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January 06, 2009 4:47:14 PM PST

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Palladium (PD): 195.00  231.06
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J&M Coin & Jewellery Ltd.
127 East Broadway
Vancouver, BC, V5T 1W1, Canada
Tel: (604) 876-7181
Toll Free Ordering: 1-888-244-9999
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Articles and Commentary

Why Gold? Why Now? Ten Great Reasons to Own Physical Gold and Silver
By Steve Merrill
July 25, 2007

1. Alarming Financial Deterioration in the U.S.
A massive $9 trillion dollar debt and trillions more in future liabilities combined with record budget and trade deficits have rendered the U.S. Government technically bankrupt and caused foreign banks and governments to start lightening U.S. dollar positions. Where will these trillions upon trillions find a safe haven?

2. Global Currency Debasement
Inflation (rising monetary supply) is running in excess of 10% in Canada, 13% in England, and 18% in China. The U.S. Federal Reserve is no longer reporting M3. Real interest rates, after inflation, are negative!

3. Demand Exceeds Supply
Gold demand currently exceeds mine supply by nearly 1,000 tons annually, despite any significant investment demand from Western society.

4. Declining Mine Supply
A depressed gold price through the 1980s and 1990s stymied new gold exploration. Many experts predict gold mine production will fall another 30% by 2010.

5. Global Investment Demand Accelerating
Demand for physical gold in India and the Middle East is increasing by 20% annually!

6. The China Factor
More disposable dollars among the burgeoning Chinese middle class will drive increased demand.

7. Rising Geo-Political Tensions
WWIII is under way. U.S. President George W. Bush indicates that the "war on terror" will not end in our lifetime.

8. Gold Maintains Purchasing Power
In 1965 a new Ford Mustang convertible cost approximately $2,500 USD which was the equivalent of approximately 71 ounces of gold. Today, those same 71 ounces of gold can be exchanged (at $650 per ounce USD) for $41,150 -- more than enough money to buy a brand new Ford Mustang convertible today.

9. Tremendous Leverage
All of the gold in existence is worth approximately $2 trillion, less than the combined public and private debt in Canada. When the forgoing fundamentals encourage a strong flow of capital towards gold, the trillions upon trillions of paper money will propel gold to unfathomably high levels.

10. HUGE Gold Short Derivative Positions Yet to be Covered
To fill the gap between mine supply and traditional demand, Central Bank Gold has been extensively mobilized. Strong evidence suggests that at least 50% of reported Central Bank Gold reserves has entered the market through an intricate 'leasing' scheme. This gold is owed to Central Banks by their counterparties in these transactions, the bullion banks. If the Central Banks were to demand that their gold be returned, it could trigger an epic short squeeze.

Gold is the ultimate store of wealth! Protect your hard-earned money and learn how to invest in precious metals while you still can.


Here's what the experts are saying:
"In the absence of the gold standard there is no way to protect savings from confiscation through inflation. There is no safe store of value."
   - Allan Greenspan; former chairman of the Federal Reserve

"Gold bullion is the one investment and long-term store of value which cannot be adversely impacted by corrupt corporate management or incompetent politicians -- each of which are in ample supply on a global basis. As a currency and a store of value, gold has stood the test of many centuries."
   - Anthony Fell; Chairman of RBC Capital Markets

"In a market as seriously manipulated as gold with the incredible fundamentals that it possesses, trying to be cute on the corrections strikes me as a real mugs game. The good news on the manipulation front is that it has become so blatant that it is revealing distinct signs of desperation, a necessary precursor to its eventual cessation. Also, the Gold Anti-Trust Committee [www.gata.org] arguments are gaining more adherents, while those who do not acknowledge the central bank management of the gold price have been embarrassed into silence on the subject."
   - John Embry; Chief Investment Strategist, Sprott Asset Management

"Central banks have 10,000 to 15,000 tonnes of gold less than their officially reported reserves of 31,000 ... The gold lent by central banks was in addition to the well-publicised official selling by many of them, including the U.K., Switzerland, the Netherlands, Australia, and Canada."
   - Paul Mylchreest; Chevreaux, a Division of French Bank Agricole

"Humanity is unaware of the stupendously important fact that it lives in a world without money. This lack of awareness is perhaps the most singular feature of our contemporary world, upon which historians -- if the world does survive this episode and produce historians at some future date -- will remark with amazement: 'How was it possible that billions of humans could delude themselves into acting as if what they used for payments, credit contracts and savings, was actually money?'"
   - Hugo Salina Price; Monetary Historian


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