The gold bear market is back in the news...

In today's Digest Premium, we continue our holiday series with collectibles expert Van Simmons. Each day this week, Van, the president of David Hall Rare Coins, shares one of his top ideas for investing in collectibles... Today, he describes his favorite rare gold coin right now... It's one that's much rarer than the popular Saint-Gaudens...

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Editor's note: Over the next few days, collectibles expert Van Simmons, president of David Hall Rare Coins, shares with Digest Premium readers his favorite collectible investments right now.

In yesterday's issue, Van laid out his ground rules for making collectible investments. He called them his "four big ideas."

Today, he describes his top idea for investing in rare gold coins... They are coins that are much rarer than the popular Saint-Gaudens...

 One of the most exciting areas of the rare-coin marketplace is currently one of the most underpriced...

The gold coins struck from 1837 to 1933 have a long history of collectibility. These include coins like the Liberty Head gold coins struck from around 1837 to 1908, in denominations of $2.50, $5, $10, and $20.

They also include the Indian-design gold coins struck from 1908 to 1933 in denominations of $2.50, $5, and $10. All of these coins are highly collectible... But the $5 Indian is the rarest of all 20th-century gold coins. The $10 Indian is one of the most popular gold coins ever struck. It was the other coin designed by famed artist Augustus Saint-Gaudens. His more commonly known coin is referred to simply as a "Saint-Gaudens."

Gold prices have gone up for 12 years in a row...

 But rare gold coins haven't kept pace. I believe this gap will close over time.

 The $20 Saint-Gaudens is by far the most common of all high-grade U.S. coins. And it's done a better job of tracking the gold price. But rarer coins have taken a backseat...

Over the past 27 years, the Professional Coin Grading Service (PCGS) has graded more than 25 million coins. Using that extensive data, we will compare the rarity and price of several different coins today.

 To date, PCGS has graded the following amount of coins:

• $20 Saint-Gaudens:118,005 graded estimated price $2,500.
• $2.50 Liberty: 4,467 graded, estimated price $1,750 (26.4 times rarer in this grade than $20 Saint-Gaudens).
• $10 Liberty: 1,530 graded, estimated price $4,000 (77 times rarer in this grade than $20 Saint-Gaudens).
• $10 Indian MS65: 2,068 graded, estimated price $3,900 (57 times rarer than $20 Saint-Gaudens in this grade).
• $20 Liberty MS65: 5,408 graded, estimated price $4,200 (21.8 times rarer than $20 Saint-Gaudens).

 As you can see, these coins are much rarer than Saint-Gaudens coins. But the price does not reflect the rarity. This is most evident in the $10 Liberty... This coin is 77 times rarer than a Saint-Gaudens. But it sells for less than double the price.

Editor's note: If you would like to contact Van Simmons to discuss collectibles, you can e-mail him at van@davidhall.com or call him at 1-800-759-7575. We receive no compensation for mentioning Van or his business.

The 'most exciting' rare coin on the market... This coin is 77 times rarer than a Saint-Gaudens...

Editor's note: With the markets closed for Christmas, we're using the lull in trading to continue our holiday series of our most popular Digest essays from the past year.

In April, we told readers that gold was in no danger of breaking its decade-long bull market. We said it could drop down to $1,300 and still make 2012 its 12th consecutive year of higher prices. Today, it's well within range for making that a reality – hovering around $1,600.

Dr. David Eifrig – editor of what's becoming a "cult" hit, Retirement Millionaire – is a big advocate of gold as a crisis hedge. "I believe America has much brighter days ahead of it," he told Digest readers last April. "American corporations like Coke, Johnson & Johnson, and Apple are the best in the world. That's why I still own U.S. stocks and bonds. But just like I wear my seat belt while driving, I own silver and gold – just in case."

Read on to learn more about how to protect your wealth, from one of the most successful traders we know... (And please note that we'll return to our normal content on January 2.)

The gold bear market is back in the news... What financial pros don't know about gold... Dr. Eifrig's unusual take on precious metals... Take advantage of us!...

 Many assets suffered from yesterday's release of Federal Reserve minutes. But the highest-profile "sufferer" is gold...

In its latest release yesterday, the Federal Reserve hinted that it was likely to ease its stimulus efforts to goose the economy. It's seeing enough positive signs that rock bottom interest rates might not be needed for the next several years.

Traders saw the comments as the Fed "taking away the punchbowl." So they sold stocks, oil, and precious metals. Interest rates could rise, which hurts gold. The metal dropped $30 an ounce instantly. It's down even more in overnight trading. As I write, gold is trading for $1,620 per ounce, its lowest low since early January. Just a month ago, it was $1,750. 

 With any short-term gold correction comes talk that the "gold bull" is dead. Are these folks right?

Our crystal ball here at Stansberry & Associates doesn't work any better than anyone else's... But we've been gold bulls for a decade... We got tens of thousands of our readers into gold early in the game. (I placed one-third of my net worth into gold back in 2003... and hold that stake to this day.) We've even published a book on gold... So we do have some comments that might be of use.

 First, keep in mind that most of the people who are declaring that the gold bull market is dead said the same thing in 2006, 2008, and 2010. Most of these people don't even understand the "idea" of gold.

They don't understand why gold has been used as money for thousands of years. (Gold is consistent the world 'round… It is divisible, it is portable, it doesn't rust or corrode, it has intrinsic value… And as our friend Doug Casey reminds us, gold is money that governments cannot debase.)

So... although we always like to hear both sides of a debate, we know most people – even highly respected investment pros – just don't know what they are talking about when it comes to gold. Talking with these people is as useful as talking to a goat (though more frustrating).

Gold isn't an investment the way most folks see it. A hundred shares of Coca-Cola is an investment. An income-producing rental property is an investment. Gold is "real money," and thus, is a crisis hedge. We buy gold and hope we never have to use it... just like we do with auto insurance. The sooner people learn that gold is not a conventional "investment," the better off they'll be. If you're late to the party in realizing this, you're not alone. The majority of brokers, financial advisors, and fund managers have no idea this is the case.

 Second, keep in mind the "long view" of gold. Gold has increased in value for 11 consecutive years. No widely traded asset or index has done that for more than 100 years. It's the most extraordinarily consistent price run we've ever seen. Gold is just flat out "due" for a break. It deserves a break.

When I discuss potential short-term trades and write trading commentaries, I often say "Markets are like runners. They can't run flat out without taking a breather." This is a useful view because you learn to anticipate natural corrections. You're not surprised or confused by them at all (unlike most market participants).

This line of thinking is also useful when viewing gold's long-term uptrend. When you know that even the strongest market moves go through corrections, you're not surprised by them. You don't freak out and go on CNBC, pronouncing the gold bull market is dead.

 So... let's take the "long view" of gold.

Below is a 12-year chart of gold. You'll see that since the gold bull market began in 2001, the metal has undergone several corrections. The biggest of these corrections was in 2008, when gold dropped 29% from its yearly high to its yearly low.

You'll also see that this time, gold could fall all the way down to $1,300 per ounce and still remain in the cozy confines of its bull market. 

 With the "gold is not an investment" idea in mind, let's ask, "What if the gold bears are right? What if it's over?"

I believe our own Dr. David Eifrig wrote the best way to view a huge gold and silver correction (or an official end to the bull market) in a DailyWealth piece last year. "Doc" – who recommends gold and silver as crisis hedges – wrote:

 It's my sincere hope that our readers will take this type of "hedged" approach with their investment portfolios.

You don't need to go 100% to gold and silver, buy a handful of assault rifles, and move to an underground shelter in Montana. But you also shouldn't ignore the debt and unfunded obligations the Western world (U.S. and Europe) faces. Consider an "in the middle" hedged approach.

As a voracious reader of newsletters, I can tell you that Doc's "common sense" approach to stocks, gold, and fixed-income securities is uncommon in our industry. Most advisors are either 100% "gloom and doom" or 100% "things are great!"

I believe that's one of the great services Doc provides his Retirement Millionaire readers. With a subscription to his advisory (which costs less than many magazines), you regularly receive professional advice on how to structure your portfolio to handle any crash or boom the market throws at you. You'll learn the right way to build a fortress portfolio of elite, dividend-paying businesses... safe income-producing securities... closed-end funds... and precious metals.

I have to admit... We have a tremendously difficult time convincing readers to purchase this sort of "common sense" research. Constructing a fortress portfolio of stock, bonds, and alternative assets – which incurs few losses – just isn't as sexy as the next big gold stock or miracle-cure drug stock. It's basic human ignorance that causes people to flee from the best ideas.

But trust me... among our serious, educated readers, Retirement Millionaire is becoming a "cult" hit. We're extremely proud to publish it. We're proud that it received one of Porter's highest Report Card ratings out of all of our newsletters... And we're proud of how Doc has compiled one of the greatest track records in newsletter history.

To learn more about Retirement Millionaire, click here.

Regards,

Brian Hunt

Delray Beach, Florida

April 4, 2012

The 'Most Exciting' Rare Coin on the Market... This Coin is 77 Times Rarer than a Saint-Gaudens...

In today's Digest Premium, we continue our holiday series with collectibles expert Van Simmons. Each day this week, Van, the president of David Hall Rare Coins, shares one of his top ideas for investing in collectibles... Today, he describes his favorite rare gold coin right now... It's one that's much rarer than the popular Saint-Gaudens...

To subscribe to Digest Premium and access this today's analysis, click here.