a guide for beginners
Are you interested in preserving your wealth with silver and gold assets?
Are you interested in collecting limited mintage graded coins?
Everyone falls into one or both of these two categories. Sometimes they just don’t know which one yet.
Here is a quick guide to the differences between the two.
It is 100% proven fact that the value of government issued currency has decreased. It does not matter if it is the US Dollar, British Pound, Canadian Dollar, Euro, Trinidad & Tobago Dollar, or the Australian Dollar. They all have lost value considerably over the years.
Today, in the US, the average price of a dozen eggs is $2.96. Just 5 years ago the price of a dozen eggs was $1.97. That is an increase of 50%. Ten percent per year.
Does your bank give you 10% in interest for you saving your money with them?
Maybe if you are one of the lucky people you get a 10% raise in income each year, but most people definitely do not.
You don’t need luck. You need knowledge.
In 1935 $20 would have bought you 47 ounces of silver. Today those 47 ounces would be worth roughly $1000.
The reason is metals like silver and gold hold their value. If you want to preserve your wealth save it in silver and gold bullion.
Bullion is great for storing wealth, but if you want to take it to the next level collectible coins is the way to go.
Many people collect things for their beauty, rarity, and desirability. Collecting coins really is no different aside from the fact that collecting silver and gold coins adds a value that Beanie Babies and stamps will never have.
Mentioning Beanie Babies...I got in on the craze back then! Heck! They are still as cute as can be, but...
This is all about Wealth preserving precious metal content. And, as for my Beanie Babies, well hind sight is 20/20 ;)
Now let's get back to talking...Collectible Coins!
In addition to the value of their metal content, collectible numismatics have multiple elements that determine their value and their likelihood of increasing in value over time. These factors include their mintage and condition (grade).
For example, a 1999 Silver Eagle coin contains one ounce of silver. That coin in ungraded, non-preserved form is worth little more than the spot price of silver. If that same 1999 Silver Eagle had been submitted to a reputable grading service like NGC or PCGS, was graded MS70 and encapsulated it would be valued at $22,500 today.
Well, I darn sure was! So you wouldn't be alone! :)
Want to know why it increased in value?
The reason is because that particular year very few silver eagles were graded MS70. Its value is based on its condition and rarity and not just it’s silver content.
This is an example of why many people choose collectible coins and why the collectable coin industry is over a 100 billion dollar industry.
If you choose to collect numismatics, select coins that have been graded by NGC or PCGS and have been graded as perfect 70’s.
It is always an excellent idea to be diverse and collect rare coins as well as bullion. This will ensure you get the most out of your silver and gold saving.
Article published by BULLIONR