Client presentation 3 05-12

Royal Metals GroupThe Trusted Name in Precious Metals

RMG’s Trusted AdvisorsRoyal Metals was created for

Insurance Agents and Investment Advisors, to provide precious metals to their Clients in a SAFE, SECURE and COST EFFECTIVE manner.Our Goal for our customers

StrengthenDiversifyEstablish Liquidity and Safety

Todays TopicsMathematicsGovernment MathFederal ReserveU.S. Banking SystemU.S. DebtTime speeds upProblems and Predicaments

Mathematic Facts

Math Never Lies…. You Cannot Trick Math

Government Math - HedonicsIn economics, hedonic regression or

hedonic demand theory is a revealed preference method of estimating demand or value. It decomposes the item being researched into its constituent characteristics, and obtains estimates of the contributory value of each characteristic.

Fiat Currency - DefinedFiat money is money that has value

only because a government tells us it does..

Today, worldwide all national currencies are fiat currencies, including the US dollar, the euro, and all other fiat currencies.

History of 3800 Currencies 20 B.C. – The Roman Empire’s

currency FAILED

1971 - President Nixon took the U.S. off the Gold standard

Fiat Currency’sOver the last 2400 years ALL fiat

currency’s have failed.That’s a 100% FAILURE rate

!!

Who is the Federal ReserveA Privately owned - for profit -

DEBT based Banking system – Foreign Owners

F.R. Income in 2010 54 BILLION U.S. TAXPAYERS PAY THE 54

BILLION!!F.R. began in 1913 when President

Woodrow Wilson was in office.

Federal ReserveJust 3 short years after giving the

Federal Reserve control of the U.S. dollar, President Wilson expounded…..

I am a most unhappy man. I have unwittingly ruined my country, no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.

Federal Reserve In Action

BASE MONEY CREATION

Federal Reserve

Congress

TreasuryBONDS

Base Money DepositsU.S. Banking System requires only

a 10% reserve level at all times (fractional)

Example: Base Money deposit of a million in any bank large or small magically becomes 10 million or billion becomes 10 Billion.Banks then lend these magic dollars to American public for Cars, Homes, Boats and other things and charge an interest rate of their choice.

Fractional Reserve BankingSince their lending is a multiple

of 10 their earnings are also a multiple of 10.

Banks charging 6% are really receiving 60%.... Wow that’s compound interest!

Having the ability to multiply all deposits by 10 and then lend to the U.S. Public, helps you understand why the bank buildings are always the largest.

Assets of The Fed, aka “DEBT”

Why Gold, Why NowThe U.S. abandoned the GOLD

standard in 1971.This allows the U.S. government to

“Print Money” out of thin-air, securing it with NOTHING.

The U.S. went from the largest “Creditor Nation” to the largest “Debtor Nation” in only 40 years.

United States Debt U.S. Debt $15,430,000,000,000 (15 Trillion)Medicare and Social Security

Liability $117,890,000,000,000 (117 Trillion)Unfunded Federal Retiree Pensions 5,810,000,000,000 ($5.8 Trillion)Number of U.S. People on Food

Stamps 46,530,000 (46 Million)WWW.USDEBTCLOCK.ORG

10 Yr. Debt to Gold Price U.S. DEBT GOLD PRICE2001 $5.6 Trillion $268/oz 2004 $7.4 Trillion $417/oz2008 $10.2 Trillion$832/oz 2010 $13.3 Trillion $1122/oz 2011 $14.7 Trillion $1700/ozAt Current Rates projections are:2015 $ 23.5 Trillion $5000/ozAMAZING PATTERN ……….You do the math !!!!

Understanding Exponential Math

The New Shea Stadium Seats 41,800

Time Speeds UpHow long will it Take to fill up a

water tight Shea Stadium??Minute 1 – 1 dropMinute 2 -2 drops Minute 3- 4 dropsAnd so on…….. Only 49 Minutes

Problems and Predicaments

Problems –A question to be considered, solved, or answered.

SOLUTION

Predicaments - A difficult, unpleasant, or embarrassing situation.

OUTCOMES

Problem

Predicament

U.S. Problem or PredicamentYOU DECIDE….

WWW.USDEBTCLOCK.ORG

Write this website address down for your records !!!

What Should We Do….?As individuals how do we protect our

Personal Portfolio’s from the massive debt issues and the Global meltdown?

Federal, State and local Governments are looking to increase revenue through higher taxes, Property Tax, Personal Income Tax as well as many added fees and taxes to help pay the U. S. DEBT.

Other Regulators believe reducing Medicare and Social Security Benefits are a good idea.

Build Your Foundation

Create Your Own Gold Standard

Many people don’t realize they can BACK their IRA with Physical Gold & Silver!

We provide the simple “direct transfer” paperwork, fulfilling all necessary IRS requirements!

It’s a simple rollover !!!

Who is Buying Gold…NOW?Country of India Buys 200 metric tonsNorthwestern Mutual makes first GOLD

Buy in 152 years, 400 Million.University of Texas Buys 1 Billion of

Physical Gold April, 15th 2011. In November 2011 China added 102.8

Metric tons and South Korea added 16 metric tons

Since January 2011Mexico - added 93.3 Metric tonsRussia - added 18.8 Metric tonsThailand - added - 9.3 Metric tons

Hold Your Own GoldAnnuities…. Take the 10% penalty

free withdraw each year to buy and hold Gold.

C.D.’s …. Only 1% to 2% return… buy Gold.

Stock Market Extreme Risk…. buy Gold

Mutual Funds…. Risk ???? Buy Gold and Silver to Hedge

Inflation and Dollar Devaluation.

Dollar BasketAre all Your Eggs in One Basket?Stocks/BondsMutual FundsAnnuities

CD’s / Savings

Client - Case StudyClient – Ray S.June 2010 Purchased Gold at

$1333 Nov 2011 Gold Value $1701 29% Return in 16 monthsInvested in a annuity @ 3% would

take 10 years for the same return.This is only 1 of thousands of

customers who have had the same and better results.

Intrinsic Values…. or NOTGold has intrinsic value as the worlds

reserve currency and has been used for over 5000 years.

Today many middle eastern country’s still use Gold and Silver as a currency.

Dollars and all currencies of the world have an ABSOLUTE value of ZERO.

Gold and Silver will ALWAYS have value!

Critical Success FactorTake what you have learned today

and apply the principals to your portfolio!!!

Take the time to Create a personal “Gold and Silver Standard” for you and your family!

These simple steps will provide a hedge against inflation and protection from dollar devaluation.

Questions I’m sure there will be many questions I invite you to call or email your local R.M.G. “Trusted Advisor” !Thank you for investing your time

with us. We appreciate the opportunity.