The Golden Rule: Safe Strategies of Sage Investors

307 Pages·2010·2.45 MB·English

by  Jim Gibbons

G $27.95 USA / $33.95 CAN
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I
Praise for B
• Highlights a variety of ways to invest in W
The Golden Rule B
gold—from mining stocks to buying gold ith today’s increasing
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coins and bullion economic uncertainties, a
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• Discusses gold’s importance to both the “I have been around the ‘hard money camp’ for almost thirty years and know strong investment strategy
world economy and your future almost all of the writers in this book, often for decades. I have learned from S is to put a portion of your
• Provides contact information to the gold them and now you can reap the accumulated wisdom of many years of these net worth in gold. However, given investors’
experts highlighted in the book masters of the gold markets. Got gold? You should!” overall lack of knowledge about gold as an
• And much more —John Mauldin, Millennium Wave Investments, author, Bull’s Eye Investing investment, as wealth insurance, or as a store
sT of value, many are hesitant to enter this arena.
With the fi nancial markets more erratic than a
“The Golden Rule contains serious analysis and arguments why every saver
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ever, gold appeals to investors looking for a should hold some of his cash and assets in physical gold and gold-related ee That’s why Jim Gibbons—who has studied
safe haven for their assets. With The Golden investments. A fi ne read!” sG the role of gold in the world economy for
Rule as your guide, you’ll quickly learn how over thirty years—has created The Golden
—Marc Faber, Editor, The Gloom, Boom & Doom Report t
to incorporate gold into your portfolio and r Rule. Comprised of contributed chapters
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make the best decisions possible with regard a from many leading experts in this fi eld,
“If you don’t trust Greenspan or Bernanke, Bush or Obama, Congress or any t
to this precious commodity. The Golden Rule answers many essential
other part of the regime, to plan your economic future, own some gold. It’s a e
gL questions, including: How do you purchase
personal declaration of independence.”
i gold and in what form? Why gold now? When
—Llewellyn Rockwell, Chairman, Ludwig von Mises Institute eD safe strategies
JIM GIBBONS has been studying and learning s should you buy? And, most importantly,
from sage investors regarding gold’s role in from whom?
o
“If there’s one thing American investors need to know more about, it is gold. E of
the world economy for over thirty years. For f
the last twelve years, he’s also been raising They can either learn about it now—ahead of the curve—or later from the sN sage Investors Throughout the book, Gibbons and the
school of hard-knocks. Jim Gibbons thinks now is better and has done a great
geoduck clams for export to China. Prior a extraordinary group of experts he has
to becoming a shellfi sh farmer, he built and job gathering some of the industry’s most knowledgeable experts together in g assembled, put gold in perspective and
developed his own country inn (The Heron in one highly informative, full-spectrum package.” e show you why it belongs in every investor’s
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La Conner), wrote screenplays for ten years, —Charles Goyette, author, New York Times bestseller The Dollar Meltdown I portfolio. Page by page, this reliable resource
n
and, much earlier in his life, worked for the v provides practical gold investment insights
U Includess wwiisddoom from
National Bank of Alaska, IBM, Merrill Lynch, Before the recent economic crisis, some investors were leery of holding an asset e from some of the best minds in the business,
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and Control Data. such as gold, which pays no dividend and earns no income. But times have including seasoned Wall Street prognosticator
tL PETEER SCHHIFF, BILLL BONNNER,
changed, and today, having gold in your portfolio is more important than ever. o Peter Schiff, William Bonner and Addison
rE RON PAUUL, DOUGG CASEYY, Wiggin of Agora Financial, James Turk of
s
Jacket Image: © Getty Images Nobody understands this better than author Jim Gibbons, and now, in The GoldMoney.com, Congressman Ron Paul,
andd mmany mmoore!
Golden Rule, he has assembled an extraordinary group of experts in this fi eld, Rick Rule of Global Resource Investments
who will help you gain a fi rm understanding of gold as an investment, as wealth Ltd., Eric Sprott of Sprott Asset Management,
and many others.
insurance, and as a store of value.
Along the way, this timely guide also:
• Demystifi es gold by putting it in the context
of twenty-fi rst century economic realities
J I M G I B B O N S
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The
Golden Rule
Safe Strategies of Sage Investors
JIM GIBBONS
John Wiley & Sons, Inc.
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Copyright © 2010 by Jim Gibbons. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise, except as permitted under Section 107 or 108 of
the 1976 United States Copyright Act, without either the prior written permission
of the Publisher, or authorization through payment of the appropriate per-copy
fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA
01923, (978) 750–8400, fax [phone], or on the web at www.copyright
.com. Requests to the Publisher for permission should be addressed to the Permissions
Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201)
748–6011, fax [phone], or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have
used their best efforts in preparing this book, they make no representations or war-
ranties with respect to the accuracy or completeness of the contents of this book
and specifi cally disclaim any implied warranties of merchantability or fi tness for a
particular purpose. No warranty may be created or extended by sales representatives
or written sales materials. The advice and strategies contained herein may not be
suitable for your situation. You should consult with a professional where appropri-
ate. Neither the publisher nor author shall be liable for any loss of profi t or any other
commercial damages, including but not limited to special, incidental, consequential,
or other damages.
For general information on our other products and services or for technical support,
please contact our Customer Care Department within the United States at (800)
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Library of Congress Cataloging-in-Publication Data:
Gibbons, Jim, 1955-
The golden rule : safe strategies of sage investors / Jim Gibbons.
p. cm.
Includes index.
ISBN 978-0-470-53875-3 (cloth)
1. Gold. 2. Investments. I. Title.
HG293.G53 2010
332.63—dc22
2009052153
Printed in the United States of America
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To my wife, Mary, whose love and support has
always been crucial to my successes.
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CONTENTS
Preface: It’s Time to Own Gold ix
Acknowledgments xxv
INTRODUCTION: THE TIE THAT BINDS 1
Jon Nadler
PART I BROKERS/MONEY MANAGERS 11
CHAPTER 1: Gold Remains the Standard 15
Eric Sprott
CHAPTER 2: Long-Term Fundamentals Still Good for Gold 21
An Interview with Adrian Day
CHAPTER 3: A Good Investment Strategy, Buy Gold 31
Peter D. Schiff
CHAPTER 4: The Bear Market Is Your Friend—Four Ways to Win 37
Rick Rule
CHAPTER 5: The Tale of Taels—A Hard Lesson in Hard Money 47
Michael Checkan
PART II INVESTMENT NEWSLETTER WRITERS 53
CHAPTER 6: The Greater Depression 57
Doug Casey
CHAPTER 7: Bet Against a False Premise 75
Bill Bonner
CHAPTER 8: Undervalued Companies and Gold 85
John Pugsley
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vi CONTENTS
CHAPTER 9: Gold Déjà Vu 93
Richard Maybury
CHAPTER 10: The Trial of Gold 97
David Galland
CHAPTER 11: Bullion and Beyond 113
Addison Wiggin
CHAPTER 12: Gold Is Truly Precious 131
Pam and Mary Anne Aden
PART III COIN AND BULLION BROKERS/
DEALERS 139
CHAPTER 13: Rare Coins and Gold Bullion 143
Van Simmons
CHAPTER 14: Rare Coin Canards 151
Dana Samuelson and Dr. Bill Musgrave
CHAPTER 15: The Internet Gold and Currency Provider 159
James Turk
CHAPTER 16: Gold, Fiat Currency, and Integrity 167
Franklin Sanders
PART IV THE MINERS 179
CHAPTER 17: Silver—“Poor Man’s Gold” 181
Bob Quartermain
CHAPTER 18: Analyzing a Gold Mining Stock 191
Louis James
CHAPTER 19: Let’s Talk a Bit about Gold and Gold Exploration 199
Brent Cook
CHAPTER 20: Money Is Gold, and Gold Is a Noble Metal 205
Morgan Poliquin
PART V GAME-CHANGING EDUCATORS 213
CHAPTER 21: What the Price of Gold Is Telling Us 215
Ron Paul
CHAPTER 22: The Gold Price 229
Paul van Eeden
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Contents vii
CHAPTER 23: Becoming a Twenty-First-Century Gold Guerrilla 247
Kenneth W. Royce
Conclusion: Indian Peasants 255
Author’s Note 259
About the Author 261
About the Contributors 263
Index 275
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