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					“Gold, a Hedge Against the Perils of Interesting Times”


While paper-based investments and real estate are vulnerable to effects
of changing times, gold soars. A precious metals investment may save a
portfolio when all else fails.



While paper-based investments and real estate are vulnerable to effects
of changing times, gold soars. A precious metals investment may save a
portfolio when all else fails.

 The old Chinese curse, “may you live in interesting times”, has
particular relevance to the current epoch of U.S. history. There’s a lot
going on right now, much of it scary. Major investors around the world
are responding to the events of our perilous age by sinking their
dollars, deutschmarks and yen into gold, silver and palladium; Bill
Gates, Warren Buffet, and billionaire speculator George Soros to name but
a few. Big financial institutions like the Central Banks of Russia and
China are also leaping onto the metals bandwagon driving the price of
these precious commodities ever higher.

This is spurring a gold rush not witnessed since the Misery Index years
of the 1970s. Many financial experts now view gold in particular as an
island of stability in a paper-based investment market growing stormier
all the time, a development that bodes well for everyday folks who want
to shore up their retirement accounts with a precious metals hedge.

“People the world over are losing faith in politicians, and currencies,”
says Marc Lubaszka, President/CEO, World Financial, a highly successful
investment firm specializing in precious metals based in Studio City,
Calif. “This has resulted in a flight to gold and other precious metals,
a storehouse of value for more than five thousand years. Investors are
taking their money out of paper assets, and putting it where it is likely
to earn a better return in uncertain times.”

Old Reliables Unreliable
Investments once considered as stable as granite are rapidly losing
ground, Lubaszka explains. Real estate is but one example. Long praised
as a slam-dunk by money gurus, home-buying is no longer viewed as a
hurdle-free path to profit. Stratospheric pricing and higher interest
rates are putting intolerable pressure on the current housing bubble,
factors bound to bust the suds sooner or later and drive the overheated
real estate market into deepfreeze.

“The housing bubble will burst rather than gradually deflate, following
the rapid and violent pattern of decline of nearly every financial bubble
throughout history,” Lubaszka says. “Higher interest rates negatively
impact not only the health of the housing market but other economic
segments as well. The stock market takes a hit because higher rates make
it more costly for companies to pay for debt. Higher rates hurt corporate
profit margins and reduce stock value, bad news given the deep debt
situation so many companies are in today.”

Paper is Passé
According to Lubaszka, the U.S. dollar has lost more than 80% of its
original value since the early 70’s when we went to a floating currency,
a situation not helped very much by the debut of the Euro in the late
1990s. Unlike American dollars, a portion of the Euro is gold-backed, a
stability feature that has helped it outperform the dollar over the long
haul. It is for this reason that many foreign investors have been taking
money out of U.S. dollars and putting it into gold and oil instead, one
explanation for why the price of both has continued to rise in recent
months.

“Gold prices are climbing right now because the Federal Reserve is
printing dollars in flood proportions to keep the real estate market
afloat,” adds Richard Russell, editor Dow Theory Letters, a stock market
trends and securities report published since 1946. “This is creating
inflation, which erodes purchasing power. All the world’s central banks
are inflating right now, reducing confidence in paper globally and
encouraging gold-buying. India and China are spurring gold prices as
well. India is the world’s largest gold-consumer, and the Chinese
government is actively encouraging its citizens to buy gold.”

All are extremely encouraging signs for gold investors. Over the course
of the past 35 years, gold has climbed in value from a modest $35 an
ounce to nearly $600. Contrast that with the battered U.S. dollar, a
currency currently worth only 20% of its value in 1970.

“When gold peaked-out in the 1970s, interest rates were at an all-time
high,” Lubaszka says. “Right now we’re waiting to feel the effects of the
last 9 interest rate increases which generally take 6-9 months to begin
impacting the economy. Now’s the time to buy gold because when rates go
up, downward pressure is exerted on real estate, stocks and bonds and
commodities like gold tend to increase. The opposite occurs when rates
travel from a high to a low. That’s the time to reduce gold assets and
increase the paper part of a portfolio.”

Buy Without Getting Burned
Michelle Henderson, a talent agency owner in Los Angeles, Calif.
understands the stakes when it comes to investing. “As an agent I work in
a commission-based world, and have to invest in both people and ideas all
the time,” she says. “Though I’d had bad experiences with stock
investments in the past, I knew I would eventually find something that
would work for me. I invested in a diversified metals portfolio made up
of palladium, silver and gold, and earned a profit of 38% with the
palladium alone. Staying focused on making money, and following World
Financials advice, I was able to earn an above-average return and greatly
increase the overall value of my assets safely.”

Lubaszka explain, “It’s probably best for the first time investor to
begin conservatively by purchasing physical metals instead of gold
stocks, which can be very volatile”. According to Clearwater, Fla.-based
talk show host and gold analyst, Tom O’Brien, when metals gain 20%, gold
equities jump by fifty or sixty per cent. That’s great when it happens
but the reverse can occur as well.

Buy gold bars or coins, and put them in a safety deposit box. If you
chose to purchase coins from a coin shop, make certain you pay the lowest
price possible and that they have a buy back policy. If you elect to go
with a broker, fees will be inevitable because you are purchasing a
tangible commodity.

There are brokers, and then there are brokers. The best of the breed will
answer all questions, and make the process of first-time gold buying less
nerve-wracking. Great brokers are also accessible when needed, and quick
to call with any new information that affects the value of the
investment.

Work with established companies, five years in business is good, ten even
better. Don’t bother with firms that badger you with telemarketing offers
or apply high-pressure sales tactics. Avoid paying high commissions too.
Some brokers have layers of fees, through which they earn more money then
they do investing on behalf of customers. There are also companies out
there that will not buy metal back. Stay away from them as well.

“Check references and Better Business Bureau ratings”, Lubaszka adds.
“Deal with a company that takes an active interest in doing business with
you. World Financial, for example, offers a five-star customer
satisfaction guarantee. If questions are not answered or we fail to
respond to a prospect’s call or email within 24 hours, that person
receives a one ounce silver American Eagle coin free of charge. A
financial advisor’s job is to ease the investment process, and to insure
that customers get the most for their money. Good advisers are merely
good, but the best are worth their weight in gold.”

To contact World Financial directly call 818.264.4085. World Financial
is the premiere provider of precious metals to investors nationwide.
Aside from offering numerous incentive programs, World Financial offers
clients the right type of precious metal strategy for every investor’s
needs. They are located at 12198 Ventura Blvd Ste 200, Studio City CA,
91604.


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