July 2012

Latest from Brien Lundin

Buy Silver Now

Here's why I'm buying silver, and telling
my family and friends to do the same.

 Dear Fellow Investor,

 After nearly 30 years in the precious metals business, I recently did something I’d never done before.

 I bought a bag of “junk” silver. And I advised some close friends and family to do the same.

 I know what you’re wondering: Why silver...and more specifically junk silver? And why now?

 Simply put, because I’m scared.

The 1970s
...On Steroids

In this month’s edition of Gold Newsletter, I shared with my readers that I’ve been in this hard-money investment game for nearly three full decades. And over that time, I’ve seen countless predictions of every type of economic apocalypse, most backed by solid evidence and arguments.

But this is the first time that I am truly worried for future of America.

The fact is, I had believed that the dismal economic picture in the U.S. -- the towering deficits and the dizzying unemployment rate, just for starters -- would doom President Obama’s re-election campaign.

But despite mounting evidence of how his wrong-headed policies are destroying America’s economy, he’s actually leading in the polls.

It’s a Bizarro world where a politician with such demonstrably harmful policies would be re-elected to do more of the same. But apparently that’s the world we now live in.

Now, I have to apologize for being so political in an investment publication. I wouldn’t, except that this issue has profound implications for your wealth going forward.

And, frankly, I’m much more Libertarian than anything else. I don’t vote straight down the line for either major party, and I’m not that excited about Mitt Romney.

But I’m pulling for Romney precisely because America is running out of time. We need to start working on some fundamental fiscal reforms -- now -- or there will be hell to pay.

Can you imagine what would have happened if Jimmy Carter had gotten another four years? If wealth-robbing double-digit inflation and economic stagflation, along with expanding government control and spending, had kept on the same trajectory without a Reagan to put us back on the path to prosperity?

That’s precisely the world that’s staring us in the face right now.

If -- instead of halting the dangerous growth in our debt -- we get four more years of additional hand-over-fist “stimulus” spending...spread-the-wealth tax hikes...quantitative easing and economic destruction, then our worst fears could be realized.

And that’s why, if President Obama is re-elected on November 6, the headline of the Gold Newsletter Alert I’ll dispatch the next day will be short and to the point: “Buy Gold.”

But to be more accurate, it should probably read “Buy Silver.”

Preparing For The Worst

When I talk of our worst fears being realized, I’m not talking about raging, ’70s-type inflation. No, I’m referring to a much more dire reality.

I’m talking about the absolute destruction of paper currency...

...of being forced to use precious metals and barter to buy food for your family...

...and having government agents seize your gold bars and gold ETF accounts.

It’s a world that, for years, I could hardly imagine. Now I and many others are starting to think very hard about this possibility.

Before I go on, I must admit that I don’t believe any of this will happen. Although Uncle Sam confiscated our gold once before, it’s a very different world today, and I don’t think the government could get away with it again.

And, for other reasons, I don’t think we’ll seeing the kind of raging price inflation that we endured in the 1970s.

But anything’s possible, and even the most rosy-cheeked optimist would have to admit that the worst-case scenario is more possible today than ever before.

And believe me, from someone who’s lived through the breakdown of civil order during Hurricane Katrina, the prior improbability of an event does nothing to mitigate the harsh realities once it does, in fact, occur.

So it’s time to prepare for the worst, even if we believe the risks are low.

I’m doing it. And I’m advising those closest to me to do the same.

I’m telling them to buy silver.

Multiplying Gold’s Gains With Added Security

Why silver and not gold? For one thing, silver is more appropriately valued. Imagine trying to buy a loaf of bread with a one-ounce gold coin.

In contrast, silver-based coins are readily recognized and available in denominations/sizes small enough to be used in everyday commerce, if it ever came to that.

I particularly favor so-called “bag silver,” or “junk silver,” which are old, circulated U.S. coins containing 90% silver.

A full “bag” of junk silver contains $1,000 in face value and comes in denominations of either 10,000 dimes, 4,000 quarters or 2,000 half dollars. Each $1.00 in face value has .715 ounces of silver, so no matter which denomination you choose, your $1,000 face bag will contain about 715 ounces of pure silver in it.

In addition, you don’t have to buy full $1,000 face value bags. Dealers will often sell $500, $250 or even $100 face value bags to the public, although perhaps at slightly higher premiums.

No matter which denomination you choose, you will receive silver coinage that has a circulation value of $1,000. However, because all coins in these bags were struck before 1965, they are made up of 90 percent silver and are sold at a markup based on the current spot price for silver.

Again, because Uncle Sam has already gone through all the trouble of minting them, they are not only recognized and acceptable, but you don’t have to pay for the cost of production. So junk silver is both the best option for potential use as currency, and the cheapest way to buy bullion.

That’s why I recommend this option to anyone who’s even the least bit concerned about some economic catastrophe or civil unrest. Specifically, I’ve bought old silver half dollars, and recommended them to my friends and family, because I feel the size and value is a nice compromise between the larger silver dollars and quarters.

I bought a bag of Walking Liberty halves because I really love this classically beautiful design by Adolph Weinman.

But any junk silver coin, denomination or combination thereof, will work. And that’s the beauty of this method of buying precious metals. It’s simple, cheap...and reminds us of an age when gold and silver were actually circulating as money.

Just as important, I recommended that my friends and family buy their junk silver, as I have, from my long-time friend, Dana Samuelson of American Gold Exchange. I worked closely with Dana for years in Jim Blanchard’s old coin company, and trust him completely.

Dana tells me that he was just able to acquire a single bag of Walking Liberty half dollars, which is somewhat unusual, and he’s going to reserve that for any readers of Golden Opportunities who call him.

Again, he’s only got a single bag of Walking Liberties, so it’s first-come, first-served. But keep in mind that 90% silver Franklin or Kennedy halves, or any other 90% silver denomination, works just as well in this strategy.

So I urge you to call American Gold Exchange right now, toll free at 800-613-9323, and mention Golden Opportunities to get the best selection in bag silver coins.

FYI, I won’t make a penny from any of these bag silver coins that you buy. If you buy any other coins from Dana in the future, I might ask him for a sales commission, but only if it will never affect the price you would otherwise receive.

And finally, although I’ve sent out our Silver Bullet Strategy special report to you before, we recently updated this report and investors are snapping it up like hotcakes right now.

So click here to download this timely report once again.

It’s vitally important that you seriously consider buying silver right now. We’re at an interim price low and, as I say, I’m very worried about what the future holds.

You can’t buy fire insurance when your home is ablaze. Now is the time to act, before everyone’s rushing to protect themselves with silver.

Yours in enduring wealth,

Brien Lundin
President and CEO, The New Orleans Investment Conference
Publisher and Editor, Gold Newsletter

Brien Lundin is the editor and publisher of Gold Newsletter, a publication that has ranked among the world's leading precious metals and resource stock advisories since 1971. To learn more about Gold Newsletter, visit www.goldnewsletter.com. Mr. Lundin is also the host of the famed New Orleans Investment Conference, the world's oldest and most respected gold investment event. To learn more, visit www.neworleansconference.com.