Peter Schiff, Ron Paul, The End Of The Dollar, Meltup, and Your ETF Options (GLD) (SLV)

Whew, looks like it is time to start stocking the canned goods, and spiffy up the bomb shelter. The National Inflation Association has released a new video spelling out a woeful future for our the world, the dollar and your way of life. Massive unemployment, hyperinflation and bankrupt countries.

The release of this documentary touts, “Meltup features Gerald Celente, Peter Schiff, Ron Paul, Marc Faber, Jim Rogers, Tom Woods, and others. The documentary proves thorough facts and statistics about how hyperinflation in the U.S. is now inevitable and how Americans could soon see the end of entitlement programs they have become dependent on to live and survive. NIA believes ‘Meltup’ is the most important economic documentary ever produced in world history and a must-see for you, your friends, and family members. Please spread the word about the documentary to help those you care about survive the hyperinflationary crisis that is ahead.”

While we do not subscribe to the notions purported in the video, or even their economic viability, there does seem to be a segment of the nation that feels strongly towards the principles described. If the 2008 election results for Ron Paul are an indication, there are at least a million people who will find the documentary riveting. Personally I found it fun to watch with a beer.

While we find the documentary to be sensationalised, there is a tie to ETFs. The National Inflation Association, producer of the below documentary, “Meltup,” has on its website Q&A’s on how to invest your money wisely for the impending doom.

The below are a few of the questions and answers as taken from the National Inflation Association website:

Is it better to invest into an ETF or gold/silver stock that trades on a foreign exchange over an American exchange?
It doesn’t matter whether an ETF or gold/silver stock trades on an American exchange or a foreign exchange. If you buy one share of a company on a U.S. exchange and one share of that same company on a foreign exchange, the shares are equal and represent the same ownership in the company. ETF’s that invest entirely into a single commodity on an American exchange should perform similar to another ETF investing entirely into the same commodity on a foreign exchange. If the U.S. dollar collapses, you should be able to sell your ETF’s that invest in gold, silver and other commodities for an extraordinarily large amount of U.S. dollars. You could then use those dollars to purchase physical gold and silver or exchange them for a more stable foreign currency.

What are the main risks when investing into an ETF or ETN?
With an Exchange traded funds (ETF), the biggest risk is their accounting is wrong and they don’t own the amount of a commodity they are supposed to own. With an Exchange traded notes (ETN), there are counter party risks. If the financial firm issuing the ETN goes bankrupt, they may not be able to pay out the money they owe you. When investing into an ETN, it would be a good idea to keep an eye on the bank that issued it. If the bank runs into any trouble, you might want to immediately sell.Keep in mind that no matter how you invest, there are always major risks. If you choose to store physical gold and silver on your own, there is a chance it could be stolen. We believe the safest thing to do is diversify with gold/silver ETF’s/ETN’s, physical gold and silver, and gold and silver stocks.

Is it better to buy the ETFs “GLD” and “SLV” or buy physical gold and silver? How do I sell physical gold and silver and what are the tax consequences of both?
The advantage of buying GLD and SLV is that they are extremely liquid on the stock exchange and you can buy and sell large amounts of them at any time. With physical gold and silver you need to find a buyer who might try to pay you under the spot price. We believe it is best to diversify into both ETFs like GLD and SLV as well as physical gold and silver. If you ever need to sell your physical gold and silver in order to raise cash, it might be best just to list it for sale on eBay. Gold and silver are treated as “collectibles” and full capital gain income taxes apply to physical gold and silver as well as (GLD) and (SLV).

You can find more of the Q&A’s: HERE

THe following are a few ETF/N’s for you to consider:

SPDR Gold Shares (GLD)
ETFS Physical Swiss Gold Shares (SGOL)

iShares Silver Trust (SLV)
ETFS Physical Silver Shares (SIVR)

See the video “Melup” Below:

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