What percentage of my investments should be represented by hard assets?
Each investor must decide this question based on their own objectives.  Financial planners suggest that perhaps 10% to 20% of an investment portfolio should be in hard assets. especially if the rest of the wealth is in more traditional vehicles such as stocks, bonds, real estate and T-Bills.

Can I purchase diamonds privately?
Yes.  Any dealer should protect your privacy and not request your social security number or require an application.  Your diamond investment can be totally private and non-reportable.

What is a Troy ounce, and how is it different from the ounce I already understand?
The precious metals are measured by the Troy ounce as opposed to Avoirdupois which is the type used for a doctor's scale or a postal scale.  The Troy ounce is about 10% heavier than Avoirdupois; 14.58 troy ounces = 16 postal scale ounces.

What is the difference between a bullion coin and a bar of bullion?
The bar was popular in the early days of bullion trading.  As demand to own precious metal increased, problems with bars arose.  Because they were produced by private manufacturers, trading them necessitated the measure of their exact weight and purity.  Production of bullion coins to replace the bars was the solution because international standards of purity and weight were developed, and coins were uniformly produced.  Bars are still available today, but they are not as popular because they cost the same as coins but usually sell for less, and the market is not as liquid.

Is a bullion coin that contains alloy worth less than one that contains no alloys?
All bullion coins of same size contain the same amount of gold. There is no difference in value if the bullion coins are alloyed or not.  Some prefer pure gold coins which can be melted and some prefer alloyed coins which do not scratch. South Africa, for example, was one of the first to enter the alloyed bullion coin market with the Krugerrand series of gold coins. These coins are .916 fine gold with some copper alloyed to keep them from being too soft. Canada, on the other hand, produces bullion coins with no alloy called the gold Maple Leaf.  They are produced in .999 fine gold.  This means they are pure with no alloys.  The same size coins of these two varieties contain the same amount of gold.  In other words, a 1 ounce Krugerrand contains the same amount of gold as a 1 ounce Maple Leaf - 1 ounce.

What is "Junk Silver"?
This refers to a popular way of owning silver in legal tender form.  The term "junk" refers to average condition circulated silver coins.  All silver coins minted prior to 1965 are 90% pure, and these coins are sometimes offered in bags which contain $1000 worth of the face value of the coins. The bags weigh 54 pounds, and sometimes the term "junk" was used so that the investor would not expect any rare coins to be included.  Because these coins are 90% pure, the bags usually move up or down with the daily price of silver. These bags contain about 715 oz. of pure silver.

I own silver 50¢ pieces which were minted after 1965. Are they valuable?
Yes. Many investors own some proportion of their silver in this legal tender form. The last silver coin the United States made for general circulation was the 40% silver clad 50¢ minted between1965 and 1969. A $1000 face value bag of 40% pure silver, contains 296 troy oz. silver. This means that, compared to the 90% coins, the face value of these coins is high relative to their silver content. This limits the money at risk should silver move lower. Another factor makes these coins popular: unlike 90% silver bags, investors are usually not required to fill out I.R.S. Form 1099B when selling.the 40% bags.

Who is De Beers?
De Beers handles 65 percent of the diamonds that are marketed to the world.  The success, stability, and appreciation of diamonds for over 65 years are due largely to De Beers.  One of De Beers' policies is to maintain price stability against inflation and economic depression.  De Beers, through the Central Selling Organization as market regulator, seeks to stabilize supply and demand and to temper speculation.

Why do some quarters feature the states?
The United States Mint issued the first in a series of quarters redesigned to honor each of the 50 U.S. states on January 5, 1998.  The ten-year program, authorized by the Congress of the United States in 1998, will commemorate each state in the order in which they signed the Constitution of the United States or joined the union.

The mint distributed Delaware quarters over a ten-week period before moving on to designs honoring Pennsylvania, New Jersey, Georgia, and Connecticut.  The mint will introduce five new designs each year through 2008, and will produce between 500 million and 700 million copies of each design. The eagle design will not be produced during this period. Prospective designs are submitted by state governors and must be approved by the secretary of the treasury. The most dramatic changes to the design are on the reverse side, but the obverse (front) side of the quarter was also changed to accommodate the new reverse designs. These include moving the inscriptions "United States of America" and "quarter dollar" from the reverse side to the obverse side. The design of the quarter was last changed in 1975 and 1976 when the eagle image was replaced by that of a colonial-era drummer in celebration of the U.S. bicentennial.