CNBC Interview - President Ronald Reagan’s Secretary of State recently interviewed Marc Lubaszka on the state of the economy, world events, and what investors can do to see their investment returns shine once again.

Haig: Welcome to World Business Review I’m Alexander Haig. Investors the world over are beginning to turn to alternative ways of investing. Here for this discussion is Marc Lubaszka, president of one of Americas leading precious metal asset management firms. Welcome Marc, it’s a pleasure to have you.

Lubaszka: Thanks for having me. It’s a pleasure to be here.Haig: Now Marc, why are investors worldwide gravitating towards gold?

Lubaszka: Well, Al, as you already know this precious commodity transcends limits imposed by any nation’s government. Furthermore, the threats facing the world today are drastically different than when Ronald Regan was in office.

Today we are fighting against an enemy we can not see, a worldwide Vietnam, we are facing an oil crisis, a real estate problem that certainly will not be solved any time soon. And the world’s reserve currency, the US Dollar, is in trouble just to name a few.

Haig: Now Marc, why should gold make up a part of an investors portfolio in this world you’ve just described?

Lubaszka: Number one, it will give them something they can count on in such an uncertain world. Number two, even at today’s levels, gold is still fairly cheap when looked at on a historical inflation adjusted basis. Number three, it’s still the best double play investment out there. Not only can gold give you a lot of profit potential, it provides you with a tremendous amount of protection.

Haig: Investors may be wondering how much gold is right for them, what would you say is the appropriate amount for investors?

Lubaszka: A small amount of gold goes a long way. During normal times, any financial advisor would recommend having a percentage of ones paper assets in gold. Now, with the situation in the Middle East, China and India, the real estate problem, the US Dollar, interest rates at these levels, each and every person watching this program needs to decide for themselves how much gold would help them sleep better at night.

And if you don’t have any gold, you should get some today and if you have some gold, you should probably think about getting more, because in an economic environment like this, it’s better to be overly cautious than cavalier and irresponsibly exposed. Especially if you’ve been seeing gold promoted in various places.

Haig: Now how would an investor go about protecting their IRAs or 401Ks with gold?

Lubaszka: Well, Al, all an investor has to do is fill out a 1 page form with us, which takes a few minutes and then our retirement account department works with your existing custodian to get the appropriate funds transferred over into a gold backed IRA.

It’s very easy to do and most of all, you eliminate all of the uncertainty which is normally associated with IRAs and 401 Ks. You know there is something tangible being held and guaranteeing your retirement account. It gives you one less thing to worry about.

Haig: How can an investor gain a historical perspective on gold’s growth?

Lubaszka: If you go back 5000 years there has never been a time where gold has not had value. It was performing well for investors thousands of years before our stock market was created and will be around long after the stock market is. What this tells us is that gold has a track record you can rely on not because someone is saying so, not because you are reading a good report on it, but because it has been and will be the asset that makes you money and protects your family’s wealth for decades to come.

You are never going to receive the message, “oops, we made a mistake you shouldn’t have some of you money in gold.” If anything most investors will only regret the fact that they did not diversify properly and put enough of their hard earned money in such a stable vehicle.

Haig: Do investors want to look at owning gold stocks or maybe a futures contract possibly owning gold through an online storage opportunity? What is the best way to add gold to one’s investment strategy?

Lubaszka: In this kind of economy, the only way to buy gold is to buy gold if you want something you can count on. Get the gold in your hands; you can keep it in a safety deposit box or somewhere safe. This does two things. Number one, you protect your money in reality not theoretically. And number two, it gives you the peace of mind that owning real estate outright gives you.

If you don’t have to worry about a monthly payment, if you don’t have to worry about management making decisions that put your money in an undesirable place, if you don’t have to worry about its value continuously going down over time… guess what? You don’t have to worry! And not having to worry is really one of the most valuable commodities on the planet right now.

Haig: How has gold’s performance compared to other investments?

Lubaszka: Gold over the last five years has outperformed virtually every other asset out there from stocks to bonds to real estate. There hasn’t been any other investment out there that not only gives you an above average return, but also gives you the feeling of safety associated with just leaving your money in a savings account.

Haig: Is gold in an asset class of its own or are there other investments that have similar characteristics?

Lubaszka: Gold is certainly in a class of its own but right now there are other investments that have both profit potential and protection built in. Palladium is one such example as it currently trades just below its cost of production on a worldwide basis, buying it today is like buying oil at $10 a barrel. Not only can palladium show you the same type of returns oil has shown, but it also, like gold, comes in coin or bar form and you can own it outright or place it in an IRA or 401K rollover.

Haig: What exactly is palladium used for?

Lubaszka: Palladium is used for a wide array of industrial and commercial application from catalytic converters to jewelry. The demand for palladium has just begun. China, next year, is expected to consume an alarming amount of palladium for what looks like the beginning of a decade long commodity boom, so that should have a dramatic impact on the price.

Haig: And with what looks like the start of a decade long commodities boom what should investors keep in mind?

Lubaszka: They should keep in mind a few things, Al. Number one, we can’t stress the importance of paying down debt. It’s a simple principal, but one that is simply being ignored.

Two, investors should begin moving money into more defensive investments. Having a lot of money in the stock market sitting in cash or even in real estate may not be the areas where investors can expect to see the type of growth that so many of us got used to during the 80s and 90s.

Third, you want to take advantage and participate in the tremendous gains that will be realized in commodities over the next 10 to 15 years and investors want to do that in the most prudent way possible. Gold and silver are my favorites.

But investors should not wait until the time feels right. The time has already begun and you don’t want to miss out on the low risk associated with commodity related investments especially at these levels.

Haig: If this is a new way of investing for some of our viewers, what would you suggest?

Lubaszka: I would suggest getting started on a small scale. Make sure all of your questions get answered before you make even the smallest move and if you want precious metals, make sure you’re working with a company that understands the role precious metals should play not only in your portfolio, but in your life. Our division of precious metal asset managers is committed to being the most successful precious metal asset managers in the world and our track record reflects that.

Haig: How exactly can anyone watching this program right now get started with a precious metal account?

Lubaszka: All they have to do is click on the “get started” button on our homepage, fill in the required fields, we will then contact you in a very short amount of time to confirm and wa-la, into the precious metal market we go.

Haig: Now we come to the part of our program where it’s time to look out on the horizon. Marc, what do you see that investors can expect over the future?

Lubaszka: I see several positive things on the horizon for investors, Al. I see more and more investors taking a more positive approach to many of the very real problems we discussed earlier in the program. They are beginning to diversify properly and they are starting to move some of their money into gold.

I also see investors beginning to minimize their stock market exposure. They are moving money and mutual funds and they are getting it into cash and commodity related investments. What worked well for investors during the 80s and 90s is just not working for investors today and they are beginning to take action.

I also see many household investors losing faith in politicians, advisors, and “experts”. A healthy lack of trust seems to be working its way into the financial experience of many of your viewers and they are and rightfully so looking for investments that are safe, profitable and yet not subject to the opinions of a Mr. Know-it-all-do-what-I-say-because-I-know-better, just to wake up and see they’ve been hoodwinked yet again…

So investors are moving into things like gold, silver, oil, tangibles that they know will have lasting value, not fleeting hopes tied to a talking head with a nice suit on. Even if your viewers have not yet made a baby step in the right direction and purchased some gold at least they have that feeling inside them that’s screaming, “get gold, get gold,” which is certainly progress and if you don’t do something today, they won’t even have a talking head to blame.

Everyone watching this program right now knows they need to have some gold because of the direction the world is heading, so log on to our website, click on the “get started” button and get started!

Haig: The clock has caught us once again and were going to have to terminate this very timely and and very fascinating discussion but before doing so Marc I want to thank you for your fine contribution.

Lubaszka: Good to be here.

Haig: And thank you for watching. Until next time for world business review, I’m Alexander Haig.