Since AGE opened for business in 1998, we've been extremely accurate in anticipating movements in the precious metals and rare coin markets, and positioning our customers to make and save money. Our regular customers, of course, are well aware of our record and are highly appreciative. Here are just a few of many examples:
- In 1999, when Great Britain announced its intent to liquidate 300 tons of gold from their national reserve, we published by newsletter our expectation that this action would push the gold price down from $310 to around $250 an ounce. Four months later, gold bottomed at a 20-year low of $252. Our customers saved a lot of money!
- In 2000, when palladium exceeded $800, we urged our customers to sell. It spiked higher briefly, but then crashed to $150. Our customers saved a lot of money!
- In January 2002, with gold under $290, we predicted a gold price of $350 by year's end. Gold hit $349 on Dec 27, 2001. Our customers again made a lot of money!
- In March 2003, after gold had fallen from $390 to $330, we accurately called the bottom and recommended aggressive buying under $375. Gold hit $375 six weeks later and has since pushed into the $400 range. Our customers made money twice!
- In January 2004, when palladium was at $200, we issued a strong "Buy Palladium" recommendation to our customers. By April 1, palladium topped $300. Our customers made 50% in profit in just three months!
- On January 1, 2004, when gold was $416 an ounce, we went on record with the prediction that the gold price would reach as high as $550 by January 2006 (see AGE Gold Market Update, 1/1/2004: 2003 in review: Gold touches 15-year high). We were right on the money!
The right recommendations at the right time
When gold bottomed at $252 in 1999, it was the lowest gold price we'd seen in gold market careers stretching back to 1980. Our basic product recommendations from that time forward were based on the premise that gold at $250 was a market aberration created by an unprecedented and unsustainable economic boom in the U.S., and that gold would regain its mid-1990s price of between $375 and $395 within a few years. Our analysis was correct.
While gold was still under $300 an ounce we recommended primarily gold bullion items and bullion-related items such as American Gold Eagles and European gold coins to most gold buyers. Of course, we also placed with collectors some of the most fabulous classic rare U.S. coins imaginable, but that's a slightly different market segment (and one that carries the potential for huge profits). With gold still in a bear market, we saw these bullion-type products as the safest bets for a good profit return for most investors with almost no risk. Our analysis was again correct.
In 2001, as gold began to move in into its current bull market, we saw the potential for superior gains in the common date, classic U.S. gold coin segment (known in the biz as "semi-numismatics"). Trading at relatively small premiums over their gold content, these coins, as we concluded in our market analyses, were poised to generate significantly better leverage to the rising gold price than bullion, but still with virtually no risk. Our analysis was correct again:
- In July 2001, we introduced our popular Gold Investor's Power Pair #1. From inception through the end of 2003, this recommended gold portfolio-builder gained in price by more than 71% while gold bullion gained 50%. In other words, Power Pair #1 outperformed the gold market by 42% during this 30 month period!
- In April 2002, we introduced our popular Gold Investor's Power Pair #2. From inception until the end of 2003, this recommended gold portfolio-builder gained more than 67% while bullion gained 34%. That means Power Pair #2 outperformed gold bullion by 97% during the 20 month period!
Our customers have been consistently achieving greater profits with our conservative coin recommendations than with gold bullion!
The next phase in gold's bull market
Our fundamental plan in back in 1999, based on historical market trends, was to reassess our recommendations when gold attained $300, again when it found sustained support in the $375+ range, and then again when it broke above $450. Well, that time has come, and in spades. Gold is enjoying its best bull market in a generation and more gains are on the way!
From 2001 through January 2006, the gold price gained by 100%, rising from $275 to more than $550 per ounce, a 25-year high! By all market indications, similar gains are on the way. Until recently, gold was rising mainly as the U.S. dollar fell. Since June 2005, however, gold has been decoupling from the dollar (as have many foreign currencies) and is now rising in all major currencies independently of the dollar. This landmark change signals a true international bull market, opening the door to much higher gold prices. Factor in such bullish fundamentals as record-high U.S. trade and budget deficits, expensive oil, ongoing geopolitical instability, and a weaker dollar, and today’s momentous bull market shows the potential to run for years to come!
We believe gold will rise to somewhere between $680 and $750 an ounce by 2008 or 2009. Remember, in January 2004, when gold was $416, we went on record with the prediction that gold would reach as high as $550 by January 2006, and we were right on the money! (See AGE Gold Market Update, 1/1/2004: 2003 in review: Gold touches 15-year high.) If our track record is any indication, the market will meet our expectations yet again.
The next big winners: Market Rockets!
With all of this history and analysis in mind, we're shifting our top recommendations to higher-quality, classic U.S. gold coins like $20 Liberty, $10 Liberty, and $10 Indian gold coins in grades MS63, MS64, and MS65. In the biz these are known as "numismatic coins." We call them Market Rockets because when gold reaches toward $700 an ounce, they're likely to absolutely blast off in value! In the current market, these coins offer a better combination of low risk and high profit potential than any other segment.
If the gold price rises from $500 to $700 an ounce, of course, gold bullion stands to gain around 40%. Market Rockets, however, stand to gain between 80% and 120% in price as gold moves from $500 to $700, in our estimation, depending on the coins. (Please see our Market Rockets page for details.) Despite this outstanding upside potential, they are still very reasonably priced in today's market and therefore offer very little downside risk. As always, our recommendations are based on the fundamentals of popularity, rarity, price, and, most of all, value.*
Lagging a little behind the gold market, demand for high-quality scarce and rare U.S. numismatic coins has been building almost exponentially since the summer of 2002. Since the summer of 2003, overall supplies of quality numismatics have become razor-thin and prices began to rise in earnest. Today these coins are ready to take off!
The broadest market plus the greatest leverage
Between 1988 and 1989, rare coin prices exploded on the heels of the stock market crash in 1987. But only industry insiders and a handful of investors were truly aware of what became, in effect, a stealth bull market that the average investor didn't see. We want to make sure that everyone, not just industry insiders, is able to gain from the next price explosion.
Although we handle super-rare high-end coins for our expert collectors, we like to trade in coins that are understood by novices as well as experts. The market in high-end coins tends to function somewhat independently of the gold price and is relatively narrow. The market in numismatics, on the other hand, is like the market in bullion-related and semi-numismatic coins in that it's driven by the underlying gold price, making it the broadest kind of market in our industry.
We prefer to recommend in broad markets because they are accessible to everyone and therefore offer the greatest pool of potential buyers, which helps our customers. In a bull market for gold, the general public gets more involved as the gold price climbs, effectively pushing the gold price higher. The more buyers, the higher the gold price, which means our customers make more money when they sell!
Our Market Rockets have been selected, after extensive analysis, specifically because they combine the broadest market with superior leverage to the gold price within that market, resulting in the best of both worlds for our customers. When this bull market reaches its apex, the public will be scrambling for these coins. Because of their exceptional scarcity, prices should just go to the moon!
