DailyWealth:
A Safe Gold Play For You...
But You Have To Act Quickly
Dr. Steve Sjuggerud
Aug 2, 2006
I just got a call from my friend
Van Simmons. He said, "Steve, have you heard about this
deal? I've been buying all I can."
Van Simmons knows more about
making money in collectibles than anyone I know. He's also one
of my recommended coin dealers. I really trust his opinion. Generally,
before I buy a collectible, I run the story by him to make sure
I'm not missing something. His many decades of experience in
a variety of areas of collecting are priceless to me.
"No I hadn't heard
about that deal,"
I told him.
"I started buying as
soon as I heard,"
he said. "And my friends are doing the same. We were
limited to buying 10 of 'em a day. But once we continued to buy
every day, we were then limited to 10 per physical address."
Here's the deal... just over
a month ago, the U.S. Mint started selling the first pure gold
coin issued by the U.S. Government. It is one ounce of 24-karat,
.9999 pure gold. These coins are truly exceptional. The coin's
design is based on the original 1913 Buffalo Nickel. These exceptional
coins should grade out around MS-69 at a coin grading service
like PCGS.
Quoting the Mint: "Priced at $800, with a mintage
limit of up to 300,000 coins, the American Buffalo Gold Proof
Coin will be encapsulated in plastic to protect its pristine,
proof finish. It is packaged in a blue United States Mint gift
box and accompanied by a custom-designed Certificate of Authenticity."
Strangely, the Mint priced
the coins at a fixed amount of $800. On June 22, when these coins
first went up for sale, the price of gold was $583. Van and his
friends thought these coins were such a good deal, they started
buying right away.
Since June 22, the price of
gold has risen by about $50, to about $630. Since the coins are
at a fixed price of $800, what Van thought was a great deal when
gold was at $583 is now a fantastic deal with gold at $630.
Your downside in these coins
is extremely limited. There are literally millions of coin collectors
in the U.S. Yet this is a very limited issue of proof coins...
They're the first pure gold coins, and they're beautiful.
It is my strong opinion that
these coins will always sell above their meltdown value. Proof
coins look extraordinary. And a limited issue of the first pure
gold coins, in proof form, will no doubt maintain its value,
at worst.
You can only buy 10 of these
to one physical address. So that's $8,000 if you buy all 10.
The nicest thing about Van's
phone call was: "Steve, I don't make anything from this
deal... you have to buy the coins directly from the Mint. I just
thought you'd like to know about it."
Thanks for the tip Van. I hope
you don't mind... I've passed it along to a few thousand of my
friends...
To order these coins from the
U.S. Mint, either call 800-USA-MINT, or order online at www.usmint.gov
(click "Buy Online" and then type "BA6" into
the search box on the left). International orders are accepted
as well.
One final suggestion, you may
want to ship them off to be graded by a grading service like
PCGS (www.pcgs.com). They
should grade out in the MS-68 to MS-69 range, and they would
be sealed in airtight, tamper-proof containers. I'd bet in a
few years' time, they'll be worth much more of a premium over
the price of gold than what you paid.
Look, it's pretty simple. You're
able to buy an extraordinary, limited-run, proof, pure gold coin,
at a better price (relative to the price of gold) than some of
the best collectors and coin dealers in the world have paid.
I think it's a safe, smart
way to own some gold, and have some upside potential beyond what
you paid.
But act fast... the U.S. Mint
is limiting the sale to 300,000 coins, and once they're gone,
they're gone.
Good investing,
Steve
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