June 2, 08
WHY COINS
Coins Love Inflation, Recession and Bad Economic
Circumstances
Collecting rare coins has always been associated with people of wealth, position, and power...people who are patriotic love America, and are proud of our nation's history.
Gold coins minted before 1933 and classic U.S. Silver Dollars are among the best known and most beloved collectibles in the world. Most importantly, rare coins have lasting worth that comes from their value as rare antiques and the intrinsic value of their gold or silver content. Many a collector has accumulated a few coins from time to time, put them away for a rainy day, and later discovered they were worth a small fortune.
The greatest impact on the value of rare coins has been bad economic times and rising precious metals prices. In bad times, Panic drives people out of stocks, bonds, and mutual funds into tangible assets, especially precious metals. Unfortunately most people wait to buy rare coins until prices are are at a high. Often they buy in a panic paying higher prices during sudden market peaks. Exercising common sense by building a collection over time, you can take advantage when prices are lower and position your collection for outstanding long-term gains during the hot coin market times.
Conditions today, give you the opportunity to build a collection of high quality coins at far below peak market prices. Putting away rare coins today is clearly the right thing to do! Why not start building your a higher quality collection and pay far less for the privilege of owning some of America's favorite coins?
Silver is known as a precious metal and much, much more. This metal of ancient civilizations and of modern technology has been used as a medium of exchange through the ages, and is an important investment metal with a variety of industrial uses.
Silver like gold has been used as money for many centuries. It is also commonly used in jewels and collectible coins. Silver has extremely valuable industrial uses such as malleability, thermal and electric conductivity, and its resistance to corrosion is unmatched among precious metals.
There is an old expression warning against selling the 'family silver' but not everyone appreciates its wisdom.
Silver and gold are not simply commodities but more importantly currencies which cannot be debased like our modern fiat paper and digital currencies. Gold and silver has been used as money in more regions and countries and for longer periods of time than the relatively modern use of paper currencies. Interestingly, silver has been used in more regions and countries and for longer periods of time as money than gold. Therefore the major monetary metal in history is silver.
Silver is unique in terms of being both a monetary and an industrial metal. Silver industrial and investment demand is increasing very significantly and meanwhile supply is falling. The fact that the huge majority of the investment public and financial services industry remains ignorant of the fundamentals in silver means that the bull market in silver remains in it’s early stages. Silver remains probably the most undervalued asset class.
Silver, like gold, has been and is increasingly again being regarded by many investment managers as a great financial hedge against terrorism, war, fiat currency crises, deflation, inflation, stagflation, hyperinflation or a combination. A combination could see the western world experience inflation in essential goods and commodities for society to function such as wheat, grain, rice, natural gas and oil and deflation in non-essential and over valued items such as luxury goods and over valued assets such as some equity and property markets.
LET'S LOOK AT A WELL ROUNDED PORTFOLIO
No matter how good the market looks-or how worried you are about the future of civilized society-you must always remember that silver should make up only a portion of a well-diversified portfolio. I recommend committing no more than 20 to 25 percent of the average portfolio to silver-regardless of how strong you feel about the potential of the metals markets.
Here is a moderate conservative portfolio 50% in Stocks, 25% in Bonds, 25% in Silver, Gold and Uncirculated Coins and 25% in Real Estate. Diversify and multiply that"s my formula. I suggest you set yours up in pretty much the same way. If it works for me, most definately it will work for you.