Myths And Legends

Ever hear the expression “Everyone needs a hobby.” If one were to try and identify hobbies of the Federal government and Wall Street, (Oh, the possibilities!) one could do worse than identify the practice of sowing myths among the unsuspecting and gullible public. One such myth was that home prices will never crash on a national basis. Anybody remember how that turned out? Another is that municipal bonds are a foolproof investment. Try telling that to bond holders in Detroit … Read More »

When Collecting and Investing Mix.

Some things, like peanut butter and jelly, and peas and carrots, just go together. Other things, like oil and water  don’t ever mix. But, from time to time, you get a combination that can work out for either good or bad; like combining collecting and investing. Consider the case of Joel Waul, who currently holds the Guinness World Record for having the largest rubber band ball. It weighs 9032 lbs. While I’m sure the ball is worth something, I doubt … Read More »

1804 Gold Eagle
1804 Gold Eagle

Some things, like peanut butter and jelly, and peas and carrots, just go together. Other things, like oil and water  don’t ever mix. But, from time to time, you get a combination that can work out for either good or bad; like combining collecting and investing. Consider the case of Joel Waul, who currently holds the Guinness World Record for having the largest rubber band ball. It weighs 9032 lbs. While I’m sure the ball is worth something, I doubt Waul is planning on using his ball to fund his retirement, but you can’t doubt that in many forms of the word, he is invested in the 4 ½ ton over-sized office toy. We’ll have to wait and see if the price of rubber skyrockets in the next few years. In the meanwhile, Joel will have to keep his ball in the garage, away from his HOA.

Perhaps of more noteworthy success, are the accumulations of Harry Bass who began coin collecting somewhat by accident, but not without a goal: to make profit! Mr. Bass used to work at a bank and one day an employee of the bank came to him and asked to buy a bag of dimes. Several years later that employee bragged to Mr. Bass that he had tripled his money on that bag of dimes, and Harry’s fate was set. Being a man of means, Harry Bass could afford gold coins, and rare gold coins. Mr. Bass believed in buying gold as an investment, and bought gold from coin dealers, gold brokers, as well as gold investment companies. After Mr. Bass passed, his collection was valued at over $25million though his wife believes they never put anywhere near that amount of money into the coins.

So, what makes Bass a visionary and Waul a YouTube phenomena with over 100,000 hits for dangling a ball of rubber off of a crane? Perception. Bass had perception. He knew the finite details of thousands of coins. He knew how money is created. He bought when it was time to buy, and sold when it was time to sell. Waul lacks the perception of Mr. Bass, but he does have something else – an addiction – to rubber bands.

As you make choices as to where and how you save for the future, remember the successes of Harry Bass, who built a millionaire’s empire on the knowledge he gleaned from a sack of dimes. If you would like to speak with one of ITM Trading’s Senior Analysts about your current investments, whether they be balled up in a 401K or in the garage, call 1.888.OWN.GOLD and begin the conversation!

-->

Who am I listening to?

There was a time in this country when banks were nearly synonymous with gold and silver, but those days are behind us. Just 50 years ago, if you walked into a bank, and asked the bank president, “Should I invest in silver?” He would scratch his head, look at you kind of sideways, and say, “Sir, you already are invested in silver, The Dimes and Quarters and Half-Dollars and Dollar Coins are all 90% silver, you already own a bunch … Read More »

Jobs On The Run

In the opinion of economist Gary Burtless, senior fellow at the Brookings Institution, a think tank in Washington, D.C., as of the spring of 2013, he figures the U.S. was short around 7.4 million jobs. For those looking for work and unable to find it, unless they were buying gold coins before they got laid off, they were in for a tough time. About 136 million Americans held down a job in July, as per the Labor Department’s poll of … Read More »

Recession Or Recovery

When Lakshman Achuthan of Economic Cycle Research Institure (ECRI) signaled a recession warning in September of 2011 and then reaffirmed a recession call in July of 2012 many were skeptical. It now appears that 95% of the population would agree with Mr. Achuthan. The 5% who might not agree are the top 5% of the economy, those of the very wealthy and connected among us who buy gold coins and such, they might answer that we are obviously in a … Read More »

Worse Than The Recession

Usually, four years after something so bad that it was called, not just “The Recession” but the Great Recession, things would be better for the average household, not worse. Yet in spite of all positive thinking, well wishing and coming up with new and creative ways to calculate the GDP (not to get a more accurate figure but designed to get a a more flattering number) here we find ourselves with the average household recalling the good old days right … Read More »

Retail Responds To Depressing Sales Figures With Ho Ho Ho!

So far this year, retailers are worried they will be left with a lump of coal instead of gold coins in their stocking come year end and have moved up their holiday schedule in an attempt to turn around disappointing sales figures. In a press release, Toys R Us signaled that it would extend the guarantee to match prices from online retailers like Amazon.com, Walmart.com, Target.com and BestBuy.com, as well as others. The move was designed to be perceived as, … Read More »

The Jobless Numbers Mixed Bag

If one is using the jobless rate as an indicator of how well this year’s summer of recovery is doing, it is by no means a crystal clear picture. It is more like looking through a semi-transparent, smudged and grime be spotted window into our economic future. Of all the fifty states the jobless rate fell in only eight of them. While it is true that the rate improved in 28 states that leaves eleven states that fell somewhere in … Read More »

The New Bond “Normal”

Not long ago the word “Bond” was synonymous with good. A man’s word was his bond. Even James Bond would surface every few years to save the World on the silver screen. Now it turns out that the Bonds may become the villains. While quietly creeping into nearly every modest, balanced portfolio, bonds of all types have become a financial “weed” in nearly everyone’s investment garden. The weed comparison, at least from the buyer’s perspective, is poor however, because weeds … Read More »

StockCharts.com - 30 YR Treasury Bond Crash
StockCharts.com – 30 YR Treasury Bond Crash

Not long ago the word “Bond” was synonymous with good. A man’s word was his bond. Even James Bond would surface every few years to save the World on the silver screen. Now it turns out that the Bonds may become the villains. While quietly creeping into nearly every modest, balanced portfolio, bonds of all types have become a financial “weed” in nearly everyone’s investment garden. The weed comparison, at least from the buyer’s perspective, is poor however, because weeds are free, and you are usually looking to get rid of them. Surprisingly though, the analogy between Bonds and weeds holds true from the perspective of the bond issuer; Bonds cost literally nothing, because they are a simple, usually unsecured, IOU payable at a future date. And, because the company issuing the bonds wants to raise capitol, they are looking to “Issue” as many as possible as quickly as possible. Bonds are literally a loan that the entity you are loaning your “investment” to is not legally required to repay.

A Tough Year for the Bond Crop

Since Bonds are widely considered to be among the safest and most prudent investments, it would surprise many to know that not only do they default all the time, but that there are many major players in major trouble right now. Perhaps, some of what they have on the line is yours. Allan Sloan, writing for Fortune, did a very insightful piece into the quiet but quite real crash in the Treasury Bill market this July. On July 5th, he reports, the market price of a 30 year Treasury Bill fell 4.1%. That is the kind of drop that can wipe out a year’s worth of profits in less than a day. It gets worse, however, “When last I looked, the bond was trading at about 83.9% of face value, which means that holders had lost almost six years’ worth of interest in the eight months since the bond was issued. Collectively, holders of this issue, which has a face value of $16 billion, have lost more than $2.5 billion,” says Sloan in his article.

Many More Tough Years to Come…..

By their very nature, Bonds that are issued with low interest rates have an auto destruct gene encoded into their financial instrument DNA. In the world of Bond rates, what goes down; must come back up. Investors won’t be satisfied with 1% or 2% profits, they will demand rates of 8-9% that were common just a handful of years ago. Bonds that have a low interest rate associated with them will have to be sold at a discount when priced against their counterpart bonds that are paying a significantly higher yield. At some point, all of the Treasury Bonds created and purchased during the sub 2% rate days and throughout all three versions of Quantitative Easing will have to be dealt with, and at what discount is only anyone’s guess.

Once you read a few of the “Dirty little secrets of finance” like how bonds and currencies are created, you may want to learn about some other topics, like investing in silver, or investing in gold. In any event, these are not simple markets either, and do demand a due diligence and learned understanding before accounts are opened and metals are purchased.

To give you a no-pressure high information insight into how BBB A+ Rated gold investment companies conduct business, please call us at 1.888.OWN.GOLD.

-->