Wednesday, January 23, 2008

Profiting From the Falling U.S. Dollar


How to Profit From the Falling U.S. Dollar - With No Downside

By Dr. Steve Sjuggerud

I had dinner last night with Paul Fraser, one of Stanley Gibbon's largest individual shareholders...

Paul knows collectible autographs like Warren Buffett knows stocks... or like Bill Gross knows bonds. Paul is also the outgoing chairman of Stanley Gibbons.

We're here on the island of Guernsey for a Stanley Gibbons board meeting. I've gotten to know the company over the last few years, and they invited me to join their board of directors over the summer. So as you can imagine, I believe in this company...

Paul called one of my top recommendations of the past few years – which is available only through Stanley Gibbons – a "triple whammy" for U.S.-dollar-based investors. "They get a nice guaranteed return, a nice boost from the falling dollar, and the potential for even bigger gain," he said.

Paul is talking about my favorite high-end collectible investment right now. It's returned for my readers a ridiculous 29% so far with zero investment risk. It's no wonder I called it "Holy Grail investing"... and it's no wonder I still believe even bigger gains are on the way...

In late 2005, I made this unique recommendation – in high-end collectible stamps – in my newsletter Sjuggerud Confidential... The worst-case return was 5% per year. And the best case was an unlimited gain. Quite frankly, this opportunity sounded too good to be true. So I went and checked it out in London. I was surprised to learn it was as legitimate as it gets. Stanley Gibbons is a debt-free, publicly traded company that's been around for 150 years.

There were only two catches... The guarantee was in British pounds, and your money was tied up for three years. Since the upside potential was literally hundreds of percent, I felt those "catches" were risks worth taking...

Now that we're two years into this... just looking at the worst-case option alone, subscribers are up 29% already. First, readers are two years into the contract, so they've earned 10% in interest. And second, the British pound has soared against the U.S. dollar, gaining 19%. Add up the gain in interest, and the gain on the pound, and our return so far is 29%... and that's not even factoring price appreciation from the stamps!

Remember, we've still got another year to go on the contract. If the British pound simply stays where it is now, readers will have made 34% profits – worst case – as they'll get another 5% from the company for year three.

Remember, the British pound can go either way from here... the dollar could keep crashing, causing the pound to soar and boosting the profits even more. Or the dollar could strengthen versus the pound. We can't know the future. But diversifying some of your assets outside of the U.S. dollar is almost always a good idea... and this is a great way to do so.
If you haven't made this investment yet, it's not too late...

You can still get in on the "triple-whammy" stamp contract from Stanley Gibbons. Remember, it's up 29% so far, just on the guaranteed return and the fall in the dollar. That's the worst case if you cashed in today. Not too shabby. Contact Adrian Roose at aroose@stanleygibbons.com for all the details.

And of course, to get ideas like this from me right when they come out, you can subscribe to Sjuggerud Confidential. The next issue comes out this Wednesday evening. Subscribe now, and you can be one of the first people in on my next big idea...

With ideas like this one above, and Seabridge Gold (which has run from $2.64 when we bought it to more than $30 a share today), Sjuggerud Confidential could prove to be very profitable for you... Join me if you can...

Good investing,
Steve

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