The Michael Fuljenz Metals Market Report: October 2012, Week 4 Edition

Gold Corrected Last Week

Gold corrected last week, but it only returned to where it was in early September, before Federal Reserve Chairman Ben Bernanke announced his latest round of quantitative easing (QE3). Last week's first big loss came on Monday, when gold fell $22 to $1736. Then, we saw another big downdraft in both gold and stocks on Friday, the 25th anniversary of the 1987 crash. Still, gold is doing well for the year to date and in the last three months. Since July 23, gold is up 11%, platinum is up 16% and silver is up 19%.

My Very Busy Week

It was a hectic, but invigorating and inspirational week for me starting this past Wednesday afternoon when I flew to Dallas for the Fall National Money Show attended by over 500 dealers. That evening I had a working dinner with retired Police Chief Doug Davis, founder of the Numismatic Crime Information Center (NCIC).

Thursday morning, I participated in an important NCIC accredited training seminar attended by over 45 law enforcement officers (police, sheriff, FBI, postal and IRS) where I gave them my best information resources for helping to solve various coin related crimes. I also outlined the new registration requirements to lawfully buy or sell coins and precious metals in the state of Texas.

Thursday night I flew back home to receive the Beaumont Police Department's Corporate Award for our assistance with their Blue Santa Toy Program, our Meals for Police Program and assisting with office space and support for their West End Police Substation that's located on our premises.

Early Friday morning I flew back to Dallas for my book signing event hosted by the National Money Show and to buy tough-to-locate better date, mintmark and grade Indian gold coins and $20 Liberties at the show.

Saturday night, I attended a Medal of Honor Foundation banquet as the guest of the outgoing President of the Congressional Medal of Honor Foundation, Lieutenant General Nicholas Kehoe. I was fortunate to sit with Medal of Honor recipient, Lieutenant Colonel Joe Jackson. The foundation's goal is to perpetuate a legacy of courage, sacrifice and patriotism, and their educational work in schools is inspiring. For a free, stirring DVD about the Medal of Honor, contact your Account Representative.

Sunday I flew back to Beaumont and secured my special gold coin purchases for my customers. Whew, a very busy five days!

Putting Your Children And Grandchildren Through College With Rare Coins - A True Story

College tuition costs at the best schools are astronomical. Even four years at a state university will set you back a pretty penny. If you have young children, by the time they're ready for college, the costs will be beyond astronomical.

People have different strategies for building a college education nest egg for their kids. But a friend of mine - I'll call him "Mr. B" - hit on an inventive and very profitable way to build a college fund for his youngsters. Mr. B is a prominent fellow numismatist and coin dealer who has held numerous influential positions in national coin industry groups. I was impressed with his creative college savings plan, and I think his story is worth sharing with you.

Mr. B's first two children, a girl and a boy, were born in the late 60s and early 70s. Mr. B launched his plan right away to be ready financially for their higher education.

Every year he bought $1,000 of well-known companies' stocks for each kid. He stuck to the axiom of "invest in what you know" and bought companies that affected his children's lives, like Johnson & Johnson (because they make baby powder and no-tears shampoo). As they grew out of the toddler stage, he bought companies like toymaker Mattel and, of course, Disney. When they were teens, he bought consumer product companies like Coca-Cola.

Now, here's the unusual part of Mr. B's strategy. In addition to building a stock portfolio for each child every year, he also invested $1,000 in high-quality U.S. gold and silver coins for each of them.

He chose only gem uncirculated or proof coins that were 50 to 150 years old. He completed a U.S. gold coin type set for each child. He also enhanced their coin portfolios with many gem-quality silver coins.

Mr. B told me that his plan of investing in stocks and coins became much more than just a prudent financial exercise. "It was a bonding experience," he said. "It brought us closer together as a family while instilling in my children valuable life skills." The kids got excited when annual reports came out, which Mr. B read with them, so they could see how the companies they owned were doing. They followed the stock charts of their portfolios and even went to shareholder meetings. The kids became absorbed in the history of the coins in their portfolios and avidly dug into reading and learning about them - which paid extra dividends later on when they got outstanding grades in college history courses.

Mr. B was able to finance the two children's educations by selling the stock and coin portfolios. Adding it all up, he noted that the money he invested in coins paid off far better than the money he put into stocks.

Here's how the actual performance numbers worked out. Investing $1,000 in stocks and $1,000 in high quality gold and silver coins for each child each year for 18 years yielded these results:

First Child:

• 18-year $18,000 investment in stocks: $40,500 profit, 225% growth
• 18-year $18,000 investment in high quality U.S. coins: $68,000 profit, 377% growth

Second Child:

• 18-year $18,000 investment in stocks: $38,000 profit, 211% growth
• 18-year $18,000 investment in high quality U.S. coins: $77,500 profit, 430% growth

Aggregate:

• Stocks: Original investment $36,000 ($18,000 x 2), $78,500 profit, 218% growth
• Coins: Original investment $36,000 ($18,000 x 2), $145,500 profit, 404% growth

Many people put cash away in CDs or money market accounts in anticipation of their children's college days. But the meager interest being paid on these accounts against the rapid debasing of the U.S. dollar - and pretty much all world currencies - sucks purchasing power out of the nest egg rather than growing its value. Mr. B's college coin savings plan, on the other hand, paid off with handsome growth.

Investing for Your Children and Grandchildren

We offer parents and grandparents of future college students the opportunity to invest regularly in high-quality mint-state rare gold coins through a strategy developed by America's Gold Expert and Award-Winning rare coin expert, Mike Fuljenz. Through an accumulation plan that we personally outline according to your circumstances and needs, our strategy could provide you with a systematic, smart long-term way to build the resources you need to send the children you love to college.

Please contact your Account Representative for more details.

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