Precious metals investors most commonly buy modern gold and silver bullion, which allows them to receive the most metal for their money.
Bullion.Directory precious metals guest post 19 February, 2016
By Nick Adamo
President at Bullion Shark LLC
The two most commonly bought bullion items (in the US) are the American Silver Eagle and the American Gold Eagle, which offer investors silver and gold bullion for a relatively small premium over the spot price of the respective metal.
People particularly like these American coins because they are minted by the reputable U.S. Mint. However, there is another avenue of investing that allows consumers to invest their money and still receive products held to the same standards.
Classic U.S. gold and silver coins offer investors a unique opportunity to invest in high-quality precious metals and numismatics at the same time. Coins as such offer consumers a multifaceted investment in two large markets.
Even though most people are not aware of this, the rare coin industry is worth around $5 billion, with silver dollars and Pre-1933 gold making up a large portion of that market.
Let’s take a look at some of the best coins for a well-rounded precious metals portfolio:
$20 Gold Coins
Before the year 1933, the United States issued gold coins that were used in everyday currency. Now, these gold coins have become popular collectors’ items and investment vehicles.
$20 Saint-Gaudens Gold Double Eagles and$20 Liberty Gold Double Eagles are the two most popular alternatives to the American Gold Eagle.
Both of these coins are 90% pure and contain 0.96750 ounces of pure gold. These coins are definitely the classic counterparts of modern U.S. $50 gold pieces and offer investors tremendous value.
Saint Gaudens and $20 Liberties carry a heftier premium than American Gold Eagles but offer much more numismatic value.
One must consider the fact that these coins are around 100+ years old. Common dates of these pieces allow for both a precious metal investing and coin collecting experience. These coins also fluctuate with the price of gold as do gold bullion coins but help hedge your position in the metals with their numismatic value. $20 U.S. Gold coins offer investors slightly more security than typical gold bullion items.
Silver Dollars
Morgan Silver Dollars and Peace Dollars have recently been realized as great avenues for silver stacking.
Silver dollars contain 0.77344 ounces of pure silver making them great alternatives to the American Silver Eagle. These coins were once used as currency in the United States when the dollar was backed by silver. The history behind Morgan Silver Dollars, in particular, is amazing lending it to be one of the most popular rare coins on the market today.
Brilliant Uncirculated examples seem to be the way to go when investing in these coins.
The rich history, silver content and high-quality go hand in hand to create a strong investment. A BU Morgan Silver Dollar will run a little over $40, and Peace Dollars are a bit cheaper at just under $30 each. It is quite easy to see that investors must pay a premium for these coins, but the combined silver and numismatic value that each coin holds is well worth the extra money. The biggest consideration must be the security these coins provide that typical silver bullion products can’t.
For example, if silver was to take a big, downside hit, Morgan Silver Dollars and Peace Dollars would not feel the effects nearly as much as an American Silver Eagle.
It is safe to say that classic rarities offer investors a lot more security than modern silver and gold bullion products. They serve as an effective hedge against both inflation and possible devaluation of the metals. Pre-1933 U.S. Gold and Silver Dollars offer a great alternative to modern silver and gold bullion.
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