But a provision in the tax code makes it possible for parents and grandparents to avoid the onerous estate tax, and allows you to give a gift to your children and grandchildren to boot.

So this year, and in the years to come, think about not just giving your children and grandchildren a gift, but rather giving them the gift of wealth. And I am talking about real wealth, not paper money or some stock that can collapse in price.

When I say “real wealth,” I mean gold. Gold is a gift that has stood the test of time for 6,000 years. Gold has value today and it will have value in the future, even as paper money (fiat currency) falls by the wayside. This has been true throughout history.

Gifting Limits

The Federal Government has actually given Americans a way to give a portion of their estate to future generations without owing any taxes on the gift. As long as you stay within the IRS gifting limits, this can be an excellent way to help ensure the financial freedom of your loved ones. (And not insignificantly, it will help you and your spouse save on taxes, too.)

In 2010 the gifting limit is $13,000 per person. A married couple can give twice that much, or $26,000, to children or grandchildren, nephews or nieces, or anyone else. Many of our clients have already taken advantage of this wealth-transfer tool by giving stocks, bonds and real estate to their offspring. Today, I’m suggesting you consider the gift of gold (and silver and platinum) as well.

Building Wealth

Imagine if you gave a child a gift of gold every year. Think about the path you will start them on toward achieving their own financial goals. You can give them a cornerstone of financial wealth—real wealth—on which they can build. If a child or grandchild owns some gold do you think they will pay attention to what government is doing to the dollar and what is happening with the price of gold? You betcha!

As Americans, we are still learning to be comfortable owning gold in our investment portfolio. After all, we went 42 years—from 1933 until 1975—when government edict made it illegal to own gold. Thus, it’s understandable that we are not in the habit of owning and giving gold.

Other cultures around the world understand the value of gifting gold and silver to the next generation. In India and the Far East, giving gold has been part of their tradition for generations. As an article in the Bombay Times observed, “From mother to daughter to granddaughter (and father to son to grandson), gold has the tendency of getting passed down from generation to generation.”

In Europe as well, the private (and often secret) ownership of gold goes back to feudal times, whether it is stored in a vault or hidden somewhere at home. More than one family has made it through the ravages of war or political upheaval thanks to those golden pieces of hope.

What to Give

You have many choices when it comes to giving gold or silver, from putting a coin in a Christmas stocking to purchasing several thousand dollars worth of metal through a Perth Mint Certificate.

There are many occasions throughout the year that are worthy of recognition. A child’s birthday. His or her graduation. Your own birthday or anniversary. Christmas or Hanukkah. You can probably think of many more.

Besides gold coins, consider the solid-gold jewelry from our sister company, First Collectors Guild. In whatever form you give it, the gift of gold can teach lessons that will last a lifetime.

And don’t forget about silver, the “poor man’s gold.” The U.S. silver Eagles are as beautiful as they are meaningful. Right now, gold and silver are the lowest they’ve been in many weeks. If you’re looking for the right time to buy, this is it. Consider buying enough now for several future gift-giving opportunities. There are many advantages to “buying in bulk.” For example, premiums, shipping and insurance costs are lower when spread over several coins. Plus, you are protected from the (likely) future price increases.

Gold Is Forever

I hope you’ll consider the many advantages of gifting gold and silver to your loved ones. Think how good you will feel knowing that you have helped provide for your children’s or grandchildren’s financial future—and their education about the value of real money.

In addition to the emotional rewards, don’t forget about the physical ones, too. The gift of gold is a great way to provide for your offsprings’ future, while you save taxes in your own estate.

What a wonderful legacy to leave—one that is “as good as gold,” because it is gold.

—Michael Checkan

The most popular personal resolutions, we are told, are always the same: To lose weight, to reduce debt, to exercise more, to save money and to spend more time with family and friends. Rather than attempt all of these at the same time, I recommend spreading them out over the course of the year. Otherwise, we are also told, some 88 percent of New Year’s resolutions end in failure.

On the financial side, do plan to pay down debt and save money. Also, resolve to protect yourself from the steady erosion of the United States dollar’s purchasing power by owning gold and other precious metals. If you haven’t already done so, make 2010 the year you establish an offshore financial relationship to protect yourself against the prospect of foreign exchange controls.

Forecast: Inflation Ahead

I don’t need to tell you that the past two years have been tumultuous indeed in the financial markets. During the past two years gold has been one of the few investments that protected your savings. Meanwhile, the two-year performance of the Dow Jones Industrial Average is down 21.29 percent, the S&P 500 is down 24.46 percent, and the NASDAQ is down 16.79 percent. No wonder most Americans have seen their savings shrink!

In contrast, precious metals performed very well over the same two-year period. Gold is up 36.3 percent, silver up 19.39 percent, and palladium up 1.62 percent. The only laggard is platinum, which dropped 4.9 percent. And let me point out that this excellent performance by precious metals occurred during a period of price deflation.

Looking ahead, I urge you not to put your faith in Time magazine’s Person of the Year, Federal Reserve Chairman Ben Bernanke, who says that "inflation could move lower from here." There is no doubt in my mind that the Obama/Bernanke fiscal policies have primed the country for inflation. The question is not if, but when. The massive monetary inflation of the past two years is already beginning to be seen in increases in the consumer-price index. I am afraid inflation will become more obvious, and more serious, in the months and years ahead.

Ignore what our officials say and look instead at what they do. The evidence is unmistakable that it is their deliberate policy to make the U.S. dollar weaker, not stronger. The nation’s monetary base has ballooned in the wake of the U.S.-inspired financial crisis. This sharp increase in the money supply points to higher inflation. You will see it in higher prices at the gas station and supermarket. You will feel it in the steady decline of your purchasing power.

Foreign Exchange Controls

The likelihood that some sort of exchange controls will be imposed on us is greater today than at any time during the past 30 years. The U.S. dollar is no longer “as good as gold.” Today, central banks no longer want to sit with just dollars in their reserves. In addition to U.S. dollars, they want to own gold or even a basket of foreign currencies.

If the U.S. continues down the path of fiscal irresponsibility, a “run” on the U.S. dollar is inevitable. When this happens the president could impose exchange controls just by signing an executive order. This would make it illegal for Americans to move assets outside the U.S. 

Today it is perfectly legal for Americans to invest abroad. As we’ve written many times before, you can own precious metals in Australia, through the Perth Mint Certificate Program. You can own a Swiss annuity, denominated in the currency of your choice. You can transfer funds to a European money manager. The only requirement is that you report any holdings over $10,000 and pay taxes each year on any realized gains.

 If you have not yet established an offshore relationship we strongly recommend doing so this year. Do not wait until this window has been slammed shut! Resolve now to protect your assets against erosion and exchange controls in 2010 by investing in gold and other precious metals. And by moving some of those assets offshore.

My own company, Assets Strategies International, has been helping clients switch paper dollars for gold and other precious metals for almost 30 years. We can also show you how to move assets abroad, safely and legally. See our website, www.assetstrategies.com, for more information.

LiveStrong,

Michael Checkan

Yes, we live in interesting times. The 1990s was a time when greed ruled. But the last 10 years have been driven by fear and uncertainty. Today, safety is an investor’s primary concern. But there are no guarantees.

Who can you trust?

We used to be able to trust governments, our own and others. But today, the United States has gone from being the largest creditor country in the world to the largest debtor nation. Our leaders in the legislature view themselves as members of an exclusive club driven more by getting reelected than by doing the people’s business. Today, we have politicians, not statesman.

In most cases foreign governments are even worse. Corruption is widespread. We used to expect poor South American countries to renege on their debts. Today oil-rich countries like Dubai need trillion-dollar loans from their Arab neighbors to save them from default on their obligations.

Further, the United States Federal Reserve thinks it can manipulate the money supply, believing like gods they are more powerful than the market forces of supply and demand. And the media believes it. Time magazine named Fed chairman Ben Bernanke their 2009 Man of the Year. At the same time more than 130 commercial banks have failed this year and the FDIC has increased insurance on deposits from $100,000 to $250,000.

Furthermore, due to greed, mismanagement and incompetence, many respected American companies like General Motors, AIG and even pseudo-government agencies like Fannie Mae and Freddie Mac have failed and are being bailed out by the government. Government regulators providing oversight of our banks have failed in their responsibility to protect the American public.

The real answer to whom you can trust comes down to yourself. You have to take responsibility for your investment decisions. No longer can you depend on others to protect you… not governments, not companies, not advisers.

What can you trust?

The investment outlook for the next three to five years does not look very good in the U.S. or Western Europe. We are still in a deflationary environment and appear headed into a period of stagflation. In other words, a period of slow to no growth in the economy, combined with a period of rising inflation.

You need to take steps now to protect yourself during these dangerous times. Fear, not greed, will be the driving force into the New Year and for the next several years.

The one investment you can trust, that has reliably stood the test of time, is gold. For 5,000 years gold has protected the purchasing power of its possessor. Fiat currencies like the U.S. dollar have come and gone, but gold has endured. Its value and its purchasing power have been preserved.

You don’t have to be a millionaire to own gold. And, you don’t have to put all your money into it. Start smaller. Consider placing 5 percent of your assets into gold, to buy and hold as your “wealth insurance.” This gold will be there for you and your family to serve as protection during times of crisis. As for an investment, some financial advisors suggest having between 10 percent and 15 percent more of your assets in gold, silver and platinum.

Gold has appreciated during the past 10 years by about 400 percent, going from about $250 per ounce to reach an all-time high this month of $1,226.10 per ounce. After a recent $100 correction, gold is still up about 30 percent for the year.

Some have said that gold is in a bubble and will drop in value below $1,000 per ounce. I don’t believe this, because gold is the only “real money” there is. That means gold is not backed by debt, like the U.S. dollar and other fiat currencies. As we’ve seen, gold can increase in value during times of deflation. It will increase in value even more dramatically during times of inflation, which looks inevitable over the next five years.

What can you do to protect you and your family?

An investment advisor would suggest the first step is to list your assets and liabilities to determine your net worth. The next step is to determine how much you have in investable assets. Take 5 percent of that number and consider purchasing your “wealth insurance.” Afterwards, as an investment, consider putting another 10 percent to 15 percent into a mix of gold, silver and platinum.

Most Americans buy gold in the form of 1-ounce gold coins and take possession of them. The most popular gold coins are the 22-karat American Eagle and the 24-karat American Buffalo, both produced by the U.S. Mint. The Canadian Maple Leaf, Australian Kangaroo Nugget and the Austrian Philharmonic are also popular. The 24-karat coins are becoming more popular because of their availability and their international appeal.

The procedure for ordering coins is simple. There are many precious-metals dealers in the U.S. who have toll-free telephone lines so that you can order by telephone. Simply call a few dealers who’ve been around for years and who have a good reputation. You can place your order over the telephone. Typically, orders up to $10,000 can be paid for with a personal check. For larger orders, a wire from your bank to the dealer is in order.

Once you have accomplished these first steps of gold ownership you may wish to go to the next level. Namely, place some gold in you self-directed retirement account (IRA) and consider placing some of your gold outside the U.S. There is a history of gold confiscation here in the U.S., so some holdings outside the country is prudent. History has taught us not to keep all our assets in one country, one currency or one investment.

Trust is a very fragile thing. But who better can you trust than yourself to do what is best for you and your family? Take on this responsibility in the New Year for the well-being of yourself and your family.

Best wishes for a Happy, Healthy and Prosperous New Year.

LiveStrong,

Michael Checkan

In the past year the traditional press finally accepted the wisdom of owning some gold in an investment portfolio. We, of course, have been preaching this for the past 30 years.

While gold has been hitting record highs almost every day, silver barely gets a mention. Don’t make this same mistake in your portfolio! If you’re looking for protection from a falling U.S. dollar, silver offers several advantages over gold.

As I’ve noted before in this column, gold has been on a tear. Its price has climbed more than 50 percent since mid-November 2008. The reasons for this dramatic increase are central-bank buying, investor and investment-fund buying, paper-currency depreciation and inflation worries.

But while gold has risen 50 percent, silver has soared even higher. It is up more than 90 percent in the past year. And many analysts think silver will outshine gold in the coming year.
 
The silver rally went unnoticed by the traditional media and by most investors, too. One of the reasons is that unlike gold, silver is an industrial metal. Thanks to a recession in the U.S. and other countries in the West, the demand for silver declined. Now, as economies improve, the demand for silver is increasing.

Consider, too, that silver is nowhere near its all-time high of $50 per ounce, which it hit back in 1980. Gold meanwhile has risen far beyond its 1980 high of $850 an ounce. Many experts believe that silver has some catching up to do.

How much silver should you own? And how should you own it? My firm, Asset Strategies International, likes a precious-metals portfolio that is 40 percent gold, 40 percent silver, and 20 percent platinum. We suggest dividing your precious-metals holdings into metal you hold personally and metal that is stored offshore.

How To Buy and Store Silver

There are three “best ways” to buy and store physical silver. They are silver coins, silver bars and certificates. Following is some important information about each one.

Silver Coins

U.S. silver coins can be bought in two ways—as recently minted, 1-ounce Eagles, produced by the U.S. Mint; and U.S. 90 percent silver pre-1965 "junk silver" coins in dimes, quarters and halves.

For small purchases, contact two or three precious-metals dealers and ask for a quote. Shop around, as premiums can vary. Today, all dealers have toll-free telephone numbers. Choose someone who has been in business for several years. And ask if they belong to the Industry Council for Tangible Assets, the precious-metals professional association. If you haven’t dealt with the dealer before then check with the Better Business Bureau to see if any complaints have been filed against them.

You can lock in a price over the phone. The price will include a small shipping and handling fee. Once the dealer receives “good funds” (after your check clears or a wire is received), your coins will be sent to you.

For larger purchases, consider buying a $1,000 face-value bag of 90 percent junk silver. This purchase equates to buying 715 ounces of silver. A big advantage here is divisibility. For example, $1,000 face value in dimes would be 10,000 dimes. In the 1970s, I recall some individuals paying for a gallon of gas with one silver dime.

This purchase of more than $10,000 would require a wire to the dealer covering the cost of the silver and shipping. In both instances the silver is shipped to you via the U.S.P.S.’s (U.S.P.S.) registered insured mail.

Likewise, when you wish to sell you can send your silver back to the dealer the same way. Typically, storage is in a bank safe deposit box, in a home safe, or, if you’re a “midnight gardener,” buried in the back yard.

Silver Bars

Bars of silver ranging from one ounce to 1,000 ounces can be purchased from a precious-metals dealer. My recommendation is to purchase the 100-ounce bars. Premiums on 1-ounce bars are too high to be cost-effective. The 1,000-ounce bars cannot be shipped through the U.S. post office, however. (Registered insured mail limits one package to a value of $25,000 or a weight of 70 pounds.)

The 100-ounce bars are considered investment-size. To avoid the need for assaying when you go to sell, bars should have four important features: a recognized hallmark (Engelhard, Johnson Matthey, no unknown producers), a standard weight (100 troy ounces), agreed-upon fineness (pure silver is .999), and a serial number (indicating that it is registered with the maker).

Up to nine 100-ounce bars can be shipped in one package through the U.S.P.S. Storage would be similar to that of silver coins.

Certificates

Should you wish NOT to take delivery of your metals, the best way to purchase and store silver is with the Perth Mint of Western Australia. The Perth Mint Certificate Program is also the safest way to own metals, since it avoids possible confiscation (stored outside the U.S.), is fully insured (Lloyds of London), and is fully guaranteed (by the AAA-rated Western Australian government). There are no shipping charges and the unallocated silver can be stored without charge.

You can buy and sell Perth Mint Certificates through their network of Approved Dealers. My company, Asset Strategies International, has been an Approved Dealer since the program was started a dozen years ago. In fact, we helped the Perth Mint design it.

For a free report on the Perth Mint Certificate Program, send an email to info@assetstrategies.com. Or call us at 1-800-831-007 or 301-881-8600. We’ll be delighted to answer any questions you may have about adding the protection of silver to your own portfolio.

Yes, the outlook for silver is very bright. Many precious-metals experts expect it to outperform gold in the coming year. Considering that it would have to rise more than 250 percent to equal its old highs (gold has already done that), they have a good point.

Silver is easy to buy, whether the newly minted Eagles from the U.S. Mint, bags of older junk silver coins or bars. For larger quantities, offshore storage at the Perth Mint in Western Australia is safe, secure and guaranteed.

May the silver bells you hear this Christmas represent the joy of the season and the safety of your investment.

Merry Christmas!

—Michael Checkan

Two millennia ago, three wise men arrived in Bethlehem bearing gifts for the Christ Child. A famous Christmas carol celebrates how Caspar, Balthazar and Melchior brought with them the most valuable items of their day—gold, frankincense and myrrh.

Back then, an ounce or two of each one was worth more than a peasant could earn in a lifetime. Today, frankincense and myrrh are no longer as rare, or as valued, as they were back then. But gold—the first gift of the Magi—is still as highly regarded as it was 2,000 years ago… or 3,000 years before that.

This Christmas let me suggest that you do as a Wise Man did 2,000 years ago; give the gift of gold to someone who is special to you.

A good friend of mine told me that he is going to put a 1-ounce gold coin in his granddaughter’s stocking this year. Since she’s only 1 year old, he’ll let her play with the bright shiny object for an hour or so. Then he’ll ask her parents to put it away for safe-keeping for several years.

“This is how I’m going to start her college fund,” he said. “I’ll do this every Christmas. By the time she’s ready for college, I expect two things will have happened. One, her gold coins will be worth a heck of a lot more than I paid for them in paper dollars. And two, as their number and value increases over the years; I hope she’ll appreciate the tremendous difference between something of real, permanent, lasting value—gold—compared to paper fiat currencies, which governments can inflate at will.”

That’s one smart grandpa. May I be so bold as to suggest that you go thou and do likewise? If a 1-ounce gold coin is over your budget this year, remember that the U.S. Eagle—made by the U.S. Mint from gold mined right here in the U.S.A.—comes in 1/10th-ounce, 1/4th-ounce, and 1/2-ounce versions.

In addition to the Eagle, the U.S. Mint currently produces a 1-ounce coin in .9999 pure gold that I recommend to your attention. It is the gold Buffalo, which I wrote about here.

Today’s gold Buffalo is modeled after one of the most popular coins in American history—the 5-cent Buffalo piece, or nickel, that first appeared in 1913. As you can imagine, today’s Buffalo costs a lot more than that. As of early Friday the spot price of gold was $1,159. Because of fabrication and distribution costs, expect to pay 6 percent to 8 percent over spot for each uncirculated gold Buffalo you buy.

If this is a lot more than you planned to spend on anyone this Christmas, let me recommend a much more modest investment—one that will only cost you $25 or so. It is the remarkably lovely silver Eagle from the U.S. Mint.

This genuine silver Eagle (each coin contains one ounce of 99.9% fine silver) is as lovely as it is historic. One side features “Walking Liberty,” first designed by the noted sculptor Augustus Saint-Gaudens when Theodore Roosevelt was president.

Many people are not aware that the Mint still produces silver coins every year, so it makes quite an impressive gift. Who wouldn’t rather receive one in their stocking, instead of a lump of coal?

Any coin dealer will be able to provide you with gold and silver Eagles from the U.S. Mint. Check your yellow pages under “coins” for a list of retail outlets in your area. Or go to the U.S. Mint’s website, www.usmint.gov, and click on their list of approved dealers. I’m proud to say that my firm, Asset Strategies International, has been on that list since it was first created a dozen years ago.

Another way to give the gift of gold is through jewelry. Most jewelry store offerings are a very expensive way to acquire the Midas metal. The necklaces and bracelets they offer are usually not pure gold—a 14-karat necklace contains only 58 percent gold. And yet this machine-made jewelry is often priced at three to five times its gold content, or more.

A much better deal is a collection of .9999 pure gold jewelry which my company offers in partnership with another firm. It’s called The Heirloom Collection and you can check it out by clicking here. Every link in every chain in The Heirloom Collection is hand-crafted by artisans who have been making these exquisite pieces all their lives. In some cases, they are the second or third generation of their family doing this.

Let me also mention that these pure-gold works of art come in exact weights, from 1 ounce to 5 ounces. They are an incredibly portable form of wealth. You can take them anywhere in the world and, if need be, sell them any place that buys gold. (It’s worth noting that when FDR ordered the confiscation of all bullion and gold coins in America back in the 1933, gold jewelry was exempt.)

If all of that isn’t enough reason to interest you in these wonderful examples of an artisans’ skill, let me mention one more: Your wife or significant other will be thrilled beyond words to receive one of these exquisite creations as a gift this holiday season. Better yet, give her a matching bracelet and necklace set and watch her face glow in appreciation.

Giving the gift of gold (or silver) is a wonderful way to remind your lucky recipients of your principles and your generosity. What a marvelous way to give them many years of pride, pleasure and positive memories of you.

Sure, stocks and bonds and CDs are all very nice. But this holiday season; why not give a gift of lasting value? There is nothing that preserves wealth better than gold. That was true 2,000 years ago. It’s true today. And I expect it to be true for the next two millennia as well.

LiveStrong,

Michael Checkan

Back in 1975 I was a senior officer with the world’s oldest and largest dealer in precious metals and foreign currencies, Deak-Perera. I learned this lesson firsthand and it forever taught me about the importance of the “barbaric relic”… gold!

Deak-Perera was one of the few financial institutions in the United States with a combined expertise in precious metals, foreign currencies and international banking. As a result of this knowledge the company was invited by the State Department in April 1975 to assist the South Vietnamese refugees that were pouring into the U.S. as Saigon fell. The company became the exclusive “moneychanger” for all five of the Vietnamese refugee camps.

You may recall that, as of Jan. 1, 1975, Americans could once again legally own gold bullion. It had been illegal to own gold since 1933, when President Roosevelt took the U.S. off the gold standard and ordered all privately held gold coins and bullion be surrendered to the government.

Unaccustomed as we were to handling displaced persons, it was nonetheless clear that even the most prominent of these refugees would be arriving at the camps with little more than the clothes on their backs and whatever valuables they could carry. And who knew just how valuable some of their belongings would be?

Only one thing was certain: They wouldn’t be drawing checks on their local banks. All banks in Vietnam had been taken over by the communists, along with the rest of the economy. At the time, the cruel joke was Vietnam was a true “cash-and-carry economy.” If you had the cash, you got to carry off anything you wanted.

A Day that Changed My Life

May 1975 found me at Eglin Air Force Base, Fla., one of the five refugee camps. I will never forget my experience with two families in particular. The experience is burned into my mind forever.

A middle-aged man, trim and well-spoken, was wearing what had once been an expensively tailored suit. He obviously cared deeply for his bedraggled family. He had been a businessman in Vietnam. In fact, I was later to learn, he had been a very successful banker. But now all his family’s wealth was in the small dingy canvas bag that he was hanging onto for dear life.

Even through all the adversity he and his family had recently experienced, there was still a glimmer of hope in his eyes. Despite losing his job, his home and his country, he still wore a relieved expression whenever he gazed upon that canvas bag. It was his key to a new life in a new country. It was, quite literally, a golden anchor.

Gently, carefully, he poured the contents of the bag onto the table in front of me. There, gleaming in the sun, was an enormous collection of golden taels. For those of you who are not familiar with taels, they are a form of gold bullion indigenous to Southeast Asia. Each tael was 1.2 ounces (37.5 grams) of .9999 pure gold. They looked like tiny wafers—thin sheets of gold, delicately wrapped in paper.

It was Deak-Perera’s job to buy the gold taels from the refugees, and, with the proceeds, issue traveler’s checks.

A Lifetime of Savings, Now Worthless

Further back in line there was another refugee who was less fortunate than the banker carrying the golden taels. Much like the banker, he was a successful businessman before he and his family were uprooted by war.

He approached my table with two suitcases in hand. Like his countryman with the taels, he had worked very hard, saved extremely well and carried all his worldly wealth in those satchels.

But there was one major difference. His wealth was in the form of piasters, the currency of the Republic of Vietnam. These were paper promises of a government that no longer existed. I had to tell this man his piasters were worthless. They would not buy anything—not even a Coke or a pack of cigarettes—in his new country.

Can you imagine toiling and saving for a lifetime for two suitcases filled with worthless currency?

Sad to say, other formerly valuable pieces of paper were now worthless as well. One was the Military Payment Certificates (MPC), issued by the U.S. military. Each one carried the likeness of a famous Hollywood movie star. Now they would not buy admission to a show.

Other items, even valuable diamonds, jade and loose gems, were hard to exchange on the spot for a fair price. Only gold had an immediate market at a fair price.

Before that day I always knew that precious metals were an important asset. But, after looking into the eyes of these two men and their families, I knew firsthand the value of gold and other precious metals. Gold holds its value when nothing else will.

Does gold in 2010 offer the same peace of mind and protection to Americans that it has through 5,000 years of history? Absolutely!

As an American, there are many threats to your hard-earned wealth. The most insidious is not military in nature. It is the weakening of the U.S. dollar.

In the past year these mounting costs exceeded our government’s revenue by more than $1.4 trillion. Meanwhile, the Federal Reserve loaned or guaranteed another $2 trillion. How will this debt ever be repaid? The only politically acceptable solution is to print more money. But creating more dollars means, inevitably, that each one is worth less. The dollar is being devalued right in front of our eyes.

Get Ready for Fireworks in the Gold Market

My friend Doug Casey likes to say that the price of gold is not only going to the moon, it’s going to several planets beyond.

When this happens… when gold prices double from where they are now and continue rising… when the dollar falls into the abyss… which would you rather own? Which do you think will better protect your life’s work?

Would you rather be holding two suitcases full of worthless U.S. paper? Or a canvas sack full of gold?

I’m going to choose the latter. I hope you will, too.

If you’d like to know about the safest, most secure way I’ve found to own gold, let me tell you about the Perth Mint Certificate program.

It’s one I helped develop 12 years ago, and it comes with the most rock-solid guarantee you’ll find anywhere. In case you’re not familiar with it, the Perth Mint is wholly owned by the Government of Western Australia. It has been storing and dealing in precious metals for more than a century.

The Perth Mint is the only depository operating today that can offer you a comprehensive storage and trading program, with the unconditional written guarantee of one of Australia’s wealthiest states. In addition, all precious metals stored at the Perth Mint, including your metals lodged under this program, are insured (at the Perth Mint’s cost) by Lloyds of London.

When we designed this storage program, we wanted to make sure it was SAFE. That is, that it offered Security, Affordability, Flexibility and Exclusivity. The Perth Mint Certificate Program has our highest endorsement on all counts.

Purchasing gold or other precious metals through the Perth Mint Certificate Program requires an initial investment of $10,000 or more. Sale amounts or additional purchases must be for $5,000 or more. There is no additional cost for unallocated storage; the one-time administrative fee is a very reasonable $50 per certificate.

When you are ready to dispose of some or all of your holdings, the Perth Mint will arrange to purchase them back from you at the then-current market price. Or you can take delivery of your holdings at the Mint or via insured delivery to most any location in the world.

To learn more about how the Perth Mint Certificate Program can help you find a safe haven for some of your assets in an increasingly troubled world, please contact my company, Asset Strategies International. You may email us at info@assetstrategies.com, or call us at 1-800-831-0007 or 301-881-8600.

Please let us know how we can help you achieve your financial goals.

Live Strong,

Michael Checkan
President
Asset Strategies International

It seems fitting that, at the very time we are seeing gold setting record highs almost every day, the U.S. Mint is releasing the 2009 American Buffalo gold coins. The strength of these magnificent creatures is certainly reflected in the purity of the gold each coin contains.

These spectacular coins became available for purchase just a few days ago and smart buyers are scooping them up as quickly as they can. The last time the Mint released any Buffalo coins they sold out quickly and the premiums in the aftermarket skyrocketed. We expect the same thing to happen again.

If the design of the $50 American Buffalo looks familiar to you, that’s because the Mint copied one of the most popular coins it ever created—the famous “Buffalo nickel,” which was first introduced in 1913. The designer was James Earle Fraser, a student of Augustus Saint-Gaudens—the man tapped by President Theodore Roosevelt to create new designs for America’s coinage.

For the famous buffalo on the reverse of the coin Fraser based his sculpture on Black Diamond, a powerful-looking bison and popular attraction at the New York Zoological Gardens.

Three different Native Americans posed for the obverse of the coin. Fraser said two of them were Chief Iron Tail of the Lakota Sioux and Chief Two Moons of the Cheyenne. He said he could never recall who the third man was.

American Buffalo gold coins were authorized by Congress in December 2005, by a bill that became known as the Presidential $1 Coin Act. The act specified that the coins be struck in .9999 fine 24-karat gold, making them the first “pure” gold coins ever issued by the U.S. Mint. (The American Eagle gold coins contain nearly 10 percent alloy and thus are 22-karat gold.)

Although the original “Buffalo” coins were worth five cents, the new American Buffalo gold coins carry a face value of $50, or 1,000 times higher. They are legal tender of the United States, so in the unlikely event that gold prices ever collapse you will be able to exchange your $50 gold Buffaloes for the equivalent amount of Federal Reserve notes.

We don’t expect that to ever happen, of course. What is far more likely is that the price of gold will continue to rise. And the premium on the $50 American Buffalo gold coins will also climb. We can’t promise that they will be a good investment. But that has been the case with every other Buffalo coin the U.S. Mint has produced.

The U.S. Dollar—Hazardous To Your Wealth

Ludwig von Mises, the father of the Austrian School of Economics, once said, "Government is the only agency which can take a useful commodity like paper, slap some ink on it, and make it totally worthless."

Until recently, many investors felt safe investing in the U.S. dollar. But as they’ve seen the purchasing power of the dollar fall, this has changed. Thanks to the government’s massive trade and budget deficits, wasteful spending practices, and gargantuan creation of new money and debt, cautious investors increasingly are looking for ways to protect their wealth.

For more than 6,000 years, nothing has protected wealth better than gold. When this country was founded an ounce of gold would buy you one of the finest suits available. That was true in the depths of the Great Depression. And it is still true today.

If I am correct that the U.S. government and the Federal Reserve will continue to flood the world with massive amounts of new “money”—virtually all of it created out of thin air—the purchasing power of the dollar will continue to fall. Simply put, it will take more diluted dollars to buy the same ounce of gold in the future.

I always like to own some gold as “wealth insurance” in case of a crisis. But in times like these, I also like to hold gold as an investment. Not in speculative, highly leveraged gold options, futures or even mining shares, but rather in the metal itself. I’m pleased to note that gold out-performed every other asset class—stocks, bonds, real estate, even other commodities—in 2008. I probably don’t need to remind you that 2008 was the worst year for most investors since the Great Depression. But not for those who had the protection of gold in their portfolios.

As our government works overtime to print more money and create more debt, I take pride in knowing that the U.S. Mint is producing something of beauty and of lasting value. No matter what current or future administrations do, the $50 American Buffalo gold coin will stand the test of time. Unlike paper money, which loses value while the ink is drying, the American Buffalo is .9999% pure gold. We know it will protect your purchasing power better than paper. Gold always has.

The $50 American Buffalo and other coins produced by the U.S. Mint can be purchased through a group of National Dealers registered with the Mint. I’m proud to say that my firm, Asset Strategies International, has been a member of that group since 1986. A list of all 21 National Dealers appears on the Mint’s website at www.usmint.gov/bullionretailer.

Many local coin dealers can also order American Buffaloes for you. Look under “coins” in your yellow pages for a list of stores near you. Before placing an order, ask what the availability is and what the premium will be. That’s the amount above that day’s spot price of gold you will be charged. Also, what shipping and insurance will cost. Then, go with the best deal from the most reliable dealer you can find.

If you want a well-recognized, 24-karat gold coin, the American Buffalo is a great choice. But don’t wait until limited supplies mean higher premiums. Get your American Buffaloes now and hang on for the ride!

—Michael Checkan

Although in failing health, Saint-Gaudens accepted what would become his last challenge. He produced a stunning design that many consider to be the most beautiful coin ever produced… the $20 Saint-Gaudens Double Eagle. Sadly, Saint-Gaudens died without ever seeing his magnificent coin enter circulation.

The Saint-Gaudens $20 Double Eagle was minted from 1907 to 1933. The last gold coin struck by the U.S. Mint for regular issue, it remains a proud symbol of the emerging greatness of the United States in the early part of the 20th Century. In 1933, during the height of the Depression, a different Roosevelt, Franklin Delano, outlawed private ownership of gold by Americans. Production of new gold coins was halted and gold coins in circulation were confiscated. Double Eagles were melted down and added to the Treasury’s horde of gold. The few that weren’t seized are now highly prized collectibles.

In 1975, U.S. citizens were again permitted to own gold. At the time the bullion coin of choice was the South African Krugerrand. For many reasons our government wanted to issue its own gold coin. A representative of the U.S. Mint came to my office in Washington, DC and purchased a variety of gold coins. I was the executive vice president of Deak-Perera then, a company that specialized in foreign currencies, including gold and silver coins. They purchased gold coins minted in South Africa, Austria, and yes, even Mexico.

A few years later the U.S. Mint announced the production of a new American coin—the gold Eagle. It was available in four denominations: 1-oz, ½-oz, ¼-oz, and 1/10-oz of gold. The obverse featured a redesign of the classic Augustus Saint-Gaudens design.

I’m proud to say that during the first year of issue, 1986, my new company, Asset Strategies International, helped a major precious-metals company pre-sell more of these new American gold coins than any other company in the U.S. One day alone we shipped 600 registered packages throughout the country. Over the course of a year literally thousands of gold coins passed through our offices. The Eagle had definitely landed!

In 1986, the U.S. Mint added a silver dollar to its offerings. The silver Eagle contains 1 ounce of silver and has a face value of $1. The mint wisely chose to use Adolph A. Weinman’s “Walking Liberty” design on the obverse of the coin. To say it is classically beautiful is an understatement. It is a joy to hold in your hand—and an even bigger delight to drop on your desk where it makes that unique “silver on wood” clink that Americans haven’t heard in years.

There is much that our government has done and wants to do with which we could quarrel. But no one can deny that it makes the most beautiful modern coinage in the world. And you can own some for a small premium over the spot price of their gold and silver content!

The best way to purchase these gorgeous coins is through a reputable coin dealer. You’ll find a list of recommended dealers on the website for the U.S. Mint, www.usmint.gov. I’m proud to note that ASI has been included there for many years.

Because demand can rise and fall, so can premiums. Get two or three different quotes before you buy. (And never, never give your business to mass marketers, who always have the highest premiums around. How do you think they can afford all that advertising?)

With gold hovering around $1,000 an ounce, the gold American Eagle is admittedly expensive. Remember, you can purchase versions as small as 1/10th ounce. But note: the smaller the coin, the higher the premium.

An even better investment, in my opinion, is the silver American Eagle. You can purchase this classic American beauty for less than $20 each. As the price of silver continues to climb (something I think is all but inevitable) your coins could turn out to be a superb investment.

When I was growing up, on every birthday, my parents gave me a bright, shiny silver dollar. I still have those coins, mostly for sentimental reasons. But they’ve also soared in value. If you’d like your children to know what “real money” used to look like, you might consider doing the same. After all, the only thing that’s still good as gold is gold… or maybe silver.