find they will offer only 40 to 60 % ie. around HALF of the TRUE value of the gold – and you will lose any jewellery design value. They can then melt it down for a small cost and sell it on at even above the market price! A complete abuse of customer ignorance and a rip-off by any measure. If you are certain you wish to sell gold or silver contact a reputable Precious Metals Bullion dealer or for how to get near to 100% of the true metal value contact GoldandSilverGlobal. "Isn’t Gold is in a Bubble?" There are continuing articles and TV commentators arguing that the massive rise in the last 10 years and especially more recently means gold is in a ‘bubble’ and implying it will peak soon and then drop, thus deterring people from buying. These supposed experts unfortunately do not appear to know the basics of what a ‘bubble’ is. A bubble cannot be happening until the majority of the media is talking the asset up and almost everybody is talking about it at drinks parties and down the pub. Currently only about 0.3% of the UK population has any investment Precious Metals meaning we would need a huge increase in ownership to be even near meeting the definition of a bubble. “But Gold does not pay interest or dividends!” Correct. Gold and Silver will not give you an income. What is does is provide wealth protection – and most probably capital growth if measured in fiat money prices.. Over the last 10 years the average growth in Gold has been 14.3% and in Silver 18% per annum. Of course this may or may not continue however all the fundamental and technical (chart) factors indicate it should continue to rise when measured in fiat currency prices. “Can I hold Gold or Silver in my pension?” It is possible to hold real physical Gold in a Self-Invested Pension Plan in the UK and in a 401K Pension Plan in the US. In the UK this is little known and almost no one actually facilitates it, which has prompted GoldandSilverGlobal to launch the UK’s first SIPP pension plan with leveraged physical gold allocation option.

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Action and Further Reading Take ACTION now decide to invest in Gold and Silver – then BUY. Call or email GoldandSilverGlobal for suppliers and prices and a free copy of full suggested Reading and Video list. Recommended reading:  

Guide to Investing in Gold and Silver by Mike Maloney Get the Skinny on Silver by David Morgan

Further publications from GoldandSilverGlobal - Reports And Books:  Gold and Silver - a Practical guide Buying and Selling  Gold and Silver Myths, Frauds and Misinformation - and the solution  Stellar Silver – the best Asset Class on the planet?  The Investor’s Holy Grail (being released in early 2012)  Stellar Silver and Glorious Gold” (being released in early 2012)

About the author Marcus Matthews is an International Presenter, Trainer and Coach in the field of investing and trading. He has a genuine passion for sharing and educating on wealth protection and wealth generation uniquely adding expertise from fifteen years of personal and spiritual development. He believes we can all easily be our own best ‘financial expert’. He is Founder CEO of GoldandSilverGlobal.com which runs educational seminars, offers coins and bullion for sale and has launched the UK’s first SIPP pension plan with a leveraged physical gold allocation option. Marcus is also is the author of two books being released in early 2012: “The Investor’s Holy Grail” and “Stellar Silver and Glorious Gold”.

Contact Details: [email protected] UK +44/0 20 8123 2347 www.GoldandSilverGlobal.com

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