Is Now The Time To Buy Silver American Eagle Coins?

by retreadfitness

Preserve your wealth with silver bullion which is immune to ravaging effects of inflation

Wealth Preservation Through Silver Bullion Coins

Last year at Christmas time I got interested in buying silver bullion after reading the book by Michael Maloney titled "Guide To Investing In Gold And Silver". I did not have any previous experience or expertise other than being a small time coin collector as a child. For years I thought as most people did that both silver and gold were not a good investment because it was not cool or popular. Even today, this statement is partially true because gold and silver are commodities that rarely change in value. They go up and down in price due to normal supply and demand.  In the past 10 years, both silver and gold have increased in price because of poor monetary polices that are causing inflation.  Both metals have been known to retain their value throughout the history of mankind. Silver bullion is more of a safe haven to store your money when your currency is experiencing inflation. Silver is almost inflation proof. 

The banking crisis that happened in 2008 has never been solved. Short term fixes such as bailouts and printing more fiat currency have been implemented which usually exasperates the problem. The United States government is going to raise the debt ceiling by another $1.2 trillion. The debt limit will now stand at $16.394 trillion. How much more can the American public take of this idiotic spending spree?  The only way that citizens of the United States and other nations can take back their own financial independence is by owning both gold and silver bullion.

For every new dollar that the Federal Reserve creates, the value of all the dollars in circulation diminishes slightly. However, when the Federal Reserve adds trillions of new dollars to the existing money supply, the loss of spending power is significant. For example, let's say that you have a 5 gallon container full of fresh squeezed orange juice that is ready to be served to your guests. You know that people really enjoy fresh squeezed orange juice so you decide to add 5 gallons of water to it so that you have more of it. Now you have created 10 gallons of orange juice that is diluted by 100%.  Yes, you will have more orange juice to serve to your guests.  The new orange juice will not be as potent or taste as good.  It will now take twice as much orange juice to get the same benefits as the undiluted orange juice. This is what is happening to your money that is sitting in the bank or in your wallet. We have been brought up to believe that inflation is natural and that we should expect it. Inflation is just another tax.

3 Things To Do Before You Buy Silver Bullion

Market Research.  Before you invest in silver bullion coins make sure that you research the financial markets to ensure that you are not buying at the top of the market. Investing in both silver and gold is much different than the stock market because you are buying a tangible product.

Due Diligence. One must educate himself before entering this market. Don't be tempted into buying shiny objects just because they look nice. I spend several hours each week reading reports and watching videos on precious metals. Seek out professionals who can assist you in the buying process.

Investment Knowledge.  Familiarize yourself with the various ways of investing in silver. Some people invest in silver mining companies, exchange traded funds, silver futures, silver bullion, numismatic coins, and dedicated storage. The easiest and safest way of investing in silver is to purchase and hold silver bullion or American Silver Eagle coins because they are the most liquid. Go to sleep


Why Buy Silver?

People buy gold and silver for wealth preservation.  Gold and silver are inflation proof because a government cannot create precious metals out of thin air like they do currency.  If the currency of the United States was backed by gold or silver, then there would be no need to own silver bullion.  However, since President Nixon took the US dollar off the gold standard in 1971, there is nothing except the good faith of government backing up your money.

How To Buy Silver American Eagles With The Help Of The United States Government

Even though the United States government and the Federal Reserve are stealing your money right in front of your eyes, they are also willing to help you preserve your own wealth by purchasing American Silver Eagles through the United States Mint. I copied this quote from the US Mint website “The primary mission of the United States Mint is to manufacture and distribute circulating coins, precious metals and collectible coins, and national medals to meet the needs of the United States. In addition to producing coins and medals, the United States Mint also maintains physical custody and protection of the Nation's gold and silver assets.”

The United States Mint sells mostly collectible coins. A 2011 uncirculated 1 ounce American Silver Eagle is selling for approximately $15 over the spot price of silver. Although I am not a coin collector, this is a very good price for an uncirculated coin considering that the melt value for this particular day was approximately $30. For investors who are interested in  silver American Eagle coins with no collectible value, they have a search box that gives the names and addresses of coin shops and dealers that sell American Silver Eagle Coins. These coins usually sell for approximately $3-$5 over the spot price of silver.

How To Find Deals On Silver Coins Locally

Since the United States Mint would rather have you purchase their coins through a dealer, then your best bet is to shop locally and save money on the shipping and handling charges. For example, I purchased nearly half a dozen American Silver Eagles for $5 over spot and did not have to pay any shipping charges. I have found that local coin shops operate on very small margins. There is little if any price difference from one shop to the next. If you are really looking for a bargain, then you may want to try shopping on Craigslist for silver bullion. Many people sell items because they need immediate cash. My only advice is be careful and know how to distinguish between a fake and the real product.

Free Online Information For Buying Silver And Gold Coins And Bullion

The Internet is full of great private and government information on purchasing precious metals. I started my silver education at GoldSilver dot COM. They have up-to-date market information and free educational videos. Although they offer both gold and silver products, their main emphasis seems to be on educating their customer base. Forums are also a great place to start your education process. Most form communities will answer all your questions quickly and honestly. Every forum that I have visited is monitored by several moderators and will give people the boot if they are there just to promote themselves or their products. My favorite forum is SilverSeek. I am a registered member there and have learned a lot from other members.

Updated: 12/30/2011, retreadfitness
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