One of the lesser-known casualties of the coronavirus crisis is physical gold.
You know, the type of stuff that you used to be able to buy from a coin dealer?
Physical gold is in such short supply today that paying $100 or $200 more per ounce than the spot price is not unusual (it’s usually a small fraction of that).
But refiners are currently having trouble getting the metal… if they are even operating. Mines have shut down due to government mandates, as well as to protect workers from the virus. Mints have closed – transport is affected. In other words, good luck trying to buy your favorite Gold Eagle or Maple Leaf today!
However, there is another way…
A good friend of mine and of The War Room, Michael Checkan, runs a company called Asset Strategies International. Michael’s company has been in business longer than I have known him, and our friendship spans over 25 years.
One of his company’s programs is called the Perth Mint Certificate, and it allows you to buy physical gold at just above spot price. It is then stored in a vault by the program.
The best part is that the Western Australian government backs the entire program. Australia is a major gold producer, and, as such, it needs buyers. It developed the program with the Perth Mint because it wanted to accomplish a couple of things…
- It wanted to compete against the Eagle in America, but head-to-head, it would lose because Americans buy American products.
- It was looking for a way to eliminate excessively high commercial leasing costs for inventory.
This is what the Perth Mint offers investors…
- All precious metals are fully government guaranteed by the Western Australian state government
- No fabrication or storage fees for unallocated gold, silver and platinum
- 100% physical backing under the Perth Mint’s control at all times
- No leasing of precious metals to third parties
- No use of precious metals as backing for derivatives
- 100% insurance at all times, at current market, at the Perth Mint’s expense
- Stable pricing – cost has gone up only once by 0.25% since inception in 1997
- 2.25% to buy
- 1.25% to sell
- Regardless of value, certificates can be replaced (if lost or stolen) for $50
- IRA eligible
- You can take delivery
- Asset Strategies International helped develop the program nearly a quarter-century ago
- The Oxford Club (my old employer) was the first to hear about it back then (and if you’re an Oxford Club Member, you’ve probably heard of the Perth Mint before)
- The Perth Mint has more than $5 billion in precious metals under its control.
Action Plan: As you can see, the program is pretty much a no-brainer for those of you looking to own gold and have the ability to buy it, sell it, store it and also take delivery of it.
If you like what you see, give the folks at ASI a call at 800.831.0007 to create an account and purchase Perth Mint Certificates. Make sure you mention Trade of the Day when you call in, for some VIP treatment. They will help you get some physical gold under your belt at prices just over spot… while everyone else is paying through the nose!
And as always, ask A LOT of questions!
About Karim Rahemtulla
Karim began his trading career early… very early. While attending boarding school in England, he recognized the value of the homemade snacks his mom sent him every semester and sold them for a profit to his fellow classmates, who were trying to avoid the horrendous British food they were served.
He then graduated to stocks and options, becoming one of the youngest chief financial officers of a brokerage and trading firm that cleared through Bear Stearns in the late 1980s. There, he learned trading skills from veterans of the business. They had already made their mistakes, and he recognized the value of the strategies they were using late in their careers.
As co-founder and chief options strategist for the groundbreaking publication Wall Street Daily, Karim turned to long-term equity anticipation securities (LEAPS) and put-selling strategies to help members capture gains. After that, he honed his strategies for readers of Automatic Trading Millionaire, where he didn’t record a single realized loss on 37 recommendations over an 18-month period.
While even he admits that record is not the norm, it showcases the effectiveness of a sound trading strategy.
His focus is on “smart” trading. Using volatility and proprietary probability modeling as his guideposts, he makes investments where risk and reward are defined ahead of time.
Today, Karim is all about lowering risk while enhancing returns using strategies such as LEAPS trading, spread trading, put selling and, of course, small cap investing. His background as the head of The Supper Club gives him unique insight into low-market-cap companies, and he brings that experience into the daily chats of The War Room.
Karim has more than 30 years of experience in options trading and international markets, and he is the author of the bestselling book Where in the World Should I Invest?
