ABCs of Gold Investing 3rd Edition

Preview - ABCs of Gold Investing 3rd Edition


"The possession of gold has ruined fewer men than the lack of it." -Thomas Bailey Aldrich


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abc's of gold 3rd


Second Edition

Reader Reviews at

Michael J. Kosares has presented a product that can be readily read and understood by almost everyone. One does not need to be a PHD, or even a college graduate, to use this book to his or her advantage. Whereas most investment treateses are written for a person with an advanced degree in economics, I was able to read and take his advice to heart from the beginning. Time will tell if my decisions as to what type gold to purchase, and how much of my total investment program should be dedicated to gold purchases, were good decisions, but if they were not, I will not be able to say that a mistaken decision was caused by bad advice contained in. In addition, it is an "easy read," which adds to its value for me."A must read if you are considering gold... an easy to read book that you should have in your library if you own gold or are considering gold as an investment. . . Bottom line - read The ABCs of Gold Investing and then read it again. There is much wisdom between the covers of this book."

"Simply a superb 'how to' guide book for beginners in gold investing. As good as gold."

"Terrific starter book! Lots of nice information that's not found on any of the commercial investing sites. This book will contribute much to my wealth, and it does not pretend to give us investing advice. It's a fun read, absolutely worth the price, and anyone holding gold (or thinking about it) should read this. I intend to read it over again. Soon."

"Not being a 'savy' gold investor, I wanted to find a book that would provide a good understanding of all the issues surrounding gold investments both for profitability and asset protection. This book is definitely worth the read. It is very informative in covering the history of gold and how it responds with inflation and deflation, explaining different investor objectives, and providing a great overall summary of how to go about investing in gold. This book has provided me the basic knowledge to begin my gold investing. Good book to have in your library."

"If you are new to gold investing, this is the book you want to own. As a researcher looking at the dynamics of financial crises, and how individuals can protect and grow wealth in such an environment, I own a number of books that discuss gold's merits. Kosares' work provides an excellent overview of gold as a tool for asset preservation and growth. The strategies in the book incorporate the physical commodity rather than paper instruments like mining stocks, so be advised. I highly recommend this easy-to-read investment guide."

"I cannot recommend this book enough if you are planning on investing in gold. It is perfect for a Beginner. This book is well written, organized with a wealth of information, and very easy to read. Mr Kosares, who has over 30 years experience in investing gold, gives very good reasons why you may want to invest 10-30% of your portfolio in gold, what form of gold to buy, what to look for as you find a gold firm to purchase from, how to try and prevent the US government from confiscating gold from you as FDR did in 1933, objectively compares gold vs. silver investment, what has to be reported to the IRS, how gold is a winner during inflationary and deflationary times, etc etc. There is a lot to know about gold investment, and this book is a very good road map to investing in gold successfully. I highly recommend this book."

Trade Reviews

"If you are looking for thorough guidelines for making good decisions about private gold ownership, has all the answers."

-- Money World Magazine

"Highly recommended!"

-- The Midwest Book Review

"Whether you own some gold or are just toying with the idea, you must have this book."

-- The Conservative Book Club

Five Star Review

The first step on the road of communicating in a given language is learning the alphabet. Letters in the alphabet represent sounds. Combining the sounds appropriately results in the formation of words. Words convey meaning. A series of words form a sentence. And a sentence allows for complex expression. Or as Oswald Spengler put it so eloquently, "It is by means of names and numbers that the human understanding obtains power over the world."

In other words, knowing the ABCs is important.

Michael Kosares has carried this concept over into his book , in which he considers and explains the rudiments of investing in precious metals. As he states in his introduction, his book provides "a basic who, what, when, where, why, and how of private gold ownership."

The ABCs of Gold Investing is arranged alphabetically. For example, A is for Asset Preservation. B is for Bullion Coins. C is for Choosing a Gold Firm, etc. And although the arrangement is a little different compared to most books, it is very effective. Which means it makes for a pleasant reading experience. An experience that sidesteps the wasteland of another-boring-investment-book and enters the wonderland of learning-can-be-fun-and-profitable.

Each letter illustrates an aspect of investing in gold.

In A is for Asset Preservation, Kosares gives some chilling economic statistics that show just how gooey America's financial predicament is. In 1970, federal debt was $436 billion. That number metastasized to $7 trillion by the end of 2003. And during the same time frame foreign debt went from "a mere $12.4 million" to "a dizzying $1.5 trillion." And if that isn't enough to alarm you, Kosares directs your attention to two other boogeymen: since 1970, there's been a 490% increase in the consumer price index and taxes have increased "1.5 times faster than income." After reviewing the status quo, Kosares' conclusion is simple. "Gold affords humanity precisely what it needs from time to time -- the protection of wealth against the most threatening circumstances, not the least of which is the destruction of a nation's money by its own government."

The letter H is for The History of Gold since 1971. Gold's history reflects more than just highs and lows on a price chart. For gold is "a political metal," according to Kosares. Which is quite a statement, because it indicates that global economics involve a lot more than simple supply and demand. Politics complicate the mix. What is interesting is that despite its price fluctuations, gold's trend is relentless. Although erratic at times, the trend is always upward.

According to Kosares, I is for The Inflation-Deflation Debate. On the one hand, the deflationists maintain that the present debt levels will end in default. When that happens, banks will fail, triggering an economic crash. Which means the price of gold will skyrocket. On the other hand, the inflationists say that the government will have no choice. Rather than letting the boat capsize, the government will frantically begin bailing. Which means monetizing the debt by printing more and more paper money. The end result will be inflation followed by hyperinflation. Gold will skyrocket. In other words, both scenarios bode well for gold. As Kosares points out, "Yet to the gold investor, the inflation-deflation debate is purely academic." Gold is a sure-fire hedge no matter what occurs.

Kosares makes an important distinction between gold and silver in K is for Kindred Metal -- Silver. He states silver and gold are "two quite different metals and are used by portfolio planners for two entirely different purposes." Gold's primary function is to preserve wealth, while its secondary function is as a commodity. Whereas silver is just the opposite. Silver is a commodity first and a preservative second. Therefore, silver should be played like a commodity. "It should be held for its profit potential and at some point converted back into cash or gold." Kosares' advice to investors is to add silver to their portfolio after they have established a "strong gold position."

In Kosares' alphabet, the letter M is for Myths and Realities about Gold. And for beginning investors, this is a weighty section, because the author dispels some of the old wives' tales about gold. One of the fables discussed is "gold is a barbarous relic of past monetary systems, irrelevant in today's fast-moving, computerized markets." Kosares dispels this myth by quoting Paul Volcker, who stated "that central banking as we know it today is, in fact, largely an invention of the past hundred years or so ..." In other words, gold has been around for thousands of years. And has always had "universal value for both individual investors and nation-states."

The ABCs of Gold Investing concludes with the letter X -- the XYZs of Gold Investing: Closing Thoughts. Kosares sums his book up nicely by setting forth two basic reasons for investing in gold. The first reason is the lack of a gold standard. This means paper currency is issued willy-nilly. The result is paper currency that resembles Monopoly money -- there's a lot of it but it's not worth much. To protect their assets, investors should enforce their own gold standard and buy gold. The second reason is one of supply and demand. International demand for gold far outstrips mining production. Which means the price of gold -- ultimately -- has no where to go but up.

In the end, gold is the antidote.

The ABCs of Gold Investing is a worthwhile read. For it introduces investors to the fundamentals of owning gold. Kosares presents his material in an organized and fluid manner. Which means his text flows smoothly and is comprehensible. And it is obvious to the reader that Kosares has no doubt what he is writing is correct. To that end, he puts his heart and soul and his accumulated experience into his book. You can't ask for more than that from anyone.

On the Read-O-Meter, which ranges from 1 star (deplorable) to 5 stars (outstanding), catalogs 5 stars. This book is highly recommended.

-- Review by Silver Monthly