The Golden Rule

Everything the independent investor needs to know to effectively invest in gold

With today's increasing economic uncertainties, a strong investment strategy is to put a portion of your net worth in gold. However, given investors' overall lack of knowledge about gold as an investment, as wealth insurance, or as a store of value, many are hesitant to enter this arena.

That's why Jim Gibbons has created The Golden Rule. This book answers many questions, including: How do you purchase gold and in what form? Why gold now? When should you buy? And, most importantly, from whom? Throughout the book, Gibbons puts gold in perspective and shows you why it belongs in every investor's portfolio.

• Provides practical gold investment insights from New York Times bestsellers Peter Schiff, William Bonner, Doug Casey, Addison Wiggin, and James Turk as well as from leading experts in this field including: Congressman Ron Paul, Rick Rule, Adrian Day, and many others
• Demystifies gold by putting it in the context of twenty-first century economic realities
• Highlights a variety of ways to invest in gold-from mining stocks to buying gold coins and bullion

With the financial markets more erratic than ever, gold appeals to investors looking for a safe haven for their assets. With The Golden Rule as your guide, you'll quickly learn how to make the best decisions possible with regards to this precious commodity.

Preface: It’s Time to Own Gold ix

Acknowledgments xxv

INTRODUCTION: The Tie that Binds 1
Jon Nadler

PART I BROKERS/MONEY MANAGERS 11

CHAPTER 1: Gold Remains the Standard 15
Eric Sprott

CHAPTER 2: Long-Term Fundamentals Still Good for Gold 21
An Interview with Adrian Day

CHAPTER 3: A Good Investment Strategy, Buy Gold 31
Peter D. Schiff

CHAPTER 4: The Bear Market Is Your Friend—Four Ways to Win 37
Rick Rule

CHAPTER 5: The Tale of Taels—A Hard Lesson in Hard Money 47
Michael Checkan

PART II INVESTMENT NEWSLETTER WRITERS 53

CHAPTER 6: The Greater Depression 57
Doug Casey

CHAPTER 7: Bet Against a False Premise 75
Bill Bonner

CHAPTER 8: Undervalued Companies and Gold 85
John Pugsley

CHAPTER 9: Gold Déjà Vu 93
Richard Maybury

CHAPTER 10: The Trial of Gold 97
David Galland

CHAPTER 11: Bullion and Beyond 113
Addison Wiggin

CHAPTER 12: Gold Is Truly Precious 131
Pam and Mary Anne Aden

PART III: COIN AND BULLION BROKERS/ DEALERS 139

CHAPTER 13: Rare Coins and Gold Bullion 143
Van Simmons

CHAPTER 14: Rare Coin Canards 151
Dana Samuelson and Dr. Bill Musgrave

CHAPTER 15: The Internet Gold and Currency Provider 159
James Turk

CHAPTER 16: Gold, Fiat Currency, and Integrity 167
Franklin Sanders

PART IV THE MINERS 179

CHAPTER 17: Silver—“Poor Man’s Gold” 181
Bob Quartermain

CHAPTER 18: Analyzing a Gold Mining Stock 191
Louis James

CHAPTER 19: Let’s Talk a Bit about Gold and Gold Exploration 199
Brent Cook

CHAPTER 20: Money Is Gold, and Gold Is a Noble Metal 205
Morgan Poliquin

PART V GAME-CHANGING EDUCATORS 213

CHAPTER 21: What the Price of Gold Is Telling Us 215
Ron Paul

CHAPTER 22: The Gold Price 229
Paul van Eeden

CHAPTER 23: Becoming a Twenty-First-Century Gold Guerrilla 247
Kenneth W. Royce

Conclusion: Indian Peasants 255

Author’s Note 259

About the Author 261

About the Contributors 263

Index 275

JIM GIBBONS has been studying and learning from sage investors regarding gold's role in the world economy for over thirty years. For the last twelve years, he's also been raising geoduck clams for export to China. Prior to becoming a shellfish farmer, he built and developed his own country inn (The Heron in La Conner), wrote screenplays for ten years, and, much earlier in his life, worked for the National Bank of Alaska, IBM, Merrill Lynch, and Control Data.

With today's increasing economic uncertainties, a strong investment strategy is to put a portion of your net worth in gold. However, given investors' overall lack of knowledge about gold as an investment, as wealth insurance, or as a store of value, many are hesitant to enter this arena.

That's why Jim Gibbons—who has studied the role of gold in the world economy for over thirty years—has created The Golden Rule. Comprised of contributed chapters from many leading experts in this field, The Golden Rule answers many essential questions, including: How do you purchase gold and in what form? Why gold now? When should you buy? And, most importantly, from whom?

Throughout the book, Gibbons and the extraordinary group of experts he has assembled, put gold in perspective and show you why it belongs in every investor's portfolio. Page by page, this reliable resource provides practical gold investment insights from some of the best minds in the business, including seasoned Wall Street prognosticator Peter Schiff, William Bonner and Addison Wiggin of Agora Financial, James Turk of GoldMoney.com, Congressman Ron Paul, Rick Rule of Global Resource Investments Ltd., Eric Sprott of Sprott Asset Management, and many others.

Along the way, this timely guide also:

• Demystifies gold by putting it in the context of twenty-first century economic realities
• Highlights a variety of ways to invest in gold—from mining stocks to buying gold coins and bullion
• Discusses gold's importance to both the world economy and your future
• Provides contact information to the gold experts highlighted in the book
• And much more

With the financial markets more erratic than ever, gold appeals to investors looking for a safe haven for their assets. With The Golden Rule as your guide, you'll quickly learn how to incorporate gold into your portfolio and make the best decisions possible with regard to this precious commodity.