We set out with the goal of creating a page that offered unique content that wouldn’t otherwise be available at other pages on our site. A couple of months at it has exposed the difficulty identifying content uniquely suited to this posting page that isn’t simultaneously equally important for our standard daily blog and all visitors to our site. As such, we will no longer be updating this page and will instead focus on keeping our clients and visitors current with all things precious metals at our standard blog page, linked here. We apologize for any inconvenience.
A Gold Classics Library Selection
A Layman’s Guide to Golden Guidelines
for Wise Money Management
Gresham’s Law, Say’s Law, Rule of 72, Marginal Utility, Diminishing Returns, Regression to the Mean, Unintended Consequences, Murphy’s Law, Occam’s Razor, Law of Attraction, Law of Polarity, and more
by R.E. McMaster, former editor of The Reaper newsletter
There is an old saying that not all that glitters is gold — as in the gold coins many of you have held in your hands. There is another kind of gold that inhabits the practical wisdom of the ages. In today’s “go-get-’em,” “read-it-and-forget-it” world of everyday web browsing, it can be a challenge to separate the run of the mill from the meaningful. It is with that thought in mind we offer this compendium of the rules and laws of finance and investment by long-time market analyst R.E. McMaster. Formerly the writer/editor of the widely-circulated The Reaper newsletter, McMaster is known for his occasional forays into the realm of economic philosophy and history. I think you will agree with me that these skillfully condensed descriptions are indeed meaningful — a wellspring of knowledge worth reading, re-reading and passing along to friends and family, especially the kids and grandkids.
(Illustrations by Ed Stein)
“While these can and do have a temporary small impact on the prices of gold and silver, the ultimate reason for the recent rise in their prices is the shortage of physical supplies in the New York COMEX and London markets.”
USAGOLD note: We made this Heller opinion piece a Premium Bulletin Board exclusive simply because no on else to our knowledge has brought attention to this unusual development in the COMEX gold futures market. It has to do with registered inventories and he very well could be putting his finger on why we keep getting unexpected support on the price drops. An interesting read. . . .
“According to historical performance, whenever the ratio of gold to silver is much higher than normal (usually 70 to 75), this means that the bottom of the silver price appears. When the ratio of gold to silver exceeds 80, the price of silver is too undervalued relative to the price of gold, which is often one of the most reliable buying signals for silver.”
USAGOLD note: The ratio topped at least temporarily at 92.32 to one in early May. The average ratio, as this article points out, is about 55 to one. “A new round of silver surpassing gold may have begun,” concludes the author.
Chart courtesy of TradingView.com
Re-post from 8-4-2019
Every once in a while we rummage around USAGOLD’s creaky old attic and dust-off a golden vignette from our storied past. Most first appeared in our monthly client letter, but this one comes from the first chapter of The ABCs of Gold Investing – How To Protect and Build Your Wealth With Gold. First published in 1996, it is a timeless story about gold’s ultimate value and it is called. . . . . .
Asset Preservation: Why Americans Need Gold
“The possession of gold has ruined fewer men than the lack of it.” – Thomas Bailey Aldrich
The incident is one of the most memorable of my career. Never before or since has the value of gold in preserving assets been made so abundantly clear to me. It was the mid-1970s. The United States was finally extricating itself from the conflict in South Vietnam. Thousands of South Vietnamese had fled their embattled homeland rather than face the vengeance of the rapidly advancing Communist forces.
A couple from South Vietnam who had been part of that exodus sat across from me in my Denver office. They had come to sell their gold. In broken English, the man told me the story of how he and his wife had escaped the fall of Saigon and certain reprisal by North Vietnamese troops. They got out with nothing more than a few personal belongings and the small cache of gold he now spread before me on my desk. His eyes widened as he explained why they were lucky to have survived those last fearful days of the South Vietnamese Republic. They had scrambled onto a fishing boat and had sailed into the South China Sea, where the U.S. Navy rescued them. These were Vietnamese “boat people,” survivors of the final chapter in the tragedy of Indochina. Now they were about to redeem their life savings in gold so that they could start a new business in the United States.
Their gold wrapped in rice paper was a type called Kim Thanh. These are the commonly traded units in Hong Kong and throughout the Far East. Kim Thanh weigh about 1.2 troy ounces, or a tael, as it is called in the Orient. They look like thick gold leaf rectangles 3 to 4 inches long, 11⁄2 to 2 inches wide, and a few millimeters deep. Kim Thanh are embossed with Oriental characters describing weight and purity. As a gesture to the Occident, they are stamped in the center with the words OR PUR, “pure gold.”
It wasn’t much gold—about 30 ounces—but it might as well have been a ton. The couple considered themselves very fortunate to have escaped with this small hoard of gold. They thanked me profusely for buying it. As we talked about Vietnam and their future in the United States, I couldn’t help but become caught up in their enthusiasm for the future. These resilient, hardworking, thrifty people now had a new lease on life. When they left my office that day, there was little doubt in my mind that they would be successful in their new life. It was rewarding to know that gold could do this for them. It was satisfying to know that I had helped them in this small way.
I kept those golden Kim Thanh for many years. They became something of a symbol for me—a reminder of the power and importance of gold. Today, when economic and financial problems have begun to signal deeper, more fundamental concerns for the United States, I still remember that Vietnamese couple and how important gold can be to a family’s future. Had the couple escaped with South Vietnamese paper money instead of gold, I could have done nothing for them. There was no exchange rate for the South Vietnamese currency because there was no longer a South Vietnam! Wisely, they had converted their savings to gold long before the helicopters lifted U.S. diplomats off the roof of the American Embassy in 1975.
Over the years, I have come to understand and appreciate the many important uses of gold—artistic, cultural, economic, and industrial. Gold is unsurpassed for jewelry and as a high-tech conductor of electricity. Gold has medical applications in dentistry and in treating diseases from arthritis to cancer. Gold plating is used in computers and in many other information-age technologies. In nanotechnology, it is used in a variety of cutting-edge medical diagnostic devices. As for its engineering uses, gold can be found in automobile anti-pollution devices, in jet engines, in architectural glass, and in a number of space applications. All of these pale, though, when compared to gold’s ancient function as money, as an asset of last resort and an unequaled store of value.
$25 off, offered at just 2.5% over spot gold.
Quantity Available: 100
We picked up a big batch of Gold Eagles cheap, and wanted to pass on the savings to our clients. If you wished you had purchased ahead of yesterday’s big move, now you can – at least practically speaking – as we’re knocking $25 off per coin. Only 100 coins offered/available at these discounts, and once they’re gone, they’re gone.
JULY SPECIAL OFFER
Better date 1900 $20 Liberty priced right
With gold starting to take off, our July offer affords an opportunity to ‘go back in time’ so to speak. First, we have a very limited group of 1900 dated MS63 $20 Liberties graded by NGC. 3x as rare as the more common 1904’s, yet $25 per coin less expensive, still trading at multi-year lows in terms of premium, and $250+ dollars per coin less than the last time gold traded in the low $1400’s (2013).
These are paired with a batch of stunning Brilliant Uncirculated pre-1900 Belgian 20 Francs offered at a deep discount (5% off!), and less per ounce than a modern bullion equivalent.
JULY SPECIAL OFFER
Available for immediate shipment.
Only 50 of the 1900 $20 Liberties and 500 of the Belgian 20 francs available.
First come-first served
Britain’s Gold Sales ‘a Reckless Act’
(Sir Peter Tapsell’s speech before the House of Commons, June 16, 1999, on the partial sale of United Kingdom’s gold reserves)
We do not update our Gold Classics Library often, but when we do we try to choose items that have a timeless quality. This latest selection certainly meets that standard. It comes to us unexpectedly as a by-product of research for the recently published article, The Power of Gold Diversification, and with the kind permission of the United Kingdom Parliamentary Archives.
Many associate Britain’s sale of nearly 60% of its gold reserves in 1999 with the beginnings of gold’s secular bull market. The government’s rationale for the sale, as explained by then Economic Secretary to the Treasury Patricia Hewitt, was to “achieve a better balance” in its reserves by going to foreign currencies. Sir Peter Tapsell took the opposite tack. “The Chancellor [of the Exchequer] may think that he has discovered a new Labour version of the alchemist’s stone,” he argued, “but his dollars, yen and euros will not always glitter in a storm and they will never be mistaken for gold.”
History’s indisputable verdict is that Tapsell was correct and the British government wrong. The ensuing nearly two decades featured a global financial crisis, low-to-zero-percent interest rates, scrambling central banks, and the consistent depreciation of global currencies against gold. Currencies did not glitter in the storm, and they could not have been mistaken for gold which rose relentlessly from $287 per ounce at the time of his speech to the current price of over $1300 (at one point reaching almost $1900 per ounce in 2011). Though his speech before the House of Commons failed to stop the sales, it goes down as one of the most eloquent appeals ever made on the merits of gold ownership for nation states and individuals alike.
“[I]t is important to understand why one pays a premium for 1 oz silver coins like the American Silver Eagle, Canadian Silver Maple Leaf, South African Silver Krugerrand, and many more sovereign silver coins. The premiums for these pieces can be in excess of $2 per ounce for silver when compared to a generic 1 oz silver round. The premiums for sovereign gold bullion can be in excess of $50 per ounce. Let’s dive into why.”
USAGOLD note: Our clientele almost always buys bullion in the form of gold and silver coins. This article provides an excellent overview if you are in the process of making a decision on what kind of gold and silver will best serve your needs.
“I think these are unlikely to be good real returning investments and that those that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold,” the Bridgewater Associates leader [Ray Dalio] said.”
USAGOLD note: We featured a post on Ray Dalio’s current thinking just this morning. He is back now with an an even more detailed commentary via Linked In. . . .and a summary at the link above.
Repost from 7-20-2019
“Analysts at European precious metals retailer, Degussa, also said that they see gold prices pushing higher through the rest of the year as global interest rates ultimately head lower. Degussa analysts said that they see U.S. interest rates falling to 1.25 per cent by the first half of 2020. Meanwhile, European interest rates could fall further into negative territory to -0.7% from -0.4%. With inflation expected to rise this means that real interest rates could fall in negative territory, the analysts add. This is all good news for gold.”
USAGOLD note: We do not rate the probability high that gold will reach $2000 by the end of 2019 but stranger things have happened once the bull escapes the pen.
Repost from 7-10-2019
• Taking advantage of the high gold-silver ratio – especially in IRAs
• Buying US $20 gold pieces while premiums are at all-time lows
• Buying hard-to-get pre-1933 European gold coins at bullion-related prices
Here’s a quick snapshot-breakdown on each:
Taking advantage of the high gold-silver ratio – especially in IRAs
We have processed several swaps of gold to silver within IRA’s over the past 30 days. At the moment, the ratio is almost 88 to one. We haven’t seen the ratio that high in twenty years. In fact, the only higher ratio over the past 30 years came in 1990 at 100 to one. The ultimate goal for most investors is to end up with more gold by trading the silver back for gold when the ratio narrows, thus ending up with more ounces of gold. That strategy worked well in both the early 2000s and in 2007-2008 just before the credit bubble implosion. If you have an interest in taking advantage of this market opportunity, give us a call and we will be happy to walk you through the numbers and help you with the transaction.
For those, who own gold but don’t own silver, now would be a good time to add balance to your precious metals portfolio while prices are cyclically low.
Here’s a gold-silver ratio chart for your review –
Buying U.S. $20 gold pieces while premiums are at all-time lows
Gold investors like to buy off the bargain table and the premiums on U.S. $20 gold pieces are now at all-time lows. The volume in this area over the past six months at USAGOLD has been nothing short of remarkable with a large number of six-figure transactions processed. There are a variety of options too numerous to list here. Too, we try to fit the items purchased to the particular objectives the client has in mind. Once again, the best way to go about this is to talk with your broker directly. At times, we pick up special opportunities at good prices and we can pass those savings along.
Buying hard-to-get pre-1933 European gold coins at bullion-related prices
We offered a special last week of Australia minted British sovereign gold coins that sold out in less than three hours – a testament to the strength of this market. It doesn’t hurt that gold itself is bumping along lows, but when you add to thae appeal with difficult-to-obtain items at a low premium, the offer tends to sell out quickly. We now have a number of smaller lots available (including the French 40 franc lot posted below) that we can offer to those with an interest – pre-1933 European and South American gold coins at bullion-related prices. Call for details and to find out what we now have available.
Successful investors have a philosophy, usually carefully cultivated, that they rely upon in their investment decisions no matter what happens in the markets in the short-run. Successful investors are rarely shaken by short-term events and, rarer still, guilty of short-term thinking. USAGOLD has always nurtured the belief that gold should not be purchased principally as a speculative investment, but more as an asset accumulated for long-term asset preservation in the form of coins and bullion. That, in fact, is a viewpoint it shares with the bulk of its clientele.
In A Layman’s Guide to Golden Guidelines for Wise Money Management [Link], R.E McMaster the long-time commodity market analyst and editor of the famed newsletter, The Reaper, offers this advice on “The Law of Long-Term Time Preference”:
“Those who plan, invest and execute long-term win. Win-win decisions, looking to the long term with short-term work and sacrifice, are historically the tickets to success in all areas of life – short-term sacrifice for long-term benefits, deferred gratification rather than instant gratification. This is the difference between wealth and poverty, between class and trash. Those who make primarily fear-based, ego-based, selfish, win-lose, lose-lose, emotional and/or short-term decisions as their primary mode of operation in life nearly always end up miserable, often as losers in a comprehensive sense in life. Such people are walking tornadoes to be avoided.”
“We still don’t have very much inflation, and yet there is renewed interest in gold with prices reaching their highest since early 2013 at about $1,440 an ounce. There are a lot of reasons to like gold. One is that gold tracks fairly closely with budget deficits. The highs of 2009-2011 roughly corresponded with the large deficits that reached 10% of GDP during the Obama administration, which included the stimulus spending during the Great Recession and a sharp depreciation in the value of the dollar.”
USAGOLD note 1: Below we post a chart favorite here at USAGOLD showing, as mentioned above, the strong relationship over the long run between growth in the national debt and the rising price of gold.
USAGOLD note 2: By the way, we know more than our fair share of gold owners. Though a good many are business owners and managers, doctors, dentists, nurses lawyers, scientists, teachers, stay-at-home moms and ordinary working men and women (to name a few gold-owner job descriptions), none has ever mentioned anything about a tin foil hat and only a handful have referred to themselves as gold bugs. . . .yet some in the media persist with this nonsense. Gold owners, as we have said many times in the past, are a slice of Main Street America – nothing more, nothing less.
“In bear or bull markets, billionaires are constantly worried about one thing: protecting their wealth. This video shows how some billionaires protect themselves from downturns – including turning to uncorrelated assets such as gold.”
PBB note: Most billionaires do not take delivery of their gold because of the storage problem. That is not the case for the small private investor. A quarter of a million dollars or less in gold coins stores neatly in a modest-sized safe deposit box. Of course, if you would rather store your gold and/or silver at a depository, we can help with the arrangements. Safe storage includes insurance and the costs are not prohibitive. In fact the annual fees on storing are roughly comparable to what most ETFs charge with the added benefit of a delivery option on the coins or bullion stored. To learn more, we invite you to contact our Order Desk directly.
“When overall stock market corrections happen, they don’t leave any stocks behind. Contrary to popular belief, gold stocks are not spared while physical gold has proven to perform well in corrections.”
USAGOLD note: That’s the bottom line. For the full rationale including supporting demand, we recommend a visit to the link. Gold essentially is a solid disinflation hedge particularly if things regress to the point that the recession affects the stability of financial institutions. When it comes to asset preservation over the long run, nothing compares to the physical in form of coins and bullion.
Repost from 6-19-2019
“The personal finance market is filled with slick advertisements touting gold bullion coins labeled with a superb grade or in holders with decorative, autographed inserts. These may be fine collectibles for some, but you could pay more than twice the value of the precious metal content of the coin. There certainly are better ways for investors to buy bullion coins much closer to their actual intrinsic value,” stated Barry Stuppler, president of the Professional Numismatists Guild (PNG).”
USAGOLD note: To say that we agree with this Numismatic News piece is an understatement. We have been at the vanguard warning investors about this type of offering for a number of years. We get calls almost weekly from individuals involved in one of these transactions. Unfortunately there is not a great deal we can do to help, although we might be able to help mitigate the losses, i.e. get you to break even sooner if the gold and silver prices rise. The point is to avoid this sort of thing altogether and stick with owning bullion coins as gold items that are priced at minimum premiums over the gold content.
(USAGOLD-May 1, 2019) – The U.S. Mint reports sales of American Eagle silver bullion coins running well ahead of last year’s pace at the end of June – up 46.88% over the same period last year. The Mint sold a robust 1,035,000 one-ounce coins sold in June as opposed to 435,000 sold in June of last year. Gold Eagle sales were up 25% from May but down 10.29% through June when compared to first six months of 2018.
Many analysts consider bullion coin sales a bellwether for overall interest in the precious metals among investors. This year’s uptick over last year indicates increased activity among American investors interested in including gold and silver in their holdings as safe-haven hedges and an underpriced asset class with that latter motivation particularly striking in the Silver Eagle category.
Who owns and controls the Federal Reserve
by Dr. Edward Flaherty
“Is the Federal Reserve System secretly owned and covertly controlled by powerful foreign banking interests? If so, how? These claims, made chiefly by authors Eustace Mullins (1983) and Gary Kah (1991) and repeated by many others, are quite serious because the Fed is the United States central bank and controls U.S. monetary policy. By changing the supply of money in circulation, the Fed influences interest rates, affecting the mortgage payments of millions of families, causing the financial markets to boom or collapse, and prompting the economy to expand or to stumble into recession. Such awesome power presumably would be used to benefit the U.S. economy. Mullins and Kah both argued that the Federal Reserve Bank of New York is owned by foreigners. Although the New York Fed is just one of twelve Federal Reserve banks, controlling it, they claimed, is tantamount to control of the entire System. Foreigners use their command of the New York Fed to manipulate U.S. monetary policy for their own and, as Kah asserted, to further their global political goals, namely the establishment of the sinister New World Order.” – From the author’s preface.
The inverted yield curve as a harbinger
of higher gold prices
(Grey vertical bars indicate recessions.)
During the course of the past several weeks, we have heard much about the inverted yield curve in three-month and ten-year Treasuries as a harbinger of recessions. Missed in the press reports is the fact that it has also been a harbinger of higher gold prices. In the chart above, please note the upward surges in the price of gold in the five-year periods following the two most recent yield inversions in 2000 and 2006. The first occurred with gold trading in the $300 range. It subsequently rose to the $600-650 level in 2006. The second occurred with gold priced in the $600-650 range. It subsequently rose to over $1900 per ounce in 2011 – its all-time high.
“Ominously,” writes Robin Wigglesworth and Joe Rennison in a recent Financial Times editorial, “the US yield curve has now inverted once again, with the 10-year Treasury yield on March 22 dipping below the three-month T-bill yield for the first time since 2007. Combined with the length of the post-crisis expansion — this summer it will become the longest growth spurt in US history — and deteriorating economic data, the inverted yield curve has stirred fears that the countdown to the next downturn has already begun.”
Peter Fisher, formerly head of fixed income at BlackRock and currently a professor at Tuck School of Business at Dartmouth, puts it succinctly in that same Financial Times editorial. “The mistake,” he says, “is to think it [an inverted yield curve] is a predictor of recessions. I think it causes recessions.” The rise in the price of gold following the two prior instances of yield inversion, it is now well understood, came in response to aggressive central bank monetary easing and the sudden emergence of credit-related systemic risks.
Gold in six easy lessons
1. Don’t buy it because you need to make money; buy it to protect the money you already made.
2. Don’t look at price as a barrier; look at it as an incentive.
3. Don’t buy the paper pretenders; buy the real thing in the form of coins and bullion.
4. Don’t fall prey to glitzy TV ads; do your due diligence instead.
5. Don’t allow naysayers to divert your interest; allow yourself the right to protect your interests as you see fit.
6. Don’t forget the golden rule: Those who own the gold make the rules!
This page catalogs price predictions on gold and silver prices from top pundits and prognosticators – a casting of the runes that begins in January and is updated regularly as new additions surface.
We invite your bookmark. We invite your return visit.
Map courtesy of the World Gold Council
“Central banks bought 145.5t of gold, the largest Q1 increase in global reserves since 2013. Diversification and a desire for safe, liquid assets were the main drivers of buying here. On a rolling four-quarter basis, gold buying reached a record high for our data series of 715.7t. Q1 jewellery demand up 1%, boosted by India. A lower rupee gold price in late February/early March coincided with the traditional gold-buying wedding season, lifting jewellery demand in India to 125.4t (+5% y-o-y) – the highest Q1 since 2015. ETFs and similar products added 40.3t in Q1. Funds listed in the US and Europe benefitted from inflows, although the former were relatively erratic, while the latter were underpinned by continued geopolitical instability. Bar and coin investment softened a touch – 1% down to 257.8t. China and Japan were the main contributors to the decline. Japan saw net disinvestment, driven by profit-taking as the local price surged in February.”
USAGOLD note: The World Gold Council reports U.S. bar and coin demand rose 38% over the past year (through the first quarter). Global central banks and financial institutions drove physical gold demand the past 12 months raising once again the question if professional investors know something that retail investors do not. As the chart above illustrates, the United States ranked at the top globally for growth in gold coin and bullion demand over the past year, while Asian demand fell back.
Repost from 5-3-2019
Preparing for a potential gold confiscation
by George R. Cooper, J.D.
We view confiscation as a possibility, rather than a probability, and see historic gold coins as an important hedge for those interested in addressing those concerns within their gold holdings. It should be emphasized that there is a whole genre of pre-1933 gold coins that can be acquired at moderate premiums over contemporary bullion coins and still fall within the category of items excluded from the U.S. government seizure of gold in 1933 and the subsequent ownership ban of gold bullion that extended to 1975.
(USAGOLD-May 1, 2019) – The U.S. Mint reports sales of American Eagle gold and silver bullion coins running well ahead of last year’s pace at the end of April. Gold Eagle sales were up 49.6% over the first four months of last year. Silver Eagle sales were up 35.2% over the same period. Month over month, Gold Eagle sales were nearly double the sales from April of last year. Silver Eagle sales were up 31% over March of last year. Many analysts consider bullion coin sales a bellwether for overall interest in the precious metals among investors. This year’s strong uptick over last year indicates increased activity among American investors interested in including gold and silver in their holdings as safe-haven hedges and an underpriced asset class.
Historic British sovereigns minted in the late 19th and early 20th century are traded all over the world especially in nation states that used to be part of the old British empire – India, Hong Kong, Singapore, South Africa, Australia, Canada – even the United States.
A client of USAGOLD tells an interesting story. He has always had an interest in gold – even as a young man when he served in the military. When he was stationed in Viet Nam during the war, he recalls being astonished upon visiting villages far off the beaten track, that he would find merchants willing to trade for merchandise using the gold British sovereign in payment. Too, American pilots and special forces units were issued British sovereigns as part of their survival pack simply because they were accepted in payment in so many places around the world. Today, the British sovereign remains one of the most highly traded historic bullion gold coins in the world with buy-sell spreads posted daily wherever gold is traded.
Because of the strong global liquidity, British sovereigns have always tracked the gold price and sold at reasonable premiums over the gold price. For today’s pricing, we invite you to go here.
As historic gold coins with a provenance dating before 1933, British sovereigns fall within the category of items excluded from the U.S. government seizure of gold in 1933 and the subsequent ownership ban of gold bullion that extended to 1975. A large number of our clientele choose to purchase historic bullion items because they track the gold price, provide good liquidity and trade at relatively low premiums over the gold price. If you would like to learn more about privacy issues surrounding gold and how you might hedge the possibility of a future gold seizure, we invite you to visit this in-depth study titled Preparing for a Potential Gold Confiscation.
The Nightmare German Inflation
The surprise is not only the length of time Scientific Market Analysis’ The Nightmare German Inflation has ranked among our most-visited essays, but that it has remained popular even now, when inflation seems a more distant concern. Inflation, though, is never far removed from the minds of many Americans particularly those who remember the inflationary-stagflationary 1970s decade and the dangers it imposed on financial markets and individual investment portfolios. The survivors of the German hyperinflationary debacle of the 1920s did so, as you are about to read, by purchasing gold early in the process. This comprehensive report not only describes how and why the hyperinflation occurred but how various investments performed under those trying circumstances. There is little doubt it will affect your thinking.
Here’s how it can happen and what you can do about it.
Allow us to make a personal observation and then we will send you on your way to Mr. Ganz’ important and timely analysis. Too many gold owners labor under the false presumption that high-end, high-premium numismatic gold coins are the only way you can protect your holdings against a potential seizure. Many of our prospective clients are pleasantly surprised when they discover that there is a whole genre of pre-1933 gold coins that can be acquired at modest premiums over the gold content and still meet the criteria for exemption Mr. Ganz outlines. As he points out, “rare and unusual” does not necessarily equate to “pricey” or “expensive.” To understand why the words “rare and unusual” are important, we invite you to proceed to the link.