2006 YTD INVESTMENT SCORECARD
By David Bradshaw, Idea Factory Press
July 6, 2006

PHOENIX, AZ - (IFN)– Tangible commodities and high quality collectible investments again outperformed intangible investments like stocks, bonds and T-Bills in the first half of 2006, just as they have every year since 2001. (2001-2005 Scorecard)

Energy, precious metals and housing were the big financial success stories in 2005, rising between 18-36% -- often driven by speculators seeking short-term profits.

The enclosed chart illustrates how the numbers stack up so far in 2006 for some of the major tangible and intangible investment sectors, including the numismatic category [U.S. Gold Commemoratives (1904-1926) Mint-State 64 grade, eleven-coin series].

As the numbers show, 2006 has marked an amazing run up in precious metal prices -- which is attracting new buyers worldwide who don't want to miss out on the exciting opportunities offered in a variety of tangible assets.

"Sustained interest from institutional investors drove the gold price to new 26-year highs in the first quarter of 2006", reports FinFacts.

Indeed, the precious metals took off in a near verticle climb last April as sustained interest from speculators and institutional investors drove the gold price to new 26-year peak of $725/oz. on May 9th. Since peaking gold corrected back to a low of $544/oz. on June 14th, and have been steadily rising to over $630/oz. today -- a 15% correction.

"We're overdue for a healthy 15% correction in metals", Swiss America CEO Craig Smith told Doug Fabian's national radio audience in an interview on May 9th. "This is a long-term buy-and-hold market. If you only have 5-15% of a portfolio in gold it should be viewed as insurance against a drop in the other 85-95% of your investments. If gold rises as it has over the long term, great, but I think people should be looking for safety first, not profit!"

Speaking of profit, every day more and more financial gurus are calling for gold to reach Four-Digits during the course of this secular bull market in commodities and collectibles which could run another decade or more.

Billionaire U.S. investor Jim Rogers told Reuters today, "Oil prices will soar to well over $100 a barrel and stay high as part of a sustained commodities bull run that has another 15 years of life."

John Hathaway, Portfolio Manager of Tocqueville Gold Fund says: "In truth, the price of gold at $600 is no big deal. In 1980 dollars, it is only $300. If prior highs mean anything, a target of $1700 in today’s dollars is what investors should be thinking about. Investors should worry less about whether this particular moment is a good or bad entry point and ponder the implications of sailing through uncharted waters without a lifeboat."

"A small investment in gold could protect some of your assets from inflation or a falling dollar", said John Waggoner in a recent USA Today story.

What's Ahead?

We agree with Daily Reckoning's Bill Bonner: "It is a weak bull market that does not have strong corrections." Precious metals have had their "strong" correction this year and yet they still remain on top!

Not so for stocks; which remain highly vulnerable in 2006 to slower growth, falling earnings, as well as rising oil prices, interest rates and an assortment of geopolitical wild cards.

"Positive drivers for gold include potential inflationary pressures in the U.S., heightened geopolitical risk (Iran and South America), the Merrill Lynch FX team's forecast for a weaker U.S. dollar, continued de-hedging and lower central bank sales," said analyst Jason Fairclough to Marketwatch.

So, what's next in the great commodity and collectible boom of the 21st century? Will gold coins emerge as the "Super" smart investment of 2006 again?

This writer's best guess and advice: Hold on tight to core precious metal and investment-grade coin positions and aggressively buy the dips, thus cost-dollar averaging for greater long-term growth. Commodities and high quality collectible investments are on track to outperform paper investments like stocks, bonds and CDs again in 2006, just like they have every year since 2001!

Mr. Smith advises: "Investors must decide what type of market they're really in. If it's a BEAR market, you sell the rallies. If it's a BULL market, you pick a price and buy. If there are dips, you buy more and hold on. We're clearly in a long-term bull market in commodities and collectibles. That's why it is incumbent on long-term investors to stay the course and buy every opportunity that presents itself".


SPECIAL FREE OFFER from Swiss America CEO, Craig R. Smith: "Today, experts are calling for gold to hit $1,000, $2,000, even $6,000 an ounce! The GOOD news: It's NOT too late, gold is STILL a bargain! Five years ago my book, REDISCOVERING GOLD IN THE 21ST CENTURY: The Complete Guide to the Next Gold Rush announced the start of a new GOLD RUSH. If YOU want to UNDERSTAND GOLD -- before it hits four-digits, call NOW for my book, dvd and latest newsletter, "THE RULE OF GOLD" at 800-289-2646. Discover WHY Gold Rules!" Get Mr. Smith's Free Gold Rush Kit!
RECENTLY ARCHIVED NEWS (...you may have missed)
New Featured Commentaries
Inflation, Deflation, or Bust!
6-30-06 -- By Bill Bonner, Daily Reckoning -- Concerning the US economy, and by implication the entire world, there are two major currents of thought. There are, on the one hand, those who believe in the perfection of man and those who don't. The first group thinks the science of central banking has made amazing strides. In the 1980s, the Volcker Fed learned that it could tame inflation. Then, 20 years later, the Greenspan Fed found that it could avoid deflation too. "Liquidity" is an economist's word for more cash and credit. "Inflation" is the word used to describe what happens to a currency when too much liquidity is made available...
Golden Opportunites
6-23-06 -- By Mary Anne & Pamela Aden (adenforecast.com)..."This [bull market in gold] is a major, mega-trend and it's going to take time, so don't get discouraged or impatient. As long as this major bull market stays in force, plan to stay on board and we think you'll be glad you did. Basically, there are six major factors driving this bull market: 1. too much spending, 2. too much money is being produced, 3. inflation, 4. the weak U.S. dollar, 5. international tensions and 6. China's growth and ongoing demand for commodities, which is coinciding with a new upmove in the 200-year commodity cycle." ...
Metals Pullback, Relax!
6-14-06 -- End the the bull market in gold... or just a bumpy bull ride? -- By Craig R. Smith, CEO Swiss America -- Gold prices have corrected 29%, as of today, since peaking at $725/oz. on May 9th -- but remains up 9% ytd! While many pundits see today's dramatic fall in precious metal prices as a healthy and normal strong bull market correction, others are calling it the end of the bull market. Which is it? ... I'm glad to see 'hot money' leave the metals...
NOTHING HAS CHANGED...
6-13-06 -- Yet some "gurus" say the gold bull market is over?! -- By Pat Mershon, Sr. Bullion Trader, SAPS -- Why did gold prices fall over 7% in one day? My guess is some very large precious metal producers have resumed hedging. This either sets up a great buying opportunity, or a state of massive confusion...

"In Coins We Trust"
5-26-06 -- By David Bradshaw, IFN -- Tangible commodities and high quality collectible investments are on track to outperform intangible investments like stocks, bonds and CDs again in 2006, just like they have every year since 2001! Gold and silver coins offer the missing link in all paper currencies: a "benchmark" store of value. The U.S. dollar is slowly but steadily sliding into oblivion , taking with it the hopes and dreams of all Americans -- along with the value of their savings account or investments. It is no longer a benchmark of anything, except the public's faith in government (which is evaporating daily)!


ABOUT THE EDITOR

David M. Bradshaw is Editor of REAL MONEY PERSPECTIVES, a new, syndicated daily financial/market news digest. In 2001, he published REDISCOVERING GOLD IN THE 21ST CENTURY: The Complete Guide to the Next Gold Rush and has been an economic commentator since 1987, when he produced the World Economic Perspectives radio show. In 2005, he released a new CD, "WHAT'S YOUR WORLDVIEW?" a one-hour CD sample from his 24-hour series, "THE BIG PICTURE: The Shape of Things to Come" discussing geopolitical, economic and spiritual trends in the 21st Century. Read my 2006 book review of, "The Meaning of Life" ... MORE at MIF... PERSONAL NOTE: Youngest daughter Braida Zoe (age 2) climbs everything, swims, trampolines, loves flashcards, speaks in sentences, and... adds great joy to the merrry-go-round of life.


DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of Swiss America. Past performance of any investment is no guarantee of future performance. All investments have risk.

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