The importance of investing in silver coins
The silver coins of yesteryear are possibly the oldest form of mass minting in recorded history. They, along with gold coins, were among the first coins to be used thousands of years ago. But are silver coins a good investment for today’s investor?
Silver coins are a popular way to hedge against inflation and balance portfolio risk. Historically it has been the most affordable precious metal. Unlike gold, silver purchases do not have to be reported. It has unique properties, which make it ideal and essential for the world industry. And it creates a situation where there is simply no substitute. Silver has enormous industrial applications. It is found in almost everything, from cell phones to computers. As the global thirst for electronics continues to grow, so does the demand for more silver. Furthermore, the medical industry has found almost as many ways to use silver as the industrial world. These applications make it a consumable investment. And not just another pretty face.
Of course, silver and gold are used as a form of money and also from ancient times they were used for gambling. They are made of metal and are usually disc-shaped. The coins can be traced back to the BC era. Around the year 700 a. C., the Mesopotamians used precious metals as a means of exchange.
The US Mint is a government controlled coin production facility. It also produced what is considered America’s most beautiful silver coin, the Walking Liberty Half-Dollar. The Mint removed all silver from dimes and quarters. The silver content in half dollars was reduced to 40%. The mint continued to produce silver coins until 1971. In place of the silver was what is called a “Fiat Money System.” Fiat money is money with no real value on its own. But it is enforced as legal tender by the government. The problem comes when money is produced en masse without increasing its real value. The result is that “fiat money” becomes less valuable and currencies with precious metals become more valuable.
Investors in precious metals often ask, “Should I invest in silver or gold?” Silver has historically been the most affordable precious metal. Silver eagles are easy to buy and sell at most brokerage, coin, and precious metals companies. “Precious metals have had value in all civilizations and have survived all financial crises. They can be expected to do the same in the future.” Now is the time to buy gold and other precious metals. However, silver and gold are much more popular precious metal investments than platinum and palladium.
To sum it all up. Silver and gold coins are possibly the oldest mass form of coinage in recorded history. These currencies are a popular way to hedge against inflation and balance portfolio risk. Silver coins can be a great investment for a number of reasons. Today, the best reasons are that silver is affordable for most people and its demand is growing every day.