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What My Most Trusted Gold Insider Is Buying

By Dr. Steve Sjuggerud
Wednesday, August 10, 2011

"In the last three weeks, we've seen a big change in the way people are thinking," my good friend Van Simmons told me yesterday.
"Two things changed people's minds... the debt ceiling negotiations, and the crash in stocks on Wall Street."
Van Simmons is a mentor of mine... When I want to check with a friend to get an opinion on an investment deal or a business deal, I often turn to him.
By profession, he's a dealer in rare gold coins. But saying that misses the big picture... Van is extremely knowledgeable about every asset class and every major category of collectibles (mostly from firsthand experience... ask him, and you'll see what I mean).
Yesterday, I wanted Van's opinion about something...
You see, in the last three years, the price of gold has doubled – but the price of many pre-1933 U.S. gold coins has stayed relatively flat.
For example, the "blue chip" pre-1933 gold coin index is actually down over the last three years. Take a look:
Gold Has Doubled Since 2008, but Gold Coins are Down
I asked Van what he thought about this...
"I'm buying those coins personally," he told me...
"The events over the last few weeks have made many people realize the U.S. has a real problem. So my phones are ringing, and the premiums over melt value are just starting to rise."
To me, this is just the start of the next stage of the bull market in gold...
Individual investors have not caught gold fever yet. They're not loading up on speculative ways to play gold yet.
They haven't bought gold mining stocks yet. And they haven't bought "blue chip" rare gold coins yet. So I believe the gold bull market has not hit its mania stage... yet.
I am certain that, at the peak of a gold bull market, the prices of investments like these will go nuts – like dot-com stocks in early 2000.
When the price of gold is peaks, a few things will happen:
* Gold mining stocks will soar beyond reason.
* Rare gold coins will go up hundreds of percent in value.
* The general public will be talking about gold at cocktail parties. You'll hear things like, "You can't lose money buying gold"... just as you did about housing at the height of the real estate bubble.
Right now, none of these is true... But I think the changes are about to happen.
Gold mining stocks are dirt cheap in comparison to the price of gold. And gold coins are dirt cheap, too... After hitting their lowest premiums over melt value ever, the premiums are just starting to rise.
I urge you to consider getting on board in gold mining stocks and "blue chip" gold coins before the real mania kicks in. If gold continues higher, these investments could soar hundreds of percent.
With the coins, your downside is limited to the melt value of the coin. So you're looking at hundreds of percent upside, with limited downside. I suggest learning more and getting on board...
Good investing,

Further Reading:

Last year, Steve spoke to Van and put together a two-part series for DailyWealth readers on buying gold. Van told him how and where to buy gold and gave him three "must-own" gold investments.
Steve is bullish on a precious metals royalty company with "one of the best business models" he's ever seen. "Shares of [this company] are actually incredibly cheap right now," he wrote last week. "I believe triple-digit profits are likely in two years' time." Get the full story here: Triple-Digit Returns Likely in Two Years with Golden Paychecks.

Market Notes


Our "sure bet" thesis on market volatility is running full-steam right now.
To recap our thesis, we know there are few sure bets in the financial markets... few "this is the case, and it always will be" statements we're comfortable making. The market is just too messy for those kinds of words.
But one "this is the case, and always will be" statements we'll stick by is, "Calm periods of rosy headlines and softly rising prices will always be interrupted by periods of wrenching volatility... and vice versa." That's just the way the world operates.
For a picture of this "always the case, always will be" phenomenon at work, we present the past five years of the Volatility Index (the "VIX"), the most popular gauge of market volatility and investor fear. When the VIX is low (below 18), it indicates investors have few worries and see blue skies ahead. When the VIX is high (above 35), it indicates panic and confusion.
The last time we updated you on this idea, the Japanese earthquake had budged the market and its volatility readings a bit. Things quickly calmed down. But the past few weeks have brought incredible market declines and a soaring VIX. This fear gauge just popped to its highest level since the 2010 "flash crash." The surest bet in finance works again.

The tides of investor fear... they come in, then go out

In The Daily Crux

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