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Investing in the New Economy

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Hello! My name is Sevin Wilson and I am the founder of Ultimate Wealth Ideas, a service that is dedicated to assisting the individual investor in this new economy. Our idea for creating this service is to give ideas to like-minded individuals about how to build wealth, how to create wealth, and how to keep your wealth. Most of us have some money that we have invested in various things. Now it might be in stock, bonds, foreign currency, fine art, wine, real estate, or maybe even Bitcoins. We believe everyone would benefit by investing in a sector that less than 1% of people in the United States are invested in. Over the next few years there are going to be fortunes to be made, where gains of 1,000%+ are totally possible.

It feels like we are near the bottom in a sector that is set to explode higher in the years to come. Some of you may have guessed it – the sector is: Precious Metals (mainly gold and silver). No sector is hated currently as much the precious metals. At Ultimate Wealth Ideas, we always take an attitude to buy when there is blood in the streets. Most investors get fleeced because they are herded into mutual funds and other investment pools where Wall Street will gladly take your fees on a daily basis.

Our answer to this is to invest a portion of your available funds into Precious Metals. Some of the veterans in the industry recommend 10-15% while other are 100% or close in this sector. The portion you end up choosing is up to you. My portfolio is a lot closer to the higher end than the lower end of this range.
Many pundits out there push unallocated pooled accounts, but at Ultimate Wealth Ideas, we believe there are only two ways to play in this sector: Physical Metal and Mining Shares. The physical precious become another preservation of wealth (similar to cash) and the mining shares are a way to speculate (think of it like a leverage to the price of the commodity). This sector can be volatile – days where 5% gains or losses in the price of the metals are not unheard of. This can result in massive gains and losses in these mining stocks.

Before we get to the high action mining stocks let’s go in detail about physical precious metals. In our opinion there are only two metals to invest in – gold and silver. Taking possession of the physical metal is the most important part of investing in physical precious metals. Do not invest in pooled accounts, and instead take hold of the metals in your own two hands. There is no better feeling in the world than holding real money in your hand.

You might be wondering how precious metals are priced. The spot price is the price that a commodity, in this case gold or silver, can be transacted for on a per ounce basis. The futures price is determined on exchanges all over the world for delivery of the metal at a future date, which could be months to years from the current time. Currently gold’s spot price is hovering around $1200/ounce and silver’s spot price stands around $17.00/ounce. Over the past few years’, gold has traded as high as $1930 an ounce and silver reached nearly $50 an ounce in 2011.

The two main avenues that people invest in physical bullion are via coins and bars. When investing in physical precious metals, you pay a premium (an amount over the current price of the metals). This premium is usually 2-5% for gold and 5-15% for silver. Coins and bars come in varying sizes for each of the metals. For gold, denominations for bars can be range from as small as 1 gram (roughly $40/gram) to as large as 400 ounces (roughly $475,000). Denominations for coins range from 1/20th ounce, 1/10th ounce, 1/4th ounce, 1/2 ounce, and 1-ounce sizes. For silver, coins mainly come in 1-ounce rounds and for bars 1, 10, 100 ounce bars are commonplace.

Unless you are a central bank, the 400 ounce gold bar is out of the question, so we recommend 1-ounce bars or small denomination coins to invest in. This means a variety of 1 ounce, 1/2 ounce, and 1/4 ounce coins. The premiums (price over the current market price) for 1/10th ounce coins are too large for my liking, so we recommend slightly larger denominations in most cases. When investing in gold coins, we recommend sticking with the most popular coins (American eagles, Canadian maples, Chinese pandas, and South African Krugerrands).

Silver is far less expensive relative to gold and is easier for the common man to invest in. Coins have a larger premium versus bars, but when selling this premium is recovered often times with the coins. We recommend sticking to 1-ounce coins including American Eagle and Canadian Maple. If you decide to go with the bars, some of our favorites include 10-ounce bars from well-known refiners like Johnson Matthey or the Royal Canadian Mint.

Gold is the more conservative metal compared to silver, but silver has the bigger upside in our view. Being a bigger advocate of silver at current levels, the team at Ultimate Wealth Ideas recommends putting a larger portion of available funds into silver. Every ounce of gold will buy roughly 70 ounces of silver. Historians say the ratio is around 1 ounce of gold to 16 ounces of silver. This leads us to believe that silver is more undervalued than gold at current prices.

The greatest thing about investing in precious metals is that, unlike stocks, you can begin to invest with a small amount. A 1 ounce silver coin can be purchased for under $20 and a 1/20 ounce gold coin can be bought for less than $75. As one purchases more ounces at a time, the premium (or price for purchasing over the spot price) often times decreases. Also, as the coin or bar weight increases, the premium will decrease on a per ounce basis. For example, a 1 ounce gold coin may have a premium of $45 per ounce, which means if the spot price is $1200, this coin will cost you $1245. On the other hand, a ½ ounce gold coin may have a premium of $30, so if the spot price is $1200, and you purchase 1 ounce (two ½ ounce gold coins) you will pay $1260 for the ounce of gold.

Right now I am going to give you some insight on how we would invest $10,000 into physical precious metals for those at varying risk appetites – risk averse, risk average, and risk seeker. At the end of the day, in our opinion, the “risk seeker” is still not risking much at all compared to entering the stock market at all-time highs. If $10,000 is out of your budget for your initial investment into the precious metals, you can scale your purchase accordingly. As always, if you would like to discuss an upcoming purchase with us, prior to making a purchase, please email us at info@ultimatewealthideas.com.
Risk Averse

Here is a sample of how we would invest $10,000 in physical precious metals for a low risk appetite:
Roughly 75% gold | 25% silver
Gold
1 – 1 ounce coin = $1245
5 – 1/2 ounce coins = $3125
10 – 1/4 ounce coins = $3250

Silver
125 – 1 ounce Canadian Maple Leafs = $2400
Risk Average

Here is a sample of how we would invest $10,000 in physical precious metals for a medium risk appetite:
Roughly 45% gold | 55% silver
Gold
1 – 1 ounce coin = $1245
2 – 1/2 ounce coins = $1282
5 – 1/4 ounce coins = $1620

Silver
10 – 10 ounce bars Royal Canadian Mint = $1890
200 – 1 ounce Canadian Maple Leafs = $3800
Risk Seeker
Here is a sample of how we would invest $10,000 in physical precious metals for a medium risk appetite:
Roughly 25% gold | 75% silver
Gold
2 – 1/2 ounce coins = $1282
2 – 1/4 ounce coins = $650
4 – 1/10 ounce coins = $532

Silver
10 – 10 ounce bars Royal Canadian Mint = $1890
300 – 1 ounce Canadian Maple Leafs = $5700

Now that you have a dollar amount that you are ready to invest into physical metals you might be wondering – how does one go about purchasing physical precious metals? The two best ways to purchase physical bullion are either at your Local Coin Shop (LCS) or through a select few online retailers. There are pros and cons of each and for a more in-depth overview about the best ways to purchase precious metals, please view our article titled Where to Purchase Precious Metals.
Local Coin Shop
Pros
More personal experience
Anonymity by paying with cash (Up to $5,000 a day in Florida)
No wait time for delivery
Cons
Slightly more expensive
Less selection
Credit card fees
Online Retailer
Pros
Slightly less expensive per ounce
Bulk discounts
Greater selection of coins and bars
Cons
Wire transfer adds additional cost
Credit card fees
5-7 day delivery time
If paying by check, check must clear before the shipping of metals

The best experience over the years we have had from purchasing precious metals online has been from www.texmetals.com with www.providentmetals.com and www.apmex.com being the second and third best, respectively. When the time comes for you to be serious about purchasing precious metals, if you have any questions, please do not hesitate to shoot us an email at info@ultimatewealthideas.com.
Similarly to stocks, including mining stocks, we recommend purchasing metals in tranches (multiple stages) in order to Dollar Cost Average (DCA). The principle behind this, is instead of buying all at one, to buy on a fixed or somewhat fixed schedule, or to buy on those heavy 1-2 day violent price declines. This will create an average price that you have paid for your physical metals and mining stocks. An example of Dollar Cost Averaging is below:
Purchase 1 (Total Dollar Amount: $5,000)
Silver: $20/ounce * 130 ounces = $2600
Gold: $1200/ounce * 2 ounces = $2400
Current Portfolio: 130 ounces of Silver (Average price paid – $20/ounce) & 2 ounces of Gold (Average price paid – $1200/ounce)
Purchase 2 (Total Dollar Amount: $7,500)
Silver: $22/ounce * 163 ounces = $3,600 (almost)
Gold: $1300/ounce * 3 ounces = $3,900
Current Portfolio: 293 ounces of Silver (Average price paid – $21.11/ounce. $20/ounce for 130 ounces and $22/ounce for 163 ounces) & 5 ounces of Gold (Average price paid -$1260/ounce. $1200/ounce for 2 ounces and $1300/ounce for 3 ounces)
Purchase 3 (Total Dollar Amount: $10,000)
Silver: $16/ounce * 350 ounces = $5,600
Gold: $1100/ounce * 4 ounces = $4,400
Current Portfolio: 643 ounces of Silver (Average price paid – $18.33/ounce. $20/ounce for 130 ounces, $22/ounce for 163 ounces, and $16 ounce for 350 ounces) & 9 ounces of Gold (Average price paid -$1188.89/ounce. $1200/ounce for 2 ounces, $1300/ounce for 3 ounces, and $1100/ounce for 4 ounces).
As you can see in the example above, buying on price declines is definitely your friend in the long term, especially if you have purchased at higher prices. Prices will not continue to stay at these reduced levels for a substantial period of time, which makes your upcoming purchase an important step to beginning the path to financial freedom.

Now that you have a grasp on physical precious metals, let’s get right to the mining shares. In determining your risk appetite, it is completely necessary to think where you want to position yourself in this sector. Are you inclined to go for the gusto while taking on more risk or do you prefer to take the safer, but less rewarding route? Ultimately, the choice is up to you.

Unfortunately, investing in mining shares can be like being in a sector with a bunch of snake oil salesman, unless you know what you are doing. It looks pretty on the outside, but once you get down to the nitty gritty, it’s often times a different story. That is why partnering with the right people (CEO’s and trusted veterans in the industry) is the biggest key to success. A few of the veterans in the industry have been plowing into all of the stocks we recommend entering. Most Wall Street guys out there talk about diversification this and diversification that in order to lower the risk and maximize gains. At Ultimate Wealth Ideas, we like to take the same approach, but currently we are focused in one sector that is completely undervalued and downright hated by most in the markets. It’s possible the shares continue to fall from here, but the huge upside potentials and minimal downside risk makes these stocks an extremely interesting play at these levels.

Soon I will give you my picks going forward for 2017 and beyond in some small cap stocks that could make you gains of 1,000% or more. During the last resource bull market, 3,000% and 4,000% gains were everywhere as long as you picked the right stocks (most often by partnering with the right guys). For the non-math people, a 1,000% gain is 10x gain. For every $1,000 dollars invested the return is $10,000.
This first stock we are suggesting saw gains of over 800% at times in 2016, and as silver retreated during the second half of 2016, this stock cooled off as well. The total gain for 2016 was over 300%. With a market cap of $1.5 billion and being the purest silver producer on the planet, this stock will benefit tremendously with upward price pressure for silver in 2017. This stock we are suggesting is run by arguably the greatest mining CEO of all-time. He is a true entrepreneur as he founded this company in 2002 and took it this company to being one of the best-run companies in the world. If you haven’t guessed it by now, I am talking about Keith Neumeyer and First Majestic Silver (NYSE: AG). Currently trading at $9.21/share, we strongly recommend you purchase shares of First Majestic. Silver’s upside in 2017 is huge, and First Majestic should outpace the percentage gain in silver by at least a double. It’s possible we see some downside pressure in silver over the next few weeks, but First Majestic should hold up well. We suggest purchasing shares of First Majestic up to $10.00/share. We have a year-end price target for First Majestic of $20.00/share.

The next stock we are profiling has Keith Neumeyer as their Chairman and largest shareholder. This company has also attracted the attention of some of the biggest names in the industry as its largest shareholders. Doug Casey, Eric Sprout, and Rick Rule are all heavily invested in this company. This company has an interesting business model, as they have become a mineral bank by purchasing other companies that have proven reserves the company plans on tapping into as the price of gold and silver rise. In 2016 alone, this company acquired 8 gold and silver production/exploration companies. The company we are suggesting you strongly consider investing in is First Mining Finance (OTCMKTS: FFMGF). Currently trading at $0.61, we are buyers of First Mining Finance up to $1.00/share. First Mining saw gains of nearly 200% at times during 2016. With a market cap of nearly $350 million, Keith Neumeyer is well on his way to another billion-dollar company. First Mining is poised for a breakout year in 2017 and will become one of the darlings in the sector. Now is the time to get into First Mining Finance.

Max Porterfield, one of the great CEO’s in this sector, and he runs the final stock we are suggesting you to invest in. Most geologists are lauded if they make one discovery of the course of a lifetime, but chairman Mike Muzylowski has done it time and time again. To date, Max has had 16, yes SIXTEEN, significant discoveries in his career. Callinex Mines (OTCMKTS: CLLXF) is our diamond in the rough, and is ready to explode in the New Year. Currently trading at $0.27/share, we could see this stock increase 300-400% over the next 12 months. Peter Schiff, Rick Rule, and Eric Sprout are all major investors in Callinex Mines along with Carlo Civelli, one of the greatest resource speculators of all time. Mr. Civelli has gone on record and said this is the only junior resource stock he owns. We have a buy price of up to $0.50/share on Callinex Mines and we are expecting great things from Max Porterfield and this company.

With each of these stock suggestions we suggest buying in tranches as the price fluctuations can swing wildly. We do not advise making all of your purchases at one time, but buy enough so the transaction fees do not eat all of your profits. Before investing in any of the stocks recommended by Ultimate Wealth Ideas, do your due diligence by researching the company and reviewing quarterly reports.

We have included our tips for investing at Ultimate Wealth Ideas:
1. Do not invest money if you can’t afford to potentially lose it all.
2. If the stock price is going down, do not automatically sell it. Take dips as a buying opportunity, but do not try to catch a falling knife. Instead, wait until the stock stabilizes and then re-enter.
3. In this market – bulls make money, bears make money, pigs get slaughtered. Don’t be a pig.
4. Take physical delivery of your metals and store them yourself outside of a banks security deposit box.
5. Once you have a good collection of metals on hand, look for allocated vaulted storage of metals outside of your country (Singapore, Switzerland, Hong Kong).
6. The price of the metals will go up, but look at them as a long-term investment. Do not think they will double overnight. Do not worry about day-to-day price fluctuations. Buy it and stash it.
7. When purchasing physical metals, stick to products that are well known and avoid numismatics, as their premiums can be outrageous.

We will be coming out with investment newsletters every quarter with updates to our stock picks. Please feel free to pass this along to your friends.

Stay Vigilante,

Sevin Wilson