Larry Allen of International Collectors Associates tells why Gold is Still a Good Value
Announcer: If you are an investor worried about government spending and inflation, you need to consider hedging with precious metals. The expert in the business is Larry Allen with International Collectors Associates.
Larry Allen: I was here when gold hit previous high in ’80 of $875. Gold currently is trading in the $1240 range so it kind of leads some people to say, “Well, we’ve never been this high. Those sheer numbers, that’s correct.
But if you really dissect it and you start thinking about, “What did that car cost me in 1980, or that house cost me?” It was a fourth or a third of what they cost today. So if you factor for inflation, it would not be unusual to see gold $2,000 – $3,000 even currently. Our projection is that we will see those type of numbers over the next couple of years.
Announcer: Call Larry Allen today at (866) 211-8971 and ask for their complimentary information package or log on to mygoldportfolio.com. That’s International Collectors Associates (866) 211-8971.
Richard: Larry heads up the Precious Metals Group in International Collectors Association. Larry, are you there?
Larry: I am. Hey Richard, how are you?
Richard: I’m excellent. What a great day this is here.
Larry: Well, good.
Richard: How’s the weather there?
Larry: We’re in Durango, Colorado – a little corner of Colorado – and it’s beautiful. In fact, many of your listeners probably end up skiing out here or coming our way.
Richard: So International Collectors Associates is a precious metals company that’s been in business over 30 years, right Larry?
Larry: That is correct. A gentleman named Don McAlvany started this firm in 1972. It’s still owned and still run by the same family. We are a precious metals firm. We handle the gold, silver, platinum, palladium; any of the precious metals. We do also collectible coins, gold and silver IRAs. We also have a program for offshore storage with Switzerland.
So, been in the industry a long time. I’ve been with Don personally since 1980, so pretty well-versed in the precious metals area.
Richard: That’s great. So you guys have got some real longevity there. You’re not one of those dealers that just popped up in the last five years because gold started skyrocketing.
Larry: Yeah. Richard, it seems like everybody and his brother is a gold dealer these days. But we’re one of the old stalwarts. We’ve seen it through a lot of market cycles. So yeah, we’re not going anywhere; planning on being here a long time as well.
Richard: That’s great. Can you tell us some more about the benefits of dealing with International Collectors Associates?
Larry: One of the things – or a number of things – that we’ve always done that, hopefully, separates us from just a coin dealer, if you will, is we have produced an economic, geopolitic type of newsletter for years, almost going back to the inception of the company.
Richard: The McAlvany Intelligence Advisor?
Larry: Exactly. And Don is renowned. He speaks all over, not only nationally, but abroad. And then we also do produce every year a DVD on those topics as well. That’s something that we do provide. We have a care package we can talk about maybe towards the end of it that any of your listeners can call for that have samples of these things.
But beyond that, we also have a podcast weekly with interviews with recognized financial figures as well as our feeling and our take on the market.
So we’re competitive on our pricing and we are an A+ rated firm with Better Business. We believe that we do a very excellent job on the service in providing whatever type of precious metals interest somebody has.
We feel that we bring a lot more to the table than just that because we do monitor it. We have a few strategies. There are opportunities between the different metals in what they call strategy trading or compounding ounces. So we do a lot of stuff rather than just sell metals, gold coins and that’s the end of it.
Richard: So you’ve got a real expert there – Don McAlvany.
Larry: Indeed. He’s been in this industry for prior – even to ’72 to the inception of the firm. He was the National Sales Manager for years prior to that with International Investors, the world’s largest gold mining share fund. So yeah, his background goes pretty deep in this area.
Richard: That is awesome. What a tremendous resource you represent.
Larry: Well, we would hope to think so and we’d sure enjoy coordinating and marrying up with your interests. Hopefully, we can provide some good things for your listeners as well.
Richard: Well, we are all concerned about inflation, the way the government is spending money.
Larry: In the 30 years, I’ve been doing this, gold and silver have always been kind of an inflation hedge. These days with where we’re going with this administration and fiscal policies, and then you look at the trouble that the euro is in with all these foreign currencies, today I’m seeing more and more investors and businesses park assets in gold and silver for protection of the decline of the value of their currency. So it’s kind of becoming a currency hedge as well.
Richard: That’s tremendous. So not only does it have intrinsic value, but it can help you hedge inflation.
Larry: Indeed. A lot of people will look at it from the speculative standpoint that we have some great appreciation over the next couple of years or beyond, and I believe we do. But also, I think it’s just one of those to help you sleep at night as you watch the erosion of your spending power of your dollar for sure.
Richard: And the euro. The euro was highly celebrated just a year ago, and now people are saying it might drop below the value of a dollar.
Larry: Exactly. You have very fiscally responsible Germany [5:31 inaudible] Italy, Spain, and Greece which did hit the wall, if you will. So I know that there’s got to be consternation within the group of countries the represent the EU. Kind of like one keeps a very tight checkbook and the other one likes to write them, if you will.
Richard: Yeah. One’s a little bit more socialistic than the other I think.
Larry: Yeah. That probably comes into the equation as well.
Richard: You bet. And now, you do also work with self-directed IRAs. Is that correct?
Larry: That is correct. You can put physical gold in your IRA in a qualified capacity, and it’s actually very easy to do.
Richard: Well Larry, tell us more about the Swiss storage programs because I think some of our listeners are international and they would be interested in that.
Larry: Sure. We, for years, had done some placements overseas in Switzerland. Probably three to four years ago we constructed an actual program because we wanted it easy for an investor. You can invest as little as $10,000. It is held in a secured depository in Zurich, Switzerland.
Richard: You mean not in an American bank, Larry? [laughs]
Larry: No. Well, true. No, we chose, maybe wisely, not to go that direction.
Richard: Well Larry, what else would you like to say to wrap it up?
Larry: Well, I would just encourage folks, if they’d like to get our care package of information, we’d be happy to provide it.
Richard: You bet. What number should they call, or how do they get in touch with you?
Larry: Our toll-free number here is (866) 211-8971. My name is Larry Allen. Website is www.mygoldportfolio.com. We do have a complimentary packet of information that we’d be happy to send to you.
Richard: And again, that number is 866…
Richard: That is great. This is a direction that a lot of people need to take not, of course, with the majority of their assets, but we’re recommending that at least 10% be put into hedging. We don’t mean hedge funds [laughs] because we’ve seen what happened to those in the last five years.
Richard: Something that is a hard asset, that has intrinsic value like precious metals. So Larry, you’ve been of great assistance today. We really appreciate you coming on the show. Again, Larry Allen with International Collectors Associates, and you can reach him at (866) 211-8971