Wexford Capital Management, a registered investment advisor from 1985 to 2005, prides itself on offering investment products at very competitive prices over the Internet.  We have reduced our overhead by using this electronic medium, and we intend to pass on the majority of those savings to you, our valued clients.  We charge a 1.1% commission or mark-up over our cost from our wholesalers on Gold Bullion products, a 1.7% commission on Silver Bullion products, and a 1.5% commission on Palladium and Platinum Bullion products, both coins and bars.  Minimum order size, per invoice, is currently $5,000 on both sales and buy-backs.

Listed below are representative prices for the Bullion Coin and Bar products that WCM is currently recommending to clients based on portability, refined purity, market liquidity/ acceptance, and existing premiums over melt.  As one can observe, WCM total premiums over melt or weight-adjusted spot prices are approximately 45% to 20% below that of most coin or bullion dealer offerings.  Reduced transactions costs always benefit the investor right from the outset.

With both U.S. credit and equity markets exhibiting stressed and overvalued conditions, it is a prudent investor who searches for avenues to diversify his/her portfolio into tangible, hard assets, such as precious metals, that  possess the following characteristics:

1.  Negative or weak correlation to price movements in the financial markets, especially the stock market.

2.  A millenniums-old medium of exchange or monetary unit that does not represent any government's liability or ability to repay; confidence in issuing entity is 100% due to ability to assay precious metals for purity.

3.  Reasonable portability should the need arise for transfer during a time of crisis; shipping and handling costs not the detriment suggested by the financial press.

4.  Well-established intermediaries exist for long-term storage and insurance if holdings do not fit in safe deposit boxes or secluded sites controlled by investor.

5.  An asset class that was in a bear market for over 22 years, that was oversold, disdained by Wall Street, and now exhibits signs of physical accumulation while breaking out to new multi-year highs.

6.  Excellent liquidity with bullion markets trading continuously around the globe 23 hours per day and with no determination of market value required by investor upon resale.

7.  An asset that central banks will increasingly use to shore up confidence in sagging fiat currencies as excessive monetary and fiscal policies cause major paper money devaluations going forward.

8.  An asset that has retained its purchasing power during both inflations and deflations, a key characteristic in a time of domestic Dollar devaluation.

Broker's Note, Year's End 2007 (December 31, 2007):  

The Real Estate Bubble and Derivative Collapse of 2007 is firmly and scandalously now written in the pages of history.  Resultantly, Gold and Silver regained their deserved positions as Safe Havens in times of acute economic and financial system distress.  As major financial institutions around the globe become technically insolvent in 2008, gold and silver will also regain their roles of Currencies of Last Resort.  No sovereign currency will be trusted by citizens not to be debased by its domestic governments and Central Banks in the years ahead.  The efforts by virtually all governments to re-liquefy the global economy and financial system will be met with failure as we have entered the Loss of Confidence Phase in this historic, pre-depressionary cycle.  Lenders will not lend, and Borrowers cannot or will not borrow at this stage of the cycle.  Expect to see real life reports of 15% inflation in 2008.

No bull market progresses in a straight line, and 2007's price activity was no exception with consolidation occupying months of price activity to be followed by new and explosive advances occurring thereafter, especially during the Second Half of the year.  2008 will start strong with the old $850 high for Gold being blown away, but we feel the coming year will prove to be even more explosive in price movements upward over compressed periods of time due to the developing collapse of diverse financial markets, to include commercial paper and money markets.  Global financial markets are already in disarray and will deteriorate further as signs of global recession become undeniable by the Second Quarter, 2008.

Gold will have gained a record 32% in 2007, while Silver appreciated a still respectable 15%!  Both precious metals handily beat the U.S. stock and bond markets ...... AGAIN!!

Throughout the history of man, gold and silver have been the Currencies of Last Resort when fiat, government-created domestic currencies have experienced severe devaluations and the inevitable loss of confidence.  2008 will undoubtedly see a persistent continuation of the secular Bear Market for the U.S. Dollar, with a forecast decline to the 65 area on the Dollar Index from around 77 at the beginning of 2008.  The Federal Reserve under Bernanke and the U.S. Treasury under Paulson have pulled out all of the stops to start monetarizing the insurmountable U.S. debt by literally flooding the global system with Dollars in a manner similar to the Weimar Republic in Germany in the early 1900's.  U.S. Government officials have secretly decided it will be impossible for our country to fulfill its humongous debt obligations and devaluation/ debasement of the Currency of the Realm, the U.S. Dollar, is the only way out of our fiscal and financial system messes. 

WCM's 2007 price forecast for Gold was quite Nostradamus-like:  the Gold target of $850 was almost breached by an $843 high in gold.  WCM's 2007 price forecast for Silver was more like an Alan Greenspan economic forecast:  the Silver target of $17.25 was hardly nudged by a $15.80 silver high, off by 8.5%, but who said I could be any more accurate than Sir Alan??!!

FOR 2008, Wexford Capital Management sees price targets for Gold of $1,138 per ounce and for Silver of $19.55 during the year.

No guarantees in forecasting or investing, but sure beats getting paid in certificates of Google or 20-year Treasury Notes from the under-funded SIPC or FDIC, respectively.  Not to mention the outright risks to invested capital from potentially default-plagued financial markets when all signs point to a maturing recession in the U.S. and other developed countries.  Yes, Toledo, the U.S. economy is already in recession by any Econ 101 definition.  Oh, how the monthly economic reports are fudged to keep the sheep in tow.

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Prudent investments in precious metals today are indeed, as in every other major turning point in history, very cheap insurance against the economic and financial collapse in the monumental adjustment period we currently find ourselves within.  No economic or financial system in the history of man can withstand an evaporation of $100's Trillions of purported "assets" without seismic consequences to the surrounding societal structures.

When the Powers That Are forestall the inevitable re-balancing / re-adjustment process through ultra-cheap money via first Alan Greenspan and now Ben Bernanke and Paulson, financial engineering via Wall Street, and fiscal largess via Washington, the net result is an inevitably more dire one for the constituents for whom they act.   Hundreds of years of history support my perspective and conclusion.  "This Time Is Different" will not rewrite the lessons of such historical precedent in human history.

It will not be business as usual in the years ahead, PERIOD.    A severe recession followed by possible DEpression with widespread debt repudiation are already in progress for all with a pulse to see.  Do you know what you bank CD or money market is invested in and what do you think the probability is of the sacred One-Dollar-Per-Share being broken by U.S. non-Treasury money markets in 2008??  Probably 65% to 75%.

Buy a prudent allocation of precious metals and take physical possession.  The traditional allocation of 10% to 15% of investment assets is now obsolete due to the enormity of the $Trillions of Securitized/Derivative Debt that will evaporate in the years ahead.  PHYSICAL GOLD, SILVER, PALLADIUM, AND PLATINUM are no one else's liability, unless you acquire them in paper, "promise-to-deliver" instruments.  Have you or your accountant audited the operations and financial statements of those that offer or provide you with precious metals' electronic, paper instruments or certificates, even the untested ETF's?

THE ONLY WAY TO AVOID BEING DEVASTATED FINANCIALLY DUE TO THE RAPIDLY UNFOLDING GLOBAL DERIVATIVES MELTDOWN AND DEBT IMPLOSION IN 2008 IS TO INVEST DEFENSIVELY IN TANGIBLE ASSETS in physical form.  ALL FINANCIAL AND PAPER ASSETS MUST BE ANALYZED WITH A FINE-TOOTH COMB GOING FORWARD TO DETERMINE THEIR ABILITY TO RETURN PRINCIPAL UPON DEMAND.

 

Click on Images for Bullion Product Details

 

	Product Description	WCM SELLING   PRICE	Premium Over Melt	WCM BuyBack   Price
Au	GOLD	1.1% Over
	$881.90	Cost
	American BUFFALO Gold, 24 karat  - One Ounce, 2008 / Delivered	$929.94	5.4%	$893.96
Delivered	American BUFFALO Gold, One Ounce / SPECIAL PRICING for 20 COINS or More	$922.70	4.6%	$893.96
Note	GOLD VOLUME DISCOUNTS  Shipping is free, all Gold shown as "Delivered".	For 50 Oz. or more of Gold, $0.50 Discount per Ounce.	For 100 Oz. or more of Gold, $1.00 Discount per Ounce.	For 300 Oz. or more of Gold, $2.00 Discount per Ounce.
	American Gold Eagle - One Ounce, 2008 / Delivered	$927.26	5.1%	$893.96
Delivered	American Gold Eagle, One Ounce / SPECIAL PRICING for 20  COINS or More	$922.70	4.6%	$893.96
	Canadian Maple Leaf, Gold  - One Ounce, 2008 / Delivered 20x Coin Minimum	$918.35	4.1%	$869.23
	S. African Krugerrand Gold   - One Ounce / Delivered	$904.74	2.6%	$869.23
	S. African Krugerrand Gold   - One Ounce / Delivered 10x to 19x COINS	$901.71	2.2%	$869.23
Delivered	S. African Krugerrand Gold   - One Ounce SPECIAL PRICING for 20  COINS or More	$896.15	1.6%	$869.23
	Austrian Vienna Philharmonic, Gold - One Ounce / Delivered Limited Availability	$909.43	3.1%	$882.09
	Credit-Suisse  Registered Gold Bar - One Ounce / Delivered	$904.74	2.6%	$873.19
	Credit-Suisse  Registered Gold Bar - One Ounce / Delivered TEN BARS or More	$901.71	2.2%	$873.19
	PAMP-Suisse  Registered Gold Bar - One Ounce / Delivered 20x BAR Minimum	$901.71	2.2%	$873.19
	Credit-Suisse  Registered Gold Bar - TEN Ounce / Delivered	$8,986.78	1.9%	$8,692.32
	KILOGRAM Gold Bar, 32.15 Oz., 24 karat / Delivered Comex Approved Refiner	$28,762.48	1.4%	$27,853.54
Ag	SILVER	ASK	Premium	BID
	$16.73	1.7% Over Cost
	Silver ROUND  - 1 Ounce, A-Mark Liberty  / DELIVERED	$17.47	4.4%	$16.15
Note	SILVER VOLUME DISCOUNTS *	For 10,000 Ounces or More of SILVER	For 20,000 Ounces or More of SILVER	For 30,000 Ounces or More of SILVER
	Volume Discounts	WCM Fee of 1.4% - a 29% discount	WCM Fee of 1.2% - a 41% discount	WCM Fee of 1.0% - a 47% discount
	10 OUNCE Silver BAR - A-Mark  / DELIVERED	$174.71	4.4%	$161.51
5/05/08	American Silver Eagle - 1 Ounce  2008 Date / Box Quantity Pricing	$18.79	12.3%	$17.72
Note	Free Shipping per 500 Coin Mint Fresh Box	$9,397.08	12.3%	$8,861.75
	Johnson - Matthey 100 oz Silver Bars.  1 to 24 BARS  / DELIVERED	$1,747.21	4.4%	$1,649.47
7Note6	Johnson - Matthey 100 oz Silver Bars.  25 to 49 BARS $3.00 off per Bar  / DELIVERED	$1,744.21	4.3%	$1,649.47
	Johnson - Matthey 100 oz Silver Bars.  SPECIAL PRICING for 50 to 99 BARS,  / DELIVERED	$1,734.04	3.6%	$1,649.47
	Johnson-Matthey, Engelhard, Asarco Silver COMEX Bar - 1000 Oz. Nominal, Weights Vary / Delivered/ Comex Good-Delivery Bar	$17,187.30	2.7%	$16,150.69
Note	Weights vary +/-; pricing per ounce
	90% Silver Bag - 715 Troy Oz., $1,000 Face / DELIVERED Dimes or Quarters SPECIAL PRICING of $25 off per Full Bag	$11,976.57	0.1%	$11,168.21
	90% Silver Bag - ALL HALVES / DELIVERED Limited Availability	$12,001.57	0.3%	$11,168.21
Pd	PALLADIUM	ASK	Premium	BID
	$438.50	1.5% Over Cost
2007	CANADIAN MINT Maple Leaf Coin - One Ounce /  10 Coin Minimum   / Delivered	$460.30	5.0%	$436.85
2007	Maple Leaf Coin - One Ounce SPECIAL PRICING for 20 to 99 COINS, $1 off per Coin    / Delivered	$459.30	4.7%	$436.85
2007	Maple Leaf Coin - One Ounce  100 or more Coins   / Delivered	$458.29	4.5%	$436.85
	Credit-Suisse Bar - One Ounce / 10 Bar minimum / Delivered	$459.29	4.7%	$429.95
Note	For all Maple Leaf and Credit-Suisse Palladium, shipping is free.	$2.00 off per ounce for 100 ounces plus Credit Suisse  1 oz. Pd Bar.	4.3%
	Credit-Suisse Bar - TEN OUNCE 2 BAR MINIMUM / DELIVERED	$4,572.58	4.3%	$4,269.68
		$20.00 off for 100 ounces or more, per Credit-Suisse 10 oz. Bar.
Pt	PLATINUM	ASK	Premium	BID
	$2,082.00	1.5% Over Cost
	PLATINUM American Eagle Coin - Prior Date Only	$2,138.61	2.7%	$2,055.70
Note	For orders of 15 Ounces or more of Platinum, shipping is free.

 

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Frequently Asked Questions

Many clients have inquired as to how they should store their precious metals investments, and certainly with gold, palladium, and platinum, a safe deposit box is a viable alternative.  Regarding silver, with a much lower value to weight ratio, it may require a little more ingenuity, but for clients with personal residences and any amount of property, there are many creative alternatives.  Silver is going to tone over time, often becoming very dark with a silver oxide coating, but resale value is never affected by this natural occurrence; in fact, it is expected.  Gold is a more inert metal, so very little toning occurs over time.

For clients that do not want to handle or store their precious metals purchases, there are numerous gold bullion  storage or depository services around the country that charge a nominal annual fee of around 1.5% of stored value for fully insured, segregated storage and safekeeping.  Since 1997, I personally have used the services of Delaware Depository Service Company (DDSC) in Wilmington, Delaware, and I find their services to be very professional, highly secure, and competitively priced.  Their website is at www.delawaredepository.com and an account can be opened prior to placing a precious metals order with WCM.  A copy of the DDSC Individual Precious Metals Storage Agreement can be found at:

We will drop ship your order right to their Wilmington, DE storage facility with your account title and DDSC account number on the shipping label and enclosed invoice.  With the first terrorist attacks on U.S. soil in 1991, I personally like the fact that their location is not considered a prime terrorist target, not to mention their multi-decades' reputation and diversity of depository services.

All investors must do their own due diligence in selecting a gold bullion storage or precious metals storage company, and Wexford Capital Management receives no consideration, monetary or otherwise, for making this recommendation.   I offer this information strictly in an effort to assist existing and prospective clients in their physical gold, silver, palladium, and platinum precious metals investing.  Third-party bullion storage may be especially appropriate for investors considering significant volume purchases of the precious metals.

David W. Young, President
Wexford Capital Management

Wexford Capital Management
David W. Young, President
113 Brenton Court
Stephens City, VA  22655-4819
Toll-Free  (877) 855-9760 
Fax (800) 858-9324