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Show The Paper That Dares To Take A Stand ilweir Continued from page 1 AND A STAGGERING POTENTIAL PROFIT SAFETY them from circulation. In 1963 111 million people removed ounces ofsilverwent intodimes, quarters, and half dollars. Each coin, an ingot with a specified amount of silver, became a treasure to those who kept them. With an attitude of can't lose, maybe gain, astute people the world over gobbled them up into piggy banks, coffee cans, shoe boxes and vaults. Today, these same bags of silver coins, each containing 720 ounces of .999 silver, offer a profit potential that is staggering and a safety feature that is foolproof. Bought on margin, these conservative and liberal investor the best of both and of all possible worlds. Consider: (1) No margin calls on $1,000 During 1964 the coin crisis became critical. The Treasury was running its mints 24 hours a day, seven days a week hurriedly striking another 200 million ounces of silver into dimes, quarters and With industrial consumption steadily climbing and coinage facilities half-dolla- rs. millions of new investors, the Treasurys silver the only global stockpile serving creating all bidders was depleted. being rapidly with Along the introduction of the new clad coins in 1965 another 300 million ounces of silver went into coinage still dated 1964. These excess coins in bags were struck alleviate the hoarding problem but instead only added to the supply to be hoarded. These coins were neatly stacked to away in $1,000 face value bags. Because these bags of coins are spendable, their value can never be less than $1,000. This protects the margin investor against margin calls when he deposits the difference between the face value of the coins and the market value. At $1,600 per bag, the investor would deposit $600 and borrow the $1,000 nocall margin loan. He may keep his position indefinitely, simply by paying the interest on the margin. (If you want the coins you can take delivery at any time by paying off the margin.) Silver coins can legally be melted into bullion, but their numismatic value gives them a greater worth, so we can expect few to hit the melting pots. the speculate investor wishing to more and gain even greater leverage, For callable margins are available. $1,100, $1,200 and $1,300and higher may be margined per bag, thus allowing a sizable amount of offer the $1,000 bags loans (2) High profit potential (3) An absolute downside floor (4) Hedge against devaluations and revaluations (5) Excellent leverage (6) Coins stored in bank vaults and insured No (7) warehousing date of expiration margin (8) Hedge against inflation (9) Instant liquidity Guaranteed buyback (10) Interest on margin tax deductible (American Coin Exchange, a international and national investment company based in Los Angeles, deals in a market of thousands of bags of silver coins. A.C.E. Executive Vice President, Gary Gordon said, "Even with the huge number of bags we trade each day, during our entire history, we have never issued a margin call in margins of as high as $1,400. Utilizing the $1,300 margin call, ten bags at $1,600 each may be purchased on margin for a $3,000 deposit and by placing the remaining $13,000 on margin. This would give the investor 7,200 ounces of silver. 7,200 ounces of silver would be controlled by $3,000 (10 bags x $300),. and if the price of silver reached $5.00 per ounce the ten worth be would bags approximately $40,000 ($4,000 x 10). Liquidation would pay off the $13,000 margin leaving a gross profit of $27,000. could get even from an investment super-richin bulk silver coins on margin. One million dollars would buy 3,333 bags on margin at $1,600 each, less the $1,300 margin The super-ric- h er (3,333 $999,900). This $300 x Aire Proffotts investor would then control two million, three hundred ninety-nin- e thousand, seven hundred and sixty troy ounces of .999 fine silver. At $5.00 per ounce upon liquidation, the gross profit after paying off the margin would return approximately $8,865,000, an 800 increase. At one time our dollars were "as good as gold." Today, they stand alone, not backed by anything of intrinsic value. Since legislation prevents conversion of currency into gold, and has for the past forty years, there has been thousand percent a our paper money supply. While chasing the price increase in of goods and services higher and higher, this supply has increased from 50 billion to 600 billion dollars. The purchasing power of the dollar is today about thirty cents compared to the 1939 buying level of one dollar purchasing one dollar worth of goods. Prices and wages have soared as have most things related to mining and other industries. The price of silver was frozen during this inflationary period but is now free to seek its own level in the kept market place. By the end of 1970 the U.S. Treasury went out of the silver selling business after virtually exhausting its entire 2 billion ounce available stockpile. During World War II over 500 million ounces of silver were required to fight and win this global conflict. There is presently 140 million ounces in our strategic government's An act of Congresss stockpile." would be necessary to sell this silver for purposes. Silver goesinto jewelry, plated utensils, photographic film, non-strateg- ic electronics, computers, batteries, brazing and soldering compounds, electrical switches, relays, circuits and thousands of other items. Americans last year alone, spent over seventy million dollars on commemorative medallions and coins, most struck from silver. U.S. The Department of Defense uses silver in more than 5,000 different items according to a report entitled "Silver Shines in National Defense." The report quoted an American military silver to be maintained at a fraction of the cost. Dm ftCte Sag in in metals the use of precious you'll discover the reasons why many mines have had to shut down. Where is all the silver to come from? No one seems to know. Certainly the future deficits won't be made up by the melting down of old silver spoons or jewelry. And they won't be made up by the great hoard of silver source as saying, "the increase both military civilian and commodities been has phenomenal. The report explained that the defense of our national security demands that all equipment work accurately and ubiquitous silver fits this need. Silver is the finest conductor of electricity. Without it you couldn't make a phone call, watch television, see movies or photos. The need for silver here in the United States and around the world will soon become critical. by investorscollectors. Eventually, all the available supplies of bullion will have to be consumed to meet the shortage created by the continually increasing demands for silver, and even this won't be enough. The silver legacy is now in the coins stored form of pre-19conveniently away in $1,000 bags. Their value is inversely proportioned to the rapidly disappearing quantity of silver in the world. To the sagacious investor the opportunity has arisen where he can get on the bandwagon even before the band. Obviously, there must be greatly increased production of silver at the source if the supply problem is ultimately to be solved. Only the opening of new mines and the discovery of new ore deposits will avert the final crisis. And this leads, again, to the conclusion that silver prices must go up, and it seems that the ones who will profit greatest by the increase will be the investors who are left holding the bag. annual The consumptionproduction deficits are expected to wide and create an even greater shortage. and Cultural 65 economic . development and advancement throughout the world have far outstripped silver production. The space age has created fantastic new uses for silver. From money to medical applications, silver is a demanding experiencing future. viable a most and present It now appears that the U.S. will replace many of its present naval vessels with nuclear ships which can keep up with the life-savi- faster ng carriers. aircraft held now coins Additionally planned are nuclear submarines. These new plans will require tons ot silver. People everywhere are taking and more pictures, snapshots and colored slides. Photography, the number one consumer of silver, is using more and more of the metal. The consumption of silver by the electronics industry is anticipated to eventually surpass that now being consumed by photography. In short, modern technology from cameras to nuclear ships, from outer space to the ocean floor has become increasingly dependent on the precious metal we used to put into our coins. The demand for silver goes up; the supply goes down. Seventy percent of newly produced silver comes as a byproduct from the mining of base metals are already stockpiled high, it is unprofitable to mine them in a search for silver. Consider this fact with the fact that mining operations each year have to spend hundreds of millions of dollars in pollution correction control systems and more Dear Editor: I see where the Ervin people get-Nix- would other and Inquisitors think it their expedite crucifixion plans to get the tapes of the Presidents huddles with his "aides. 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