30 Times Better than Gold?

By Travis Johnson, Stock Gumshoe, April 23, 2009

Eric Roseman is at it again, it appears — a few months ago I wrote about an ad of his that was based on some very sketchy assumptions, an ad that promised you could buy gold for a $600/ounce discount. There was a little truth to it, of course, but not $600 worth … and today, we’re seeing heavy circulation of another Roseman ad for his Commodity Trend Alert that also promises a big opportunity to buy the best kind of gold available.

You’ll have to subscribe to his newsletter first, of course … at a discount, naturally (he’s asking $1,281 for it now … I wrote that he wanted $1,100 back in February, the current price on their website appears to be $1,161, so take your pick). The newsletter is focused on commodity picks and trends in general, not just on gold, but I don’t know what his track record has been, and we don’t have any reviews in yet for that service.

So … what is it that’s “30 Times More Profitable Than Ordinary Gold?”

He starts with the following:

“When I first heard about this, I thought, “Must be a typo.” How could one type of gold jump 24%…60%…even 82%, when common “bullion” rises 2-3%?

“The good news is, it’s not a typo… no leverage is involved… and I can prove it! In fact, hundreds of investors are exploiting this trend as we speak…”

He talks about the genuine scarcity of gold, and about the importance of holding it in person instead of in certificate form — though his example of “paper gold” is the Gold ETF GLD, not exactly the same as a mint certificate that represents personal holdings in a vault somewhere.

“My point is, in reality, gold is scarcer than diamonds. And because of this, and all “gold bugs” stocking up like a squirrel heading for a long winter – there is one form of the precious metal that trumps all others – by a long shot.

“… And I’m not talking about bullion bars, “ETFs” or mining company stocks… there’s plenty of them to go around.

“Rather, I’m talking about a kind of gold that’s issued by the U.S. Treasury. Last year they sold $948.8 million worth…and every last ounce was snapped up. Gonzo. This year’s shaping up to be even worse.

“Why? Because thanks to a colossal government screw-up, the Treasury is completely sold out. Thousands of mom ‘n pop investors have been turned away. Some folks even put their names on a waiting list to buy gold at $1,200 an ounce.”

You may have heard about this problem from the treasury recently — the demand was so high for gold coins that they got totally swamped, and were clearly unprepared for the massive increase in orders. They’re not currently selling the 2009 American Eagle bullion coins because they don’t have any, but they are dedicating all the 22K gold blanks they can get to minting more of them, and they won’t be making any other gold coins or fractional (less than an ounce) Eagles in the near future, either.

And the bit about putting their names on a waiting list? That might refer to the Ultra High Relief St. Gaudens coin that the Mint offered earlier this year — the price for that one was often up around $1,300 when gold was close to $1,000, but delivery was significantly delayed so it was kind of like being on a “waiting list.” Who knows, there may have been people who were so panicked about the economic meltdown that they bid up more than that to get on waiting lists for regular American Eagle coins, too, I don’t know.

It does seem, though, like the mania might have settled a little bit, at least temporarily, with the gold price retreating from that $1,000 level. People do seem willing to bid up to $1,000 or so for 2009 American Eagle coins on eBay at the moment, which is still a stiff premium over the melt value of better than 10%, but not quite as crazy as it got for a while back in December and January — and those assessments that the price of these gold coins went up by 20, 30, or 80% when gold was virtually unchanged are, I’m sure, verifiable … but they’re also implying that you can currently profit from a mania that is unpredictable.

We still hear that there are lots of complaints from desperate people who urgently need to buy 2009 American Eagles …

“Mark Wilson says, ‘[they] ought to initiate an internal investigation of Mint staff and employees. Something is very wrong and deteriorating at the Mint.’

“Diane Beasley complains, ‘It is unforgivable that a government-run enterprise with unlimited product demand and unlimited profit potential is so blatantly incompetent.’

“And Tom Pelicano recently fumed, ‘My opinion – the U.S. government has no gold left to mint.’
You can hear the frustration in their voices. Clearly it hurts to be shut out of this booming market.”

(as far as I can tell, by the way, those are all anonymous comments posted on