First Edition - Published in 1996
The text that started it all. Before the internet made volumes of information instantly available at the click of a button, those in search of new knowledge or a deeper understanding of a subject turned to physical books sold in stores like Barnes & Noble or Borders, or checked out at local libraries. As the first widely accessible and easily readable educational 'how to' treatise on gold ownership, 'The ABC's of Gold Investing' quickly found its way onto bookstore and library shelves across the country.
It was an interesting time in the gold market, with the price stagnant and rangebound for over a decade following an incredible run during the 1970's. The notions established during the 1990's that gold was a 'barbarous relic' that had become meaningless in modern finance had taken firm hold. But the financial fractures were starting to show, and those tuned to them were becoming increasingly aware of growing risks in the economy. Shortly after the book was published, growing concerns over systemic failure during Y2K prompted significant demand for gold. Though those motivating factors didn't exactly come to fruition, the die had been cast, and gold had quietly found it's way back onto investors' radar.
It didn't hurt that most who found gold during that era did so at the absolute bottom of gold's multi-decade bear market.
From the introduction of the first edition of 'The ABC's of Gold Investing', insight into Michael J. Kosares' thoughts in 1996:
"I often counsel investors that purchasing gold is not 'investing' at all. In reality, you are simply replacing one form of money in your savings plan with another. During the past year or two, interest in gold has accelerated to levels not seen since the 1970s. There are good reasons for this, not the least of which is a sense that there are some deep, underlying problems in the US economy...These are indeed uncertain times. Perhaps gold can offer you what it has offered countless others over the centuries - solid, unassailable protection against the gathering storm."
Second Edition - Published in 2004
From 1999 - 2002, then Chancellor Gordon Brown infamously sold half of England's gold reserves at the lowest gold prices since the dollar was de-pegged from gold in the early 1970's. Now colloquially known as the 'Brown Bottom', it marked a seminal shift in the gold market.
By the time the second edition of 'The ABC's of Gold Investing' was published in 2004, gold had posted substantial gains of nearly 20% in both 2002 and 2003. A fledgling bull market had begun. The tech bubble had burst, and with it, the broader stock market also entered its own bear market in 2001. Alan Greenspan ushered in a new age in Central Banking, using interest rate adjustments to jump start the flailing American economy. While successful in part, his policies also fueled an unprecedented housing bubble, the collapse of which precipitated the Financial Crisis of 2008.
Gold entered a sustained bull market that saw it not only eclipse the previous highs achieved in 1980, but ultimately come just shy of of the psychological $2000/ounce level at it's peak in 2011. And in the process, gold once again became a fixture in the portfolios of American investors. 'The ABC's of Gold Investing' remained an instrumental and instructional tool in what was arguably the most economically turbulent decade in a generation - a decade which saw gold increase an astonishing 780% from it's low in 2001 to it's peak in 2011.
From the introduction of the second edition of 'The ABC's of Gold Investing', insight into Michael J. Kosares' thoughts in 2004:
"In addition to gold's bedrock role in the financial portfolio as the ultimate fiduciary asset, many investors have begun to view gold as an architect of wealth. Almost on cue, the long dormant price has begun to rise in international markets with the metal logging price increases of over 20 percent in both 2002 and 2003. Many market experts see this as the opening salvo ushering in a new secular bull market in gold - one in which emerging market fundamentals, combined with concerns about the overall economy and financial markets, could potentially drive gold prices to levels we have not seen since the late 1970's"
This edition was also re-published in three foreign languages - Thai, Hungarian, and Estonian.
We have a limited number of hard copies of the second edition of 'The ABC's of Gold Investing' available for anyone who may be interested in procuring a copy. Simply pay the cost of shipping at the link below, and we'll send you a copy otherwise free of charge. Also available on Amazon.
Third Edition - Published in 2013
In the aftermath of the Financial Crisis and the record run ups in spot gold and silver, the third and final edition of 'The ABC's of Gold Investing' was released in 2013. At the time of print, the American debt stood at a 'mere' $15 Trillion. Central banks had just become net buyers of gold for the first time in decades. Quantitative easing was the shiny new tool in the Fed's monetary tool kit. Inflation remained inexplicably at bay - for the time being at least. And gold and silver had begun slow and steady declines from their highs that would last until 2015.
All the while, demand for precious metals continued to be strong, reflecting a broader shift in investor sentiment. Though in many ways it was already outdated by the time it went to print - like many economics texts of the era - the third edition of 'The ABC's of Gold Investing' came to be valued and appreciated for the long-term disturbing trends it highlighted and the timeless guidance it provided on navigating the world of physical gold and silver ownership.
Michael J. Kosares passed away on September 7, 2023. Near the end of his life, he toyed with the idea of updating his book one last time, but chose instead to pour his efforts into his monthly newsletters and special reports. An archive of his most memorable work during this time period is available here.
From the introduction of the third edition of 'The ABC's of Gold Investing', insight into Michael J. Kosares' thoughts in 2013:
"A sense of anxiety, it would seem to me, comprises the rational response. Though we live in an age of gold, given its nearly ten-year bull market, it has not been in any sense a golden age...Now a new motivation for gold ownership has entered the market, one rooted in a dynamic shift in gold's supply-demand fundamentals. There is a sense of change in what is required in the modern investment portfolio to counter economic uncertainties over the long term."
We have a limited number of hard copies of the third edition of the ABC's of Gold Investing available for anyone who may be interested in procuring a copy. Simply pay the cost of shipping at the link below, and we'll send you a copy otherwise free of charge. Also available on Amazon.
