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AGFLATION: The Next Big Thing For Gold Rising costs join with high-priced oil to keep the gold bull galloping.

BY: Paul Montgomery Publisher’s Note: The Numismatic Literary From cereals and edible oils to coffee and cocoa, many Guild has once again honored Investor’s Profit agricultural commodities are soaring to multi-year highs: Advisory with the Lee Martin Founders Award • and corn – two primary staples of the world’s diet for Extraordinary Merit. IPA has received – have catapulted to 10-year highs. Corn prices have accolades from the NLG for our publication DOUBLED just in the last 12 months and wheat prices in in 9 of the last 10 years. I am truly proud of the U.S. and Europe shot up 30% in only three months this achievement. Congratulations to Editor from April to June, driving up the costs of products made Paul Montgomery and the publications staff for continuing from them, feed for livestock, and dairy products. to produce award-winning numismatic journalism for our readers. - Mike Fuljenz, President and Publisher • Global milk prices leapt by nearly 60% in the past year. • Global soybean prices have surged 50%. • Butter prices in Europe spiked by 40% in a year. We’ve already seen the end of cheap oil. Now we may be seeing the end of cheap food. Both events drive • Prices of rice, barley, cattle, and pork have risen 30% since higher. In tandem, the impact on gold could be huge! March 2005. Inflation, as you know all too well, is bad for consumers The food commodity skyrocketed by 11% but good for gold. When inflation rises, gold soars. Gold is year on year in 2006 and grew even faster, by 15.4%, in April the time-honored hedge against inflation. and May of this year. The government tells us inflation is not a problem. And it’s Brief periods of surges in agricultural commodities not...if you don’t eat or drive! Despite pie-in-the-sky “tame” are nothing new. tend to be cyclical with seasonal inflation figures reported by the government, you’re paying ebb and flow of supplies, and normal volatility is sometimes through the nose for energy and food – the two big-spender exaggerated by special circumstances. A bad drought , unsea- items that Washington conveniently leaves out of its inflation sonable weather (e.g., an unexpected freeze in the orange calculations. The way things are going, the day is coming groves), or a wide-spread infestation of crop pests can cut when they’ll probably have to rethink how they figure supplies and drive up prices temporarily. inflation to reflect true reality. But this is something different, something unlike any- While oil dominates the headlines as it rebounds from a thing the modern world has ever seen before. Occasional sharp pullback last year, food prices have been zooming mostly disruptions in supply are usually transient and localized to ignored by the government and the media but acutely felt by specific geographic areas. What we’re seeing now is global, food producers and grocery shoppers – you and me. and it gives every appearance of becoming permanent. 2 A NEW PHENOMENON: “AGFLATION” These influences aren’t like weather and bug problems that go away after awhile. They’re here to stay. These drivers are Analysts at Merrill Lynch have given this new phenome- monstrous in size already and will only multiply in magnitude. non a name. They coined the word “agflation” to describe And unlike weather and bugs that temporarily affect supply, inflation driven by rising agricultural commodity prices. In these drivers generate sustained and growing demand. That’s their April research report “Global Agriculture & Inflation,” what Currie means by a “structural” increase in prices. It’s Merrill Lynch analysts Richard Bernstein and Jose Rasco being built into the markets instead of being a random event wrote: that just happens along every now and then by accident. “Food prices are rising, putting upward pressure Citigroup Euro-zone economist Juergen Michels says we should expect our grocery bill to keep going up: “The surge on producer and consumer inflation. Agflation in global agricultural commodity prices over the past two has begun. years already has boosted food consumer prices…And, while short-term swings can be volatile, the trend in food prices is Given the expanding constraints on food supply, the likely to stay strong going forward.” changing demand for food, and the entrance of the energy business as mass consumers of food products, it is not sur- prising to see food prices rapidly putting upward pressure SOARING FOOD DEMAND on overall inflation.” MORE PEOPLE EATING HIGH ON THE HOG Bernstein and Rasco went on to say, “That phenomenon A major component of agflation is the is already underway and we call it Agflation. While inflation has become a concern for the financial markets, it has even led jumbo rise in demand for more and better food some to suggest we may be facing a period of again. What concerns us is not the cyclical rise we from increasingly affluent consumers in have seen in inflation, but a secular price rise we have seen in developing countries. the global agricultural business that may be more long-lived, or Agflation. Agflation is bad news for the consumer, already The economic boom in Asia means billions more of the under pressure from higher energy prices.” world’s citizens now have the wherewithal to enjoy something Note that they say this is not a cyclical event such as we’ve better than a daily bowl of rice, to get a taste of the good life seen before, but is instead a “secular price rise,” meaning we that people in developed countries have long taken for granted. can expect it to be persistent and “long-lived” – it won’t be China and India alone represent two billion people whose over in a couple of months. growing affluence enables them to afford a much tastier and more protein-rich diet than their parents and grandparents ever dreamed of. Their eating habits are turning from a veg- THE “FOOD, FEED, AND FUEL” EFFECT gie-dominated table to include more meat and dairy products. The rapid rise of food costs is no accident, no fluke, no They clamor for more abundant and better quality food spike. It’s driven by what analyst Jeffrey choices, and they have the to pay for it. Currie calls the “food, feed, and fuel” effect: In China, the meat of choice is pork. In fact, the Chinese Food: Agricultural commodities consumed directly by word for “meat” MEANS “pork” to most Chinese. They love humans. the stuff. Last year, Chinese living in cities (who are most able Feed: Commodities used to feed livestock for meat, dairy, to afford good food) ate an average of 43 pounds of pork, and poultry end products and to feed the production according to the Agriculture Ministry. of packaged food products. This ravenous appetite for pork – which has nothing to Fuel: Energy products such as ethanol produced from distilla- do with the fact that this is The Year of the Golden Pig on the tion of grains (moonshine for your car, you might say). Chinese calendar – has driven pork prices up more than 43% Currie says the bullish charge in grains in recent times “is not in a year in China. Such a dramatic rise in the price of a a transient spike, but rather represents the beginning of a mainstay food source hits especially hard in China and other structural increase in prices.” developing countries, where consumers feel the pinch of food The speeding escalation of food prices is costs much more acutely than in the developed world. Food makes up about 10% of the consumer price basket driven by increased human consumption in the U.S. and Britain, about 14% in the Euro-zone. In developing countries, however, the ratio is much higher. In demand for food and the fast-growing diversion South Africa, food takes 25% of the consumer budget. In of food grains to the production of biofuels - China, the citizenry forks over fully one-third of its hard- earned money for food. In India, it’s 45%, and in the the “food, feed, and fuel effect.” Philippines 50%. Call your account representative today toll free... (800) 459-2646 3 Obviously, rising food costs slam a disproportionate impact BIOFUELS DIVERT FOOD TO ENERGY on inflation in developed countries. The effect has been dra- Soaring food demand – enough by itself to inflate grocery matic, especially in the world’s two most populous countries. bills – is only half the story. Even as the world’s population In China, where food takes up 33% of the consumer demands more food, supply is rapidly being diverted to the price index, the CPI jumped by 3% in April alone. The food production of fuel alternatives to oil. component soared 7%, while other rose only 1%. The rush to alternative energy sources is all the rage these The food price index in India is up 11% year on year. days, with good reason. The world runs on oil, but it comes Emerging forced India to become a importer of with a bucketful of worries: high prices, uncertain supply wheat this year for the first time since 1975, more than 30 years. from geopolitically unstable areas, environmental concerns The problem will only get worse as the demand for meat over global warming…and the fact that the day is coming and dairy products enlarges. On average, domestic animals when the oil will simply run out. consume about nine pounds of grain to produce one pound The US government is committed to cutting America’s of meat. The Organization for Economic Co-Operation dependence on oil by 20% by 2017. To do that, Washington and Development (OECD) predicts that beef consumption is targeting a fivefold increase in renewable fuels. alone in developing countries will increase by nearly a third The Green movement and opportunistic politicians have by 2015. seized on ethanol as favored Add pork and poultry in China, and it power source for the world’s means tons more grain will be needed to keep Even as the world’s popu- rolling stock. Ethanol can be up with demand. Even though China is the made from any number of world’s second-largest corn producer, it’s lation demands more food, plants, including sugarcane, expected to become a net importer of corn by corn, maize, soybeans, oil late 2008. supply is rapidly being palms, and sunflower seeds. It’s China’s Communist leaders put grain diverted to the production being touted as a “renewable” security at the top of their priority list, on a par fuel source. with oil…and they’re worried about the dramatic of fuel alternatives to oil. Ethanol has captured the rise in food prices. The concern is that the public imagination in what has natives may get restless and take to the streets to been called “ethanol hysteria,” protest, just when Beijing desperately wants to put on a pretty face even though it’s not really a green fuel and, in the United for the 2008 Olympics. They don’t want another Tiananmen States at least, not a particularly efficient alternative to oil. Square debacle to mar their world “coming out” party. Worse still, ethanol production is draining critical supplies of In May, Beijing became alarmed enough to call an emer- food and feed grains to make fuel. gency Cabinet session to address the crisis. They called for a The main focus in the US is on corn, even though it is far moratorium on the domestic production of ethanol made less efficient for producing ethanol than sugarcane, which is from corn and other food crops. Yet even with curtailment of the basis for Brazil’s highly successful and productive ethanol ethanol production, grain supplies are being crimped by the initiative. Corn requires more energy than sugarcane to spread of urban sprawl in the country’s most fertile land on produce the same energy output. Many of the distilleries are the eastern seaboard as more Chinese abandon the drudge of powered by high-polluting and inefficient lignite coal. the farm for a better life in the city. Besides using dirty coal to fire the distillery, it takes a lot Chinese Premier Wen Jiaboa ordered local governments of energy to fertilize and irrigate the corn, not to mention to increase food assistance for low-income families and offer the energy used to haul it the long distance to the distillery. farmers subsidies to encourage pig-rearing. He went on On average, about 40% of the energy to produce ethanol is national TV to calm and reassure the people. The state news- spent growing the corn, 20% to transport it, and 40% to paper suggested releasing supplies from the national pork convert it to ethanol. Next generation production methods reserve. (Yes, just as we have our strategic oil reserve in the being developed show promise of improving the energy and US, China maintains a strategic frozen pork and live pig emissions output of corn-produced ethanol, but they’re still reserve to guard against severe shortages.) on the drawing board. The Asian boom has the muscle to keep running for years, Meanwhile, the Institute of Electrical and Electronics maybe even decades. With China and India leading the pack, Engineers (IEEE) has dubbed corn a “loser” source for other Asian nations are just now hitting their stride in a race to ethanol production because “It does not substantially reduce catch up – South Korea, Taiwan, Vietnam, Thailand, Malaysia, carbon emissions and its viability depends on artificially high Indonesia, the Philippines. As the standard of living in Asia subsidies and artificially low coal prices that do not reflect keeps rising, demand for more and better food will rise with it, health and environmental costs.” turning up the pressure on food prices higher and higher.

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However, the huge political clout of the Midwest farm- Whether corn or sugarcane or even some other crop belt pressured Washington into the misguided choice of corn that may someday become a popular ethanol feedstock, the to subsidize for ethanol production in the U.S. For the result is that land traditionally used to produce food is now American consumer, it may be one of the costliest mistakes being lured into more profitable crop production for yet by the morons inside the Beltway. ethanol. This new-found demand is here to stay, and will Global consumption of corn will hit a record 730 mil- have a continuing impact on corn prices and all food products lion tons this year, exceeding supplies for the sixth time in derived from corn. seven years, according to the USDA. World stockpiles of “It is very rare you see a commodity have a completely corn will shrink to 88 million tons, the lowest level in three new demand source,” says Brent Harris of Pacific decades. Corn inventories in the US have fallen to just 40 Management in Newport Beach, California. “That's going to days’ consumption supply, sinking below the previous continue for years and years to come.” record low set in 1973. The average supply is 88 days. The trend puts the world’s motorists on a collision course Worldwide, grain reserves (carryover stocks) have shrunk to with the world’s hungry in the scramble for agricultural 57 days supply, the lowest level in 34 years. resources as farmers must now fill cars as well as stomachs. The United States produces three-fourths of the world’s corn supply. The Department of Agriculture reports that US growers planted 90.5 million acres of corn this year, a sharp 15% increase over the 78.3 million acres planted last year. It’s the most US farmland devoted to corn since World War II. Even cotton land in Mississippi and wheat fields in North Dakota have been converted to corn production. Yet the extra corn production doesn’t mean more food for the world. It’s going straight to the ethanol distillery to make fuel. One-fifth – 20% – of American corn production this year will be processed into ethanol. Next year it’ll be even more – 30% of our corn production will go into gas tanks instead of on the dinner table. Ethanol plants in the US are sprouting up as fast as cornstalks. Already, 114 US ethanol distilleries can produce 5.6 billion gallons a year. Another 80 distilleries are under construction now, along with seven factory expansions. In total, the added facilities will double production capacity by the end of this decade to 12 billion gallons, says the Renewable Fuels Association in Washington. President Bush has called for biofuels production in the US to reach 35 billion gallons by 2017. Brazil, the undisputed leader in ethanol development, more wisely chose sugarcane as its source for fuel production. Domestically, 20% of the fuel burned in vehicles now is ethanol and 70% of new cars sold in Brazil are flex-fuel equipped to burn a blend of biofuels and gasoline. Brazil has become the world’s leading exporter of ethanol. Over the next five years, exports to Japan, Sweden, China, and other countries are forecast to double to more than $1.3 billion. However, there’s a price to pay. More ethanol demand means more sugarcane demand which means more demand for land to plant it on. Brazil’s oxygen-replenishing rainforests are already being gobbled up at an alarming rate for farming and ranching. The quest for more land to grow sugarcane may lead to more rainforest destruction. Farmers in Europe are switching in droves to fuel crops to meet a requirement by the European Union for biofuels to make up 20% of the energy use. Call your account representative today toll free... (800) 459-2646 5 THE BIG PICTURE IMPACT OF AGFLATION That’s not all. As more land is diverted from other Noted economist Lester Brown from the Earth Policy crops to corn, that means diminished supplies of THOSE Institute told the US Senate recently there are already clear commodities – soybeans and cotton, for example. So the indications that the world’s food economy is merging with price of products made with those products rise, too. the fuel economy. He argues that the ethanol boom has Cotton clothing, leather goods, and other non-food products seen sugar prices track right alongside oil prices. Soon he from farm animals will climb along with food costs. expects the same for grain. “As the price of oil climbs, so Food producers and grocers have been trying to hold will the price of food,” he says. “If oil jumps from $60 a back the rising tide of food prices by absorbing the increases, barrel to $80, you can bet that your supermarket bills will but they can’t hold out forever. The dike will burst in a flood also go up.” of price shocks such as the world has never seen before. Commentator Daniel Howden wrote in Britain’s The ► Agribusiness giant Tyson says higher feed costs led to a Independent that “In the developed world this could mean a 41% drop in profits in the first quarter. Tyson has given change of lifestyle. Elsewhere it could cost lives.” Since food notice that it will try to pass on those costs to consumers. comprises a much larger share of the budget in Processed chicken prices are up nearly 30% year on year. developing countries, the impact of rising food costs hits the ► Dean Foods, the nation’s largest milk processor and distributor poorest people hardest. Earlier this year, protest riots erupted lowered 2007 earnings expectations because of rising milk in Mexico when the cost of tortillas (made with corn or wheat costs. In May, the for a gallon of milk was up flour) zoomed 60%. 6.2% from last year. CEO Gregg Engles said, “It has become Howden notes. “Soaring food prices have already increasingly likely that conventional raw-milk prices will reach sparked riots in poor countries that depend on grain imports. all-time highs by the third quarter.” More will follow. After decades of decline in the number of ► Chocolate king Hershey and coffee leader Starbucks both starving people worldwide, the numbers are starting to rise. issued earnings warnings for the year due to milk costs. The UN lists 34 countries as needing food aid. Since feeding ► Climbing cheese prices threaten Kraft Foods, the nation’s programs tend to have fixed budgets, a doubling in the price largest food company by volume, and prompted Pizza Hut to of grain halves food aid.” raise the price of a regular cheese pizza. Today we fight wars over oil. The day may come when ► If painful milk costs prompt consumer to cut back on con- countries go to war over food supplies. sumption, breakfast cereal makers like Kellogg and General Even in the richest country on earth, consumers are feeling Mills could be affected. the sting of higher food costs. With corn prices soaring, the average grocery shopper’s bill is showing the strain of more While the price of gasoline at the pump gets all the head- expensive corn flakes and other products made directly with line attention, hovering near $3 a gallon in most parts of the corn as well as products from animals fed with corn – milk, country, the public is mostly unaware that milk prices have eggs, cheese, butter, chicken, beef, ham, ice cream, and yogurt, soared much faster than gas prices. Even with the high price to mention just a few. of a fill-up, gasoline at the pump is roughly about where it was a year ago, while milk prices increased by half. Of course, according to the government’s Milk Price Index vs. Gas Price Index June 06 - June 07 headline CPI, we have nothing to worry about. The fedheads conveniently strip out food and energy costs, you see. The reasoning is that these volatile commodities rise and fall seasonally and would mess up their numbers. Food prices go up or down according to how good the harvests are. Gasoline climbs in the summer when people are driving to vacation spots and dip in the winter when everybody cozies up to the heater. Heating oil rises in winter and dips in summer. Maybe it made sense to leave them out of the calculations when food and energy prices were more or less stable on a yearly average. But the rapid escalation of both food and oil costs may force the feds to go back to the drawing board with their calculations. This isn’t a sea- sonal fluctuation. It’s a secular trend higher. Universal Coin & Bullion, Ltd. • 7410 Phelan Blvd. • Beaumont, TX 77706 • universalcoin.com 6

THE DYNAMICALLY DANGEROUS DUO

The CPI is already considered a joke by many analysts NO SIGNIFICANT NEW SUPPLY AVAILABLE and economists, and a cruel fraud by the more outspoken So, why not just plant more crops? We can’t do much ones. The US CPI simply no longer represents a real picture about oil supply because it’s dwindling as all the known major of what you and I are having to pay for the basic supplies of oil fields have peaked or soon will. But we can produce more everyday life. “renewable” crops, can’t we? Vigilance by the Federal Reserve, which under Alan Easier said than done. Farm experts say there simply isn’t Greenspan and his successor Ben Bernanke have tried to keep much spare capacity of cultivatable land in the world. They a stopper in the inflation jug, holding it in the low single say there are some areas around the Black Sea and parts of digits for several years. But the Fed may be powerless to stop Brazil and Africa that could bear more crop cultivation. But the coming explosion in inflation. that’s about it, and it’s not enough. The double whammy of petroflation and The double whammy Crop yields might be increased agflation – surging oil prices coupled with even on existing land through the science faster rising food costs – will inevitably cascade all of petroflation and of genetic modification. But the through the economy. As workers have to pay more agflation – surging oil practice is controversial and worri- for food and gas, they will demand higher , some to many people, especially to which forces prices even higher, and so the classic prices now coupled the very Green advocates who are inflation spiral is uncorked once again. with even faster rising yelling the loudest for more crops to The impact of agflation honors no borders. Both food costs – will feed and fuel the world. developed and developing countries are feeling the The stark reality is that, like oil, sharp stick of inflation in the belly. US food prices are inevitably cascade all there just isn’t much more agricul- expected to outpace the general inflation rate by as through the economy. tural production available. Any much as 2% over the next two years at least. Britain’s increases will be incremental at best, reported inflation rate of 3.1% in March was driven not nearly on a scale to keep pace up by food prices that gained at the twice the rate. In Turkey, with the skyrocketing demand. inflation has jumped into double digits, hitting 10.7% as food Bottom line: prices rose four times faster than a year ago. As mentioned earlier, China’s inflation rate hit 3.0% in April, just missing a Agflation is here to stay… two-year high, driven by food price inflation of 7.1%. Nobody, it seems, is immune. and it will only get worse. Call your account representative today toll free... (800) 459-2646 7 Guard Your Wealth With Gold There’s nothing much you as an individual can do to stop from Germany, precision watches and chocolates from agflation and its ultimate impact on broader inflation. But Europe, luxurious leathers from Britain. The weaker the there are steps you can take to protect your family and your dollar, the sharper inflation of imported goods rises. own personal wealth from the effects of agflation. There’s also the very real risk that foreign holders of I won’t go into discussion on stocking up on survival dollar reserves and dollar-denominated assets will at some stores of food for you and your family. That’s up to your per- point despair of the erosion of their dollar holdings and sonal philosophy. But I will mention that lots of thoughtful switch to other , like the Euro and Australian dollar, people are taking such precautions in preparation for the and gold. Some have already started – China, Russia, Iran, potential massive food shortages to come. Oman, United Arab Emirate among them. Significant central As to your personal wealth, I recommend boosting your bank buying would put extraordinary upward pressure on gold holdings to at least 15% of your investment portfolio if gold, on top of the underlying inflationary pressures. it’s not there already. Some of it might be So the case seems to be clearly evident in gold ETFs or mutual funds, but a and persuasive for owning an insurance hefty share of it should be in physical The most convenient stash of gold. The most convenient and gold that you hold in your possession efficient way to own gold is rare coins. and can get your hands on readily. and efficient way to Certified gold coins pack huge value in a The reason for owning gold is small space – making them handy to simple and straightforward. Inflation own gold is rare coins. store and transport. means the US dollar buys less, so the Certified gold coins Certified gold coins carry an official price of gold historically goes up as grade denoting their quality according to the dollar goes down. The inverse pack huge value in a an established industry standard. That relationship of gold and dollar has gives you assurance that you get what been well-demonstrated over recent small space – making you pay for and makes the coins easier to history, and there’s little reason to them handy to store sell because they’re of a known quality. expect it to do anything dramatically Price movements in rare gold coins different in the future. and transport. tend to move more slowly than the The dollar has been in a steady general gold markets, so you aren’t as decline since 2002. Recently the plunge likely to be surprised by price shocks. And has steepened as other central banks around the world have they tend generally to hold their value over the long haul, been raising rates while Bernanke and Co. have been though some individual coins may do better than the overall forced to sit on their hands. They can’t raise interest rates coin and others not as well. because the economy is sluggish and couldn’t take the hit. I strongly urge you to look at pre-1933 American gold The dollar very likely will continue to slide because coins for your gold investment. The available supply is pub- Washington will do nothing to stop it. A weak dollar helps lished regularly and is mostly stable, so there’s little likelihood American manufacturers sell their goods abroad and preserves of a flood of new supply being dumped on the market to American jobs, so it’s politically expedient. It also cheapens degrade the value of your holdings. the monstrous federal budget and deficits, in effect As it stands now, this is an ideal time to expand your gold devaluing them away. coin portfolio. Coin values have moderated over the past year BUT, a cheaper dollar also means more expensive price after a sizzling four-year runup (though quite a few popular tags on the imported goods Americans can’t seem to get coins have kept on appreciating). This “pause that refreshes” enough of – cars, electronics, digital cameras, and clothing offers a golden opportunity (sorry, couldn’t resist the pun) to from Asia, fine wines and cheeses from France, luxury cars acquire many gold coins at what amounts to a discount from the highs reached last year. Has the pullback bottomed out yet? Only time will tell for sure. However, if you believe as I do that the bulging global inflation we’re seeing now is only the precursor to a much bigger event on the horizon, the most logical answer would seem to be, “Very likely.”

Universal Coin & Bullion, Ltd. • 7410 Phelan Blvd. • Beaumont, TX 77706 • universalcoin.com Words to the Wise… Coming In the Corporate buyers have battled rising prices for raw material com- modities such as metals and energy over the past few years, but now for many, a new enemy is at hand: “Agflation,” a term coined by analysts from Merrill Lynch earlier this year. OCTOBER _Sourcing and Procurement News Issue...

Fundamentals have been tightening ever since 2001, but now we're hitting critically low levels of stocks. We're seeing very big structur- Is your wealth safe from the Hindenburg al shifts in the world and this is going to make farmland much more Omen, the China dollar nuke, and the expensive in the future. subprime earthquake? Next month, Paul _Michael Lewis, head of commodities research at Deutsche Bank, Montgomery reveals how dangerous these predicting a long catch-up rally in grain prices over coming years explosive threats are and how to protect after lagging behind metals and oil in the early phase of the com- your wealth if they blow up. modity boom. Plus... Although the developing world would bear the brunt of agflation, Election year bull market phenomenon. it could ripple through to consumers in wealthier countries. For Usually foreshadows rising rare coin prices. example, costlier food in China could lead to increasing demands there – and, consequently, more expensive made-in- China goods for shoppers overseas. Universal Coin & Bullion _Simon Rabinovitch, “Agflation Takes Root in World Prices,” Reuters welcomes the opportunity to be your rare coin team. The stage is now set for direct for grain between the 800 million people who own automobiles, and the world's 2 billion Call toll free today... poorest people. _Lester Brown, economist with the Earth Policy Institute (800) 459-2646 The power of population is so superior to the power of the earth to produce subsistence for man, that premature death must in some Est. 1994 Universal Coin & Bullion, Ltd. shape or other visit the human race. Gigantic inevitable famine 7410 Phelan Blvd. stalks in the rear. Beaumont, TX 77706 universalcoin.com _Robert Thomas Malthus, 18th century political economist in his Board Member: ICTA / Member: PCGS, NGC “Essay on the Principle of Population”

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