• Minimum in precious metals - 30-50% of total assets
  
• Maximum in precious metals - 50-55% of total assets
  
• You may contact an FAMC economist or consultant for specific recommendations in implementing your strategy.
  

Recommended breakdown for precious metals holding:

Silver Silver prices are about to be driven by tight supply and demand situations, which have combined to cut world bullion inventories by more than 60% over the past six years. Plainly put, silver is about to get scarce. Already, total world above-ground supply, including silver held by investors in coin form, represents less than a year's current fabrication demand. There has been a critical shift in ownership of silver away from individuals to financial institutions. Less than $1 billion will buy all the silver n the New York Commodity Exchange warehouses at current process. We recommend silver holdings be in the following silver coins rather than silver bullion bars. Silver bars were confiscated under the Silver Coinage Act of 1934 but even silver bullion coins were exempted form confiscation.

GOLD
We live in times of tumultuous change: borders shift, economies and businesses collapse, wars flare up. Amid all this global turmoil gold stands firm. Paper assets can soar or sink so low they are considered worthless. But gold is desirable because of its intrinsic value. In more than 5,000 years, no one has ever been able to say of gold, "It's not worth the paper it's printed on." However, because of provisions of the Emergency Powers Act we recommend you have the right kind of gold. The following U.S. gold coins minted prior to 1933 in AU (about uncirculated) or better condition are exempted form confiscation under Section II(b) of the Emergency Powers Act. Any coin trading at a 15% premium or better above gold bullion price is considered a collectible for the purposes of the Act and is exempted from confiscations. We recommend the following coins:

We strongly advise you to swap your bullion coins (Kruggerand, Maple Leafs, Gold Eagles, Austrian 100 Coronas, Mexican 50 Pesos) for the the U.S. gold coins in AU or better condition that were minted prior to 1933. You may call one of our economists or consultants for procedures for swapping you bullion gold coins.

Platinum
As a precious metal, platinum tends to react to broad economic trends and political events in a fashion similar to gold and silver. However, platinum is not a "monetary" metal but is an investment metal. Savvy investors are not content with just "securing their assets" against inflation and economic and political dangers. They also demand the opportunity for capital appreciation. Platinum's impressive price history is primarily tied to its scarcity and to its vast application in manufacturing, environmental protection, cancer drugs, and the fight against crop shortages and other crucial needs. All the platinum ever mined throughout history would fill a room that's less than 25 cubic feet in size. Increases in production are expected to diminish as South Africa and Russia (producers of over 90% of world supply) strive to face the challenges of unprecedented economic and political change. We recommend the following platinum coins:

Rare Coins
Rare coins should comprise no more than 10% of your entire precious metals holdings as a rare coin's worth is based more on its numismatic or collector value rather than its precious metal content. This market is very limited and can be manipulated by a few large dealers or telemarketers who offer "specials" or "newly discovered hoards" of coins. Many use the promise of great return on "high powered" rare coins to motivate the greed factor, but usually the only thing high powered about the coins is the salesman's commission and the only thing rarer than the coins is a buyer for them when you get ready to trade or liquidate. Call an FAMC economist or consultant for specific recommendations relative to current market trends.

Privacy
None of the coins recommended by FAMC are subject to any government reporting requirements when buying or selling. All transactions with FAMC's Precious Metals Division are confidential. The owning of coins is attractive to individuals who don't care to let government bureaucrats, financial institutions, and the rest of the world, who may electronically access their records, know what they own.

Liquidity
The precious metals we have recommended are extremely liquid and easily transportable. In fact, with FAMC's extensive network of trading partners, we can move millions of dollars of the precious metals in a matter of minutes with settlement in 48 hours in the currency of your choice.

How to Acquire Your Precious Metals
Simply call one of our offices listed below using the toll-free number and ask to speak to one of our staff economists or consultants and one will be assigned to you. If you have already spoken to one of our economists or consultants, simply ask for that person and they can walk you through the transaction tailored to you individual needs.

Precious Metals and Your Retirement Portfolio
Precious metals may be used as an asset in a variety of retirement plans such as ERAs, Pensions, Profit Sharing, Trusts, and SEP Plans. In particular you can transfer or rollover the funds in a presents IRA plan to one with precious metals. Call an FAMC economist or consultant for details on how easily this transaction can be accomplished.

Storage of Precious Metals
The following are suggestions and instructions for the storage of you precious metals:
1. Safe Deposit Boxes
Although bank deposit boxes are the most convenient avenue for storing your precious metals, eventually it will become necessary to bring them home. It is simply a bailee/bailor relationship. Due to this fact, you are only renting secured space and we should be more concerned with confiscation rather than bank closings. What you keep in your safe deposit box is not legally consuetude to be the asset of the bank. When silver prices reach $25-$50 per ounce and gold reaches $1,500-$2,000 per ounce, the market is telling us that things are not right in the economy and it is time to bring them home.

2. Personal Safes
Owning your own safe is another option for protecting precious metals. We must make sure that any safe we buy is heavy enough that it cannot be easily removed. Small "fire proof" cash boxes will not do Another rule of thumb is to try to purchase a safe that resembles an ordinary bank vault. try to find a safe that has at least 3/8 inch steel as well as door bolts that run throughout the door. Please feel free to call any FAMC economist or consultant for assistance in purchasing the right safe for your needs.

3. Underground Storage (Midnight Gardening)
In periods of extreme economic and civil disorder, many folks may desire to become "midnight gardeners." If you are planning on burying precious metals, there are a few steps that should be taken to insure protection of the metals from other people as well as the elements. The following is a list of items recommended for underground storage:

A.   PVC pipe (4" to 12" in diameter and at least 5 feet long)
B.   PVC end covers
C.   PVC sealant for end pieces
D.  Silica gel or crystals(can be found in hobby shop-used to dry flowers)
E.  Old iron pipe

Before sealing the pipe, use a porous cloth as a bag for the silica in order for it to absorb any moisture. Make sure to place the bag inside the PVC pipe while in storage. Obviously, it is not suggested to completely fill the pipe. Also, do not store all metal holdings in one place. It is recommended that the PVC be buried approximately 5' to 6' deep. Bury the iron pipe one and a half feet above the PVC. Make sure all your metals are individually wrapped or kept from being loose and scraping one another in the process. Always remember the location of the pipe for later retrieval.

The most important element of security is secrecy. Be vary careful with whom you share information about you holding. If you need further ideas for storage or security, please contact your staff economist or consultant at either FAMC office.

A Time for Action
As we discussed previously, action without information is fanaticism but information without action will only frustrate you and will not protect you and your family. Call now and have one of our economists or consultants assist you in achieving your goals.