Cabo San Lucas

Cabo San Lucas
My wife Jane and I on vacation

In fact, it's so good, just about every single investor I know of has been talking about this industry for the past 4 months...

And The Really Exciting News Is This:
You're In A Position Right Now To Get In At The Ground Floor!

This is NOT Vitamins, Juices, Energy Bars, Travel Discounts, or Forex...
It's not self help nor some type of mentorship program...

Wednesday, March 23, 2011

Investor Beware - Leverage Accounts MARCH 22, 2011

The Sun-Sentinel of Southern Florida reports that over the past 18 months, clients and creditors of 7 local precious metals businesses have claimed losses of more than $54 million!

How is it possible in this great 21st century gold and silver bull market, this many folks are losing that kind of capital?

Well the answer lies somewhere between investor ignorance, a lack of proper due diligence, poor silver and gold investment vehicle choices, investor greed, and perhaps electing and entrusting the wrong parties to do business with.

Today we would like to tackle one of the biggest silver and gold investor killers out there -> Leverage Accounts.

Over the years, leverage accounts have been responsible for transferring hundreds of millions of dollars of capital away from investors and into the pockets of dealers who offer levered financing for silver or gold speculation.

Simply put, when you introduce leverage… you introduce risk.

Leveraged investing is when you borrow money in order to invest. With a leveraged investment, you would invest a large sum up-front, then make regular payments to pay back the amount you borrowed, plus the interest. The potential advantage of the leveraged investment is that there is a larger amount earning returns over a longer period of time. If the return on your investment is greater than the principal borrowed plus the interest, your leveraged investment has outperformed a traditional investment.

Leverage generally enables the investor to own more of a stock or commodity without paying full price for it. The downside to it is, if your investment loses money, your losses are exponentially greater. In the case of leverage, you are going up against a mathematical formula plus compounding fees engineered to work against you.

Leveraged silver and gold accounts are pitched to investors based on their upside “potential”, the problem is the downside-devil in their detail. These types of accounts are typically designed to aggressively drive wealth away from investors when large short-term swings occur. If you don't know what you're doing (and many times even if you do), leverage can also magnify your losses to 100% and beyond!

The following excerpt is from the aforementioned report out of Southern Florida:

Little Regulation, Lots of Risk can Leave Gold Investors on Shaky Ground

– 3/19/2011

Customers are also told they can buy "on leverage" — meaning they can obtain financing so they can purchase more metal.

For example, a customer could put down $1,000 to buy $5,000 worth of gold. The financing comes from separate businesses called "clearing firms" or "clearing houses," that have pre-existing relationships with the precious metals firms.

Under such leveraged arrangements, if metal prices fall by a certain amount, clients are subject to a "margin call," meaning they must pony up more cash — or risk losing their money.

A Federal Trade Commission official testified before Congress last year that the agency has seen a rise in unscrupulous telemarketers pitching highly leveraged precious metals sales to consumers who don't understand how the deals work or the risks involved.

"The telemarketers charge hefty commissions and other fees that significantly reduce or completely eliminate the value of the consumers' initial investments," Lois Greisman, an associate director in the FTC's Bureau of Consumer Protection, told the House Subcommittee on Commerce, Trade and Consumer Protection.

Frank Widmann, director of securities for Florida's Office of Financial Regulation, told the Sun Sentinel that the volatility of this market can make it treacherous territory for inexperienced gold buyers.

"This is an area where it's real easy to mess with investors," he said.

In July 2010, Mike Maloney wrote the following in a article entitled - Beware of Fools Gold - Leverage:

When I first started accumulating gold and silver, I purchased a small quantity from a dealer. Naturally, when I was ready to purchase more, I went back to that same dealer. Over time, I developed a good relationship with that dealer, and I trusted him.

But as my purchases became larger, I decided to shop around to see if I could save some money. I called a dealer I saw on a TV ad, and, low and behold, his price was a couple percent less than my original, trusted dealer. While I was making my purchase from the new dealer, the salesman there convinced me that I could do a lot better with a margined account, where I could leverage my gold and silver at five to one.

Now I was no novice. I had used margin for quite some time and was already quite well informed regarding its asymmetrical leverage. So I didn't buy immediately; instead, I investigated the opportunity for a couple of days, then calculated the interest I'd be paying and the storage fees, determining exactly how much the metals would have to rise for my account to show a profit. Then I made my buy, but put more money down than I needed to, so that my equity would be much higher and my interest payments much smaller. With this position, my leverage would only be 3 to 1. This gave me a lot of headroom to accommodate the large price swings that silver is prone to, without getting a margin call… and the last thing I wanted was a margin call.

For more than a year I babysat my position, all the time readjusting my equity to approximately 33%, keeping my leverage at 3 to 1. Every time my equity would get over 50%, I would use some of the equity to buy more ounces and get my leverage back to 3 to 1, and I never got a margin call. I had stellar results, as silver moved up from the $4.40 area to a peak of $8.50. But then, in April of 2004, in just seven trading days, silver fell by the largest percentage of any month in over 20 years.

Two days after the silver price hit bottom, I got two letters from my dealer in the mail. The first letter I opened informed me the price drop had caused the equity in my account to fall below the margin call limits, and it gave me the opportunity to send in a payment to cover my margin call.

The second letter informed me that, due to recent price fluctuations, the equity in my account unfortunately had fallen below minimum required levels, causing the dealer to liquidate my position. Both of these letters were dated and postmarked on the same day—one offering me the opportunity to cover my position, the other telling me I had no position to cover.

Had I had the opportunity to cover, I would have done so in a heartbeat. You see, when you cover a margin call on precious metals, you are simply buying the extra ounces that your equity no longer covers. I knew, even back then, that silver was headed for the moon, and on the day my position was liquidated, I could have bought all those extra ounces for less than $6 each.

When I opened my account with the new dealer, the salesman assured me I would have 48 hours to cover any margin call. I guess he—like me—never ever read the fine print.

In the end, my attempt to save that couple of percent off the cost from my trusted dealer had cost me 100% of my investment.

About six months before writing this, a customer called me to buy some silver, and in our conversation I cautioned him against using leverage. He responded with a 20-minute story that was almost identical to mine. He called the same dealer to purchase silver and was sold a leveraged account. He, however, kept his leverage at 5 to 1. The story ended with him losing half a million dollars, with no opportunity to cover his margin call.

Then just a few days before writing this, a friend with whom I hadn't spoken with for quite some time told me that she had called the same dealer to buy silver and was talked into the same type of account. Like the customer above, she also had put down only the minimum amount required, so her leverage was 5 to 1. The first time the price fell, her position was liquidated, and she was never given the opportunity to cover.

I think I see a pattern here.

Friday, March 18, 2011

All About Coin Collecting: Grade Coins With Ease!

Coin collection is not just about having as many coins as possible. More important than the number of coins is the quality of those coins. This quality is measured by the coins’ grade and the grade is measured using a scale from zero to seventy (seventy being the highest point grade). Doctor William Shelby introduced this point scale in his work “Penny Whimsy”.

Here are the classifications of coins according to grade.

1. “Mint State” Coins

This is equivalent to a value of 60 to 70 in the Shelby’s grade scale. This means that the coin has no blemishes whatsoever. Most of the coins in this category are uncirculated, shiny, new coins, with absolutely no signs of wear.

2. “Almost Uncirculated” Coins

The “Almost Uncirculated” coins have a point grade of 50, 55, or 58.

It is very important to note that in these coins, coin collectors must know the locations of the high points in a particular coin. By checking the difference of the light reflected in the high points to the other parts of the coin, an “Almost Uncirculated” coin is separated from the Mint State coins.

3. “Fine Coins”

These can further be classified as” Extremely Fine” (40, 45), “Very Fine” (20, 25, 30, and 35) or “Fine” (12) depending on the sharpness of the remaining details on the coins. The coins are observed to have wear but the designs are still intact.

For “Extremely Fine” coins, the mint luster is still present.

“Very Fine” coins can be compared to coins which have been used for 1-3 years. Minor features of the coins are already gone.

4. “Good Coins”

These coins can be specifically defined as “Very Good” (12), “Good” and “Almost Good” coins.

The coins in this category are worn out. Only weak designs can be observed since the details of the coins in the high points are nearly smooth.

Full rims must be observed for the “Very Good” coins category.

In the case of “Good” coins, the mint mark and the date must be visible.

On the other hand, “Almost Good” coins are the most worn of coins in this category.

5. “Fair Coins”

The coins are “worn out”, but can still be distinguished as belonging to one of the types of coins - as long as one can identify a coin, it is a “Fair C”.

6. “Basal Coin”

These metals that can be determined to be coins - but the kind of coin are undeterminable.

With the classifications described, it will be very easy to grade coins. Just remember that knowledge of the coins’ grades gives coin collectors advantages!

Charles Hopson
skype: cphopson

Article compliments of skaDoogle

Tuesday, March 15, 2011

10 Reasons I chose the Gold and Silver MLM, Numis Network, by Ray Higdon

10 Reasons I chose the Gold and Silver MLM, Numis Network gold and silver mlm.

If you follow my blog, you know that I don’t pitch my company very often, in fact, more often than not I have people ask me what company I am in as I focus on training people, not just pitching my business. I guess I have been asked this enough times that I am not writing this blog to reference from now on when people ask me this question.
What Attracted me to a Gold and Silver MLM?

I got into real estate a few years ago because it was hot and people were making a lot of money in it. I was actually first attracted to real estate because I loved the idea of not simply trading dollars for hours and buying rental properties for cashflow or passive income. Well, even though a partner and I bought 37 rental units our first year, we never saw major cashflow or passive income as the market turned flipping the rental income to the negative. Then I found network marketing. Network marketing offered the chance of residual income but without the huge risk or overhead of real estate. I fell in love with the industry. I started with a juice mlm but never really was that excited to promote a juice. After failing at about a dozen network marketing business opportunities, I was invite to check out Numis Network, a gold and silver MLM out of Tampa, Florida.

I immediately liked the idea of having a refreshing product but did not know the details of the types of products Numis Network carried. I could not tell you the difference between bullion (loose silver or gold coins) and bouillon (for soup). I also didn’t know any coin collectors. However, I saw that we are in an economy where a gold and silver MLM could do very well and it was simply refreshing. It was not a “me-too” company like a health and wellness so I jumped in. Little did I know that this gold and silver MLM was going to provide the type of residual and passive income I had always dreamed about.
10 Reasons I chose a Gold and Silver MLM

10. It was a product that I would never be upset about having a garage full of.

9. The compensation plan was better than any I had ever seen, my first company I was screwed as they only paid me on the pay leg, this one pays big bonuses on your entire team.

8. Talking to anyone, of any income level or net worth about a gold and silver MLM is pretty easy.

7. It was a product that was and still is red hot. The higher end channels tell you to buy more and the lower end channels want to buy it from you.

6. It was the only MLM product that has historically increased in value.

5. This gold and silver MLM just announced a 5 year buyback guarantee. Meaning, if you purchase your coins each month and only want 100% back of what you paid for them, you can sell them back to the company.

4. The company is ran by three guys that each have over 20 years experience, not in business, but in the business of network marketing. This is very important as most companies that have shut down, voluntarily or involuntarily, have been started or bought by people who did NOT have a network marketing background.

3. They have awesome incentives and trips. My first year in the business I won trips to Bahamas, St Kitts, Atlantis and three cruises.

2. The worst case scenario with this gold and silver MLM is you get an asset each month that has historically increased in value. And now, after 5 years, if you don’t want your asset, you can sell it back to the company for 100% of what you paid for it!

1. It is the easiest product I have ever marketed online. Most companies are strict on how they market online or what you can say and this product is something that you don’t have to taste, smell, see if it agrees with your tummy or get your doctor sign off on. And, the company embraces the use of the Internet for promotion!

If you are interested in learning more about Numis Network please contact me.

Charles Hopson
609-706-5503 cell
skype: cphopson

Walking Liberty Half-Dollar and the Silver American Eagle

Tuesday, March 1, 2011

Numis Network

Special announcement

Once again, Numis Network is making history!

Introducing Numis Network’s Five Year 100% Buy Back Guarantee.
5 year 100% buy back guarantee

The Industry's BEST and ONLY Buy Back Guarantee:
Numis Network guarantees to buy back any coin purchased through our Silver Coin
of the Month Club, in 5 years, for 100% of the original purchase price!

The announcement of this historic guarantee is powerful in what it can do for your business... and your income!

The Numis Network Five Year 100% Buy Back Guarantee eliminates most common concerns such as:

  • "Let me check it out with a coin dealer."
  • "Let me see what it's selling for online."

  • "How do I know if these coins are valuable?"
  • "Where do I sell my coins?"

With this iron-clad guarantee, none of those issues are relevant any longer.

This historic announcement is also great news for your recruiting efforts. Let’s face it, this incinerates the biggest reason someone might not join your business, or the Silver Coin of the Month Club.

The 100% Buy Back Guarantee is also tremendously beneficial for retention of your customers. Once people realize that they can’t lose, many will continue to stay on the Silver Coin of the Month Club.

This is has never been done before!
Don’t mistake Numis Network’s Five Year 100% Buy Back Guarantee for some ordinary, plain vanilla money back guarantee. It’s so much more!

Think about it.
Do you know of any other product (or collectible) that you can own, enjoy, use, and display for 5 full years… and then return it to the merchant for 100% of the original purchase price?

Click the Buy Back Guarantee logo on the homepage of your website
for all the details about this revolutionary offer.

Numis network