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The Best Plays on Gold... That You've Never Bought

By Dr. Steve Sjuggerud
Friday, April 28, 2006

“Markets peak when everybody’s in.  And in this gold market, nobody’s in.”
– Van Simmons

Van Simmons told me a story yesterday about gold...

“I was at a financial dinner with a few dozen people I didn’t know.  I decided I’d discreetly ask each one of them what they thought about gold.  It turns out not one of them owned an ounce of gold, and not one person thought gold was a good investment for the long term.”

Nobody owns gold... still!

Van then told me one of his customers called and said he was getting worried... his portfolio of rare gold coins has been steadily rising, and it’s now worth $200,000.  Should he sell?  Van asked him how much he had in cash. “$4 million dollars,” the guy replied. 

Van laughed.  This guy is like everyone else in America... he trusts his paper dollars more than gold. 

The point is, even though gold has more than doubled in just a few years, nobody has bought yet.

So how can you play it?

To get more insight I had dinner last night with Frank Trotter, the founder of  Frank’s created a few innovative gold products in the last year...

The first was the MarketSafe CD... a way to own gold with ZERO downside risk.  Yes, you can participate in the upside of the price of gold, and yet, you’re guaranteed to not lose money from the start to the end of your CD.  The minimum investment is only $1,500.

Frank mentioned that he’ll likely discontinue the MarketSafe Gold CDs in June, so if you’re interested in owning gold with no downside risk, you ought to contact Everbank now.

Another novel product is Everbank’s Metals Select, which Frank thinks is the cheapest and easiest way for individuals to own gold (he says it’s even cheaper than the gold ETF).  For more information on these Everbank products, contact the Everbank desk that specializes in them at 800-926-4922.  You can also visit for more information.

Let’s get back to Van Simmons and his view on one of the best ways to own gold right now....

Van doesn’t just want physical gold, instead he prefers old, rare, high-quality gold coins. Of course, you could accuse Van of being biased... He deals in gold coins. But I agree with him, and I know Van well. 

He is a fantastic investor in a variety of different collectibles.  Right now in the coin markets, there is no supply of good coins.  If another wave of buying comes, which I feel certain there will be, prices could just go absolutely nuts.

Van pointed to my recommended True Wealth 7-piece set of rare old U.S. gold coins as “one of the key assets to own for this gold bull market... At some point in the near future these coins will double.”

It’s still early in this gold bull market.  Why?  Van pointed it out...

Nobody is in gold... yet. And those that are just have a tiny exposure relative to their overall assets.

A bull market isn’t “done” until everyone is in.  By that standard, there’s still a long way to go in this gold bull market.  If you’re still like the folks at Van’s dinner party, and you don’t own gold yet, you should.

You can go the standard routes of course... but before you do, you should at least consider the options mentioned above. The mainstream hasn’t caught on to them yet, but they are all great options.

Good investing,


Market Notes


Chile just changed its tune on copper prices…

This week, the world’s largest copper producer increased its forecast for average 2006 copper prices by 50%.  Chile now sees copper averaging at least $2.40 for the next two years.  

It’s the same tune Morgan Stanley is playing with oil.  Morgan analysts recently raised their estimates of 2007 crude oil prices by 43% to $68 a barrel.

As the commodity bull market surprises government agencies, Wall Street analysts, and everyone else, DailyWealth expects to see more price revisions like we’re seeing in copper and oil.  It’s the way bull markets work…

As master investor Jim Rogers warns us:  “Markets will rise higher than you think is possible and fall lower than you can possibly imagine.”

As today’s chart shows… copper is proving Mr. Rogers right:

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