Farmers don't talk about how much land they own. I suppose that's understandable. Because so much of their net worth is tied up in acreage, they often say they're "land rich and cash poor." My wife's family farms, so I hear stuff like that a lot. They are pretty happy, however, about how they got however much land they do own.

They were lucky to have reaped some rewards of the California gold rush. Seems that back in the mid-1800s, one of their ancestors followed a dream to the gold fields out West. Surely deemed foolish at the time, his efforts (pun alert) panned out. He returned to Illinois loaded with enough cash to buy property for himself and his relatives. The family still farms those "fields of gold."

With gold prices continuing to dance around the $1,000-an-ounce level, I hear a lot of talk about this being another gold rush. Truth is, this doesn't hold a candle to the events of 1849. Back then, ship captains left entire wooden ships in San Francisco Bay to go strike it rich. I don't mean they docked their boats but rather that they literally abandoned them. There were so many that the city finally claimed them for salvage and used the wood to construct buildings.

Today's "rush" also doesn't match that of 1979, when gold hit $850 an ounce. (Adjusted for inflation, gold would now have to be more than $2,100 to compare.) In '79, the urge to sell gold and silver was so great that lines of sellers literally wrapped around city blocks.

That's not to say people aren't flooding coin dealers today. Some think gold has peaked and are selling everything from jewelry to dental work. Others see this as the chance to get in on the prospect of prices rising higher.

The same is true for silver and platinum.

Because of this frenzy, the Professional Numismatists Guild is offering three wise recommendations to sellers or buyers.

First, know your dealer. Is he or she honest? What are his or her fees for buying or selling? If buying, recognize that because of minting costs, you'll pay a higher price for fractional pieces (one-tenth, one-quarter and one-half ounce) than for standard one-ounce gold coins. And, take immediate delivery of the precious metals you purchase. If you can't, demand a firm delivery date. If your dealer can't guarantee one, look elsewhere.

Second, be aware of possible taxes. The Patriot Act may require disclosure of certain transactions. You may need a photo ID. And, depending on the transaction you may receive an IRS cash-reporting form.

Finally, and it should go without saying, understand what you want to buy or what you have to sell. Know the purity of the metal and its intrinsic "melt" value. Current prices on the "spot market" are available online. One Web site I check regularly is www.amark.com. A-Mark is an established market maker in precious-metals trading.

Regarding purity, a good example is the South African Krugerrand compared to the Canadian Maple Leaf. Both contain gold, but the Krugerrand is only 91 percent pure — the balance consisting of alloys. It's not as popular and commands a lower price. Conversely, for 2008, Canada has introduced a Maple Leaf that's literally .99999 pure — one of the purest gold coins ever produced. It's a safe bet it will be eagerly sought after by both investors and dealers. If prices go up and you don't talk too much about it, you just may farm some profits.

(Editor's Note: A JPEG visual of the new 2008 .99999 pure Canadian Maple Leaf gold coin is being sent for your use with this column.)

To find out more about Peter Rexford and to read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

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