SUCCESS COUNCIL

THE 6 DEADLY RISKS OF OWNING GOLD AND SILVER REVEALED, AND HOW TO AVOID THEM

C ongratulations on getting your hands on this private report. In it, I reveal the 6 Deadly Risks of Owning Gold and Silver, and How To Avoid Them.

You are probably thinking the same thing I was years ago: How can I protect any wealth I have, and actually make money in this horrible economy? The answer lies in owning precious metals like gold and silver. But ownership is not quite as simple as you may think. In fact, many people think they are investing in real gold and silver, and will see most, if not all, of their investment slip through their fingers… Others will have it taken right off of them by governments. This report will help you learn how to protect your investment and make sure you do not fall prey to these common precious metals investment mistakes. You see, I have been studying precious metals, investing, and banking systems for over 10 years. During that time, I have interviewed dozens of experts in the field, gaining inside knowledge that you will benefit from. A little bit about me: I am 34 years old, and have retired to an undisclosed location in the Caribbean, and it is my mission to show people how to make money during the upcoming “Greater Depression.” I made my wealth using some of the information that is in this report, and I hope it can help you, too. I know after you read it, you’ll be hungry for much more… To Your Future,

Jarrod Dennis Jarrod Dennis

VALUE OF METAL

L ets start with the value of

Metal. The value of precious metals is incredibly simple to understand, and is one of the reasons why precious metals are so often used as money. In fact, gold has been used as money for over 2500 years, from 700 B.C. up until today. The simplicity of the value lies in its tangible form: its purity and weight. That is it. If you have 2 ounces of 99.9% pure gold coin, you know it is twice as valuable as 1 ounce of 99.9% pure gold coin. Like wise, if you have an ounce of 99.9% pure gold coin, you know its worth twice as much as a 1 ounce 50% pure gold coin. But how can you know if your gold is pure? For minted coins, the reputation of the mint helps to insure the gold is pure. As for other gold (jewelry, etc.) the density, as in weight to volume, is unique to the element. This unique feature makes it incredibly accurate in prohibiting counterfeit gold. Not to say it never happens, but gold is extremely heavy, and hard to “fake.” There are a few other chemical and machine-based tests used to measure purity, but those are generally only used by the refineries. So, purity x weight = gold’s value. While the value of precious metals are pretty simple to understand, the risks and shenanigans involved in owning them are a little more complicated. ☺ PAGE 1

6 MAJOR RISKS OF OWNING PRECIOUS METALS

T here are 6 different risks

involved in owning precious metals that you need to understand.

1. Civilian Theft If you own any asset you have to be concerned about the theft of that asset. The more you have, the bigger the risk. The more people that know you own it, the more dangerous it is. NEVER TELL ANYONE, you have precious metals at your home, office, grandma’s house or anywhere else. Repeat…. Never tell anyone! Ever!.... that you have metals at home. When the economy crumbles, a passing mention of it 2 years ago will be remembered. Don’t think it can happen? Just ask the people in the former U.S.S.R. how quickly acquaintances, neighbors, friends, and even family turned on one another for a simple watch or necklace when they were starving and needed something to use as bribery. PAGE 2

2. Government Theft Throughout history, governments have changed laws, and even made them retroactively apply, to confiscate wealth from its citizens. Should an economic collapse occur, it is entirely possible, even likely, that your government may; i) either tax the profits on metal at such a high rate that the profit is all, or partially eroded, or ii) simply demand that you sell your gold to the government at a price they set regardless of the market price. In 1933, President Franklin D. Roosevelt (FDR) issued Presidential Proclamation 2039, forbidding “the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States.” The order criminalized the possession of monetary gold by any individual, partnership, association or corporation under penalty of $10,000 and/or up to five to ten years imprisonment. The Order was signed after numerous “bank runs” and bank collapses. Rather than identify the real problem, the fractional reserve banking scheme orchestrated by the Federal Reserve, Roosevelt obediently followed the instructions of the international banking masters: He simply blamed those nasty “Gold Hoarders” for the countries woes. In an incredible display of totalitarianism PAGE 3

he banned the private ownership of gold, and demanded all citizens turn in their gold to the government, at a price determined by government, well below the market price. Take a look for yourself:

For several decades private ownership of gold remained illegal. This is a reminder that people will allow incredible injustices when they are scared. PAGE 4

In the midst of a great depression, they will sacrifice their freedoms and liberties to anyone promising them an easement to their suffering regardless of the merit of the argument. Today, people are beginning to call our current economic situation “The Greater Depression.” That only means more fear, more woes, more suffering. The People of the United States will again allow their governmental leaders to pass insane laws, which violate everyone’s rights, and take away everyone’s freedom. Don’t believe me? Its already happening. Here are just a few examples in the last 10 years: • Bush’s Executive Order allowing the National Security Agency to use phone taps to eavesdrop on U.S. Citizens without a warrant, review, or probable cause (Violates 4th and 5th Amendments). • Obama’s National Defense Authorization Act (NDAA), granting the President the power to send American troops to detain and indefinitely imprison American citizens without being charged with a crime or tried on the merits of those charges (Violates 4th, 6th, and 8th Amendments). • Obama’s “Kill List” of suspected terrorist (including one 17 year old girl). Obama has been utilizing drones, or unmanned aerial vehicles, to execute his Kill List. (Violates 4th, 6th, and 8th Amendments).

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Next on the chopping block? The Internet… yep, their going after our First Amendment Rights with Bills like the “Stop Online Piracy Act” (SOPA) and “Protect IP Act” (PIPA). Soon, you won’t even be able to get online Reports like this one… The Federal Government has shown its willingness to trample on our rights and liberties. What’s to stop them from going after your gold to pay for bigger government? Nothing. By learning the dangers of big government, and what really caused the coming financial collapse in advance, you are poised to be a leader of opinion. You can stop the march towards totalitarianism as the situation gets worse and worse.

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An interesting side note: Never forget that governments can change laws retroactively. In Italy, for example, the government allowed its citizens to repatriate (that means bring back into the country) any wealth outside of Italy tax free to help make the “economy stronger.” Billions of Euros, came back to Italy. Within a few years, and under a different leader, the rest of the plan was executed…

They retroactively taxed all of that money. Remember people would not have brought it back into the country unless they were promised that they would not be taxed.

On an even more ugly note, in Czarist Russia, the Gold Hoarders where shot after being blamed for the bad economy… the gold hoarders the Czar new about that is. The lesson: If you can legally not tell the Czar you own precious metals. Don’t. PAGE 7

3. Capital Controls An extension of the previous topic is Capital Controls. It basically means the government restricts the movement of capital. There is a steady advance all over the world to regulate the sale and transport of precious metals: an endless host of laws to comply with, and forms to fill will become the norm. For example, there is a requirement for Americans to report their foreign bank accounts (including any gold accounts held overseas). This is known as the Report of Foreign Bank and Financial Accounts, or FBAR, and we go into more detail in our member’s area at Success Council. There is also the Foreign Account Tax Compliance Act (FACTA), and the Voluntary Offshore Disclosure Initiative. Its enough to make your head spin! The penalties can get crazy, and you need guidance to avoid breaking the law. Going into details on these reporting requirements is beyond the scope of this Report, but if you would like to learn more, go here www.SuccessCouncil.com. In 2006, the United States Treasury placed capital controls on nickels and pennies by implementing regulations to limit the exportation, melting, or treatment of onecent (penny) and 5-cent (nickel) United States coins, to “safeguard against a potential shortage of these coins in circulation.”

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Prevailing prices of copper, nickel and zinc have caused the production costs of pennies and nickels to significantly exceed their respective face values. The regulations authorize a fine of not more than $10,000, or imprisonment of not more than five years, or both, against a person who knowingly violates the regulations. In addition, by law, any coins exported, melted, or treated in violation of the regulation shall be forfeited to the United States Government. We can only expect more of these types of capital controls as the debt continues to increase. So, the sooner you act, the fewer hurdles there will be, and the better off you are. Check with your local authorities for what is required, as the Success Council always suggests complying with local laws (especially before they get worse). We also suggest getting active in politics to stop these draconian laws being passed in the first place.

4. Actual Ownership of Precious Metals For example: Are you the part owner of a fund that owns precious metals? Or are you the owner of the precious metals themselves? If you are the owner of a fund, and that fund goes bankrupt for any reason, then you own stock in a bankrupt fund. Not a good place to be. If you own the metal, and the storage facility goes bankrupt, you should get your metal back. The question is whose balance sheet is the metal on? Yours or theirs? PAGE 9

Now, there are some very reputable companies that hold actual gold for you. We work with them all of the time, and have successfully shepherded many of our members through this process. There are also some very dangerous investments that can lead you into thinking you have real precious metals, while you really don’t. (More on that below…)

5. Leverage and Fraud It is well documented that the bullion banks, and Electronically Traded Funds “lease” or sell their gold many times over. For example, for each ounce of gold they have in stock, they may sell 100 ounces. It is similar to fractional reserve banking. If the economy collapses and the price of precious metals goes sky high, these funds will have no chance at all to cover their obligations. The risk is that you and 99 like you have to divide 100 ways the metal that you thought you owned exclusively. It’s a really clever way to have 99% of your wealth stolen.

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6. Forgeries Athough not a major problem at the moment, it is certainly a possibility that there will be some coins floating around with fraudulent markings on them. Recently in New York, 10 gold bars, worth approximately $180,000 retail value, were discovered to be counterfeit, and filled with tungsten instead of gold. Another common scam is pawning something off as 99% pure, when they are in fact only 90% pure. Fortunately both gold and silver have very unique densities and are quite hard to forge in this way. Still, as precious metals become more and more popular, this trend will likely increase. Simple scales for $30 can be bought off of Ebay and other such sites to help you weigh the coins to insure they are genuine.

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HOW TO AVOID MAJOR PRECIOUS METALS RISKS

So now that we know the risks that we need to be aware of, lets look at: v THE DIFFERENT TYPES OF METAL OWNERSHIP AVAILABLE v EXAMPLES OF COMPANIES THAT PROVIDE THAT SERVICE v THE PROS AND CONS OF EACH v AND WHEN THE SUCCESS COUNCIL USES EACH

TYPES OF PRECIOUS METALS OWNERSHIP 1. Numismatics This basically refers to collectable coins. The council never buys numismatics. Numismatics are only a wise investment for a coin collector with extreme knowledge in the collectable. The value is not in the metal contained in the coin, but it in its design, or rarity or something else entirely. Sellers of Numismatics try all sorts of reasons why their coin is worth more than just the metal inside of it, including the government can’t confiscate this type of coin, or its very rare and therefore PAGE 12

worth much more. Don’t believe any of this. You may have alsoseen ads on television to buy a “rare gold-plated collector’s coin”… its hogwash. Don’t bite. If you are not an expert with extreme knowledge on numismatics, then stay away from all of these types of offers.

2. Exchange Traded Funds (EFTs) ETFs are like stocks on the stock market but are designed to track the price of the Metal. GLD and SLV are the ticker symbols for 2 examples. You can buy them through your broker, and the transaction fees are quite low. Also, there are generally no storage fees. This should be an alarm bell for you. If there are no storage fees, it is probably because there is little or no metal underlying the stock. If you call your broker and ask for advice or request he allocates a part of your portfolio to precious metals he will probably put your money in one of these funds as he gets commissions on this the same as he does any other stock.

By taking any of the other options in this section, he will not only make no commissions, but you will have to take that money out of his portfolio, probably never to return again. He/She will no doubt have a million reasons why that would be a terrible financial strategy. I will let you decide what weight to put to their arguments. (Hint: How have they performed the last few years? They probably don’t even realize they are in the middle of a financial collapse.) PAGE 13

ETF’s are good for one thing. Trading. As no actual metal changes hands, the cost per transaction is extremely low. For day traders, this is by far the best way to trade metal. Also, you have the option of leverage. Depending on the margin requirements offered by your lender, you could buy $1000 worth of Metal with only $100. The downside is lenders can change those margin requirements at anytime and often do, forcing you to sell with sometimes as little as 24 hours notice.

Again, extreme knowledge is required to profit from day trading. None of the Success Council members are knowledgeable in this field, and therefore none of us hold any of our wealth in ETFs. The reason we do not is because of the following dangers associated with ETFs. i) ETF Owns The Metal. If you read the terms and conditions, you find that the ETF owns the precious metals, and you own stock in the ETF. If the ETF is mismanaged and goes broke, then you still just own stock in a worthless fund. This has already happened with MF Global’s demise. Many people lost hundreds of thousands of dollars, simply because their broker went belly up even though the fund they invested in was fine.

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ii) Stocks Not Backed 100% By the Precious Metal. The terms and conditions also usually suggest that they may or may not have the metal in storage as backing for the stock. In a financial collapse situation, where the value of metal sky rockets, there is no guarantee you could sell your stock in the fund for the full value of the metal, especially when their terms and conditions state they may not have the physical metal backing the fund. In fact, it is well documented that these funds have massively over sold the gold that they have, in some cases they have sold each ounce of metal 100 times over.

iii) Stock Market Freezes. During stock market crashes, you may

not be able to redeem your profits even if you have them. Remember stock markets get shut down during a collapse. During a big collapse who knows for how long? By the time you are able to trade your position, the government may have confiscated it, forced you to sell it to them, outlawing precious metal ownership. The key is massive amounts of flexibility are lost when using ETFs. PAGE 15

Again for clarity, none of the Success Council members invest any money in ETFs. We think they are extremely dangerous and in a financial collapse, practically worthless.

3. Physical Metal Bullion In this section, we will talk about actually owning physical metal. This is where the Success Council invests almost all of its wealth. There are many different ways to do it, but the key is this: You actually own the metal directly. It is on your balance sheet, not somebody else’s. You have the most amount of flexibility and this form is perfect during a financial crisis. Metal bullion is simply a lump of cold hard metal.

It can be round like a coin, shaped like a brick, like we think of in Fort Knox, or any other shape. Typically it is stamped with the Purity of the metal, the type of metal it is, and who refined it. The value of the bullion is simply the weight multiplied by purity of the metal, multiplied by the spot price of the metal (this is the world price of the metal that is freely available on lots of different websites). Try www.GoldPrice.org or www.SilverPrice.org PAGE 16

There is also a difference between the buy price and the sell price of bullion: this difference is called the spread or the commission. It allows for the fabrication of the bullion, the transport of the bullion from its place of origin to where you buy it, the profit margin of the dealer and distributors, and on some occasions a small premium for more trustworthy and notable refiners. Some governments of the world print Gold and Silver Bullion for consumers. They are generally known by the national emblem stamped on them. For example the US government fabricates Gold and Silver Eagles, the Canadian government fabricates Gold and Silver Maple Leaves, the Austrian Government, the Philharmonics, and so on. These are some of the most recognizable coins in the world, and as such there is a small premium on them and in a crisis having a recognized coin may have some extra value. So lets start with a few examples. If you walk into a coin or bullion shop in California, and the spot price of Silver is $30. You may be able to sell your existing Silver Eagle to the dealer for $30. If you then try to buy it back from him, he may charge you $33.50.

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The buy and sell price for that same Silver Eagle in Austria say, might be, sell for $30 and buy for $35. This is to account for the extra transport costs from a mint in the US to Austria. Typically coins are cheapest in their country of origin. Back in California 10 x 1 ounce silver coins might sell for $335, where as one 10 ounce bar might sell for $315 to account for the lower fabrication costs of producing one bigger bar compared to 10 smaller ones. Please not these are just examples. As with all fair and just transactions, a willing buyer and willing seller for an agreed upon product and price is needed. All dealers are different and set their own prices. Shop around! Also I want to make you aware of a trend. As more and more people understand the current economic situation, the buy and sell price is moving above the spread. For example, a few years back if the spot price was $30, the buy price might be $28, and the sell price might be $32. As physical metal is becoming harder and harder to get your hands on (During the 2008 financial crisis, several dealers were out of stock for several months as scared people flocked to metals) the buy and sell price of physical metal is getting higher and higher compared to the spot. I predict that trend to continue, as the manipulated spot price on the stock exchange does a poor job of reflecting the demand of the physical bullion. PAGE 18

I remember the first time I walked into a coin shop I was very intimidated and knew nothing of the types of bullion available. The above information would have boosted my confidence significantly and I hope it does the same for you. Also, the people at coin and bullion shops are generally very helpful. I encourage you to have a chat to them and ask as many questions as you like. A word of warning though: Don’t ask personal questions and don’t offer personal information. They know what is going in the world. They don’t really want you to know their business, and they don’t want to know yours. They will be helpful as long as you stick to asking questions about metal. That is a good thing. Obviously each country has different rules and regulations. Under the guise of anti money laundering and anti-terrorism laws different governments may have laws requiring the dealer to get your ID and record the sale under certain circumstances. As a mitigation of government theft risk, find out what those rules are. If you are lucky enough to live in a place where there are multiple dealers, ask one, and then buy at another accordingly. Or simply ask one day when you are “window shopping,” and buy on another. Some legislation refers to “related purchasers” so it is wise not to talk about other purchases as this may “relate” them.

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Cash purchases do not leave an electronic record. This is a good thing of course. A simple Google or yellow pages search will find dealers in your town. You will probably have many. In most Asian Countries, most banks sell precious metals over the counter. One very reputable source to buy your metals is James Turk’s Gold Money Site. Gold Money holds their precious metals in the form of the big “Fort Knox” style bricks, and you purchase a percentage (of if you have enough $$$, the whole thing) of the brick. Each quarter, they are audited by a top grade accounting firm, which gives you piece of mind that they are actually holding the gold you purchased. Gold Money always offer a reasonable spread, and is one of the cheapest and easiest way to buy and store precious metals, because you own a percentage of a big brick instead of coins or smaller bricks with high fabrication costs. However, Americans with a Gold Money account are subject to reporting requirements to the Federal Government. For people living in the United States a company called Tulving.com, based in LA, has nationwide free delivery, but requires payment via electronic wire only. Their website is horrible, but their service and reliability is excellent. But if you had a local dealer that you could walk into and accumulate metal over time for cash, I would do that. That way, there will never be a record that can prove you own precious metals. Again protecting you from government theft risk. One friend I know swings past an ATM near or in a strip club almost everyday and withdraws a chunk of cash to buy metal from a bullion dealer. This way, if the government ever asks about that cash withdraw, he can simply say… he has a thing for strippers. Note: He tells his wife and shows her the bullion. ☺ PAGE 20

This Private Report is an excellent start in protecting your wealth, and even profiting during the next four years. And if you’re at all like me, you have just looked down an exciting rabbit hole. The great news is, there is so much opportunity to create massive amounts of wealth. You just need the how, when, and why. If you enjoyed this Report, and would like to learn more, I am hosting a limited-time free Live Training on the Greatest Wealth Transfer in History. The Greater Depression is coming. There is nothing we can do at this point to stop it. What we can do is make a boat load of money. Time is literally running out for people to disconnect their savings from the dollar, and help themselves to a fortune. This webinar is valued at $197 for the amazing information and content provided. I have decided to give it away for free to the next 500 people who sign up here. You’ve had a sneak peek at something amazing. Now is the time to take the next step to secure your future. Instead of watching your 401k plummet to worthlessness over the next few years, you will see massive returns. Get excited!

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I see it as a simple choice to make the best out of what is coming. Just since the election alone, hundreds of companies have begun laying people off. Gold has jumped up in price. Stocks have slumped. It’s just a drop in the bucket for what is coming. In our Live Training Session, you will learn why billionaires are selling their stocks like wildfire… and what you can do to make sure your future look like this:

instead of this:

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