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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Wednesday, November 26, 2003 - Vol. 5 No. 140
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In This Issue:
* COMMENT: As Gold Bull Rages, Rare Gold Stampedes.
* OFFSHORE: US - Aruba TIEA Signed. Harris Convicted. Russian Taxes. Irish Black Market Wanes. RSA Amnesty. Portuguese Duals. Expat Brits. Guernsey Losses. Manx Clean Bill of Health.
* WEALTH: US vs. EU in Growth. Free Market Trouble. Sham Trusts.
* PRIVACY & RIGHTS: UK Threatens EU Veto. Ron Paul's Warnings. Know Your Constitution. FBI Collects Kid's DNA.
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Guest Commentator is Mike Fuljenz, professional numismatist and owner of Universal Coin & Bullion in Beaumont, Texas.
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COMMENT: As Gold Bull Rages, Rare Gold Stampedes
Dear A-Letter Reader:
Gold is once again the rage, and expected to top $400 an ounce before the end of the year. While gold's price rise is impressive, it is rare gold coins where the big price gains are most impressive.
History indicates that when gold enters a bull market, it generally foreshadows a rare gold coin bull market that follows 6-12 months later. Rising gold prices attract positive publicity and cause many individuals to consider hard assets including rare gold coins, which creates new demand. One dealer I know reported to me that his new customer sales and reorders have increased almost five fold this year, compared to 2001, when the bull market trend first began to surface.
Here's an example. So far in 2003, the price of gold bullion has risen about 12%. But prices for rare gold coins have risen much faster. Depending on the series, the date and (most importantly) the condition, prices for collector gold coins have risen anywhere from 25% to 60%. These are still the early stages of a trend expected to continue for at least the next two to three years.
The proof is in the numbers, and the bottom line is prices for rare gold coins in many of the areas we recommend collecting are up, some quite dramatically. Some examples:
* Complete $2 1/2 Indian Set in MS-63. Up 43% in 2002; 21% in 2003
* Type III $20 Liberty Double Eagles ("S" Mint) 1883-S to 1907-S in MS-63 (24 Coins) Up 43% in 2002, 21% in 2003.
If you want to participate in this market, I strongly recommended that you begin before prices rise further.and judging by the investment record of rare coins in past bull markets, this one has much further to go. In past rare coin bull markets, prices rose to dramatic and sometimes astonishing heights: 1972-74 (up 348%); 1976-1980 (up 1,195%); 1987-89 (up 665%). These numbers represent the average gain on a 3000 coin index representing a broad spectrum of high quality U.S. coins.
A few caveats:
1. Purchase only certified coins graded by the Professional Coin grading Service (PCGS) or the Numismatic Guaranty Corp. (NGC). The condition, or grade, of a coin is a key determinant of value. Since grading coins is a skill that takes years to master, the best way to avoid purchasing overgraded coins is to buy coins given a guaranteed grade by one of these services.
2. Buy coins that are popular with collectors. One way to gauge popularity is to see what books have recently been published about a particular coin series. Recent books on $20 Liberty and $2.50 Indian US gold coins are examples. They have increased short-term demand and I believe will result in a long-term increase in demand and therefore in prices for these series. A good place to start is with books that were recent winners of the Numismatic Literary Guild's writing competition.
3. Deal with experts who have years of experience and that are respected by their peers. Look for articles in trade publications, professional awards won, service on the boards of leading industry related organizations, etc.
4. Beware of coin dealers whose main business is trying to buy your coins! Typically, they cannot get you the highest prices because they generally sell to middlemen. It is usually best to sell your coins to the dealer who sold them to you or to another reputable dealer who sells coins of the same type to their clients.
Mike Fuljenz
Beaumont, Texas
mike@universalcoin.com
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Comment LINKS:
* Importance of coin certification. LINK:
http://www.universalcoin.com/default.asp?id=site/articles/certify.asp
* Professional Coin Grading Service. LINK: http://www.pcgs.com
* Numismatic Guaranty Corp. LINK: http://www.ngccoin.com
* Numismatic Literary Guild.
LINK: http://www.numismaticliteraryguild.org
* Universal Coin & Bullion. LINK: http://www.universalcoin.com.
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* OFFSHORE *
US-ARUBA SIGN TAX INFORMATION EXCHANGE AGREEMENT ORANJESTAD: Another TIEA signed by US Treasury.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14176
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MARC HARRIS CONVICTED
Former Panama based offshore guru guilty on 16 counts.
LINKS: http://www.miami.com/mld/miamiherald/7340548.htm
http://www.miami.com/mld/miamiherald/business/7342551.htm
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RUSSIA CHASES TAX EVADERS
MOSCOW: Arrest of tycoon begins tax enforcement drive.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14181
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LOW TAXES IN IRELAND KILL BLACK MARKET
DUBLIN: Underground economy shrinks in low tax environment.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14186
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SOUTH AFRICAN AMNESTY EXPLAINED
JOHANNESBURG: Yes, you should use amnesty to come clean. LINK:
http://www.businessreport.co.za/index.php?fSectionId=552&fArticleId=290163
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PORTUGUESE MAY GRANT DUAL CITIZENSHIP
Portuguese in US hope to preserve heritage.
LINK: http://www.modbee.com/local/story/7794325p-8684842c.html
* Click here for more about dual citizenship, 2nd passports.
LINK: http://www.agora-inc.com/reports/190SGOPS/W190CB47/
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ADVICE FOR EXPAT BRITS
LONDON: 150,000 leave each year; real estate, bank accounts, et al.
LINK: http://www.thisismoney.com/undated/ht38603.html
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GUERNSEY KEEPS SMILING
ST. PETER PORT: Banks and jobs keep leaving, but all is well?
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14183
* ISLE of MAN gets IMF clean bill o f health.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14189
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LINK: http://www.agora-inc.com/reports/120SPTOM/W120DBS1/
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* WEALTH *
EU vs. US: DOUBLE THE GROWTH IN AMERICA
* EU economic growth 'half that of US next year' LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1069493456237
* US economy grew 8.2% in 3rd quarter 2003. LINK:
http://www.nytimes.com/2003/11/25/business/25CND-ECON.html
* OECD cuts forecast of growth for MEXICO. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1069493456801
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BOB DOLE: FREE MARKETS ARE IN TROUBLE
Arrests in Russia, China raise concerns about economic freedom.
LINK: http://washingtontimes.com/op-ed/20031124-085930-7511r.htm
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U.S. TREASURY WARNS AGAINST SHAM TRUSTS
Warning against trusts used for accelerate deductions for liabilities.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14168
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* PRIVACY & RIGHTS *
U.K. THREATENS E.U. CONSTITUTION VETO LONDON: Refuses to surrender national powers to EU. LINKS:
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2003/11/25/nsum25.xml&sSheet=/news/2003/11/25/ixnewstop.html&secureRefresh=true&_requestid=64153
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1069493461176
* Cato views the EU constitution; it's a crock!
LINK: http://www.cato.org/dailys/07-05-03.html
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U.S. REP. RON PAUL WARNS AMERICANS
* The Bush Medicare bill; Republican Socialism
LINK: http://www.lewrockwell.com/paul/paul143.html
* The EU should not dictate to America.
LINK: http://www.thepriceofliberty.org/03/11/25/ronpaul.htm
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KNOW YOUR CONSTITUTION
It's come a long way, baby!
LINK: http://www.thepriceofliberty.org/03/11/25/ladylib.htm
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* FBI collecting children's DNA samples; marked for life. LINK:
http://story.news.yahoo.com/news?tmpl=story&cid=710&ncid=710&e=5&u=/usatoday/20031117/pl_usatoday/11955051
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* THE SOVEREIGN SOCIETY OFFSHORE A-LETTER. *
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