Buy Gold at 20%, Discount Direct from the MINE itself!

FinanceWealth-Building

  • Author Derrick Alexander
  • Published May 30, 2010
  • Word count 1,539

Taking the Bull out of Bullion

There is now an option for Buying Gold

Unless you are Jeremiah Johnson and living in a log cabin in the mountains with no TV or radio, then you must be aware that the precious metals market is on the rise as the economy continues to decline. It is a known fact that when the economy suffers, gold and other precious metals soar. Everywhere you turn the experts say to invest in gold.

Buying gold coins and bullion can be very intimidating for most people! Most people like the idea of owning gold, but don’t know what they’ll do with it once they buy it! Problems involving shipping and insurance costs, storage, re-selling it in the future, and more importantly high brokerage commissions tend to make the average investor shy away. Most of the people I have spoken with about investing in gold say to me "I don't know what I would do with a box of coins", or something to that effect. Many people want to invest in something they can get out of in an emergency, and perceive buying gold as a (very) long term commitment. The truth is that is typically the case with gold (or silver) and it can require some effort to dispose of the metal when the market increases and the cash is needed quickly.

So what if you keep your cash and invest it into more traditional investments? If you put $50,000 into a savings account, IRA, Mutual Fund, or stock portfolio. The average investors goal is to increase their portfolio in value by 8-10 percent per year so 5 years down the road your $50,000 has increased in value by 40% to 50% or $70,000 to $75,000 in total value. Sounds good right? When it comes time to withdraw the money it is worth whatever the market value of the dollar is at that time....correct? The only problem is the dollar depreciates.

In the last 12-14 months the dollar has lost 12% of it's value (against other currencies) whereas gold has increased in value by 24%. In the last 5 years the dollar has lost nearly 50% whereas gold has steadily increased in value over the last 10 years by an average of 16% per year! So, using that math, if you put $50,000 into any cash investment 5 years ago, then today that money would be worth $25,000 plus whatever interest/ROI you earned! Do you get that?

The truth is gold and other precious metals are the only hedge against inflation and a weakening economy.

So let's talk about bullion. I am actually a precious metals bullion broker by trade, and sell gold, silver, platinum, and palladium. Most brokerage companies sell coins and bars, but the company I broker for offers a "leveraged storage" program that means we store the gold for you, and you leverage your investment dollars to purchase more metal. Basically you can buy $100,000 worth of gold (etc) for approximately $30,000 out of pocket! They do this by "mortgaging" the gold for you, meaning you put down 23% of the total metal value...plus a one-time account setup fee (that includes commission) which is usually about 10%. So a $100,000 gold purchase would cost you $23,000 down plus 10% fee or $10,000 for a total of $33,000. Your one-time fee means you won't have to pay any additional commissions or fees to buy or sell your gold for the next 5 years! So in essence if you only had $35,000 to invest in gold you could buy 88 ounces (100k) verses 31 ounces, meaning if (when) gold goes up $100 an ounce you gain $8,800 verses $31,000. Get it!?

That's a great deal, and very fair if you are a candidate for that. However, when I say "Take the Bull out of Bullion" But because of the negatives involved in buying bullion I am proposing another option. Buying gold direct from the mine itself! Now there's nothing wrong with buying minted bullion from a broker and if you want to buy some then I will be happy to sell it to you! However I have come across another opportunity to buy the gold ore direct from the mine itself....at a 20% discount with NO commissions or fees.

There are literally thousands of gold mines in the world and most are inactive. During the 80's and 90's many mines closed down because the price of gold verses the dollar made it unprofitable to mine. Well that has now changed.

The World is running out of Gold! According to Galmarley.com, all gold ever mined is worth $1.8 trillion dollars. All gold that has not been mined is worth about 40 percent of the mined gold or $0.7 trillion dollars. Adding these two numbers together we get $2.5 trillion dollars worth of gold bullion, both mined and underground. This number may sound high but it is actually really low compared to the current US national debt of $9 trillion dollars. Now, let's factor in the national debt of all other countries and the supply of gold looks even lower. Put simply, the supply of gold is extremely low. Since we are running out of gold very quickly, all gold left in the ground is extremely valuable. Who owns the gold that is left in the ground? Gold mining companies. The very fact that there is not much gold left is a very strong reason in favor of investing in gold mining companies. (i.e. Gold Mining Stocks)

The reality is 99% of the gold mines do not sell gold to the public, they sell it to larger volume buyers. Frankly they don't want to deal with the hassle of selling one ounce here and there. Tourist mines will sell you a bucket of dirt for $50 or so and let you sift through it and pray, but now there IS a mining company that will sell you gold direct. Not only do they sell it direct but the even sell it at a 20% discount! So since today's SPOT rate is $1,134 then if you bought gold from this mine today it would cost you $907 an ounce. By the way this is a limited time offer which is only good for the first 1,000 ounces they sell.

So what will you do with a chunk of gold nuggets?? Nothing. You don't have to get the gold nuggets...although you can if you insist. Instead they are forward selling! Another crazy idea since they are selling you gold today for today's price less 20%, but actually giving you the gold (or cash value) 18 months later. What if 18 months from now gold goes to $1,500 an ounce! Well then the gold you bought for $907 an ounce is now worth $1,500. Period. But you skeptics say "What if gold goes down?"....well don't worry because they give you a no-risk guarantee! This means IF gold goes down then you will not receive less than you initially investment! Now you tell me, who else gives you a guarantee like that?! I asked them how they can do that and their answer was "To us its only rocks buried in our dirt!". Wow.

The mine offering to sell their gold is in Guyana, South America...although it's owned by a US Corporation based in Ft.Lauderdale. You buy the gold, let's say 10 ounces ($9,070), then in 18 months they sell your 10 ounces direct to the Government of Guyana for SPOT rate and wire you the proceeds. It's just that simple. In the above mentioned scenario you purchased $9,070 worth and received in return $15,000 in a year and a half.

So Where in the Heck is Guyana….and Why Should I Invest There? Guyana (formerly British Guiana) is located on the north east-coast of South America between Venezuela and Suriname, and completely bordered to its south by Brazil. Historic records show that mining for gold from surface deposits began in the Amazon region as early as the 16th century. Since that time, it's estimated that over 50 million ounces of gold have been extracted from the Amazon as opposed to only 12 million ounces removed from California during the Gold Rush. In the late 1970s, Brazil's government conducted a sweeping aerial survey of the region. As a result, they helped to confirm the presence of the â€Å"Guiana Shield”, an ancient belt of gold-bearing rock extending eastward from Venezuela through Guyana, Suriname and French Guiana and southward into Brazil's Amazon Basin, and it is historically known to contain prolific Gold resources. The Amazonian Guiana Shield is actually the other half of Africa's Guiana Shield, which is responsible for the abounding gold and platinum wealth of South Africa and other countries in sub-Saharan Africa. Sometime during the Jurassic periodâ€"about 135 million years agoâ€"the once whole Guiana Shield was split into two as plate tectonics tore one large land mass into two. Today we call these two parts South America and Africa. The best part is there are no environmentalists wackos, no EPA, ample water supply, good roads, and gold processed by sluice, water cannons and vacuum pipes. Guyanese Gold Board Wardens certify production and guard shipments. The Guyana Gold Board blesses this type of mining because the jungle will grow back within 6 months.

So in closing, if you are curious about buying gold direct from this mine instead of the "traditional" way then visit their website at http://www.MinedGold.com

To your investing success!

Derrick Alexander is a bullion broker and Marketing Director for TECH GOLD PLUS LLC, a Gold Mining Company. He has written articles on investing in gold and other precious metals.

Copyright Derrick Alexander 2010

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