Precious Metals are God’s currency

I have been buying silver for several years.  A place in Salt Lake City sells at $1 or so over spot price and buys anything back at spot price.  I bought thousands of dollars worth of silver over the years that way.  Couple times I got in a pickle and sold a hundred or more ounces to get some cash, but overall I did well.  No premiums, no memberships.  Large variety of silver and gold bullion and coins.  Even junk silver.

Thing is, I didn’t have a strategy.  Silver tanked from over $40 to about $12 so then I had to hold tight and wait for it to come back which it hasn’t yet.  When silver was so low, nobody was willing to sell any.  They said they were out.  Course for a hefty premium they would bring some out if I absolutely had to have it which I did not.

There are actually two ways to buy silver.  Bullion which is a highly manipulated market as well as time consuming for recoveries.  Coins, which go up in value depending on the date, mint mark, or availability.

If I go to say Monarch Coin, I can buy a .999 silver round for about $18.  For a couple dollars more I can buy the same quality and size of silver coin that is minted by the United States mint and has a date and a mint mark.  The round might go up 5 bucks in 5 years.  The coin might go up $500 in 5 years.  It might not also, but it will always be worth more than the round.

Coins vs Bullion

So I got out my Red Book.  I looked up the United States silver eagle dollars minted later than 1986.  There are two prices.  Uncirculated and Proof.   The prices range from a low of $30 to a high of $255.  These are relatively new dates in fact the $255 is a 2011 date.  So clearly, the value of some of the coins far surpassed the rate of silver bullion.

Considering the only $2 difference in price between a new round and a new Eagle, the Eagle has a much superior value over time.  Now some of the coins do not do as well as others, but as I mentioned previously, they will never be worth less than the rounds.

There are many other collectible coins classified as numismatics.  Proof sets.  Collector sets.  Short mintages.  Different countries.  Specialty sets.  Military.  National Parks.  All sorts of variety.  When minted, these sets are priced rather conservatively.  Else there is no incentive to buy them.

So if you have a simple strategy to purchase only coins, from a couple easy countries like Canada, Australia, United States, etc., and buy every single date and mint mark, you have a wide variety of coins.  Some of which will increase over a 100% in a very short time period.  If you are smart enough to buy only the ones that double in value, you have a good strategy, indeed.

Your worse case scenario is nothing increases faster than the price of the base metal.  But over time, even that is a winner.

Silver or Gold

Of course, gold is a much more stable market.  Gold is in high demand.  The profits from gold coins can be very high, just because the base metal may cost a hundred times as much.  Gold requires a larger investment.  Gold is very difficult to make change for.

I checked out a couple of large reputable dealers to compare prices.  https://www.jmbullion.com/ is one reputable dealer and https://www.moneymetals.com/ is another one.  I haven’t purchased from either of these, but their prices are comparable to where I buy.  Thing is, where I buy, I also earn money.  I get a landing page sales funnel to send prospects to and I get paid when they buy.  Every reputable dealer will buy your inventory back.  It’s hard to beat precious metals.

Most countries around the world have realized that fiat currency is going to collapse.  China quit buying US Treasuries and began buying massive quantities of gold.  Money or currency needs to have a genuine value.  Not just paper with numbers printed on it that doesn’t even make good toilet paper.

I used coins from my own collection for the image on this page.

If you would like to invest in bullion or numismatics, I recommend taking a look at where I buy my silver.

 

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