How to Buy Gold: Without Getting Ripped Off

By Joel McDurmon

Aimed especially at beginning gold buyers, How to Buy Gold Without Getting Ripped Off promises to save the reader lots of time and lots of money when investing in gold. It could, in fact, save them from wasting hundreds, maybe even thousands, of dollars on a single gold purchase—even the very next one. HTBG exposes scams, fine pr

• Language: English
• Publisher: New Liberty Mission
• Release date: Feb 17, 2017
• ISBN: 9781635870343

Book preview

HOW TO BUY GOLD

WITHOUT GETTING RIPPED OFF

JOEL MCDURMON

How to Buy Gold . . . Without Getting Ripped Off

Copyright © 2017 by Joel McDurmon

Published by New Liberty Mission, LLC

www.NewLibertyMission.com

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior permission of the publisher, except as provided by the copyright laws of the United States of America.

Printed in the United States of America

ISBN: 978-1-63587-033-6

ISBN: 978-1-63587-034-3 (e-book)

Foreword

by Gary North, Ph.D.

It is wise to own some gold. I make an assumption: you want to own gold when you pay for gold.

What if you are buying a promise to pay gold on demand? How good is that promise? Is it legally enforceable? At what price of lawyers? Under what circumstances? In a crisis? What if the firm declares bankruptcy? What would you do then?

What if you are buying a promise not to pay gold on demand? Who would buy such a promise? Most investors would. They buy an ETF: exchange traded fund. They cannot get delivery of gold. They are speculating on a hint of a promise that there is gold to back up the purchase. But is there? Read the prospectus. Few people ever do. Joel McDurmon did.

What about a gold mining stock? What if the company is fake? What if it runs out of gold? What if management is poor? The gold mine may turn out to be a land mine.

McDurmon takes us through the land mines of gold investing: real gold, near gold, and no gold.

You can make money—dollars—with all of these strategies. But what if your goal is to escape dollars? Don’t adopt the wrong strategy.

Years ago, I met Burt Blumert’s father, Max. Burt for four decades operated one of the most successful and durable gold coin dealerships. I met him in 1965 at a conference. He died in 2009. Max was a businessman. At one stage, he had been in a loose association with people who, as the saying goes, were in a position to make you an offer you could not refuse. Here are his three rules of investing: Buy the best. Pay cash. Take delivery.

Read this report before you buy any more gold.

Disclaimers:

This book is for editorial and informational purposes only:

Nothing in this manual shall be construed as investment advice. The author and publisher accept no responsibility for your investment decisions. Before you invest or spend money, you should consult with a licensed financial professional.

Likewise,

Nothing in this manual shall be construed as legal and/ or tax advice. The authors and publishers accept no responsibility for your personal legal and/ or tax decisions or issues. Before you make legal or tax decisions, you should contact a lawyer and/ or certified tax professional.

Likewise,

Nothing in this manual shall be construed as professional consultancy regarding insurance, safety, or any of the other subjects touched upon herein. The authors and publishers accept no responsibility for your personal decisions. If you wish to hear professional advice in these areas, you should consult a licensed professional.

TABLE OF CONTENTS

Foreword by Gary North, Ph.D.

Introduction: So You Want to Buy Gold

One:Reasons for Investing in Gold . . . Now

Two:The Basic Method for Avoiding Rip-Offs

Three:Know Your Dealer

Four:Taking Possession (The Best and Worst Ways to Buy Gold)

Five:What Coins Should I Buy?

Six:Collectible Value Scams to Avoid

Seven:Keeping Your Gold Safe and Sound

Conclusion: God, Guns, and Gold (or, Life, Liberty, and Property)

INTRODUCTION

So You Want to Buy Gold…

So, you want to buy gold, and you’d like to get the upper hand. You want to learn the secrets of the trade: how to get good deals, what to buy, what to avoid. The first step in learning anything is to open your mind to new information, some of which will confirm your common sense, and some of which may sound counterintuitive. In order to make the best investments in gold, you first need to invest in knowledge. For that, you’ve come to the right place.

The goal of this book is to save you lots of time and lots of money when investing in gold. In fact, in a minute I will show you how this manual could save you from wasting hundreds, maybe even thousands, of dollars on a single gold purchase—even your very next one.

There are many places out there, especially on the internet, purporting to tell first-time buyers the best ways to buy gold. Many if not most of these free advice sites are nothing more than hooks to snag the unsuspecting, and they follow up with sales pitches urging you to buy what often turn out to be overpriced coins—from the very people writing, of course. They’re traps set for the inexperienced. Why do you think they target first-time buyers and beginners, after all?

This book has no such agenda; its author and publisher do not sell gold and are not allied with anyone who does. We simply offer knowledge and wisdom. We think this is well worth the small price—especially when it can protect you from very expensive mistakes.

This book represents the fruit of countless hours of research and experience gleaned from gold dealers, scholars, and experts from all over the world of precious metals investing. The author has also interviewed some of the most experienced and knowledgeable individuals in the trade, probing them with tough questions and gathering insights rarely discussed by many dealers openly. The result is the most unique, deeply researched manual of gold-investing, with the added twist of insiders’, behind-the-scenes perspectives.

Most of the general information in this book is available from different internet sources, but much of it is not, or is tough and time-consuming to find. It is impossible to find all in one place like this. Moreover, you will encounter no pushy sales pitches or offers to subscribe to newsletters here. Further, much of this book pursues issues more precisely and in greater detail than most other available sources. The result is a clearing-house of information on gold and gold investing collected in one convenient guide unlike you can find anywhere else. Putting all of this together in one book will save you loads of time, and potentially a great deal of money as well.

CHAPTER ONE

Reasons for Investing in Gold . . . Now

The two main reasons to buy gold at any time are to preserve wealth or to speculate for profit. You likely already know this in general. If so, what follows should add plenty of stimulating information on top of helpful confirmation. And, while you know these basic reasons for investing in gold, this chapter should provide some new information to spark a sense of urgency. After this, you’ll know you not only need to buy, but need to buy now.

GOLD: THE BACKWARDS INVESTMENT

Gold is a backwards investment in two crucial ways, and these are two crucial reasons to buy now. This may sound strange to you. Let me explain.

Normally when we say something is backwards we are saying that it belongs to a bygone era, is outdated, unsophisticated, and today irrelevant. Some would say (and have said) that gold belongs in this category. The statist, fiat-money, government deficit-spending minded, liberal economist John Maynard Keynes famously called gold a barbarous relic. The vast majority of people today agree with him—a gold-based economy belongs to a backwards economic philosophy. You have seen through this nonsense, or else you wouldn’t have bought this manual. So how exactly is gold backwards, and how is this a good thing?

It is backwards in the sense of what is called contrarian investing. Contrarians buck conventional wisdom and refuse to follow the herd. These investors sit back while other investors overreact in some way—oversell, overbuy, hype a particular investment—and they know that the irrational exuberance will cause a negative reaction in the market. Then they get rich by doing the opposite of what the rushing herd did. They buy undervalued investments, short-sell overvalued ones, and cash in for profit.

Well, gold is the ultimate contrarian investment. Investors rarely pay attention to it, and average people pay no attention to it until a time of crisis. Then they rush in hordes to buy.

We have already begun to see this happen. It can happen in two waves: investors seeking to ride the wave, and then average people when the crisis really begins to hit home. We have begun to see only the first wave. Average people have not begun to buy much at all. They in fact have actually done more selling of what little gold in jewelry they have; they have been suckered by those sell us your ‘unwanted’ gold, Cash-for-Gold dealers. They sell because the first thing they think of in a time of crisis is I need more cash.

As the dollar begins to fail more and more, these people will realize that cash is the last thing they need. That’s when what is now a contrarian sentiment will turn into something more like a popular sentiment. When just a small percentage of the average public begins to demand physical gold, the price will skyrocket. Skyrocket. YOU WANT TO BUY GOLD BEFORE THIS WAVE HITS. This means, it’s a good time to buy gold now.

Second, gold can also be backwards in the sense of a phenomenon known as backwardation. This fancy word was coined (no pun intended) by commodity market experts to describe a situation in which the price of a commodity is higher for immediate delivery than for future delivery. This is backwards from the normal state of affairs (and thus the name backwardation). Usually, the price of a commodity is higher the further delivery is delayed into the future because owners/sellers charge more to make up for profits they could have made in the interim doing something else with the capital. This is how things are normally done in the commodity world, and why that trade is often called the futures market. When, however, people begin to feel that current possession of the gold is more important than any likelihood of profits in the interim or the future, then the spot price of the commodity will rise above any future prices.

While this scenario is not uncommon with most commodities, it rarely happens with gold. It happens with other commodities (corn, wheat, soybeans, oil, hogs, cattle, etc.) because most other commodities are consumables—their supply is continually being eradicated and in need of replacement. This means shortages can (and do) occur, creating frequent situations in which immediate delivery is more