In this week's message I am going to use some of David Galland's work who
is managing director Of Casey Research. I did receive permission from David personally, just so you know.

David wrote about several things in the mailing titled "Gold Confiscation:
Straws in the Wind" The area that I wanted to focus upon was what he wrote
about coins. He stated, "Years ago, I headed up the publishing division of a
company (that will go unnamed) with a separate division selling coins. I was
there when the coin business started, and while not involved, was impressed
at its rapid growth in the heady days of the 1970s gold bull market.

Then something happened. While the founder was a strong advocate for hard
money and sincere in his intent to do the right thing by his customers, as
the coin business grew, he increasingly recruited "professional" managers to
run the firm - hired guns whose sole focus was boosting the bottom line and,
by so doing, their bonuses. And the business hired more and more
"professional" salespeople - the sort of folks who know how to squeeze a
client good and hard.

As the company's sales soared, fueled by hard-hitting marketing, the
founder's good intentions began to weaken under the onrushing flood of cash
that began to wash in. In time, the entire conversation at the coin division
switched from "What's good for the customer?" to "What coins can we sell
with the biggest mark-up?"

On those occasions when I was invited to comment on what was going on, I did what I could to argue against the corporate culture that had developed, but my impassioned and increasingly angry fights with the managers of the coin division couldn't win out over the millions in profits being made. As much
as I enjoyed my job, the situation became so degraded, I had no choice but
to resign.

Now, let me be clear. The company broke no laws and, in fact, did nothing
that I suppose most businesses on to a good thing might not do; marketing
was generating lots of prospects, and the sales force was selling.

The problem was that the product line had moved from selling highly liquid
government-issued gold and silver bullion coins to selling illiquid "modern
rarities," an oxymoron if there ever was one. Whether "proof" Mexican silver
dollars, "treasure" coins, or privately minted commemorative coins, the one
thing you could be sure of was that the mark-ups were huge.

Which meant that, in the absence of an active collectors market - which,
when it comes to "modern rarities," just doesn't exist, and never will - the
coins were very unlikely to ever provide a reasonable return on investment,
let alone be a good asset to preserve capital. Quite the opposite, they were
almost certain losers."

Admittedly that is a lot to quote but we find ourselves getting perhaps one
hundred new people on this list per week, and although I have made much more money investing in paper gold and silver (mostly mining stocks) -- I still
advocate that everyone start with the real metal first.

Several years ago I received a consulting client who had read some of my
work and many others and decided to buy silver. He was buying for his
parents that were Chinese and had come to the U.S. a few years before. He
invested one-half million dollars in what David Galland rightfully calls an
investment that does not exist -- modern rarities!

Silver was trading about $7.00 at the time and he had overpaid by 40%. I
outlined several options to him, and knew that the market had a long way to
go but he would not be able to fully re-coop his loss but silver would trade
higher and eventually he would be able to sell for what he paid for these
supposed "rare" coins.

He bought my bullion dealer report, which I took off the Internet many years
ago as the feedback was negative about half the time. The report is actually
timeless in my view because having been a real metal buyer from the time I
was a kid to present it is obvious after awhile who puts up a cheap bullion
price and talks the client into something else with far more mark-up. But
many people just want to know who had the cheapest price. This can be
determined using any good search engine.

So, buyer beware-- study the ten rules of silver investing that I used to
give as part of a paid subscription to the Morgan Report but now give away
for free and apply the principles they will keep you from making any big
errors.

For those that want a fair deal on Silver Eagles especially, or any common
gold or silver product. Use this link: http://goldsilver.com/index.php?ref=2

Just before you complete your order enter the referral code DM and it should
give you a discount.

Sincerely

David Morgan

P.S. -- Thanks again Casey Research I know so many of you and consider all I
know personally as friends.