The main reason for this is convenience. When you only buy gold coins, you are stuck with only gold to invest in and out of. For example, if gold is on a serious incline, but you need to sell a few to get some money for home repairs or other costs, then all you can do is trade in a few coins before they peak, which is unfortunate. When you buy gold and silver coins both, you can look into both the gold and silver coin prices and sell whichever would be wiser to sell.

Likewise, when it seems that silver is climbing while gold seems to be levelling off, you can go ahead and buy some silver coins to capitalize on that opportunity.

Besides which, silver is of course the cheaper metal, so convenience is a serious advantage when you buy gold and silver coins as well. If you have a few bucks laying around and feel like putting it into your coin collection, you can’t buy a one ounce gold coin without a thousand dollars to spare, but you can buy and sell silver in much smaller increments, making it a more convenient metal to invest in. Meanwhile, you can use the gold coins as your backbone and use that to support your long term investments.

Of course, the truth is that it doesn’t really matter. As long as you are investing in metals, be it gold, silver or platinum, you’re protecting yourself against the current recession we’re facing down, as well as any economic crises we may face in the future, buy gold and silver coins, or just buy one or the other, either way, you’ll be fine.

While you can capitalize on ups and downs to make a serious profit off of your coins, the main purpose of coin investing is that you have a safety net in the event of any economic troubles. Whenever the dollar does poorly against other major global currencies, you can almost invariably bet on the metals to pick up the slack. As long as you do make sure that your finances are covered by metals, you can brave any storm.

Furthermore, when you buy gold and silver coins, you are free to explore other investment options as well, knowing that you’ll be fine even if things don’t always go as planned.

Really, that’s what gold and silver investing is about. Yes, it is possible to get rich on metal investing if you have sufficient start-up funds and are lucky enough to be able to strike while the iron is hot, however, the metal investing trade really is open and accessible to everyone, and the primary purpose of investing in metal coins is simply to protect yourself against economic crises like the one we currently find ourselves in.

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Victoria Lopez

Aug 24, 2009

While gold is being made more accessible in recent years thanks to the tenth and half-ounce coins, even the smaller gold coins are out of the price range of many investors. As such, silver coins, with the metal averaging fourteen dollars an ounce as of the time of this writing, are much more accessible to the middle class investors and even those just making ends meet.

As such, both gold and silver retirement accounts are becoming more and more popular amongst those in the workforce hoping to secure a safe, solid nest egg for their golden years.

It’s not really surprising, when you think about it. Fewer and fewer companies are offering solid 401k plans for new employees. Not because these companies are greedy or ungrateful for the people who make their business possible, but simply because it’s becoming harder for the companies to offer these plans in the first place. Even many of the companies on the Fortune 500 list are experiencing difficulties in this recession. Just look at Starbucks. While they often make the Forbes list of the best companies to work for, they were forced to close hundreds of locations across the country over the last year or so.

With regards to why gold and silver retirement accounts are so popular... gold is, of course, gold. It always performs well during times like these, and it’s a solid option for retirement investing, but let’s look at why silver is becoming so popular these days.

First of all, the middle class is shrinking. Studies have shown that the amount of disposable income held by the average middle class family is somewhere in the area of half what it was just a decade ago, with food, housing and utility costs skyrocketing. Those in the lower middle class have been forced to move into smaller houses and to cut back. Many can no longer afford to invest in gold as they could have ten years ago. And so, silver makes an excellent alternative.

Besides this simple fact, there’s also the case that, while tenth ounce gold coins allow investors to move smaller amounts of money, thus making their metals investments more accessible and more convenient, silver is even more convenient to move around in smaller amounts. There isn’t a single gold coin that you can cash in for less than one hundred dollars, but silver coins are offered in much smaller values.

Of course, in any context, whether your primary retirement investments are in gold or silver, bars or coins, the important thing is to protect yourself against this recession and any we might be experiencing in the near to distant future. The fact is that, again, this won’t be the final recession we ever face. Between today and the day you retire, you can almost bet your last dollar on the fact that there will be another recession sooner or later. Gold and silver retirement accounts serve as a sort of insurance policy against such times: Better to have it and not need it, than need it and not have it.

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Victoria Lopez

August 9, 2009

Firstly is the idea that gold and silver investments are only useful during a recession. This is, of course, simply not true. Gold and silver investments almost invariably perform better during a recession, that’s when they truly shine, but saying that gold and silver investments are only useful during a recession is like saying that car insurance is only useful if you get into an accident. True, that’s when you are most glad to have insurance, but that doesn’t mean that you never want to be without insurance, that you should just skip it until you get in an accident and then buy insurance. Rather, you always want to have insurance just in case. Likewise, it’s a good idea to always hold gold and silver investments just in case.

Second is the misconception that gold and silver investments are only an option for the incredibly, incredibly wealthy. Look, the wealthy, the moderately wealthy, the middle class and even those just making ends meet have the option of investing in precious metals. The gold and silver investments grade coins from the US Mint make it incredibly easy for literally anyone to start investing in metals. There are more than a few investor coins available right now for less than the money you have in your pocket at this moment.

This leads us into another misconception: That you cannot make real money on metals. Not true. Sceptics will be quick to point out that, during times of relative ease, that gold and silver investments tend to be lower, experiencing very small gains over time. True, but not entirely relevant.

The whole point of gold and silver investments is not to get rich overnight, but to protect what assets you do have and to ensure positive growth over time. It would be nice if there was such thing as a zero risk investment that is guaranteed to make you rich in a matter of weeks with very little work on your part, but that’s simply not the case.

Financial independence requires quite a bit of hard work along with patience, the capacity to learn from your mistakes and the mistakes of others, and, of course, a solid backbone for all of your investments.

That last point is, of course, where gold and silver investments come in. You won’t get rich overnight on the metals, but you won’t go broke overnight, either. Unlike stocks, which are volatile, and real estate, which is risky, the growth and decline of gold and silver tends to be steady and relatively predictable.

The point of metals investing is not to put all your eggs in one basket, don’t touch’ em, and hope for the best, but to put a solid foundation into something reliable.

The bottom line is this: By building significant investments in metals, you can then go on to take any risks you like with the rest of your money, knowing full well that you’re protected in the event that things don’t go your way.

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Victoria Lopez

Jul 12, 2009

The simple fact of the matter is that when you buy gold and silver coins, you provide yourself with twice as many options as if you had chosen to hold only one metal. Say you have an investment in gold coins and you want to cash a few in. Well, what if the metal is experiencing a steady climb at the moment and you'd rather not part with any before the peak? Meanwhile, silver has levelled off after a nice peak and will likely not experience any more major growth for a little while yet. You can sell your silver while waiting for your gold to keep building. That's the main rule of gold and silver coins: It's a good idea to diversify.

While Augustus Saint Gaudens designed his $20 Saint Gaudens coins with gold in mind, gold and silver American Eagles are equally beautiful, and all precious metals are, quite literally, money. You can buy both gold and silver coins and provide yourself with more possibilities.

And of course, the prices of gold and silver coins are looking very good this year, following the same trends we saw in 2008 when gold pierced the thousand-dollar mark.

While gold tends to form the backbone of gold and silver coins investing, it's a good idea to keep a lot of silver in your savings as well. Silver is easier to move around in smaller amounts. As a small example, there are a lot of stories of generous metals investors using silver coins for restaurant tips and Salvation Army donation buckets, but that sort of thing is a little trickier with gold coins.

Diversity and convenience are the key benefits of investing in both metals. Both metals are going incredibly strong right now, and will likely continue to do so throughout the rest of the year, according to the latest projections. During a recession like this one, it's incredibly important to make sure that you have solid ground to stand on, and there are few ways to achieve that stability as effective as buying up gold and silver coins whenever you can.

That being said, the good news is that you don't actually have to worry about any of this at all. You can simply buy as many gold and silver coins, put it somewhere safe, and pay it no mind whatsoever until you need to cash a bit of it in. This is exactly why many consider metals investing to be a much more laid back market than the topsy-turvy world of stocks and real estate. Metals tend to do the opposite of what the rest of the economy does, so when you do have a solid investment in metals, you don't need to stress during financial crises like the one we're facing now.

Whatever decision you make, just rest easy knowing that you are covered. Should some unexpected finances come up, should another investment of yours take an ugly turn, you have your coins as one of the best financial insurance policy that money can buy.

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Victoria Lopez

July 1, 2009

If you want to purchase gold and silver American Eagles, the silvers do typically have higher sales than the Gold Eagles. This is because while gold is for some prohibitively expensive, there's a world of difference between gold prices and silver prices. Silver is much more accessible and convenient for the average investor and makes a great option for those looking to purchase gold and silver for their retirement accounts who don't always have the money on hand for an ounce of gold, so when you're looking to purchase gold and silver coins it makes sense for many to simply go with silver.

To look at all metal investing news you'll see similar spikes in demand for gold Eagles. This has actually disappointed and annoyed many gold investors as it has resulted in many of their favorite coins selling out leading to the current suspension of all Gold Eagles (although this disappointment seems odd, as the high demand and low supply only bumps the value up). Meanwhile, silver is much more readily available to the Mint and less expensive, and so it's not hard for to buy as many silver Eagles as you please.

Whichever metal is your favorite, it's actually a good idea to hold both gold and silver. True, both gold and silver are great for the long term in offering virtually guaranteed growth and very rarely experiencing anything in the way of a crash or even a severe decline, but small dips and rises do happen on a regular basis. By learning to capitalize on these when you sell or purchase gold and silver you can really make the most of your investments.

For example, say you get in a minor car accident and you choose to pay for it yourself rather than have your insurance rates go up. Suppose the costs total in the area of five hundred dollars. Now let's say at the time selling off your gold to cover these costs would mean parting with some of your gold and you were hoping to let all of that gold keep growing rather than cash in before the current rise has peaked. On the other hand, say silver is peaking and it would take a much smaller portion of your total silver investment than your total gold investment to cover your expenses.

When you purchase gold and silver it has historically been a safe, secure option for investors, but both markets do have their rare curve balls. By investing in both, you'll have options when that happens to sell when it is peaking rather than levelling off.

In other words, while the 22 karat coins are experiencing high sales resulting in a temporary suspension of production, the silvers are plentiful. Gold Eagles may well be the best investment option available if you're after security and convenience but if you can't get your hands on the amount of you want in these coins, go ahead and take it as an opportunity to invest in silver as well.

In the end, the whole point of investing in metals is to provide yourself with peace of mind, so no matter what you do don't fret about the 22 karat blank shortage at the mint. Rather, be glad that the Gold Eagles you do have are seeing something of a golden age over the last year or so thanks to record demand and be glad that you have something to fall back on in the middle of the most severe economic crisis in decades. In other words, in the unlikely event that this shortage at the Mint has you worried and stressed for any reason, just focus on the positives of being a gold investor.

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Victoria Lopez

May 16, 2009

For starters, gold and silver have been offered as stocks themselves for a very long time in the form of stock ownership in mining companies. In addition to what many view as a somewhat risky investment, especially in the case of speculative mines that do not have proven and verifiable reserves.

In addition to this, for the last several years, is has been possible to invest in gold and silver even more indirectly in the form of gold and silver bullion electronically traded funds (ETFs). Approved by regulators and brought to financial markets by Barclays in 2002, gold is a very actively traded ETF. There are several different types of gold ETF for those looking to avoid having to store gold and silver bars or coins. ETFs have been available for silver since the mid-'aughts, also innovated by Barclays.

The influence of stocks is seen throughout commodity trading, but stocks have the potential to affect currencies. Here is where the connection between gold and stocks gets interesting for the investor in real, physical gold and silver coins or bars. As confidence in currencies and their relative position against each other wanes, the spot price of gold and silver almost always goes up.

That said, there has been some speculation as to how gold and silver prices have been moderated by offering the commodity as a stock. The true influence of gold and silver investments with ETFs, mining shares and pure speculation is difficult to tease out, since these markets are all inter-connected to some degree.

However, with these novel investment “vehicles” and the targeted sales of some of the largest stocks of physical gold and silver, spot prices have yet to reach the kind of peaks that many gold and silver investing pundits have been advocating since the collapse of markets in late 2008. While the prices have been on a somewhat volatile upward trajectory, the price seems to continue to plateau at the supposedly emotionally important number of $1,000 per ounce.

Of course, that's the problem with the stock market – it is emotional and volatile. Gold and silver investments have traditionally been a safe and long-term investment in the materials that real “money” was based upon, relatively immune from great upsets to the value of fiat currencies and goods in the marketplace.

With the introduction of banking and trading schemes based upon the idea of gold and silver bullion, there has been considerable debate among investors about the overall impact of these investment vehicles upon the gold and silver spot price movements since the “crisis” began. Demand for both remains very strong, with prices tracking both stock and currency investments, even as markets continue what has thus far been a long loosing streak for overall stock prices worldwide.

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Victoria Lopez

April 18, 2009

Mercury is one of the most dangerous chemicals to human and other life. It has been used in “amalgam” mining since ancient times, but contrary to popular belief, this practice was outlawed by Rome while the Empire still flourished. Its use in medieval Europe was light only because there was so little gold left.

When the Spanish arrived in Central America, mercury quickly became a local problem, as evidenced by the high residual mercury content found in contemporary gold and silver. Bars, ingots and jewelery exported from these countries often bears traces of the mercury used to produce it.

Later, during the many gold rushes of the 19th century, ice core samples reveal a massive increase in worldwide atmospheric mercury elements. Even after being banned in the US, old mines continue to emit mercury at detectable rates. In fact, fish populations in affected California rivers continue to carry highly abnormal levels over 150 years later, long after the gold and silver spot price has ceased to reflect California mining entirely.

Quicksilver, as it is sometimes called, is a metal with the unusual property of being liquid at room temperature. However, mercury is also volatile, escaping into the air, soils and water around the often rugged conditions at mines in countries such as Indonesia, Mali and Romania. With the use of mercury having been strictly regulated through much of the Developed World in the early 1990s, the industrial output of this neuro-toxin has dropped off considerably since the 1980s. However, the use in emerging nations has caused a steady increase in worldwide contamination since.

Cyanide is used in great quantities in the US and abroad to mine for gold and silver. Investments in research and design have come up with better containment systems, but this also toxic chemical is found in much higher than background levels in many rivers and streams throughout the United States, despite strict controls on cyanide leachate recovery.

Gold and silver investing by those who go to great lengths to investigate the ethics of their purchases will certainly want to consider the long-term environmental impacts of mining in such countries. The purchase of gold and silver coins from most countries assures that the precious metal in question came from a country with strict environmental laws. For instance, American Eagle bullion coins must come from US mines where it has been illegal to use mercury in the mining process for decades.

While gold and silver spot prices continue to climb higher, the demand for gold increases. This is especially true in a world where overall production has slipped in recent years from turn-of-the-millennium peaks. All thing considered, it will take a movement of conscience to have any impact on federal and local governments that allow gold production in areas where vast environmental consequences are simply part and parcel when you buy gold and silver in any form.

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Kenneth Hansen 

April 12, 2009

One of the simplest and most consistent rules of the modern economy is simply that, when stocks and the value of the American dollar go down, the value of gold and silver bullion, as well as gold and silver bars and coins, tends to go up.

Now, with the inauguration of President Obama earlier this year, a lot of Americans were hoping for an overnight reversal of everything our economy has suffered over the last eight years. Unfortunately, that wasn’t the case. Wherever you sit, politically, the problems we’ve experienced since 2000 or so have proven to not be the sort of problems that can be fixed with some new bills and a few bailout packages. Climbing out of this hole is going to be a long, trying process.

Americans are probably over the big gold and silver coins buying frenzy that began late last year, but that doesn’t mean we don’t still have a lot of new investors looking to purchase gold and silver for the first time.

When you invest in gold and silver, your investments tend to be much safer than in most any other form of investment. Oddly enough, in healthy economic times, this sort of “backup plan” tends to be largely neglected. When your stocks are making money, when your business is doing well, why bother with gold?

Ironically, though, economically strong periods are probably the best time to buy up gold. The prices tend to be lower, you tend to have more money with which to buy gold, in the first place, and you will probably see a significant boost to the value of your gold coins should we experience another recession.

The smart investors out there today are not only buying gold as an emergency plan B right now. They’re buying gold, and they intend to hold onto it even in the unlikely event that we do pull out of this recession by year’s end.

The economy has its ups and downs, and right now, we’re down. Any smart gold and silver owner knows that these precious metals are not about getting rich quick or getting in on the ground floor of some great way of making cash. Rather, precious metals are, perhaps, the very best option you have of keeping your money in your pocket. You won’t lose your metals investment to a stock crash, corrupt bankers, or inflation. That alone provides the peace of mind gold investors are looking for.

In times like these, of course, that peace of mind is worth, well… that peace of mind is worth its weight in gold.

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Dario Bell

April 11, 2009

This is the kind of thing that always occurs during a recession. People are looking for new ways of making money (well, selling gold and silver is a fairly old way of making money, but you know what we mean).

Our advice to these gold partiers is not to simply hand that old gold and silver off to some random jeweler, but to go through a real, trustworthy gold firm. Furthermore, we advise trading it in not for cash, but for gold and silver bars or gold and silver coins.

A lot of people are hurting for cash today, and that makes it easy for some people to forget… we don’t just need money now, we need money tomorrow and the day after, as well. Don’t neglect your savings just because you need cash now.

When you buy gold and silver, you have something for the future, simple as that. Gold and silver investing is a tried and true way of taking what you have now and making sure it’s worth more in the future.

This idea is hitting home during a recession, but it’s true of any economic weather. When you invest in gold and silver, it’s not just about saving your skin during this recession, but protecting yourself against further recessions, protecting yourself against inflation, and keeping your savings in an asset that won’t tend to depreciate over time.

Of course, if you’re holding some gold and silver investments, you know this already.

The problem is, during the easier economic periods, people aren’t looking to simply stay afloat, they’re just looking to make more money than they have. This is why fewer people purchase gold and silver bullion during the ups, and more during the downs. It’s tricky to get rich quick on precious metals.

To be clear, metals are not a “hot” investment, but a “smart” investment. This is actually preferable. A smart, safe investment will only tend to continue to grow in value, and will only tend to collapse in extreme situations. The “hot” investment opportunities always tend to be more of a bubble which eventually bursts. You can see this very clearly in the housing market, which was booming in the nineties and quickly crashed when we hit the 21st Century.

A lot of people are looking at the leadership of the country, chalking the economy entirely up to the president’s decisions. “Well of course the last eight years were hard under George Bush, but now we have Obama, so things will change”. The fact is that the economy always has its ups and downs. Rather than simply looking for who’s to blame, we should all start wondering how we’re going to take care of ourselves regardless of the sitting president’s policies.

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Sam Brown

April 5, 2009

Since that time, it's been a near-perfect rise to the top, with gold futures hovering near $1,000 per ounce for nearly a week before dropping back down again. And that's the biggest question that is facing anyone trying to decide whether to purchase gold and silver now or wait to see how far the “correction,” in what some saw as a “gold bubble,” will go. In fact, it almost seems as if people who have been waiting to invest in gold and silver have been holding their breath since the price of gold began to fall back down to Earth again in early March of 2009.

Much of what has driven the sharp increase in gold and silver spot prices has been as a result of the very steep increase in the amount of electronically traded funds that are based upon precious metals. Both gold (GLD) and silver (SLV) stocks have been trading high, but concerns about the actual amount of gold in those investments has kept gold and silver investments in ETFs an almost exclusively short-term hedge against riskier stocks like the recently difficult manufacturing or banking sectors.

But the interest in ETFs has been cooling off, and short term investors often move money in and out of such funds on a weekly or even daily basis. This sort of volatility is more easily absorbed in the much larger number of stakeholders in the gold markets, whether their holdings are virtual, “paper gold” or real, physical gold and silver coins.

While investors who favor physical silver bullion are accustomed to the often “rough and tumble” silver commodity markets, new players in the silver ETF markets tend to respond more quickly to losses than a more traditional investor, and even very a normal and reasonable correction to gold and silver spot prices can be viewed as ruinous by investors who are more accustomed to “day-trading.”

So how low will the price of gold and silver go? Signs of hope in the investment sector has been uncharacteristically tracking with the London spot price of both silver and gold, though the latter is by far the more glamorous of the two, often getting far more news coverage that might impact the average consumer.

The consensus among financial planners, investment bankers and long-time market watchers is that the decline in the price of gold is only temporary, but may represent the last stop before the gold train leaves the station. Estimates of likely summer prices for both gold and silver put the metals at historic highs, even after adjusting for inflation by the crudest means possible. Numbers in excess of $2,000 per ounce for gold and over $30 for silver have been bounced around in more than hushed voices.

Whether these incredibly high gold and silver spot prices will actually come to pass is anyone's guess, especially as it is highly dependent upon other markets such as currencies and derivatives. However, it does seem clear that the market conditions that led to the steep rise in gold and silver prices has not yet abated. A rule of thumb that many practice in such situation is that when the price falls to 1/3 above the most recent low, and market conditions aren't significantly different, it may be prudent to buy again.

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Clint Faust

April 4, 2009

There are plenty of theories as to why the spot price of both gold and silver seems to be holding far more steady than many think it should, many proposed by some of the best minds in the business. However, there does seem to be a correlation between the price of gold and silver bullion and the rush to invest in notoriously risky mining operations as well as “paper metals.”

In the run up to the initial offering of Barclay's silver ETF, there was a vast amount of speculation as to how this would affect the actual demand for silver. Many assumed that since so many people would be buying into the funds, that Barclays would be required to make massive investments to buy gold and silver to keep up with ETF customer demand. In theory, these companies are required to keep something like the same amount of silver on hand as to be sure they can cover depositors and investors.

Unlike what was predicted, silver didn't immediately jump, but it did eventually, in part due to the increased demand from industrial sectors other than photography, go up over $14 per ounce about two years later in early-2008. Given the much smaller pool of investors in the overall silver market up until 2006, moves in the price of silver have tended to be volatile. However, with the massive hits to the stock markets and banking system in late 2008, the spot price of gold and silver have both been very strong since early 2009.

For those who regularly invest in gold and silver, the skepticism about whether these funds actually have the amount of silver on hand – estimated at over 100 million ounces for the SLV fund – remains very high. In fact, it is assumed that many of these funds have been short of physical stocks for some time. For that reason, many investors have been retreating into physical silver bars and coins at tremendous rates. Nearly three times the normal demand.

That said, a large part of the recent increase in silver investment rates has been in the form of silver ETFs, too. Because these funds are able to purchase so much silver, they should be able to corner the market to some extent, but many investors worry that this has failed to happen because they simply aren't buying enough silver to cover all the investment. If this were found out, the impact on gold and silver spot prices would be incalculable.

Whether this is true is a matter of speculation because no one has really physically gone and looked. Some even claim that the documentation Barclays, through JP Morgan Chase, filed with the SEC (and okayed by them) was intentionally misleading. It could be interpreted to mean that none of the investors are actually guaranteed to be backed by real gold and silver investments in either of their ETF funds.

Gold and silver spot prices will likely continue to be extremely volatile for some time. A climate of distrust of the clearly distrustful US banking industry and may lead to a flight of investors willing to purchase gold and silver ETFs. On the other hand, investors who purchase stocks at such high prices as seen in February of 2009 will be loathe to sell them at lower prices.

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Charlotte Aversa

March 26, 2009

Classically, silver coins were issued in tiny denominations, such as the roughly 0.8g obol, found in ancient Greece. Even the biblically-referenced shekel was issued in 1/8 fraction denominations weighing just over 0.7g – meaning they are tiny enough to be easily lost.

When the US Mint established its coinage, a dollar was worth exactly one ounce of silver. This meant that any coin made of silver and smaller than one ounce would have to be a fraction of a dollar. When first approved in 1792, silver coins from $1 to a “half-dime” five-cent piece were created. For this reason, 90% silver US quarter-dollar manufactured before 1964 are valuable as bullion as well as collector's items.

During the Civil War, fractional silver was only minted and circulated on the West Coast. This continued until 1873 when nickel interests interceded and had both 3-cent and 5-cent coins minted in a copper/nickel. Canada continued to make thin, 5-cent silver coins until 1922. Dimes and quarters both were converted to base metals in 1964, also, though half-dollars continued to be made of silver for one more commemorative year after the assassination of President Kennedy (just as he was about to sign a new silver certificate into law).

Other countries have issued fractional silver as investment-grade bullion at some point before just as most do with gold. And silver, bullion being so relatively inexpensive as compared to gold, is often used in commemorative coins, colored or minted with other metals or even gemstones. Some even finds its way into jewelery.

Today, much of the fractional silver that is available are in 1g and 5g silver bars, commemorative pieces, medals or rounds, though a few coins do still exist. A great many different types of fractional silver rounds and bars were created during the 1970s, when interference in the silver market caused the price to rise well above $20-ounce. Even bars from this period are considered collectible down to the tiniest. A 1g bar is only a few millimeters across on each size – small enough to loose in a shag carpet.

Larger sizes of silver bullion bar or round, such as the 10g and ½-ounce bars, have also been produced, as well as a very collectible few from that period at 20g. Many of these have been issued by silver mining companies and stamped with a weight and purity. More decorative rounds made for collection value are tied to having been made from historical silver, such as that found in abandoned mines or shipwrecks. One type was even made with cut-marks down the middle to allow the owner to split the 1-ounce and ½-ounce bars are subsequently marked as ½- and ¼-ounce sections.

Unlike coins of gold and silver, bars of silver are not typically dated, marked with a country or origin or have a “face” value. Some have serial numbers. For those who want to invest in gold and silver but don't have the resources to focus on gold exclusively, the potentially very handy nature of small silver coin during a very extreme crisis is reason enough for many to look for both contemporary and historical fractional silver to take advantage of high gold and silver spot prices even when cash is tight.

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Mary Foller

March 24, 2009

The markets for precious metals has been dramatic since the end of 2008, when gold and silver spot prices began a rise that continues months later. However, as gold and silver futures close in on the $1,000 per ounce level, some market-watchers are starting to wonder whether the rise in the price of these metals will continue to be fueled by a seemingly endless supply of bad economic news or, if fears about currencies and hyper-inflation will make those who invest in gold and silver wish they'd kept their stock in condensed soup.

There are several ways to try to analyze the past performance of gold and silver bullion markets, but as investment advertisements will routinely tell you, “past performance is no indication of future performance.” Of course that doesn't mean that you can't get a leg up by studying the way precious metals have behaved in the past as contrasted with general and specific economic conditions and market forces at work. It is also useful to note just how people were behaving when they buy gold and silver during historically similar times.

Some economic theorists (and a much larger number of armchair enthusiasts), have speculated that markets fluctuate in a somewhat predictable way, due to the complex interactions of additive waves of price movement. When all the waves are lined up, one direction or another, major events happen. When they are balanced, markets remain placid, continuing a small but steady upward track.

Volatility can have a feedback effect on investors. The ups and downs of metals vs. the markets during difficult times is just enough excitement to attract gold and silver investments from novices who know little about the commodity, much less the nuance of what news items in the precious metals sector really mean. This does not, however, have a rational influence upon gold and silver spot prices.

Another thing to consider is what gold will do for you other than to act as a type of protection in terrible times? It is something like a bank in some regards – it doesn't really create more opportunities, it's more like an insurance policy, if the normal avenues of high gains are not successful – like hoarding under a loose floorboard for a rainy day.

But could gold really be on a bubble that is about to burst? That sentiment has been raised more vociferously since gold futures went over about $950 per ounce. Demand from the largest sector of the precious metals market, jewelery, has dropped dramatically since 2008 while production has ramped up. It has only been the interest of large fund managers and vast consumer interest in gold and silver investing that has kept overall demand buoyant.

However, those who study investment behavior suggest that gold and silver spot prices will continue to rise to historic highs, not seen since the 1970s in terms of real value. However, unless something drastic happens to undermine currencies worldwide, the price will have to respond to physical market forces at some point.

Because many market-watchers continue to see market unease and danger for currency trading into early 2010, it is possible that gold will continue on a long upward trajectory for some time before heading back down again, but it will eventually come down, and when investors begin to shy away from precious metals, the change could be sudden.

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Joseph Morton

March 19, 2009

But there are other bullion coins that are of great interest as gold and silver investments. For instance, just north of the border, the Canadian mint has been producing a 1-ounce silver since 1988, specifically to compete with the Silver Eagle. Mintages of the Silver Mapleleaf were massive in 2007 and 2008, easily keeping up with demand by flooding the market with millions of ounces. Easily available to anyone interested in gold and silver investing, the Silver Mapleleaf can be found at just about any dealer in the US in current and recent dates.

One of the first of the major silver coins to hit the modern, global market is the Chinese Silver Panda, introduced in 1983. Unlike many other silver bullion coins, these are released in many sizes, ranging from ¼-troy ounce to 1-kg (35.3 troy ounces). These fractional Pandas have made it very easy for even the most modest budget to be able to afford gold and silver coins. Early mintings of these coins were not quite 1-ounce of pure silver, and were adjusted in 1989 to be more easily bought and sold. Though many counterfeit Silver Pandas have been found, they can easily be distinguished by weighing them.

The Mexican Silver Libertad was also brought into production in the early 1980s. These coins share a design with the also popular gold Libertad coins. Like the US Silver Eagle coins, their Mexican counterparts are also minted as a limited number of proof sets, usually limited to a few thousand per year. They are sold in sizes ranging from 1/20th-ounce to 1-kg, making even small coins available to anyone.

Of much more recent manufacture are the Austrian Silver Vienna Philharmonic coins, minted since 2008. It's design is exactly the same as the long-time best selling gold Philharmonic coins. The Austrian Mint also produces a large volume of commemorative gold and silver coins each year, though these are not as highly prized for investment as gold and silver bullion.

Australian Silver Kookaburra and the Australian Silver Kangaroo are manufactured by the Royal Australian Mint and the Perth Mint, respectively. Both in production since the early 1990s, these coins are also 1-ounce of solid silver, also sold in larger increments up to 1-kg. Rises in gold and silver spot prices have created very heavy demands on these mints, but Australia's gold reserves remain massive.

International mints can be a bit tricky to get current mintage figures from. This is especially true of mints outside North America and Europe. While most coins are dated and given a nominal face value in their home countries, most people buying bullion coins to take advantage of rising gold and silver spot prices are unconcerned about rare coins. That said, some bullion coins have some numismatic value.

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Arthur McGuire

March 17, 2009

After starting the year high, at over $14 per ounce, the spot price of silver rose to over $20 per ounce in March. Aside from a small rally in late September, the trend was downward for the rest of the year, though it finished only about $2 lower than the January price. Looked at in a larger historical perspective, however, this volatility at the top could very well be a stepping stone on the way to even higher levels in 2009.

Even with a temporary shortage of silver bullion coins in February of 2008, the year finished very strong in terms of sale numbers, mining and related industry investment, market interest and price. Proof sets of silver bullion coins, intended for the collectors market. Nearly twice as much silver was sold in 2008 with respect to the previous year.

Though the price finished the year up far higher than other types of investments, it was significantly lower than it's historical high in early 2008. This represents a high price for the commodity that hasn't been seen since the 1970s. The question remains whether gold will continue to increase in value or decline as the price of both gold and silver did in the early 1980s.

Historically, the price of silver has been somewhat more volatile than that of gold. Demand varies considerably from one month to the next. That is partly due to the small number of large investors in silver as compared with gold. This allows this small group to rally together in a more coordinated manner than the more diverse forces that act upon gold. Gold has been marching along in late 2008 and 2009, as well. Both gold and silver spot prices experienced a progression upwards after October of 2008.

For investors who buy silver bullion for its numismatic value, the rationing of proof sets may prove to be a lucrative investment for the long-term. The government does require the mint to keep up with public demand for bullion products, but it has no such directive for the production of coins for collection purposes. However, should demand for silver bullion coins slow down or the lines of production be fortified to keep up with the increased demand, it is likely that there will be significantly fewer proof sets of Walking Liberty silver dollars and silver Eagles.

Increased demand for physical silver will be competing with a decrease in the industrial and jewelery demand for silver. The movement of currency markets will certainly impact the price of silver over the year. The serious investor will want to track both gold and silver spot prices and compare them with movements in relevant sectors.

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Joseph Morton

March 12, 2009

However, some of the concern over whether gold stocks are in sufficient supply has been unwarranted. A recent shortage in gold Eagle coins was traced to an interruption in the supply of planchets, or what the Mint now calls a type-2 blank, from a key manufacturer. The Mint itself is charged with meeting the demand of the consuming US public, but the logistics of production are sometimes unable to keep up with a demand that fluctuates wildly. The demand for silver Eagles is even more erratic.

Though only sales figures are released, it is expected that the US Mint will increase its physical supply of gold bullion. Eagles account for a large amount of the sales of physical gold from the US. In fact, demand for gold Eagles in January 2009 has seen an over four-fold increase from January of 2008. While smaller denominations have been very attractive to individual investors, the majority of the US Mint's gold Eagle sales have been in one-ounce denominations.

Thus far, the US Mint has sufficiently ramped up production to meet this unprecedented demand, though with some rationing limits placed upon large-scale investors. There are significant mining operations in the US and a large amount of gold bullion held in government coffers. Thus far, problems with demand have largely been logistical. Demand has also spiked in other countries, straining their ability to physically keep up with demand.

In addition to domestic sales of gold bullion Eagles, investors in the US have been buying up stocks of gold bullion in other countries. Investment in gold held and processed by the Perth Mint, for instance, have reached $2 billion in early 2009, with a significant portion of that coming from the US. Investment in mining interests has also skyrocketed, with over $1 billion being spent in January of 2009, alone. Much of this investment, especially by large investing firms, has been fueled by concerns about the stability of paper currencies in the face of massive public spending on bad assets and infrastructure.

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Kenneth Hansen

March 10, 2009

Silver, for instance, is used in many industries. While the use for photographic film has tapered off considerably since the widespread adoption of digital cameras, there are sill plenty of industries that use the metal, high capacity rechargeable batteries using silver-zinc being one of the most rapidly increasing uses. Jewelery-making uses many millions of ounces of silver each year, as does the production of silver bullion coins for investment purposes.

Because of its unparalleled conductivity as compared with other metals, when kept away from ozone and hydrogen sulfide it is used in several different types of high-end electronics. Both silver contacts and solder can be found in equipment, and silver speaker wires use a significant amount of sterling silver (at least 92.5%). Dentistry uses quite a bit of silver and mercury amalgam fillings, but both gold and silver spot prices affect this industry, too. Other uses include nuclear reactor control rods, chemical reaction catalysts, colored glass and covering the back of high-quality mirrors. Some people take it internally, and silver is a successful treatment for bacteria, impregnated in bandages and clothing.

The United States produces a significant amount of silver, though only 30% of the amount used per year through the ’aughts was domestic – the rest was imported. In fact, the world as a whole has been using more silver than has been mined since 1990. After a dip in production in the early 1990s, the world production of silver has continued to rise unabated, but the demand has soared even faster.

In addition to the US, Mexico, Peru, Chile and Bolivia are all major exporters of silver, with Peru producing nearly 3,200 tonnes in 2005. China and Australia are also major players, as are Poland and Russia. Since most of the silver in the world has come from the Americas since the 19th century (when large-scale mining really increased production capacity), it is no wonder that the price of silver has come down so far in terms of relative value considering how relatively little of the metal is found in the Old World as compared with gold, which is relatively plentiful in Africa, Russia and Central Asia.

However, production ratios between gold and silver have remained very close to the classical 12:1 ratio. In 2005, production of silver was greater than 20,000 tonnes while about 2,500 tonnes of gold were pulled out of the ground. Silver mines continue to increase their capacity worldwide, and have been doing so since the conspicuous drop in production in the early 1990s. Other than that those few years, the silver output has steadily climbed since the late 1940s with little regard to gold and silver spot prices.

While much of the most speculative investment in recent years has come in the form of open-pit mines and low grade ore extraction, the actual output when compared to all the expenses are very often close to even, so when fuel prices go up, production in such mines goes down, while underground, high-density mines are not as closely affected.

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Arthur McGuire

March 5, 2009

One of the most curious news stories in recent months has been the discovery that sewage coming from several industrial areas can yield a higher amount of gold per incinerated ton than some of the world's most productive mines. Given the very high gold and silver spot prices that have emerged in early 2009, this could prove to be a very lucrative source of gold for some of the world's leading national buyers. More importantly, what impact will this shifting focus of precious metal extraction have on gold and silver investments?

For starters, consider Japan, where fly-ash recycling technology has been put to use. Contrary to the impression given in several of the news articles written about the process, the gold in question is not coming from the diets of the Japanese people. Instead, researchers believe the gold is ultimately being input into the local water supply from industry throughout the Nagano prefecture. Some of these industries include several different types of precision electronics manufacturing in the area. In addition to this, it's thought that some of the gold found in the millions of consumer electronic devices thrown into landfills each year have been leached into the local water supply.

So far, the region has made nearly 15 million yen from the processing of only 5 metric tones of incinerated sewage that was brought for treatment. That's nearly 1,900 grams per ton – many times higher than would be considered a good return from a gold mine anywhere in the world. Just as sweepers will sometimes pay to be allowed to search for gold dust in an Indian jewelry shop, waste has suddenly become valuable because the economics of the system have changed.

Silver is also found and extractable, but far less value than gold. However, both gold and silver spot prices are on the rise – something that can't be said for other semi-precious (or base) metals. Gold and silver bullion have thus far proven them as a hedge against crisis, given the behavior of other commodities.

With the increase in the price of gold and a downturn in consumer spending, many in the industrialized world (especially countries that don't have productive gold mines, like Japan) are buying domestic gold. This has already happened in countries like India, where the sale of domestic jewelry or the reshaping of old jewelry has become commonplace while gold imports have virtually ceased.

Outside every major Japanese city, it has been shown that large deposits of all the precious metals can be found, ready to be re-mined and processed. Some of the semi-precious metals found include zinc, lead and copper. That said, the price of all these metals has taken a tumble since the fall of manufacturing in late 2008. In fact, these base metals are approaching historic lows (in terms of inflation-adjusted value).

Other more exotic minerals that will be important for future energy infrastructure are believed to be found in these urban mines. They are set to be come extremely profitable. Rhodium, indium and platinum are all used in “green” technologies, either to generate carbon-free electricity or to reduce pollution. These have the potential to become sources of great wealth, as alternative precious metal commodity prices begin to increase and draw attention from gold and silver investors.

In the meanwhile, sales of gold and silver coins will continue to satisfy a surging consumer demand for a relatively safe and stable haven to invest their savings. Both gold and silver spot prices have continued to retain and gain value while most industries, currencies and commodities are suffering deflationary pricing.

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Arthur McGuire

March 1, 2009

In addition to producing silver fern bullion and gold kiwi gold bullion coins, the New Zealand Mint is renown for creating colourized silver coins, a set of Lord of the Rings coins, Everest coins in tribute to Sir Edmund Hillary, one in honour of New Zealand’s first base in Antarctica, golf greats, small “Fiji” coins made of Fijian gold.

Those looking for more than a single silver coin from the New Zealand Mint, you'll have to be prepared to pay a set mark-up over the weekly spot price of gold (as has been adopted by the US Mint, as of January 2008) if you want to buy gold bullion. Coins that are issued in small quantities as commemorative legal tender continue to have a fixed price during their year of issuance.

Gold Kiwi bullion coins continue to be the standard gold bullion coin from New Zealand, with several sizes to choose from. Aside from the standard 1-ounce, ½-ounce and ¼-ounce sizes found in the Kiwis, larger quantities of gold, up to 1kg, can be purchased as bars. These tend to be the most common choice for large-scale investors such as banks and other types of paper investments. As such, the New Zealand mint also holds a great deal of gold for its clients, with storage fees charged per ounce.

The gold used in the New Zealand Mint is found in three separate locations across the country bringing in over 11 tonnes per year since the 1990s. There were several 19th century gold rushes on these Pacific islands just as European settlers arrived and noticed. These bonanzas resulted in several boom years during the 19th century, such as the massive output of 22 tonnes in 1866. While much of the stream-bound (or alluvial) gold is found on the South Island, the North Island is home the most productive rock mines, where gold is found in veins along with quartz.

Officials at the New Zealand Mint have stated that the demand for their products has soared in 2008 with the onslaught of the financial crisis, as much as 300% as of January 2009. For numismatists and coin collectors looking to buy gold bullion, coins that hold particular appeal may be sold out or even rationed in 2009 if conditions persist. Indeed, many coins recently available from the early- and mid-’aughts have been listed as sold out in late 2008.

Of course, there is also the conversion factor to consider, and recent movement by the New Zealand dollar has made a lot of investments there look attractive to investors that are looking for safer havens for their money. With a 2008 return on New Zealand gold at a modest 5%, this is in sharp contrast to the 40% losses some investors have suffered on Wall Street and and other types of speculation.

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Arthur McGuire

February 9, 2009

For starters, if an economic crisis were to make it reasonable to devalue the US dollar in the very same fashion, the odds of the corresponding order of being exactly the same are unlikely. Anything that was (or wasn’t) technically legal in the 1933 legislation is likely to be reclassified to achieve as high a rate of compliance with the compulsory sale of privately-held gold supplies as possible.

In 1933, for instance, nearly 500 tons of gold (over 17.6 million ounces) were turned in for the set value of $20.67 per troy ounce before the price for international commerce was set by the government at $35.00 per troy ounce. Since the introduction of fiat currency that trades on the world market, there are surely easier ways to change the value of the dollar if necessary at this point in history.

Since there were no actual arrests of US citizens in conjunction with this order, and the only person actually charged was later acquitted on a technicality, it is clear that this law was intended, despite the hefty fine and jail-time associated with it, to serve a purpose rather than change the nature of ownership.

Since Gerald Ford made the “hoarding” of gold legal for both private citizens and banks in 1974, banks have been reluctant to deal in gold accounts, but it is legal to do so. As such, US banks are now just as reasonable a repository for gold as those in Europe and often serve as an agent when buying gold bullion. The stories of safe-deposit boxes being confiscated are long-delayed Internet rumors. In fact, with gold bars or gold bullion in your safe deposit box, even if your bank fails, the government will deliver it to you, unopened.

As is, there is no difference between buying gold bullion bars and coins that have been recently minted, as opposed to older coins, other than the market you wish to sell them in. While the gold market for investors is little concerned with the overall quality of the piece, it can take years of study to have a good feel for the coin collecting marketplace. It is easy for newcomers to be shined on with grades that are not accurate, in the case of non-certified coins.

Gold bars are generally considered a safer investment, given that even when the commodities markets are swaying, in the event of serious economic turmoil, the value of an ounce of gold, clearly stated on the surface as such, will undoubtedly be worth more consideration than the difference between a rating of 60 or 65.

In short, the fear of gold confiscation is generally more of a sales tactic than good advice. US citizens are very likely to hold on to their gold savings as long as they like.

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Dimes minted between 1916 and 1964 can be collected for their silver content, but be careful that you're not being taken advantage of by figuring out just how much silver in each bag of dimes, first.

In North America, dimes, quarters, half-dollars and dollar coins were made of 90% silver before 1964. While some of these old, silver coins are in very collectible condition, a very large number could be classified as being in poor or fair condition. Such coins are referred to as “junk silver” in the US and Canada.

It is worth noting that the term “junk” only refers to the value of the coin from a numismatic point of view - that is, how coin collectors rate the condition of the coins and their relative rarity. This has little bearing on their value as commodity silver. In fact, silver dimes and quarters remain a very popular investment among those who believe the fiat currency system is doomed to failure, since it is likely that useful commodities will always retain some value, no matter what happens to public confidence in a money supply backed by little more than inertia.

During the mid-1980s, when the price of silver temporarily sky-rocketed to over $50 per ounce due to the famous market-cornering actions of the Hunt brothers, it is estimated that as much as 90% of the silver dimes that were still in circulation at the time were melted down. The side-effect of this imposed selection on the remaining supply of dimes was to make previously rare dimes suddenly common while previously common dimes became rare after the majority of them were melted.

In the intervening decades since $50 silver, the relative rarity and overall condition of the remaining silver dimes has been slowly determined. Unlike the 1980s, when many of the coins that were sent to the smelters were in poor condition, many of the remaining dimes are actually in fairly good condition since they too were selected out during “the great melt.”

There are two types of dimes that are almost exclusively represented when people speak of “junk silver” dimes.

Mercury (aka “winged liberty”) Dimes, 1916-1946 Roosevelt Dimes, 1946-1964

The preceding series of “Barber” dimes, made between 1892 and 1916, are now rare and old enough to have a higher value among collectors than as melt silver when in “good” or “very good” condition, so are rarely purchased for their “spot value.” However, those made since 1916 that are in anything less than “very good” condition are suitable for purchase as a silver investment.

One would do well to spend some time doing a bit of math when figuring how much is reasonable to pay for pre-1964 dimes. They are 90% silver and 10% copper, so both metals may be considered for their melt value. This means that you should consult both the silver and copper price for a given day and multiply and divide accordingly, leaving as much as 5% wiggle room for wear on fair and poor quality coins.

For instance, with the price of silver and copper being $9.58 and $1.55 respectively, the value of a pre-1964 Roosevelt or Mercury dime is about $0.693. That means you could melt down a sack of 100 dimes and receive $69.30 for your trouble at those rates. Therefore, much more than $35.00 for a roll ($5.00 face value) of silver dimes is not a very good deal as long as those spot-prices remain steady. You can easily find the current price and conversion factors from any number of web sites.