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Privatize Your Wealth Today

Written by Jim Burg
Posted September 25, 2006 at 8:00AM

EDITOR'S NOTE: Sick of being taxed to death? Me too! We have more taxes in this country today than ever before. Take a look at this list of taxes I found earlier today...

  • Federal Income Tax
  • Federal Unemployment Tax
  • Workers Compensation Tax
  • Social Security Tax
  • Medicare Tax
  • State Income Tax
  • State Unemployment Tax
  • School Tax
  • Sales Taxes (State and Local)
  • Real Estate Tax
  • Property Tax
  • Building Permit Tax
  • Well Permit Tax
  • Septic Permit Tax
  • Utility Taxes
  • Severence Tax
  • Corporate Income Tax
  • Accounts Receivable Tax
  • Privilege Tax
  • Inventory Tax
  • Food License Tax
  • Fuel permit tax
  • Inheritance Tax
  • Interest Expense
  • Capital Gains Tax
  • IRS Penalties
  • IRS Interest Charges
  • Liquor Tax
  • Luxury Taxes
  • Marriage License Tax
  • Service Charge Taxes
  • Telephone Federal Excise Tax
  • Telephone Federal Universal Service Fee Tax
  • Telephone Federal, State and Local Surcharge Tax
  • Telephone Minimum Usage Surcharge Tax
  • Telephone Recurring and Non-Recurring Charges Tax
  • Telephone State and Local Tax
  • Telephone Usage Charge Tax
  • Vehicle Sales Tax
  • Vehicle License Registration Tax
  • Recreational Vehicle Tax
  • Trailer Registration Tax
  • Road Toll Booth Taxes
  • Toll Bridge Taxes
  • Toll Tunnel Taxes
  • Watercraft registration Tax
  • Gasoline Tax
  • Road Usage Taxes (Truckers)
  • Dog License Tax
  • Fishing License Tax
  • Hunting License Tax
  • Cigarette Tax

It's absolutely infuriating to think that just 100 years ago not one of these taxes existed, our nation was the most prosperous in the world, and we had absolutely no national debt. What happened?

At any rate, I just learned that when investing in certain gold coins, there are no tax consequences. That means it's legally possible to profit from buying and selling certain gold coins without giving a cut to Uncle Sam. Sound impossible? It's not. In fact, thousands of people around the country are now taking advantage of this tax loop-hole. And you can too.

Now, gold coins are not really our forte. As you know, we're focused mainly on investing in the companies that find and produce gold and other minerals. However, I've found someone who likely knows the gold coin trade better than anyone world! His name is Jim Burg.

Jim is a nationally renowned precious metals broker and a Senior Portfolio Manager for Swiss America Trading Corporation. He's been in the precious metals investing industry for over twenty years and is the premier expert when it comes to diversification with rare gold coins. Bottom line: If there's anyone you need to talk with before buying gold coins, it's Jim Burg.

And I've very pleased to tell you that Jim has agreed to write an article for us outlining exactly how we can invest in gold coins without taxes consequences. With that I turn you over to Jim. Enjoy.

Luke Burgess

GoldWorld.com

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Privatize Your Wealth Today

By Jim Burg

Your right to privacy has been called "the civil rights issue of the information age."

PHOENIX, AZ -- Today Americans enjoy unlimited benefits from new technologies in our wired world. But those wires send information in two directions, and the access to our personal data has never been more open for abuse.

The same is true of your financial information. Your holdings in stocks, bonds, cash, even gold (in most cases) are literally on display for the world to see today, unless you take some specific (and legal) steps to privatize your wealth.

While gold bugs boast of the wonders of gold ownership in today's mixed-up financial world, those who stick with only gold stocks, gold or silver ETFs or even gold and silver bullion coins have no more privacy than equities, bonds, real estate or cash.

A Shining Alternative

In today's world of ultra-transparent investment, it may surprise you to discover that there are only a few legitimate investment niches that offer the small investor 100% privacy of ownership.

An excellent example is investment-grade United States gold and silver coins. In addition to being completely invisible to anyone's prying eyes, these gems provide better average returns than gold and silver bullion historically.

Unlike most other major asset classes, investment-grade U.S. coins do not require a Social Security number or 1099 IRS reporting upon either the purchase or sale. As radio talk-show host Gordon Liddy once said, "I don't have anything to hide, but I still close the door when I use the bathroom."

The U.S. Patriot Act, Section 352 covering "Anti-money laundering and terrorism," the government states; "Anything that derives 50% or more of it's value from it's metal content is covered or reportable." Translation: your bullion holdings are not private!

That means if America were to witness some type of a modern banking crisis, similar to 1933, the President has the right to declare a National Emergency and confiscate your physical gold coins, unless they can be valued at least twice their melt down value, period.

In addition, U.S. rare coins are very portable. You could easily put a million dollars worth of rare coins in a briefcase and go anywhere in the world to liquidate them in a pinch.

What other tangible asset offers such a great combination of 100% privacy and 100% portability? I can think of none, except perhaps diamonds or other raw gems, but they are not nearly as liquid, with over 5,000 U.S. rare coin dealer in the U.S. alone.

Gold stocks may be a great long-term growth asset, but whenever you are dependent upon a company's solvency or a mutual or exchange fund to maintain liquidity, you have added another layer of risk and given up privacy.

BusinessWeek recently reported an "Invasion of the Stock Hackers"... "An alarmed SEC says that teams of thieves are lifting passwords from home PCs -- and emptying online brokerage accounts. Consumers have $1.7 trillion worth of assets with online brokerages, says TowerGroup, a financial research and consulting firm."

Owning paper promises for real assets can pay off, but in today's increasingly paperless world, your assets could also be wiped out with the stroke of the key on a computer keyboard. At least temporarily your wealth could become illiquid at the very moment you most need it, unless you have something "outside the system" so to speak.

Physical ownership of rare gold alone allows you the opportunity to have 100% ownership and 100% control of your gold assets without a single worry that your gold may also become someone else's liability.

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A Collectible, Not a Commodity

Investment-grade U.S. gold and silver coins are not a commodity, they are a collectible. So while the bull market in precious metals may help to propel rare coin prices upward, buying an investment-grade coin is not the same as buying a commodity, like sugar, wheat or even gold bullion.

 Have you ever seen a 100 oz. bar of gold? Some bars are ugly and beat up and some bars are brand new and shiny -- but they both trade for the exact same value. Not so with collectible coins. High quality and rarity are the primary drivers.

Because the investment-grade coin market is smaller than the bullion market, it is less prone to speculation and more geared toward being a long-term hold. This means rare coins are one of the least volatile forms of gold to own.

Every person in America has the ability to put them self on a personal gold standard by simply purchasing some physical U.S. rare gold and silver coins.

Virtual gold may be a great new product, but I'm recommending that clients hold physical gold at the foundation of their diversified portfolio.

As technology brings us closer together, the fragments of information about you are becoming much easier to piece together, revealing the most intimate details of your life, unless you take steps to privatize a portion of your wealth today.

Charts illustrate that gem-quality numismatic gold and silver coins are in a long-term bull market, like precious metals -- but rare coins tend to move up and down more gradually. Perhaps this stability is one of the reasons WSJ, Marketwatch and other mainstream news outlets have been so positive about this market niche over the last year or two.

Investment grade U.S. gold and silver coins are fast becoming a new American icon because they offer investors financial stability and and profit potential. In addition rare coins offer privacy of ownership, a feature that more and more investors are looking for every day.

If you want to take advantage of this opportunity, and I know you do, check out my website at www.yourcoinbroker.com or http://www.yourcoinbroker.com/Page3.html for more information. And if you have any at all questions, just email me at jim@yourcoinbroker.com. Shoot, you can even call me on my cell phone at (866) Rare-Gold (866-727-3465).

I look forward to hearing from you.

- Jim Burg

Senior Portfolio Manager for Swiss America Trading Corporation

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