Cash in On The Crash

Cash In On the Crash Mike Burnick
Cash In On the Crash

By Mike Burnick
October 19, 2017
Real Wealth Report

RWR-0132
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Hi! Mike Burnick here, and together, we are about to embark upon a
journey into the world of gold and silver.
A journey that will help you position yourself for the profits of a
lifetime, as gold prepares to more than double and probably triple in
the years ahead, and as silver prepared to more than quadruple!
Over the course of five instructional chapters that I have created for
you, I will be giving you all the knowledge and expertise you’ll need to
help maximize your profits in the precious metals.
Why now? Why should understanding gold and silver be a priority for
you?
Because the underlying fundamentals, and cyclical and technical

conditions for the next phase of gold and silver’s bull markets are all
finally, in place.
I am 100 percent confident that gold and silver are headed substantially
higher in the years ahead. T o over $5,000 an ounce in gold, and over $12 5
in silver!
In other words … if you don’t educate yourself now, you’ll be at a huge

disadvantage and will be leaving a lot of money on the table.
T o review the outline of these chapters …
First, in this introductory chapter I’ll be providing some essential

background to the story of gold and silver.
We’ll explore the origins of the human love affair with gold.
We’ll look at some of the first gold coins ever used as currency.
We’ll learn about how gold fueled the rise and fall of civilizations
over the course of the last thousand years.
Next, we’ll talk about the Gold Standard. Why it was created… what
it achieved … and why it was abandoned by governments but should
be embraced by you
As we conclude our history lesson … with a new appreciation for
gold…and silver … we’ll take a close look at the role gold still plays
in today’s monetary system.
Finally, I’ll explain in broad terms how and why you should still
take gold and silver seriously today … and why you should buy them
as a store of value, and trade in and out of them to make oodles
more money.
And then, in …
Chapter II, I’ll show you How To Build Your Own Gold Standard — by
helping you understand the different types of gold and silver bullion
that are available for purchase …
T he pitfalls of buying rare coins and special editions …
T he difference between “in-hand”, allocated and unallocated gold …
And even how to safely store your precious metals onshore here in the
U.S. or offshore in vaults like Singapore …
Plus, I’ll give you some very important tips to help you save hundreds, if
not thousands of dollar every time you purchase gold or silver, or any
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other precious metal!
And to top it all off, I’ll then get right into the most popular derivative
precious metals investments, such as ET Fs, futures and options …
ALL to fully prepare you to maximize your profits in every conceivable

type of precious metals investment.
And to make sure you are ready for my subsequent modules — where I’ll
give you the basics to trade gold and silver to positions yourself for
MAXIMUM profits — while at the same time, using some very basic
techniques to help you reduce your risk as much as possible.
Chapter I:
T he Midas T ouch and a four-thousand-year obsession with gold.
Gold was revered by ancient civilizations, going as far back as the

Bronze Age in the Near East, over four thousand years ago.
It was perceived as wealth from the outset. Only Kings, Queens,

Emperors and others of noble birth could possess it.
It was fashioned into jewelry, crowns and other exotic and decorative
items. And this collection of gold bullion objects represented the wealth
of the owner.
It was money … from the outset. Even before it was fashioned into what
we perceive as money today, in the form of coins.
T here is no other metal or substance on earth that says “wealth” in the

same way.
And recognition of gold as wealth is universal, across all major

civilizations, independently of one another.
T he Persians recognized gold as wealth. As did the Egyptians. And the

Chinese. And, of course, the Aztecs, and other South American
civilizations.
Every civilization understood what gold represented. Nobody thought it

was just a useful metal because of its malleability. Wherever in the
world it was found, gold was immediately recognized as having unique
value, above all other metals.
In a very real sense, even back then, it was the world’s first currency,
because every civilization — even if divided by oceans, continents and
time — agreed to its unrivalled value.
T his unshakable belief in gold’s value has persisted for thousands of

years. And it isn’t going away any time soon.
Its value and power is so great, gold has driven the rise and fall of
countries and whole civilizations.
What is one of the first things an invading army does after it has
vanquished its foes? It steals their gold.
T he Spanish did it to the Aztecs in the 16 th Century. T he Nazis did the

same in every country they conquered during the Second World War. And
the same thing is happening in this century.
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T he destruction of the Aztec civilization gave rise to the growth of Spain

as a European power … their growth fueled entirely by the shiploads of
gold that crossed from one continent to another.
In more recent times, California was built on the back of the Gold rush
in the mid-1880s.
Gold was and still is our most coveted possession — whether we buy it,
steal it or kill for it.
Gold is REAL and tangible wealth. It always has been. It is a portable

form of significant wealth we can hold in our hands.
T he Spanish ships transporting gold across the Caribbean were

attacked by pirates for their gold. Gold vaults and armored trucks are
still targets for criminals. And when we are not trying to keep it safe, we
show it off to signal our own wealth. T hat’s why we wear gold watches,
jewelry and “bling”. It’s why the super-rich drink gold flakes in their
champagne … or add it to their skin cream and facials. It’s why oil
Sheikhs gold plate their cars.
I’m telling you all this for a very important reason. T o understand gold
and the gold markets, you have to first understand the unique place
gold holds in the human psyche. Our relationship with gold is unique.
And this is true across all countries and all major cultures.
Gold’s unique, emotional attributes are what make it worth owning,

even ― or particularly ― in a world where money is at its most
intangible, as it flies from one computer to another.
In an age where computer systems, and the information they hold, are
vulnerable to cyber-attacks, there is much to be said for owning physical
gold and keeping it in a safe place.
At a time when wars and social chaos threaten to engulf large parts of
the world, it’s good to know you have some of your wealth in a form that
is both secure and portable.
In a decade when the value of the world’s major currencies is so

vulnerable to world events, and the meddling of central banks, it’s good
to know that the wealth you own in the form of gold is safe.
Remember, gold always has and always will be valuable. Love of gold is
hard-wired into the human brain. T hat’s what makes it such a safe and
reliable possession, and such an important investment.
Section One:
T he origins and importance of gold as currency.
T he first recorded gold coins were minted in the 6 th century B.C. in

Anatolia, in present day T urkey. A few hundred years later gold coins
appeared in Persia, at the time of King Midas. Soon after that, the
Chinese started minting their own gold coins.
What you need to understand here is that the minting of gold coins
finally gave a specific value to gold, in comparison to the price of goods
and services. A certain amount of gold bought you a fixed number of
camels, for example.
Finally, people could actually measure the wealth they had when they
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owned gold.
Gold coins also became the basis of “finance” and financial transactions.
In the 4 th century BC the Greeks were creating rudimentary banks and
extending credit between one city and another, based on gold deposits.
By the 2 nd century AD the Romans had become even more sophisticated

in their financial dealings, spread across their entire empire.
All this was made possible because gold and silver were recognized as
money, with each coin representing a known value.
None of this, mind you, ever prevented authorities from devaluing their
money. So in a very real sense money has always been fiat, from the get
go, subject to the whim of the powers that be.
But throughout history, each and every time authorities devalued their
money by lowering its gold content, guess what happened? T he
importance of gold to the private sector merely rose.
So much so, that today, as you will soon see, while there is not a
government on the planet that backs its money with gold or silver …
T he importance of building your own gold and silver standard has never
been more critical!
Section Two:
T he gold standard, and what happened when it was abandoned.
T he gold standard had its heyday between 1875 and 194 0, although
there are versions of its existing both before and after that period. T he
gold standard has existed in one form or another since the late 17th
Century in England, and it died its final death only in 1971, in the U.S.
T he gold standard was a monetary system that directly linked a

currency’s value to that of gold. A country on the gold standard couldn’t
increase the amount of money in circulation without also increasing its
gold reserves.
If a country’s central bank wanted to create a million dollars in cash, it

also had to have a million dollars’ worth of gold in its vaults.
We might be forgiven for feeling a little nostalgic about the idea of

paper money being “real” and guaranteed by its value in physical gold.
Unfortunately, the gold standard works only when things are going well
in the world, and where little of significance changes. T hrow in a few
sharp shocks to the system, or even high population growth, and the
gold standard falls apart.
In the face of such shocks, the gold standard prevented governments

from using any or the tools we take for granted today when it comes to
managing the economy through changes in interest rates, printing
money, and so on.
T hat may sound good on the surface, but reality is different. T he truth
of the matter is that a gold standard, back then and even today, would
be nothing more than outright deflationary for the global economy.
In fact, one of the first death knells of the gold standard came in 1933
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when President Roosevelt cut the dollar’s ties with gold, allowing the
government to fight the Great Depression, pump money into the
economy and lower interest rates. And did do precisely that, it helped
the U.S. get out of the Great Depression.
If that sounds like too much history, let me tell you why I wanted to
share all that with you.
First, it explains why so many people still equate money with gold. Until
relatively recently in the history of gold and banking, a bank note was
simply a voucher or coupon, representing a certain amount of gold.
It was the gold that was real money. T he bank note was simply the
promise of gold.
Second … it raises an interesting question about the behavior of

national treasuries and central banks. Why do central banks ― with all
their fiat money printing and sophisticated financial instruments ― still
buy and store gold bullion?
After all, with the disappearance of the gold standard central banks are
no longer under any obligation to do so.
Remember, central banks stored gold only because they were required
to back all of their cash assets with an equal value of gold bullion.
T he answer to that question speaks to our own interest in owning gold.

Like us, the governments of the world — while not embracing a gold
standard today — also know fully well when push comes to shove, you
can’t rely on the promise of money, but you can depend on gold.
Section Three:
Why gold and silver as still so important in today’s world.
For most financial transactions today, gold is irrelevant. Wall Street can
carry on quite happily without ever even thinking about gold.
However, four thousand years of history doesn’t just disappear. Gold is

still revered in almost every country in the world.
And this isn’t just a matter of sentimentality. In spite of the complexity

of the global economy ― or perhaps even because of that complexity ―
gold is still an essential asset.
Central banks still buy it by the ton. Wealthy individuals are building
their own vaults and storing gold bullion. And regular people, all over
the world, are buying gold coins and bars faster than ever before.
Why? Beyond emotional reasons, why is it still a smart move to buy

physical gold? After all, gold does have its downsides. It doesn’t pay
dividends or accrue interest. It just sits there. Its value hasn’t even kept
up with inflation over the years.
And for the two decades between 1980 and 2 000 the price of gold fell,
even while inflation still rose. So why bother?
T here are three good reasons to buy gold.
First, over time, the price will almost certainly rise significantly. T his
has very little to do with the markets, and a lot to do with its scarcity.
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Gold is a very scarce commodity relative to the demand.
All the gold ever mined is estimated to be only about 150,000 tonnes,
and less than a third of that amount is still in the ground and
recoverable.
Based on current gold production levels, all the world’s known mines
will be pretty much exhausted in about 2 0 years.
Stop and think about that for a moment. Scarcity plus emotion.
T hink back to our historical relationship with gold. T hink of our desire
and greed for gold.
Now think about what will happen to the price when there is no more
gold in the ground.
Sure, we’re talking about 2 0 years from now. But think about what will
happen to gold prices when everyone realizes we are just five years
away from the end of production. Or 10 years away.
As those dates approach, it would take just a tiny shift in attitudes to

increase the demand for gold to levels far in excess of supply.
What if the world’s investors decided to increase their exposure to gold

in their portfolios by one percentage point?
Or if the BRIC countries ― Brazil, Russia, India and China ― decided to

bring their gold-to-currency ratios up to the standard of the U.S.?
In either scenario, there wouldn’t be enough gold to meet the demand.
In other words ― because of scarcity ― now is the time to buy gold …

before everyone else starts the countdown to the end of gold
production, and both demand and prices soar.
T he second reason to buy gold now is as a form of insurance against

government and central bank madness.
T he U.S. and many other Western countries have national debts, deficits
and entitlement spending that are out of control. T heir positions are
unsustainable.
T his, in turn, encourages central banks to behave recklessly, putting

world markets ― and your money ― in very real danger.
So the question you have to ask yourself ― as you think about your
investments and savings ― is this: Do I trust Washington to keep my
money safe? If not, then you’ll want to put a proportion of your wealth
into gold bullion.
Consider reasons one and two in combination.
In a world where the future supply of gold is uncertain, and where

governments and central banks are behaving recklessly … there is a
very real possibility that gold prices will go up dramatically over the next
few years.
Also, buying gold is like buying insurance. You insure your home and
your car, just in case something bad happens. When you buy home
owners insurance, it’s not because you want your home to be consumed
by fire, of wrecked by a hurricane. But you protect yourself nevertheless.
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It’s the same with gold. Owning gold doesn’t mean you want there to be
a catastrophic meltdown of the financial system. But you buy it anyway,
just in case. Buy it and keep it close. So it’s there for you, just in case
the rest of your wealth suddenly takes a huge hit.
T he third reason to buy physical gold: Gold is better than cash.
Earlier I mentioned how gold has a few downsides, like its historical
inability to keep up with inflation. And the fact that it doesn’t pay any
dividends or offer a guaranteed return.
But let’s not knock gold too much. Because cash isn’t such a great store
of value or wealth either.
T here are plenty of stories about people who store cash under their
mattresses or in boxes buried in their back yards. T hey do that because
they don’t trust banks. And that’s fair enough.
But it’s not such a smart move when you consider that the US dollar lost
over 98% of its purchasing between 1900 and the year 2 000.
And when we look at how the Fed has been pumping billions of “fresh
printed” dollars into the system since 2 008, it would be foolish to think
that this century will see any less of a fall of value in the dollar.
Within that context, these hoarders would have done much better to
bury gold in their yards instead of cash.
Gold AND silver.

I have been talking mainly about gold. But silver has a role to play as
well. Silver is like gold’s sidekick or younger brother. Both have much
the same historical background. Both have been used as currency in the
forms of coins, since the earliest days. Both tend to move up and down in
value in tandem, although not always.
Silver is certainty a precious metal, have it doesn’t have the allure of

gold, or the emotional power that drives the same level of desire to
possess it.
And while you can carry a fortune in gold in your jeans pockets, the
same isn’t true for silver.
However, as we progress through this course, we’ll talk a lot more

about silver. Because while it may not be many people’s first choice
when it comes to buying bullion, there are plenty of ways to invest in
silver that do offer a solid return.
In Module T wo we’ll look at the various ways in which you can both
secure and grow your wealth with gold.
Chapter II: How to Build Your Own Gold Standard
Section One:
T he different types of gold bullion
If you want to own gold as wealth, there are three ways to go … gold
jewelry, gold coins and gold bars.
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Of course, here in the western world we don’t generally carry our

wealth in the form of jewelry. In some countries, notably in India and in
the Middle East, wealthy people can be found wearing literally pounds
of gold.
But in North Am1/10erica and Europe, gold is usually worn more as a

sign of wealth rather than a store of wealth.
For our purposes, we are going to look at gold bullion coins and gold
bullion bars. Both have a long history.
Why is gold minted in these two forms?
Well, as we have discussed before, gold coins have their historical

origins as currency. T hey were money. A gold coin could be used to
purchase a product or service, just as we would use a banknote today.
For example, the British Sovereign is a gold bullion coin today. But its
history as a coin of the realm began when it was first minted in 14 89,
during the reign of Henry VII. It was minted in Britain right up until
1917, shortly after the country abandoned the Gold Standard.
In other words, gold coins are “coins” because of their origins as real
money. T hey are of a size and shape that makes them convenient to
carry in your pocket or purse. And their value corresponds to their
history as coinage. A one-ounce coin of 2 4 karat gold is worth
approximately the spot price of gold on any given day.
Of course, when gold coins were used as currency, for buying goods and
services, their value was much lower. As money, the gold Sovereign was
the precursor to what is now known as the British Pound … worth less
than two dollars US.
Gold bars — or ingots — have a different history, and a different

purpose. If a central bank or national treasury wants to hold part of the
country’s wealth in the form of gold, it doesn’t want to do that with
sacks or boxes of one-ounce coins. Instead, it mints or purchases large
gold bars.
T he size of the gold bullion bar we are perhaps most familiar with is the
4 00-ounce bar. T his is the heavy bar stored in the Vaults of Fort Knox or
the Bank of England.
It’s also the size of bar we see in the movies, when intrepid thieves dig
tunnels into bank vaults and then load the gold into a waiting truck.
Put simply, and generalizing a little, gold coins suit the buying power of
individuals. And large gold bars suit the buying power of nations.
T his isn’t always the case, as we’ll see in a few minutes.
A choice of gold coins from many different countries.
Keeping in mind that gold coins were once used as money, it should
come as no surprise that many different countries offer their own gold
coins.
If, like me, you started buying gold in the 1970s, your first purchase
would probably have been a one-ounce South African Krugerrand, which
was first minted in 1967.
Since then, numerous one-ounce coins have been minted in many

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different countries around the world.
Here are a few of the better known and most widely purchased coins:
T he American Gold Eagle
T he Gold American Buffalo
T he Krugerrand
T he Canadian Gold Maple Leaf
T he Austrian 100 Corona
T he Chinese Gold Panda
Mexican 50 Pesos Gold Coin
Mexican Libertad Gold Coin
T he Gold Sovereign
T he Australian Kangaroo
T hat list isn’t exhaustive by any means.
And there are some variations within different gold coins. T hat’s right,
not all “one-ounce” gold coins are the same.
First, some gold coins are pure gold, while many are not. For example,
the Canadian Gold Maple Leaf coin is 99.99% pure gold. As are the Gold
American Buffalo and the Austrian Philharmonic.
But the American Gold Eagle is 91.67% gold, 3% silver and 5.33% copper.
T he coin still contains a full ounce of gold, but has a slightly different
color and is, of course, a little heavier in total than one ounce, at 1.0909
ounces. T he same goes for the Krugerrand. But don’t worry, when you
buy a one-ounce gold coin, you do get a full ounce of pure gold.
Another variation ― and this one you need to pay attention to when
you’re buying ― is the premium you pay over spot price.
I’ll be going into detail on calculating what you actually pay for your one
ounce of gold in the next Module. For now, just understand that just
because one-ounce gold coins all contain the same amount of gold
doesn’t mean that you’ll pay the same amount for any coin.
T hat isn’t the case at all, and if you buy several coins at once, and pick a
coin with a high premium over the day’s spot price of gold, you’ll be
paying a lot more than you need to.
One other variation is the relative liquidity of different gold coins. For
example, if you want to sell your gold coins ― for whatever reason ― in
North America, any buyer will be happy to buy an American Gold Eagle or
Canadian Gold Maple Leaf.
But they might not be so eager to buy an Austrian 100 Corona. Why not?
Simply because they don’t feel familiar and comfortable with it. And if
you are selling to a dealer, he or she might not feel confident about
finding a buyer for your coins.
An example of a coin with almost total liquidity is the British Sovereign,
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which is still used as “emergency money” by the British special forces

when they are operating overseas.
T hey know that wherever they are, the Sovereign will be recognized and
accepted. Another coin that is recognized worldwide is the Krugerrand.
Basic pricing, spot price, over spot, premiums.
I have plenty more to tell you about gold coins, and gold bars. But to
make sense of what I want to cover next, we first need to understand
the fundamentals of how gold bullion is priced.
T he pricing of all gold begins with the spot price. T he spot price is the
price of pure gold, right now, as a commodity.
However, when you buy gold ― whether as coins or bars ― you will
always pay more. You will pay a certain amount over spot.
How much you pay over spot will depend on a variety of factors —
including the type of gold coin or bar you buy, the size of the gold coin
or bar you buy, the volume of your total purchase, and the dealer you
buy from.
Let me give you an example:
If I wanted to buy an American Gold Eagle today, I would first look up

the spot price of gold.
I would then go to a dealer and see what the purchase price of the coin
is, and would find that the dealer is selling a one-ounce American Gold
Eagle coin for lets say $1,385. T hat price is $59 over spot. Or 4 .35% over
spot.
Why the difference? First, you have to factor in the manufacturing cost.
It costs something to turn mined gold into a gold coin. Next, you have to
accept that the dealer needs to make a living too. So some of that money
goes to the dealer.
Finally, there is a demand/supply issue at play. If the dealer feels there

is a lot of demand, but limited supply, he might be tempted to increase
the price over spot, and his profits.
Now let’s say we decided instead to buy a one-ounce gold Australian

Kangaroo coin, and we find the dealer is offering it for a slightly lower
price … at $1,377. Now our price over spot is $51, or 3.77%
T hen I change my mind again about the coin I’m going to buy — in search
of a better deal — and discover I can buy a one-ounce Krugerrand for
$1,355. T hat’s just $2 9 over spot, or 2 .16%.
In other words, when you’re buying gold bullion, you have to do some
careful research before deciding on what to buy, and from whom.
We’re going to talk more about these costs later, but before we do, I
need to tell you about fractional gold coins, and gold bars.
T here are one-ounce coins … but then there are also fractional gold
coins.
As with any currency, you get more than one size and value of coin. T he
standard gold coin, whatever its country of origin, is one troy ounce. But
within each “currency” you get smaller coins with lower denominations.
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In the real word, we call this “small change”. In the world of gold
bullion coins, we call these fractional gold coins.
For example, when looking at the American Gold Eagle, you can buy the
full, one-ounce coin, or you can buy coins of lesser weight and value ―
at ½ oz., 1/4 oz. or a 1/10 th oz.
T he same is true with all the major bullion coins.
So … why would you want to buy fractional gold coins instead of a full
ounce?
T here are a number of legitimate reasons why you might want to. But
there are also some reasons why you might want to think twice before
taking the “fractional” route to owning gold.
T he first reason to buy a fractional gold coin is that the price of a full
ounce is more than you can afford.
Another reason to buy fractional coins is when you want to give them as
gifts. And you want to spend a few hundred dollars on your gift, and not
over $1,000.
Finally, you may be thinking about the future, with the “prepper”
mindset.
You might foresee a time when fiat currencies collapse and you’ll want
to use your gold to buy food, clothing and other necessities. In that
scenario, it would make sense to carry gold coins of smaller sizes and
values.
Fair enough. But let’s see what buying fractional coins does to the costs.
For example, we’ll buy a 1/10 th of an ounce American Gold eagle. T he

price our dealer quotes is just $14 9. Just right for a gift, or for a
prepper.
However, if we multiply that by 10, we get a price per ounce of $1,4 90.
T hat’s $164 over our spot price of $1,32 6. Or 11.64 % over spot.
Keep this in mind when buying fractional gold coins. You might have
good reasons for buying gold in smaller units, but you’ll pay well over
the odds for the privilege.
T here are other costs you might need to consider, including delivery and
insurance costs. But we’ll talk about those later.
Gold bars … in their different siz es.
As I said earlier, the gold bar we are most familiar with is the bar stored
by central banks, the 4 00 oz. bar. Let’s say it’s priced at about $500,000.
T hat’s out reach for most of us. As a result, mints all over the world
create smaller bars.
T he kilobar — equal to 32 .15 ounces — is popular among high-wealth

individuals, priced at about $4 4 ,000.
Next comes the 10 oz. bar, at about $14 ,000.
But let’s take a closer look at the one-ounce bar, which contains the
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same amount of gold as a one-ounce coin. I can buy one of those for
$1,357. T hat’s less than the price of an American Gold eagle, but a tad
more than a Krugerrand.
And, as with gold coins, you’ll find some variation between dealers.
If the price between gold coins and gold bars of the same weight is
about the same, why buy gold bars?
Good question. T ruth be told, I would opt for a one-ounce gold bar. Chief
reason: I like to pay as little a premium over spot as possible, and with
the occasional exception of a Krugerrand, with bars you will almost
always pay less.
And I would buy a gold bar if I had $15,000 or $4 5,000 to spend on gold.
Particularly if I were not taking physical delivery of that gold, and didn’t
have to worry about carrying it around.
(We’ll talk in a few minutes about the pros and cons of taking physical
delivery of your gold. And in Module 3 we’ll look at what you need to
watch for when buying gold bars. Don’t get ripped off!)
Section Two:
Rare coins, commemorative coins

and limited mintage proofs.
You need to make up your mind about whether you are investing in
buying gold bullion, or buying rare gold coins. T here is nothing wrong
with buy collectible rare coins. But it’s not the same as buying pure gold
bullion.
In fact, buying and selling rare gold coins can make you a lot of money.
But you have to be really, really good at it. Just as you would if dealing
in rare stamps or 17th century European paintings.
In other words, buying rare, collectible gold coins is a whole different

venture.
What’s the difference between buying gold bullion coins and rare gold
coins? With bullion you are paying for the coin’s weight of gold. With
rare coins, the weight of gold plays a much smaller part. Most of the
value lies in the rarity of the coin and its condition. Just the same as
with stamps.
For example, this 1897 quarter Gold Eagle in new condition is on offer
for $32 ,500. Clearly the value is not about the gold … it’s about the
rarity of the coin and its new condition.
If you do want to buy rare gold coins, let me give you a bit of advice.
First, commit to learning everything you can about the subject. Second,
take great care when it comes to the dealers your work with. T here are
a ton of bad players out there who will try all kinds of scams in order to
make more money. Some even chemically alter a rare coin to try and
make it rarer, and, they often get away with it, fleecing the customer.
Next up … buying
commemorative gold
coins.
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If your focus is on buying

gold bullion, don’t get
suckered into buying
special editions or
commemorative gold coins.
Sure, it might be nice to own some limited edition gold coins which
commemorate the latest Olympic Games or some other notable event or
person. But instead of paying a 2 -5% premium over spot, you could find
yourself paying 100% or even 1,000% over spot.
In other words, you are not paying for gold bullion. In fact, you are
paying for the massive marketing budgets that go into promoting these
coins.
Also, while you can almost always find a buyer for your gold bullion or
your rare gold coin, don’t count on the future liquidity of a
commemorative coin. In short, I don’t recommend buying commemorative
coins.
Also beware of “mint state” and limited edition bullion coins.
T hese really are bullion coins, coming from the same mints as any other
bullion coins. But they are pitched as being special and rare. T hey are
neither.
T hese coins are struck multiple times with the mint die to give greater
detail and a finer finish to the coin. T hey have some aesthetic appeal.
But underneath all the shine, they are simply gold bullion coins that
have been struck by the die more than once.
Mints will tell you these are rare. T hey are not. And they will tell you
they are more valuable than regular bullion coins. T hey are not …
except in the minds of fools.
If you want to buy gold bullion, buy a regular gold bullion coin or bar, or
smaller ingot. If you want to buy rare gold coins, buy genuine rare coins.
Section Three:
T he difference between physical delivery,

allocated and unallocated gold
Let’s say you have made the decision to buy some gold bullion. You have
the money and are ready to buy.
Well, hold up a minute. Before you buy, you need to decide whether to
take physical delivery of the gold, at your home address. Or buy
allocated gold, which is stored for you elsewhere. Or buy unallocated
gold, which is simply the promise of gold.
Let’s take these one at a time.
Physical delivery…
T his is where you buy one or more gold coins or bars and have them
shipped to your home address by courier. In other words, you want to
hold your gold in your hand and then figure out for yourself where and
how you are going to store it.
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(We’ll talk more about storing gold in Module 3.)
A lot people like to take physical delivery of gold. Certainly the preppers
won’t feel comfortable unless they have the gold in hand. And plenty of
other buyers feel more comfortable about being in actual possession of
their gold.
Of course, taking physical delivery of your gold will usually increase the
buying cost. First, there is the cost of the courier, from whichever dealer
you are using. T here will also be an insurance cost, because the dealer
won’t ship your gold without also insuring it.
Even the most reputable dealers seem to see these shipping and
insurance costs as a source of additional income. In other words, they
are higher than they should be. Watch these numbers carefully, because
they can wipe out any savings you have made by finding a deal with a low
price over spot.
You can reduce the impact of the shipping and insurance costs by
waiting until you can buy several coins, rather than incurring these
costs on every coin or small bar you buy. Also, depending on where you
live, you might have to pay sales tax as well.
Allocated gold.
Also known as non-fungible gold, allocated gold is physical gold you buy
… but you don’t take physical delivery of it. It is stored in a vault on your
behalf.
You do own that gold. It is a coin or bar with your name attached to it
and you can ring up the company and ask for it to be shipped to you at
any time.
T he advantages to buying allocated gold is that there are no shipping

costs, and you don’t have to worry about finding somewhere to safely
store your gold.
Where can you buy unallocated gold? My preferred source is Hard Asset
Alliance. You buy the gold through them and then choose where you
want your gold to be stored … in New York, Salt Lake City, London,
Zurich, Singapore or Melbourne.
Another company that offers a similar service is Sprott Money.
Both offer allocated storage, and locations in different countries where

you gold can be stored.
(We’ll be talking more about storing gold overseas in the next module.)
Unallocated or fungible gold.
T his is when you buy gold, don’t take delivery and don’t have your name
attached to a specific coin or bar of gold.
Some people like this idea because it drives their costs down even lower.
With allocated gold there is a small storage and insurance fee. With
unallocated gold there is not.
However … if the company you are dealing with ever went bust, you
would lose everything, because unallocated gold appears on the
company’s balance sheet. It is one of their assets.
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With allocated gold, your gold coins or bars are not on the company’s
balance sheet. So if they go bust, you don’t lose your gold.
In a nutshell … don’t buy unallocated or fungible gold. You think you

own gold, but actually you just own the promise of that gold. And as we
all know, promises can be broken.
Section Four:
Derivative precious metals investments
So far we have been talking about buying gold bullion. Whether we take
delivery or not, we buy gold to own the actual coin or bar.
T he mindset behind buying physical gold isn’t really an investment

mindset. It’s a security and safety mindset.
Sure, if you time your purchases well, you can certainly get a return on
your investment of cash into gold.
But you can’t look at buying physical gold in the same way you would
look at buying shares in a tech stock, or buying bonds.
You’re not looking for a specific percentage growth or dividend from

your gold each year.
Gold is a value-dense, portable, and easy-to-conceal hedge against any

number of crisis scenarios: currency controls, civil uprisings, or a rapid
spike in consumer prices.
In the next module, we’ll drill down and deal with the specifics of buying
gold and silver bullion.
Chapter III: Advice on Buying and Storing

Your Gold Bullion
T his is the “how-to” section when it comes to buying bullion.
You are going to find out how to buy at the best price, without putting
yourself at risk. In particular, I’ll tell you how to find the deals and the
dealers who sell gold at a low premium over gold spot price.
I’ll even tell you which dealers to buy from.
And I’ll show you how to avoid the biggest scams out there … including
outright counterfeits.
T hen, we’ll talk about storing your gold bullion. Where should you keep
it? At home? In a safety deposit box at your local bank? Overseas?
And finally we’ll wrap things up with some instructions on how to add
gold and other precious metals to your IRA or 4 01K.
How to avoid paying too much

for bullion or being scammed
We talked in the last module about the premium over the spot price of
gold you pay when buying gold bullion. T his is true for both coins and
bars.
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As I said, you want to keep that premium to a minimum. Aim for no more
than 5% over spot. Any higher than that and you should keep shopping.
Remember, the premium you pay will depend on a combination of factors,

including the coins you buy and the dealer you buy from.
And don’t assume that today’s best buy will be the same a year from
now. T here is also that issue of supply and demand. If a coin becomes
particularly popular among the buying public, the price over spot will
likely increase.
T o help get you started, here are the coins I like to buy when my focus is
on getting the best deal … the Austrian 100 Corona and the Hungarian
100 Korona.
T hese are often your best buys when it comes to paying as little as
possible for every ounce of gold.
Are these the only coins I buy? No. because I also want to factor in
liquidity, which means I want some gold coins which I know I can sell at
any time, to anyone, anywhere in the world.
For liquidity purposes … this is my emergency gold, if you will … I favor

the Krugerrand. T he price over spot is still pretty good, and the liquidity
is excellent.
But what about the timing?
T o get the best deal for your money, the price over spot isn’t your only
consideration. You also want to make your purchase at point where the
price of gold dips below its average for the time.
Ideally, of course, we would buy all of our gold at the lowest possible
price. Better still, we would get in a time machine, go back to 1971, and
buy as much as we could at $35 an ounce!
Failing that, it makes sense to follow the price of gold, listen to one or
two experts you really trust, and buy when gold hits its relative lows.
BT W … when choosing experts to listen to, please ignore every

bobblehead expert who crops up on T V on a regular basis.
By bobblehead I don’t mean genuine experts who are occasionally

invited to appear on financial T V shows. I’m talking about the regular
“experts” who are invited more for their entertainment value than for
their real expertise.
And what happens if you miss-judge a few of those lows, and pay more
than you should have? My advice is not to beat yourself up about it. Do
the best you can … and buy on a regular basis. T his gives you the
longer-term advantage of dollar-cost averaging.
In other words, if you buy small amounts of gold on a regular basis ―

and over the long term ― your small mistakes will be absorbed along
the way.
But if you save up your cash — and make big, occasional purchases ―
one big mistake in judging the price can haunt you for years.
For an extreme example of getting the timing wrong, consider Gordon

Brown, former Chancellor of the Exchequer in England. He sold 60% of
the UKs gold reserves for an average price of $2 75 an ounce, only to see
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the price quickly move up to over $1,900. His error was in selling at the
wrong time, rather than buying at the wrong time. But his action
illustrates the danger of making big deals when the timing is wrong.
And by the way, don’t worry — timing your buying — and your selling —
of precious metals will be the subject of module 5, where I go into some
very basis — and not so basic — trading strategies.
When trying to get your gold at the best possible price, one other
factor to consider is the cost of shipping and insurance.
T his applies when you are taking physical delivery of your gold.
As an example, with the spot price of gold at $1,32 6, and the price of a
one-ounce Krugerrand at $1,355, you are paying just $2 9 over spot, or
2 .16%.
But when you look at your invoice, you see that you are also paying $30
for shipping and $12 for insurance.
Assuming you purchased just one coin, and you add in those extra costs,
now you are paying $1,397 for your Krugerrand. T hat’s the equivalent of
$71 over spot, or 5.2 1%.
You can usually lower those costs by taking delivery of more than one
coin at a time. Now you are spreading your shipping and insurance costs
over the several coins.
“But hang on Mike,” You say. “I thought you just told me not to buy too
much gold at a time.”
Well, “too much” is a relative term. Some people save up to buy a single
coin at a time, while others regularly spend $2 0,000 or more on gold
bullion bars.
Either way, this is one of the reasons why it makes sense to buy
allocated gold.
As you will recall from Module T wo, when you buy allocated gold, you
don’t have to take delivery of your gold. As long as you’re storing it in a
totally secure vault, you can then avoid delivery costs, which save you a
bundle.
T hat also means you can buy your coins on a regular basis, without
taking delivery of each coin. T hen, at any time in the future, you can
choose to have several or all of your gold coins or bars shipped to your
home.
Yes, there are storage fees involved. And insurance. But buying
allocated gold will almost always cost you less than taking physical
delivery and then having to deal with the costs and/or risks of storing
your bullion closer to home.
Also you’ll want to avoid paying sales tax, when it’s possible and legal.
In the U.S., if a state has a sales tax, gold purchased and delivered
within that state is almost always subject to sales tax.
However, many dealers allow you to buy by phone and have your
purchase shipped out of state. In these cases, the dealer will generally
not impose a local sales tax. An exception is where the dealer may have
offices in, say, your home state where you are taking delivery.
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If a New Jersey resident places an order through the New York office,
the dealer is generally still supposed to charge the New Jersey sales
tax. If the only office was in New York, the dealer probably wouldn’t
impose the tax.
Wherever you are buying, look into the sales tax issue and don’t be shy
about phoning a dealer and asking for advice or clarification.
Be careful about bullion scams ― with gold bars and gold coins
Missing out on the best possible price when buying gold bullion may
have you slapping your head and promising yourself to do better next
time.
But that frustration pales into insignificance compared to how you’ll feel
if you get scammed. Imagine buying some gold coins or bars and then
later finding that they are not the real thing at all. T hat’s right … there
are a huge number of counterfeit gold and silver coins out there.
Back in 2 009 thousands of Chinese-made counterfeit coins hit the

streets. It is estimated that there are over 1 million fake bullion coins
floating around in the U.S. alone.
NOT E: T his is why you should never, ever, ever buy gold bullion at flea
markets or online auction sites like eBay. You’re just begging to get
ripped off.
How, you might ask, can one create a counterfeit of a one-ounce gold
coin or a one-kilo gold bar? After all, just weighing the coin or bar will
tell you whether it’s gold or not. Right?
Wrong … for the simple reason that tungsten has the same density as
gold, down to three decimal points. T his means someone can create a
coin or bar with tungsten, and then add a thin layer of 0.999 gold on the
exterior.
Here is how a counterfeiter might do it: He calls up a dealer, posing as

an individual investor, buys five kilo bars — a large but not uncommon
purchase — and takes delivery.
Next, the counterfeiter takes an impression of all the markings on the

genuine bar — the hallmarks, numbers, and so forth.
He then makes fakes with a tungsten core and a 0.999 gold exterior. T he
bogus bar weighs the same, looks the same and has the exact same
markings as the pure gold bar.
T he counterfeiter now waits a respectable period of time, say six

months, and then resells the bars to the same dealer he bought from.
He ships back the bogus bars that look, weigh, and are hallmarked
perfectly. He includes a copy of the original purchase slips showing the
weight, hallmark, etc.
Now the counterfeiter has his five genuine kilo bars, while the dealer
has five bogus kilo bars.
Scary, right?
As you can imagine, a big time counterfeiter is more likely to invest his
time in creating fake kilobars than one-ounce coins.
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But don’t relax just yet, because there are plenty of fake coins out there
as well. Years ago, one of the oldest, largest and most experienced
wholesalers in the world got stuck with $3.5 million of counterfeit gold
coins. T hey were stung.
I’m not trying to scare you or put you off buying gold bullion. Far from it.
But I am urging you to be smart and cautious. And the first step in being
smart and protecting yourself against fraud is to buy gold from only the
most reliable dealers.
How to choose a reliable bullion dealer.
T he most reliable gold bullion dealers do not advertise on late night T V,

or buy glossy ads in magazines.
So how do you find them?
If you have friends or family members who are already buying gold, you
can ask them what they think of the dealers they use.
If you’re starting from scratch, then follow my own recommendations.

Here are a few dealers that I trust:
Dillon Gage, Inc.

15301 Dallas Parkway, Suite 2 00
Addison, T X 75001
1-800-375-4 653
www.dillongage.com
Rare Coins of New Hampshire

2 8 Jones Road, T hird Floor
P.O. Box 72 0
Milford, NH, 03055
1-800-2 2 5-72 64
www.rare-coins.com
FideliT rade
3601 N. Market Street
Wilmington, DE 19802
1-800-2 2 3-1080
www.fidelitrade.com
Sprott Money
111 Queen Street East, Suite 501
T oronto, ON M5C 1S2 Canada
1-888-861-0775
www.sprottmoney.com
My own personal favorite — by far — is the Hard Assets Alliance.

www.hardassetsalliance.com (And no, I don’t personally stand to benefit
from any of these dealer recommendations.)
T here are others out there, but do your due diligence.
I’m going to spend some time telling you about the benefits of Hard
Assets Alliance, for a couple of reasons.
First, because I genuinely believe they are a smart choice for gold and
silver buyers, however much or little bullion you plan to buy.
And second, because looking at how they operate is an education in
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itself.
Here goes …
An account at Hard Assets Alliance allows you to buy and sell as easily
as with paper gold — and it’s as easy as a click of a mouse button. It
gives ownership in real bullion in an allocated account. Once you have
opened an account, it takes just minutes to buy and sell your gold or
silver. You can store your metals internationally but take domestic
delivery if you choose to do so. Simply select a bullion product and place
your order online. In minutes, the physical metal is yours and yours
alone.
Purchase premiums are among the best in the industry. You get world-
class storage, with non-bank, commercial vaults for storage, insurance
and transportation services to its customers. All precious-metals
transportation and storage is fully insured through Lloyd’s of London.
T he allocated private accounts are verified by an independent

accounting firm, with holdings and valuations reported daily. You can
take delivery with one phone call. Simply call Hard Assets Alliance and
arrange delivery almost anywhere in the world. Shipping occurs within
2 4 -4 8 hours of the order.
And last, but not least … When you buy precious metals and store them
offshore, you may get an exemption from U.S. reporting requirements.
U.S. customers are exempt from both the Report of Foreign Bank and
Financial Accounts (FBAR) and Form 8938 filing requirements if offshore
metal storage is elected.
Always check with your tax professional who is familiar with tax laws
both in the US and the country you wish to store your bullion. T ax laws
change all the time. Additionally, you might have to pay foreign taxes, so
check with your tax professional.
How to protect yourself when making a big purchase.
Even when you trust your bullion dealer 100%, it still makes sense to
protect yourself against unforeseen events. Particularly when taking
physical delivery of your gold.
Yes, over the years, more than one bullion dealer has gone bankrupt.
And if a dealer closes its doors between the time you pay for your gold,
and the delivery of your gold, you could lose both … your cash and your
gold.
Personally, I don’t lie awake at night worrying about this if I am buying

just a few ounces of gold. But if I am making a major purchase, I protect
myself with what is known as a Sight Draft.
With a sight draft you make an arrangement with your bank to act as an
intermediary between you and the gold dealer. When you order the coins
from the dealer and lock in your price, you don’t send the funds right
away. Instead, the dealer pre-ships the coins to a bank of your choice,
usually to the attention of an assistant vice president or higher. Once
the coins are received, you have the ability to inspect, to verify
authenticity, and to accept or reject the shipment. Once you’re satisfied
your banker has exactly what you ordered, you release the funds. T he
banker forwards the funds to the dealer and simultaneously releases
the coins to you.
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Another way to protect yourself is with “Cash-and-Carry”.
T his is when you walk into a dealer with your money and walk out with
your gold. T his is a great way to avoid any possibility of the dealer going
belly up with your money and your gold.
However, not every dealer offers the cash and carry option. Also, you
need to consider the sales tax issue, and weigh the risks of walking out
of a dealer’s offices with gold in your pocket.
Perhaps the best way to protect yourself is to make sure your dealer
segregates its investment funds.
Put simply, this means that payments from investors go into an account
that is segregated and separate from the dealer’s operational accounts.
In other words, your money doesn’t go into the same account they use to
pay their rent and salaries. It goes into an account that the dealer
CANNOT use for operational purposes.
When you are considering a dealer, always ask if investor funds are
segregated. Unless they answer with an unequivocal yes ― and with
documents to prove it — move on to another dealer.
How and where to store your physical gold…
As I have mentioned a few times now, I favor buying my bullion as

allocated or non-fungible gold. T his means I don’t take delivery of the
gold I buy … but can do so at any time I want.
However, some buyers like to take physical delivery of their gold. T he

preppers, who buy gold to protect themselves against physical, political
or economic disaster, always want to take delivery of their gold and keep
it close. And don’t get me wrong. When I say preppers, I don’t mean it in
a derogatory sense. I completely understand where they are coming
from. In fact, I think all of us should keep a little gold close to hand as
protection against unforeseen events.
T here are also those buyers who simply want to be able to see, touch
and hold their gold and silver. Physical possession has meaning to them.
For myself, I would split your gold ownership between allocated gold ―
stored safely elsewhere ― and physical gold that you keep at home or
close to home.
But if you do want to store gold at home, you need to get serious about
protecting it, and follow a simple rule that may remind you of the movie,
Fight Club.
The first rule of storing gold at home is to tell NO ONE that you are storing
gold at home. T ell your spouse, by all means. And maybe the family
lawyer who handles your estate. But NOBODY else. T hat’s your best
protection.
And the best place to store your gold at home is in a safe. And not a
cheap safe that a team of thieves can rip out of the wall and walk away
with. T he most secure safe is a floor safe that is set in concrete in your
basement. T he lid is flush with the floor, and you can drag a box or
chest over the site of your safe to hide if as an added precaution.
Do NOT use a “diversion safe”. T hese are small hiding places disguised
as items like soup cans. You unscrew this pretend can of soup and there
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is a handy space inside for your gold coins. Naturally, you hide this can
along with other food cans in your kitchen or pantry.
Other diversion safes include bogus wall sockets, hollowed out books,
rocks and so on. T he trouble is … every self-respecting thief has seen
all the same ads for diversion safes.
Also, be careful about other “cunning” hiding places. One gold owner
hid his gold coins in the battery compartment of an old cassette
recorder, and put it in a box of old electronics in the attic. He was right
in thinking a thief wouldn’t find his gold, or be interested in stealing
out-of-date electronics. His mistake was in not anticipating that his wife
might throw away the entire box on garbage day. Which she did.
Also, be careful when burying gold in your yard. Gold owners like to bury
their gold in waterproof plastic boxes or short lengths of vinyl piping,
sealed at both ends. Well, today’s metal detectors are not the same as
they were in your grandfather’s day. T hey are a lot more advanced. T hey
can see the gold inside the plastic box or vinyl pipe.
How about a metal box or pipe? Sure. But when a thief finds this big
lump of metal with his metal detector, what’s he going to do? He is
going to dig it up.
T his brings us to the second rule of storing gold at home, which is to

understand that professional thieves are just that … professionals. Whatever
clever hiding place you come up with, they will have already thought of it,
found it and stolen from it.
So … if you want to store gold at home, I would stick with my earlier

recommendation. Use a floor safe set in concrete.
And, of course, you can store gold “close” to home by renting a safety
deposit box at your local bank. Are there risks to doing that? Of course.
T he bank vault might also be a target of professional thieves. But if you
do the math, using a safety deposit box in a bank is statistically a lot
safer that keeping gold in a box under your bed.
Next … keep most of your bullion overseas. T hat’s my choice.
At its heart, buying and owning gold is about safety. It’s about
protecting your wealth in the event of calamity.
If you want to put safety first, and cover all the bases, then you should
store some of your gold overseas. Why? In case the federal government
decides to confiscate privately-owned gold bullion, as it did back in 1933.
In case the federal government introduces capital controls, preventing
you from transferring or taking any of your money out of the country. In
case the federal government, in a time of crisis, turns around and starts
to steal the financial assets of private citizens.
T rue … none of these scenarios seem terribly likely right now. But they
have all happened before, and though I do not think government
confiscation is a worry today, there’s no sense in underestimating what
desperate politicians are capable of.
As for how to store your gold bullion abroad, you can do that with
purchases of allocated gold through the Hard Asset Alliance. T hey offer
insured, independent vaults in New York (Brinks), Salt Lake City
(Brinks), Zurich (ViaMat), London (ViaMat), Singapore (Malca Amit) or
Melbourne (Brinks).
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Notice that these vaults are not owned by banks. T hey are privately
held, independent vaults. So you can store gold across different
countries, and outside of the global banking system.
T he same kind of service is offered by another one of my favorites,

especially for big purchases and amounts of precious metal worth more
than $150,000. T hat company is Malca-Amit Precious metals, and they
are the go to firm from any amounts of precious metals of $150,000 and
more. T hey also handle very discreet logistics and shipping issue, not to
mention storage, for your metals.
Check them out at www.mapm.com.
Finally … how to add bullion to your IRAs or 401K.
Buying and owning gold is about safety and diversification. Nobody

would suggest you keep all your savings and investments in gold and
other precious metals. But owning gold does add diversification to your
overall portfolio, and some of it can be stored overseas ― providing
geographic diversification as well.
Now you have two levels of safety. You are not only diversifying within
your portfolio, but you are also protecting yourself by storing part of
your wealth abroad.
But what about your retirement, and your retirement savings? Wouldn’t
it be good to apply the same levels of safety and diversification to those
savings as well?
Well … you can. It is possible to include physical gold within both an IRA
and a 4 01K. You can’t take delivery of this gold, because of the tax
issues. So your gold is held by a “custodian”. For all intents and
purposes, this is like owning allocated gold. But it is within your
retirement fund. You can talk to your financial advisor about adding
gold, silver and other precious metals to your IRA or 4 01K.
Or you can create your own precious metals IRA directly, with a company
like Hard Asset Alliance. (T hey already store allocated gold for their
customers, in both the US and overseas. So it was a simple step for them
to become an IRA custodian.)
Now for a quick preview of the next Module, module Four. T hat’s
when I’m going to review for you the derivative gold and silver
investments, such as ET Fs, and futures and options.
In fact, I will soon be getting into my favorite material — how to really

turbocharge your potential profits in gold and silver by trading them,
both with and without leverage, to make potential oodles of profits.
T hat’s where I cut my teeth in the precious metals, in actively trading

gold and silver, with leverage, and it’s my forte. So I am thrilled we’re
about to embark upon that journey, where I can impart you with the
knowledge you need to start trading the precious metals for maximum
profits!
Chapter IV: Derivative gold and silver investments
The investments you want to use to

MAX IMIZE your profit potential.
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For some time now, ever since gold peaked in September of 2 011, I’ve
been a lone voice crying in the wilderness doing everything in my power
to show you why I believe that collapsing governments in Europe and
eventually, the United States will end up sending precious metals into
the next phase of their bull markets — their biggest moves up yet.
And my goal is to give you the best information available to help you
profit from this tsunami of money-printing …
So I’m delighted you’ve stuck with me through the first three modules of
my educational course, and most importantly that you are now with me
for the remaining modules — the meat of the course, where I review
with you the derivative gold and silver investments …
T he turbocharged vehicles you can use to really maximize your profit

potential in the months and years ahead.
We’ll start with this module 4 , where I review for you the best derivative
precious metals investments that you need to know about. T hen, in
module 5 I’ll give you my number one technique for timing your buying
and selling or precious metals, both physicals and leveraged vehicles.
I’ll also introduce you to an advanced trading technique I use that very
few are aware of — but that can help you make a lot of money, and I
mean a LOT .
Now, I fully realize, and I am sure you do too, that no one can foresee
the future with precision or guarantee profits. But make no mistake — I
expect plenty of profit opportunities in the months and years ahead, and
with this module and the next two, I am going to do my darndest that
you have the edge you need to make those profit opportunities come to
fruition.
T here are five basic vehicles for derivative gold and silver investments
that I want you to know about. T hey range from the unleveraged, where
you get one for one leverage, all the way up to the most leverage
possible, as much as 100 to one leverage.
T hey are …
1. Unleveraged ET Fs.
2 . Leveraged ET Fs.
3. Mining shares.
4 . Futures.
5. Options.
We’ll now go through each of them, one by one.
FIRST , unleveraged precious metals Exchange T raded Funds, or ET Fs.
Most of you are already familiar with ET Fs, so I won’t bore you with all
the details. Suffice it to say they are a great way to invest and trade in
paper gold and silver, and also platinum in palladium.
An ET F, like a mutual fund, is a “pooled investment” that trades on an

exchange like any stock. You can buy or sell shares in an ET F on an
exchange any time the market is open for trading, and you pay regular
stock commissions for the trades.
In contrast, with very few exceptions, traditional mutual funds can be

bought or sold only once per day, at the day’s net asset value (NAV)
closing price.
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T he advantages of ET Fs include:
— T hey can be bought or sold at any time, allowing us to take advantage

of timing the market.
— T hey have much lower management fees than traditional funds, thus
reducing your expenses.
— T hey give you far-better transparency. You always know what you own
via the ET F.
T here are pure commodity-based ET Fs that track the prices of select

precious metals, such as gold, silver, platinum and palladium.
Single leveraged precious metals ET Fs should have two roles in your

portfolio. T he first being for core precious metals holdings, that is,
positions that you intend on holding for the long-term, and as
substitutes for physical metals.
T he advantages to holding physical metals for the longer-term: You

don’t have to worry about storage, and there is no premium to buying
the ET F, versus the physical metal. T here is, however, a management
expense fee that is charged by the administrators of the ET F, but the
fees are very low, as low as .2 5%.
T he only disadvantage I see to holding precious metals ET Fs for the

long-term, is the risk of a run on the fund — when too many investors
want to cash in and take delivery of their metal sometime down the road.
But very frankly, I don’t see a problem with that till gold gets over
roughly $2 ,500 an ounce.
So for now, holding single leverage precious metals ET Fs in your basic

portfolio is an excellent way to go. Some the biggest hedge funds and
money managers own substantial positions in the ET Fs, and if they are
good enough for them, they are certainly good enough for you.
My list of favorite single leverage precious metals ET Fs include:
Single Leverage
PM ET Fs
T icker Description Expense Avg. Short- Long-term T ax
Ratio Volume term tax tax rate Form
rate
GLD SPDR Gold T rust .4 0% 7,752 ,817 35% 2 8% 1099
SLV iShares Silver .50% 7,155,82 9 35% 2 8% 1099
T rust
IAU iShares Gold T rust .2 5% 2 ,72 9,667 35% 2 8% 1099
SIVR ET FS Silver T rust .30% 113,4 00 35% 2 8% 1099
DGL PowerShares DB .79% 110,2 60
Gold Fund
PALL ET FS Physical .60% 88,935 35% 2 8% 1099
Palladium Shares
PPLT ET FS Physical .60% 39,2 63 35% 2 8% 1099
Platinum Shares
A note on taxation: Most ET Fs for precious metals are taxed as

collectibles, and not as regular securities. T hat means their tax rates
are generally higher than other types of investments, with short-term
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gains taxed at a maximum of 35% and long-term gains taxed at a

maximum rate of 2 8%.
Nevertheless, this should NOT be a factor in your decision to invest in

precious metals ET Fs or not. In my opinion, taxes should rarely figure
into your investing needs and objectives, only potential profits should.
T he second reason to invest in single leveraged ET Fs, is to actively

trade them. With virtually no markup over the cost of the metal, and only
very small expense fees involved, it’s less expensive to trade in and out
of single leveraged ET Fs short-term profits than it is the physical metal.
You get less leverage, but also less risk.
Now, let’s go up the ladder a tad, to the next set of ET Fs that you can
trade, where you do get leverage, with a tad more risk. But the risk is
well worth it in my opinion, because these leveraged ET F investments
are where you can really turbocharge your profit potential.
For example:
— Between April 17, 2 009 and April 2 9, 2 011, for instance, gold prices
rose 79.9% …
But the Double-long ET Fs like ProShares Ultra Gold and PowerShares

DB Gold Double Long could have handed you gains of 185.7% to 190.1%
— over T WO T IMES MORE than gold bullion!
Also, between January 13, 2 009 and August 2 2 , 2 011, for example, gold
prices jumped 130.8% …
But double long ET Fs could have made you between 34 2 .6% and 356.7%
richer … again, over T WO T IMES MORE!
And between December 5, 2 008 and September 6, 2 011, gold prices

jumped 14 7.9% …
But double long ET Fs you could have grabbed gains of 398.5% and
4 2 7.6%.
T hat’s nearly T HREE T IMES more money than bullion investors earned!
Here is my list of my favorite leveraged ET Fs for the precious metals.
Leveraged ET Fs Expense Average Short- Long- T ax

Ratio volume term term form
tax tax
rate rate
AGQ ProShares Ultra Silver .95% 4 72 ,2 59 2 3% 2 3% K-1
DGP PowerShares DB Gold Double .75% 138,576 35% 15% 1099
Long ET N
USLV VelocityShares 3x Long Silver 1.65% 2 86,314 35% 15% 1099
ET N linked to the S&P GSCI
Silver Index
UGL ProShares Ultra Gold .95% 79,4 4 9 2 3% 2 3% K-1
UGLD VelocityShares 3x Long Gold 1.35% 2 35,64 6 35% 15% 1099
ET N linked to the S&P GSCI
Gold Index
All of these are great vehicles for short-term trading in the precious
metals, offering you double and triple leverage on the underlying price
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of the metals.
What about safety? In my opinion, they are better than trying to

leverage your physical metals purchases by buying on margin, or even
trying to leverage unleveraged ET Fs by trading on margin.
Chief reason: Although they are not actively managed, all of them are
designed by professional money managers, and unlike buying or selling
on margin, with leveraged ET Fs — provided you are not trading these on
margin — you can never get a margin call.
In addition, though the fees are higher, naturally, than unleveraged

ET Fs, the fees are miniscule in comparison to say mutual funds and not
something to worry about when you are trading these ET Fs for short-
term gains.
One of the great beauties of precious metals ET Fs is that there are also
ET Fs that allow you to profit from the inevitable pullbacks that occur in
the precious metals, via what are called “inverse ET Fs.”
T hese inverse ET Fs essentially allow you to stake out a short position

in the precious metals, but without the risk of a margin call. And, in
most cases, they are leveraged, allowing you to really crank up your
profit potential …
With some giving you the potential for as much as $3 in gains for every
one-dollar gold declines during temporary pullbacks. For instance …
Between March 17, 2 008 and October 2 4 , 2 008, gold prices fell 2 6.7% …
But the PowerShares DB Gold Double Short generated a 71.1% GAIN …
And between February 2 0, 2 009 and April 17, 2 009, gold prices dropped
12 .5% …
But ProShares UltraShort Gold increased 2 4 .6% in value and

PowerShares DB Gold Double Short generated a 32 .1% GAIN …
And between December 3, 2 009 and February 5, 2 010 gold prices

declined 11.7% …
But the ProShares UltraShort Gold increased 2 4 .5% in value and the
PowerShares DB Gold Double Short (DZZ) generated a 2 7.6% GAIN!
Naturally, all of these are just examples, and in some cases — extreme
examples. We can’t go back and grab those gains, nor could we grab the
entire move. But I wanted to illustrate how profitable these inverse
ET Fs can be, when you get your timing right, which is of course, the
subject of my next two modules.
But first, here is my list of my favorite leveraged inverse ET Fs for the

precious metals:
Leveraged inverse ET Fs Expense Average Short- Long- T ax

Ratio volume term term form
tax tax
rate rate
GLL ProShares UltraShort Gold .95% 83,34 4 2 3% 2 3% K-1
DZZ PowerShares DB Gold Double .75% 336,071 35% 15% 1099
Short ET N
ZSL ProShares UltraShort Silver .95% 117,652 2 3% 2 3% K-1
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DSLV VelocityShares 3x Inverse 1.65% 97,160 35% 15% 1099

Silver ET N linked to S&P GSCI
Silver Inverse Index
DGLD VelocityShares 3x Inverse Gold 1.35% 2 8,006 35% 15% 1099
ET N linked to S&P GSCI Gold
Index Excess Return
Now, let’s go on to the next investment vehicle you are going to want to
use as gold, silver and other precious metals resume their long-term
bull markets. None other than mining shares!
Why mining shares? T hree chief reasons:
First, diversification. While it’s critically important that you hold some of
your precious metals in the form of physicals and ET Fs, the right mining
shares — for the long haul — are also critical to maximizing your profit
potential.
Second, during gold and silver’s three year bear market since 2 011,
most mining shares have been beaten to a pulp, for a number of
reasons. T hat said, select mining shares now off you some of the most
outstanding buys you can find in the precious metals arena …
And indirect way of controlling precious metals in the ground. Many

mining shares are trading for 10 or 2 0 cents on the dollar compared to
their recent all-time highs back in 2 011 …
And during the next phase of the bull market in the precious metals, I
expect select mining shares to double and double again, and even again
— as gold and silver head to new record highs.
And third, and perhaps most importantly, the right mining shares can
offer you tremendous leverage on the price of gold or silver.
Reason: T he right mining companies own vast amounts of gold and

silver, in the ground, and by purchasing their shares you are indirectly
owning the raw metal.
Plus, as gold and silver prices rise, the gross profit margins of select
mining shares expand exponentially, raking in huge profits for the
miners, sending their share prices into the stratosphere.
For instance, between October 2 7, 2 000 and September 6, 2 011 for

example, gold prices surged 632 .5% but …
Newcrest Mining Ltd. jumped 1,059.4 % — enough to multiply your money

more than ELEVEN times over …
Goldcorp Inc. soared 1,2 4 8% — enough to multiply your money more

than T HIRT EEN times over and …
Royal Gold Inc. skyrocketed 2 ,957.9% — enough to multiply your money

more than 30 times over, generating nearly $4 .68 in gains for every ONE
dollar earned by bullion investors.
T aken as a sector, from 2 001 until Nov 12 , 2 012 , physical gold soared
537% …
While gold stocks as measured by the NYSE Gold BUGS Index (also
known as the HUI Index), gained a whopping 936%!
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Now, let’s explore miners in a bit more details. T here are essentially
three types of gold and silver miners — big, medium-sized, and small.
Small-time producers, also referred to as juniors, produce less than

2 00,000 troy ounces in a year.
Medium-sized producers manufacture between 2 00,000 and one million

ounces per year, and the big guys produce over a million ounces a year.
Once the new bull market in precious metals is truly underway, I will
likely be recommending a mix of mining companies, for diversification.
I also like to trade mining share ET Fs, which are a great way to own
basket of mining companies, with one simply click of a mouse.
Here is a list of the 15 mining shares that are currently on my radar

screen, followed by a list of mining share ET Fs:
1. Goldcorp Inc. (GG)

2 . Yamana Gold, Inc. (AUY)
3. Newmont Mining Corp. (NEM)
4 . Agnico Eagle Mines (AEM)
5. Freeport-McMoRan Copper & Gold Inc. (FCX)
6. Hecla Mining Co. (HL)
7. Eldorado Gold Corp. (EGO)
8. New Gold, Inc. (NGD)
9. Franco-Nevada Corp. (FNV)
10. Randgold Resources Limited (GOLD)
11. Royal Gold, Inc. (RGLD)
12 . Silver Wheaton Corp. (SLW)
13. Kinross Gold Corp. (KGC)
14 . IAMGOLD Corp. (IAG)
15. Fortuna Silver Mines Inc. (FSM)
Mining share ET Fs, including leveraged and inverse ET Fs.
GDX Market Vectors T R Gold Miners

GDXJ Market Vectors Junior Gold Miners ET F
NUGT Daily Gold Miners Bull 3x Shares
SIL Silver Miners ET F
DUST Daily Gold Miners Bear 3x Shares
JNUG Daily Junior Gold Miners Index Bull 3x Shares
RING iShares MSCI Global Gold Miners ET F
JDST Daily Junior Gold Miners Index Bear 3x Shares
PSAU Global Gold and Precious Metals Portfolio
SLVP MSCI Global Silver Miners ET F
SILJ PureFunds ISE Junior Silver ET F
Now, let’s move up the ladder even more, to one of the very best ways
to leverage your profit potential in the precious metals and related
investments — without risking one penny more than you invest!
I’m talking about options — an excellent vehicle for generating

substantial profits from any market. T his is true regardless of whether
the market is in a bullish or bearish phase.
Simply put, an option is an agreement between two parties, granting the

option buyer certain rights and imposing certain obligations on the
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seller.
Most people are familiar with the concept of stock options that come
with an employment compensation package. If you join a corporation,
they may give you an option to buy stock in the company at a low fixed
price, no matter how high the stock price rises.
If your company does well and the stock price rises, you exercise the
option. You buy the company’s stock at the low price and reap a great
benefit. If the company doesn’t do well, you’ve lost nothing.
T he options I like to recommend are essentially the same, with just a

few basic differences:
First, the options are shorter term. Stock options, like the type you get
as an employee, can be good for several years. Most actively traded
options expire in a matter of months, though some options extend
beyond a year (called “LEAPS”) are also available.
Second, options are listed on an exchange. T hey can be bought and sold
at almost any time. You just buy and sell the options themselves, just
like a stock.
Importantly, I never recommend that you exercise the option and buy or
sell the underlying security.
T hird, you have access to two kinds of options — options to buy, called
“call options” … and options to sell, called “put options”.
Buying call options allows you to profit from rising prices, while buying
put options lets you profit from declining prices.
Fourth, options are available not only on individual stocks, but also on
ET Fs, indexes and futures.
Both puts and calls have great potential, are usually liquid (easy to buy
or sell), and trade on regulated exchanges with low commissions.
When you buy an option, you never have the obligation to take a position
in the underlying security as long as the option is sold before expiration.
T hus, you never risk one penny more than your original investment —
the price of the option plus commissions.
A call option gives its owner the right to buy a specific item (underlying)
at a specific price (strike price) for a specific period of time (through
expiration day).
A put option gives its owner the right to sell a specific item (underlying)
at a specific price (strike price) for a specific period of time (through
expiration day).
T here are important option terms you want to learn.
T he option universe has its own vocabulary, and if you’re going to invest
in and trade options, it’s essential that you learn the most basic of
options terminology.
Let’s review the most important terms:
First, and most important is …
T he Premium — that’s the price of the option contract, the price you pay
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and the price the seller receives.
Second is the Strike Price — that’s the price at which the call owner has
the right to buy or the put owner has the right to sell, the underlying
security. It’s a fixed price, compared to the actual underlying price of the
security at the time of the purchase (or sale).
T hird is the Expiration Date — that’s the last date the option is valid
through Once that date arrives, the option must either be sold, or you
face exercise. Or, if the option is worthless and has not worked out, you
simply let it expire.
Fourth is whether the option is “in the money”, “at the money” or “out
of the money.”
An in the money call option is when the strike price of the call option is
lower than the price of the underlying.
Conversely, when the strike price of a put option is higher than the
price of the underlying, that put option is also in the money.
An at the money call options means that they strike price is essentially
equal to the underlying security price, in the case of with a call or put
option.
And an “out of the money” call option is when the strike price of a call
option is higher than the price of the underlying, or conversely, when
the strike price of a put option is lower than the price of the underlying.
Which type of option you use — in the money, at the money or out of the
money — depends upon a lot of factors. But in general, I like to follow
two simple scenarios for buying options.
T he first is when you expect a large move, either up or down. If it’s an

up move, you use calls, obviously, while if it’s a large down move, you
would use put options, naturally.
But you would want to use out of the money options in this type of
“large move” scenario.
Why? It’s simple: Out-of-the-money options are usually priced dirt-cheap.

T hat means you can risk very little, but if the market performs as
expected and within the time frame, or by expiration of the option, you
can rake in some pretty handsome profits.
T he second is when you expect a decent move, but you don’t think it’s
going to be a rapid move. In that case, you want to buy at the money
options, for the simple reason that they will not lose as much time value
as out of the money options would.
At the money options are going to be more expensive, but if timed

properly, they can still potentially double or triple your money.
When you have a sideways market, you don’t want to trade options,
period. At least not until you think the end of the sideways market
action is nearby.
T here are other strategies to use when trading options, when one
might do for instance, what is called a “combination trade” — which is a
position consisting of two different options, usually one of which has
been purchased and the other sold.
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In general, they are either both calls or both puts, although

combination positions consisting of one call and one put can be
considered spreads.
T he position can be constructed to have either a bullish or bearish bias.

Although the potential profit from a combination trade is limited, it can
still be substantial and the total cost of the position can be
substantially reduced.
Straddles and strangles are the basic terms used to describe some of
these option combinations.
A straddle is a position consisting of one put and one call option. T hey
both have the same underlying security, the same expiration date, and
the same strike price.
A strangle ― is the same as a straddle in most aspects: It also consists

of one put and one call option. And these also have the same underlying
security and the same expiration. T he critical difference: T he strike
prices are different.
T he goal of both a straddle or a strangle is to profit from a major move

in the market in EIT HER direction.
Let’s now review the advantages and disadvantages of Options
Before you begin trading any options, it is important to know the

advantages and disadvantages of options.
Disadvantage #1: Options are wasting assets. T hat’s because when you
buy an option, you are buying time. So if the market remains unchanged,
the value of the option will naturally decline as time goes by.
Disadvantage #2: Options can expire without value. T his follows from
the first disadvantage. T he expected market move has to take place — or
at least get underway — before the option expires. Otherwise, the
option can expire worthless and you will lose the entire amount you
invested in that option. But importantly, when you purchase options, you
can never lose a penny more than you invest.
If an option is in the money at expiration, it must be sold prior to this

date so it is not automatically exercised.
Disadvantage #3: Occasional poor liquidity. T here are many options

with plenty of liquidity. But there are also some that are not so liquid.
In other words, the number that change hands in a given day (the
volume) is low and the total amount held by investors (the “open
interest”) is small.
You want to avoid these less liquid options contracts. T he cost of buying
and selling them — via market slippage due to lack of volume and
liquidity — is often too high.
Now, let’s look at the advantages of options. In my opinion, the two main
advantages of options easily outweigh the disadvantages:
Advantage #1: Leverage. Even a modest move in the underlying can

result in a significant change in the value of your options. In other
words, they have the potential to multiply your investment many times
over.
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T hat leverage is due to two chief reasons.
First, since it’s an option and not the actual underlying security, the
price you pay to buy the option is far less than you would pay to buy the
actual underlying security.
And second, each option often represents 100 shares of the underlying
stock or security, allowing you to effectively control the underlying for
mere fractions of a penny.
One simple example will suffice. Suppose you expect a large move up in
gold, and you already have your physical gold in place as core holdings,
but you want to speculate and profit from gold’s next move up.
And you want the most leverage you can get, with the smallest amount
of pre-determined risk, and at the same time, you want to speculate on
the actual price of gold, and not say, mining shares.
A call option is the perfect way to go. More specifically, a call option on
one of my favorite pure gold ET Fs, for instance, on the SPDR Gold
T RUST (GLD).
Each call option on GLD effectively gives you control over 100 shares of
GLD, and since each share of GLD represents one tenth of an ounce of
gold, buying one call option on GLD effectively gives you control over 10
full ounces of gold.
With gold, at say, $1,300 an ounce, buying 10 ounces of gold would cost
you $13,000 … while buying 100 shares of GLD would cost you about the
same.
But with an at the money call option on GLD, you would pay roughly
$1,770 to effectively control the same amount of gold — effectively one-
7th of what you would pay if you bought the gold or the ET F outright.
T hat’s the leverage you get, more than 7 to 1! And the beauty of it all
brings us to …
Advantage #2: Limited risk. When you purchase either a call or put
options, you never lose a penny more than you invest, and you always
know how much is at risk.
T hat said, and since many options are often very cheap to buy — and the
leverage can be very tempting — always be sure to budget your
purchases and never invest too much on any one recommendation.
Also, don’t expect profits on every trade, as sometimes options expire

worthless. An in any investing, never commit more funds than you can
afford to lose.
Now … to the ultimate trading vehicle for precious metals …
T o the sandbox where I cut my eyeteeth, where the big boys trade.
T o highly disciplined futures trading — the ultimate vehicle for

maximiz ing your profit potential in precious metals trading.
If you really want to achieve the goal of multiplying the profit potential
from the next bull legs higher in the precious metals …
You simply must learn more about futures trading of gold and silver,
where I cut my eyeteeth over 35 years ago.
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And please, don’t let futures trading scare you. Granted futures trading
is not for everyone, but the futures markets are some of the oldest
markets on the planet, the most liquid markets on the planet, and some
of the most stringently regulated markets as well.
And they are not as complex as you might think! Quite the contrary, I
consider the futures markets to be the ultimate and the single best way
to maximize your profit potential in the precious metals.
Yes, in futures, leverage is a two-edged sword. Futures can multiply

your losses as well as your profits. T hat’s why you should never trade
with money that you can’t afford to lose.
But in my four decades of experience in the futures markets, I’ve found

that the risk of loss is easily manageable … while the profits can be very
substantial.
For instance, a modest $10,12 5 investment in a gold futures contract I

bought for my own account spun off $12 ,337 in gains — a profit of better
than 12 1% — in just two months’ time. And that was using just one
contract on a modest 10% move in gold.
Imagine how much you could make trading, say, two contracts as gold
explodes higher by 2 0% … 30% and more! T here could be gains of 2 4 0%
… 363% and more. An investor could walk away with pre-commission
profits of $4 8,000, $72 ,000 or more on a single trade!
I repeat: My past performance is no assurance of future results; and

each investor is bound to get different prices, be charged different
commissions or pay different tax rates. And you should also know that
losing trades are inevitable. No one can win all the time, and that’s
especially true in futures trading.
But that’s precisely why I’m such a stickler for solid, risk-reduction
tactics. Although not foolproof, I believe they are extremely effective —
and essential — for success.
Meanwhile, altogether, I believe futures offer investors SIX very

powerful benefits:
First, liquidity! Futures are the oldest, most-liquid, widely traded

investment market on the planet. T hey are far-more-liquid than even
big-name equities or index ET Fs.
As a rule, this tremendous liquidity makes it possible for me to get into,

AND out of, the market more-easily — and with fewer price distortions —
than with any other instrument in existence.
T hat advantage, in itself, gives me more freedom to apply tactics that

are designed to reduce my risk and maximize my profit potential. And
help you do the same!
Second, futures offer unbeatable leverage! For example, for as little as

$8,12 5, you could control a contract of gold, worth about $130,000 —
giving you more than 16-to-1 leverage on your margin deposit.
Moreover, since a futures contract for gold is the equivalent of 100

ounces, for every $1 rise in price of gold, you could make up to $100,
equivalent to 100 to 1 leverage!
T hird, futures don’t lose value in sideways markets the way options do.
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Forecasts don’t always come true. And for those that do, it sometimes
takes longer than expected. With futures, it’s a lot easier to wait — to
give the market some more time to respond to the powerful fundamental
forces we see driving the precious metals higher.
Fourth, futures are all-weather investments. It’s equally easy to take a

bearish position as it is to take a bullish position. Because of the way
the futures markets are set up, and because they are so liquid, you can
bet on market declines just as easily as you can bet on a market rise.
Fifth, your costs for broker commissions and fees are among the lowest
of any publicly traded investment. T hat means you can keep more of your
profits and reduce your overall transaction costs.
Sixth — and most important — I find it far easier to manage risk in

futures than in virtually any other market.
You can never eliminate risk entirely, but — when used prudently —
futures can be part of a strategy to moderate that risk.
One of the chief reasons I find it easier to manage risk in futures is that
futures markets trade virtually 2 4 /7 and almost exclusively on an
electronic basis.
T his means that you no longer have to rely on a broker on the floor of
an exchange to hold your order and execute it. It’s all computerized and
done automatically.
It also means that when you place what are called “Good-T ill-Canceled”
(or GT C) stop orders, your position is automatically monitored virtually
around the clock, so you can sleep peacefully at night.
T hat doesn’t guarantee against losses. But it does let me manage risk
efficiently.
What kind of future do I trade most? T here are only two futures
contracts each for gold and silver that you need to know about:
First, are what I call the full contracts; that is the gold and silver
futures contracts traded on the New York Mercantile Exchange. T hey
are the liquid gold and silver futures contracts in the world … each
contract represents 100 ounces of gold and 5,000 ounces of silver … and
they trade virtually 2 4 hours a day, six days a week.
Second, are what I call the mini-sized gold and silver futures contracts.
T hey trade on the NYSE, via the NYSE Euronext of LIFFE market. T hey
offer the smaller 33.2 -ounce mini-gold futures contract and the 1,000-
ounce mini silver contract.
T hanks to all of the above improvements in futures trading over the

years — increased liquidity, electronic markets day and night, and even
mini-futures contracts …
I can manage risk more efficiently than ever and sleep nights in the
knowledge that, barring some extremely rare event, I can almost
certainly lock in my profit — or limit my losses.
T he bottom line is that I have been trading commodity futures for nearly
36 years — and I have never … never once felt that my risks weren’t
properly managed.
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T o show you the profit potential in futures, consider the following

actual, documented trades I’ve made for myself …
— A quick $6,532 profit — a 14 8.4 % return on a $4 ,4 00 investment. My

holding period: Just 17 days!
— A quick $6,535 profit — a 2 97% return on a $2 ,2 00 investment. My

holding period: Just 17 days! And as I mentioned earlier …
— A $12 ,337 profit in gold in just under two months: I invested $10,12 5
and banked a 12 1.8% gain in less than 60 days!
— A $10,652 profit in just 19 days: I invested $6,4 80 and in less than

three weeks, I walked away with a 164 .3% gain!
— A $3,356 profit in only FOUR days: I invested $3,375 and nearly

DOUBLED MY MONEY in about half a week!
— And more, many more!
No, you are not going to become an expert in futures trading overnight.
It takes time and most of all, self-discipline to make money in futures.
But in the next module, I am going to get you started — by showing you
some of the simplest most profitable trading strategies you can find on
the planet … whether you are trading physical precious metals, ET Fs,
options or even futures!
Chapter V: Simple Investing And Trading

Techniques To Help You Reduce Risk And
Maximize Your Profit Potential
Welcome to the final section of this series! T his may actually be the
shortest of the sections — but don’t fret, it’s actually the most
important! Why? Because in this section, I’m going to give you …
First, a simple way to time your long-term precious metals investments

…
And Second, a more advanced technique to help get you started on your
way to trading gold and silver more actively for the incredible shorter-
term profits they can offer you.
Mind you, I cannot cover everything in this section, even if it were itself
broken down into smaller modules and ten times the length of today’s
module.
Naturally, four decades of experience and trading the precious metals

can’t be conveyed in short order. But as you will soon see, the simple
techniques I’m going to give you today, can help you make mountains
more money from gold and silver, and …
I’ll also tell you about a unique way you can learn more — much more —
including having me right by your side to help you.
Let’s get started, first, with a very simple technique that I want you to
have to help you time your long-term gold and silver investments.
T here are two parts to this long-term strategy.
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In the first part, I tell you about a simple technique to help guide you to
the long-term trends in gold and silver. Let’s call that part A.
T hen in the second part, let’s call it part B, I am going to give you my
proprietary demining signals — to use in conjunction with Part A — to
further refine your long-term gold and silver investing.
So here we go: Part A — a simple investing technique to help you reduce

risk and maximize your profit potential for your long—term gold and
silver holdings.
It goes like this:
Whenever you see gold — or silver — trading below their 60 Day Moving
Averages, but ABOVE their 12 0-day moving average …
AND the shorter 60 day moving average is ABOVE the 2 00-day moving
average — consider it a BUY signal!
T he concept is simple: During bull markets in precious metals, 95% of

the time gold and silver tend to trade above their 60 and 2 00-day moving
averages of their closing price.
T he other 5% of the time, they trade below it — but in a bull market,

that 5% of the time almost always represents nothing more than a
short-term correction — in other words a BUYING opportunity …
Why? Because in bull market mode, both gold and silver tend to snap
back very quickly to trade again above their 60-day moving average.
A simple chart will show you.
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Here is a daily chart of gold all the way back to 1992 . T here are two
things you want to notice. First, on the left hand side of the chart,
notice how gold traded below both moving averages, the blue line being
the 60-day moving average and the red line, the 12 0-day moving average.
T hat’s when gold was in a bear market, and naturally, it was trading
below both moving averages and at best, sideways. Plus, the shorter 60-
day moving average was bouncing up and down compared to the 12 0-day
moving average.
But then notice how once the bull market got going, the blue 60-day
moving average moved above the 12 0-day moving average, and the price
of gold moved above and held above both lines as well.
Moving further to the right of the chart, you will notice three periods
that I have circled.
T he first one came in late 2 001, when the price of gold was above both
moving averages, yet the 60-day moving average was below the 12 0-day
moving average. T hat means that gold was not yet ready to fully
breakout to the upside, and since the 60-day was below the 12 0-day
moving average, you would not have added any positions and instead,
you would have waited for the 60-day moving average to cross back
above the 12 0-day average, which it did in the early part of 2 002 . T hat’s
when you would have bought gold or added to your positions.
Now, fast forward to 2 009. From 2 002 to 2 009, gold held above both
moving averages, and the 60-day moving average stayed above the 12 0
day. A very nice bull market.
T hen, in 2 009, we have the financial crisis and a huge pullback in gold.
But notice how the 60-day moving average stayed well above the 12 0-day
average, and even though the price of gold fell below the 12 0-day
moving average, it quickly rebounded back above the 60-day moving.
T hat slide in gold, below the 60 and 12 0 day averages — with no

crossover of the 60 day below the 12 0 day — was your signal to add more
gold to your portfolio.
Now look at the third section I’ve drawn for you. T hat’s after gold had
peaked and started its three-year bear market.
As you can see, the price of gold first started to fall below its 60-day
moving average. T hen, it fell below its 12 0-day moving average. At that
point, you would have still been long gold, because the 60-day moving
average had not fallen below the 12 0-day average.
But as soon as the 60-day average moved below the 12 0-day moving
average, you had a sell signal. At that point, you would have two
choices: Sell your gold, or silver, or, hedge them up.
Now, this is a very simple but outstanding technique to use to help you
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get a big picture view of your precious metals holdings and the longer
term trends. But I want you to have more, which I’ll give you in a
moment.
First, a note on how you can do this yourself. It’s easy: If you have a
trading platform, you simply set your gold or silver data to daily and add
the two moving averages. T hat’s it.
If you do not have a trading platform, here’s what I recommend.
Go to www.stockcharts.com and with their free charts you can create

your own gold chart.
Simply go to stockcharts.com, click on free charts button on the top left,

and then enter the symbol for gold — $GOLD, or for silver — $SILVER —
and the service will bring you to a free chart of gold or silver.
Under the chart, you will find various parameters to play with. I
recommend using High low close bars, turning everything off, and simply
adding the 60 and 12 0 day moving averages. It’s simpler than you think,
so certainly check it out.
Now, let me give you something no one else but you will receive: My
proprietary timing signals for the next legs up in gold and silver. T hese
are not based on moving averages, but on 2 0 levels of cyclical analysis
that I perform on gold and silver.
My proprietary models to fine tune the dates in the future when gold
and silver are most likely to make important highs and lows … and
perhaps most importantly, when you can expect the final highs in their
next legs up.
You will want to write these dates down, and keep them by your side.
And please, DO NOT DIVULGE T HEM to anyone else, except perhaps
your loved ones. Here they are:
For both gold and silver, you are going to want to watch it very closely
as it approaches the following dates:
Looking at this table, there is a very good chance that gold and silver’s
bull markets will extend out into September 2 018, then some
consolidation and another new high in May of 2 019.
Important T urning Point

Dates For Gold
Highs Expected Major Lows Expected
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9/2 8/2 018 8/2 6/2 1

5/2 5/2 019
I want you to have these because they are kind of like a road-map as to
when you can expect important highs and lows. As times goes by, you
will notice how uncanny they are, and I always update the important
turning points via my newsletter, the Real Wealth Report.
Now, let’s talk about a very popular analysis methodology, Elliott wave
theory.
Now, I’m going to teach you a little trick that is simply wonderful.
It’s absolutely wonderful. And if there’s one thing you take away from
this quick trading session, it’s this very simple method I discovered in
the late 1980s that a 5-year-old could use to make a lot more money in
the markets.
T o the best of my knowledge, nobody in the world does this. It can be

sued for all levels of trading, whether that be long-term, intermediate-
term, or short-term active speculating.
Bottom line: I am going to let you in on a little secret that has helped
me make a lot of money over the years and it is very, very easy to do.
In the early ’80s, when I was studying cycles I discovered that trends
begin when you have four consecutive higher lows, or four consecutive
lower highs for a bear market … and that counter-trend reactions
against a major trend tend to occur in units of one to three.
Now, this applies on a daily chart, a weekly chart, a monthly chart, a

yearly chart, a five-minute chart if you are a day trader, a ten-minute
chart, a one-minute chart. No matter what the time period you use, it
works.
I am going to show you a couple of examples of how easy it is to use.

T his is a bull market example. It happens to be the euro. It could be
anything. It could be coffee. It could be sugar. It could be IBM. It does
not matter. But does work wonderfully well with gold and silver.
You need bar charts to do this. But the first thing you do is you identify
what looks like a spike low or a cycle low in the market.
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T hen you start counting your lows. T he first low becomes bar #1.
Notice the second bar, where you have a higher low. T hat becomes bar
#2 and is labeled as such.
T hen you have a sharp rally — but, importantly, you do not have a third
and fourth bar with higher lows right next to each other.
So you have what I call a “1-2 .” Next, the markets move back down in a
congested fashion.
T hen you get another low. T hat would count as #3 after the congestion
period. T hen, on the next bar, you get a higher low AND you get a higher
high or a higher close. T hat becomes bar #4 .
T his market is now in a trend mode up. It’s completed the trading cycle
and gone from a reactionary period to a rising trend.
You would immediately go long the next day, on the open. You would put
your protective stop one tick below the bar #3 to reduce risk.
You are in the market and if you had acted on this four bar count, look
how much the market went up right after. It is a very simple way to get
in the market with low risk.
T here are a four simple rules:
Rule #1: Bars #1 and #2 must be consecutive. T hey must be next to

each other and bar#2 must have a higher low.
Rule #2: Bars #3 and #4 must also be consecutive, with bar #4 having
a higher low than bars 1, 2, and 3.
Rule #3: Bar #4 must also have either a higher high than the previous
bars, or, a higher close.
Rule #4: In between bars #2 and bar #3 you can have no more than
five bars.
It takes a little practice, but once you get it down, you will be amazed
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how much more money you can make and how you can reduce your risk.
It works on a daily basis, weekly, monthly, yearly, quarterly. On a five-
minute basis if you’re a day trader, etc.
For a bear market, you would reverse the process and you would be
using the same rules but you would be using highs instead of lows.
Let’s now say you went long on the above chart, and the market kept
running higher. How would you reduce your risk further, and even raise
your stop to perhaps lock in a gain?
It’s simple: All you do is repeat the process starting your count over
again from the next isolated low (or isolated high in the case of a bear
market).
You move your stop up to just below the new third bar, or down to just
above the high of the new third bar I the case of a bear market. If the
market runs further, you repeat the process again and again, until you
are stopped out. T his is a very simple, yet very powerful tool.
Now, as I said at the outset, there is simply no way I can impart my four
decades of experience trading gold and silver — without spending
literally, days and days with you. But with these simple methods I just
gave you, I am confident you will be able to juice up your profit potential
in gold and silver.
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Cash In On the Crash Mike Burnick

Cash In On the Crash

October 19, 2017

Real Wealth Report

Because the underlying fundamentals, and cyclical and technical

In other words … if you don’t educate yourself now, you’ll be at a huge

T o review the outline of these chapters …

First, in this introductory chapter I’ll be providing some essential

T he pitfalls of buying rare coins and special editions …

T he difference between “in-hand”, allocated and unallocated gold …

other precious metal!

ALL to fully prepare you to maximize your profits in every conceivable

Gold was revered by ancient civilizations, going as far back as the

It was perceived as wealth from the outset. Only Kings, Queens,

T here is no other metal or substance on earth that says “wealth” in the

And recognition of gold as wealth is universal, across all major

T he Persians recognized gold as wealth. As did the Egyptians. And the

Every civilization understood what gold represented. Nobody thought it

T his unshakable belief in gold’s value has persisted for thousands of

T he Spanish did it to the Aztecs in the 16 th Century. T he Nazis did the

T he destruction of the Aztec civilization gave rise to the growth of Spain

Gold is REAL and tangible wealth. It always has been. It is a portable

T he Spanish ships transporting gold across the Caribbean were

Gold’s unique, emotional attributes are what make it worth owning,

In a decade when the value of the world’s major currencies is so

T he origins and importance of gold as currency.

T he first recorded gold coins were minted in the 6 th century B.C. in

By the 2 nd century AD the Romans had become even more sophisticated

T he gold standard was a monetary system that directly linked a

If a country’s central bank wanted to create a million dollars in cash, it

We might be forgiven for feeling a little nostalgic about the idea of

In the face of such shocks, the gold standard prevented governments

Second … it raises an interesting question about the behavior of

T he answer to that question speaks to our own interest in owning gold.

Why gold and silver as still so important in today’s world.

However, four thousand years of history doesn’t just disappear. Gold is

And this isn’t just a matter of sentimentality. In spite of the complexity

Why? Beyond emotional reasons, why is it still a smart move to buy

T here are three good reasons to buy gold.

Gold is a very scarce commodity relative to the demand.

As those dates approach, it would take just a tiny shift in attitudes to

What if the world’s investors decided to increase their exposure to gold

Or if the BRIC countries ― Brazil, Russia, India and China ― decided to

In either scenario, there wouldn’t be enough gold to meet the demand.

In other words ― because of scarcity ― now is the time to buy gold …

T he second reason to buy gold now is as a form of insurance against

T his, in turn, encourages central banks to behave recklessly, putting

Consider reasons one and two in combination.

In a world where the future supply of gold is uncertain, and where

T he third reason to buy physical gold: Gold is better than cash.

Gold AND silver.

Silver is certainty a precious metal, have it doesn’t have the allure of

However, as we progress through this course, we’ll talk a lot more

Chapter II: How to Build Your Own Gold Standard

T he different types of gold bullion

Of course, here in the western world we don’t generally carry our

But in North Am1/10erica and Europe, gold is usually worn more as a

Why is gold minted in these two forms?

Well, as we have discussed before, gold coins have their historical

Gold bars — or ingots — have a different history, and a different

T his isn’t always the case, as we’ll see in a few minutes.

A choice of gold coins from many different countries.

Since then, numerous one-ounce coins have been minted in many