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'A « t'i KA'L MA,T. & .<4.7 FJTT' IMS Tax Preparation Guide 15 Gold remains a good investment By Eric Jude Copley News Servie Gold, despite its ranges in price from feverish highs to chilling lows, tradi­ tionally holds an allure for investors. Perhaps the range in price is what makes investing in gold attractive -- the hope of buying at a low price and then selling after the price skyrockets. Of course, in roder to make this hope a reality, a person must be able to an­ ticipate when the price of gold will rise or fall. . The price of gold can be forced up or down by a variety of complex forces, according to Jeffrey Nichols, economist and president of American Precious Metals Advisers Inc. For one thing, the price of gold tends to increase during times of economic crisis or political upheaval. At those times confidence in paper assets wanes, and gold generally is regarded as the safest store of value. For exam­ ple, in September 1982, when the public first was confronted with the possibility of a loan default by Third World coun­ tries, the price of gold shot up $100 per ounce. As an investment commodity that competes with such assets as stocks and bonds, gold's fortunes tend to move inversely to the strength of the dollar and interest rates. Gold also is an industrial commodity used in electronics, dentistry and jewelry, so its price is influenced by physical supply and demand. % However, inflation, or more precise­ ly the expectation of inflation, general­ ly is regarded as the major influence on the price of gold. This price hit a peak of $875 per ounce in January 1980 as in­ flation raged at double-digit levels. As inflation moderated, gold dipped below $300 in June 1982. Given general outlines to follow for anticipating price increases and decreases, there are additional criteria* for making a safe investment in gold, according to Jacquet Luben, vice presi­ dent of the Dean Witter Reynolds Inc. precious metals department. •Liquidity: An investment in gold is extremely liquid -- gold is traded around the world 24 hours a day. In­ vestors are advised to purchase bullion coins or bars that are recognized and traded worldwide. •Legal tender: Investors would be well advised to purchase gold coins with legal tender status. This means the coin is tied directly to the issuing country's monetary system. Therefore, the government guarantees a face value for the gold regardless of its fair- market value. This status also ensures that the gold is treated internationally as a coin, not as a metal or some other object that might be subject to import duties. •Purity: Gold coins range in purity. Some coins contain alloying metals designed to make the coins harder and scratch resistant. The purity of popularly traded coins ranges from the 0.9000-pure Mexican peso to the 0.9999- pure Canadian maple leaf coin. More than 90 percent of all gold traded in the world is 0.9950 pure or better. •Reputable dealer: Be certain your Some rarer coins are 'worth a pretty penny' By Patricia Dibsie Copley News Service The next time you're so hard up for cash that you have to break open the faithful old piggy bank, don't be in too big a hurry to spend the contents. That small change might be worth a prettj penny. " "There are many coins in piggy banks all over the country that are worth a lot of money. Many people have no idea of the value of copper cents, nickles, dimes and quarters that have been passed down from father to son over the generations," says Kay Lenker, a member of the American Numismatic Association. Say, for instance, you come across a copper cent dated 1909S-VDB. Depen­ ding on the coin's condition, it could be worth a cool $300. The problem is finding someone to tell you if your old coins are worth more than their face value. Lenker advices that you don't ask just anybody, especially just any coin dealer. It's not that everyone is waiting to cheat the uninitiated, she says, but it does happen. "Chances are slim that any coin in you change^purse is worth more than face value, but if someone has a collec­ tion of coins from years past, clfances are good that the collection is worth a vendor is legitimate. Check to see how long he has been in business and who his customers are. Check his standing with the local Better Business Bureau. •Delivery: If you have any concerns about the vailidity of a vendor, insist on delivery immediately upon payment. Many financial institutions offer sales tax-free storage programs which eliminate the need for delivery. •Storage: If you decide to store your gold w)th a financial institution, be sure to do it with a firm that segregates your gold, insures it and stores it with a ma­ jor custodian bank. Gold also can be stored in a bank safe-deposit box or with a reputable private warehouse. lot more than he or she thinks," she says. "But unless the individual is careful, he or she may sell short. Very short." jrding to those who do the collec­ ting/a coin is worth whatever a buyer Tilling to pay. There are hundreds of . lousands of serious coin collectors in the United States alone. Millions worldwide. "Finding that first coin of value by accident is the way many serious coin collectors admit they got started," Lenker says. She speaks with the voice of experience. She has been collecting coins for the last 40-plus years, and her first coin was a gift. Her husband, John, has been a collec­ tor for more than 35 years, and he, too, got started when someone gave him a special coin. His came from an aunt, and it was a gift that ended up changing his life - and that of Kay Edgerton. The couple met at a coin show and mar­ ried in 1980. "Most of our collection has to be stored in a bank vault," John Lenker says. "It's that valuable. Collecting rare coins has been a passion for both of us for many years." What are some of the coins that could go from somebody's piggy bank into a private collection? Kay Lenker: "Other 1-cent coins f Please turn to page 34) IRA? 3319 W. Elm St. McHenry 3*5-7111 Check with State Farm • Competitive Rotas • Guaranteed Lifetime Income • Waiver of Premium for Disability Option. • "Good Neighbor" Service • T«fl 9ASM Like a good neighbor, State Farm it there Sot* Farm Life Insurance Company Home'OHice Bloomington. Illinois I just hid $2,000 from the I.R.S. 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