David Morgan, Silver Investor
Precious Metals Preserve Wealth
When it comes to capital preservation, few resources have been able to hold value like gold. Gold and silver have staged one of the best ten year runs in history. In the early part of this century gold prices remained quite stable, but the last decade may soon be written in history as what jump started the revolution in personal finance; utilizing metals as an important hedge against economic fallout. The ability of precious metals to protect against inflation, as well as deflation, and everything in between truly shows how versatile and rewarding gold and silver are as investments.
Gold's 5,000 year history can be traced back to the Egyptian's in 3,000 B.C., when this ancient civilization linked the power of gold to the sun God, Ra.
In 560 B.C., King Croesus of Lydia struck the first gold coin, making gold his kingdom's "coin of the realm" or "legal tender". During the following 2,500 years in the evolution of the world trade and commerce, gold emerged as the preeminent global currency as thousands of gold coins were minted by many countries. Today, gold coins are still highly desirable by investors as a trusted store of value and recognized as a medium of exchange.
Gold's Value as an Investment:
Gold is rare. During all of history less than 100,000 tons of gold have been produced. If gold production decreased or if existing gold scrap supplies were seriously reduced, even today's demand for gold could not be met. The result would be a strong upward pressure on gold prices.
The romance and allure of gold is enhanced by it's unmatched versatility as an investment vehicle.
Many of the rarer gold coins are valued at substantial premiums above their bullion value. Additionally, gold bars are held by central banks to assure their ability to make international payments.
Gold's value is intrinsic. It is a precious metal that cannot be destroyed or altered. Gold is highly liquid, has few geographic boundaries, and can be bought, sold and stored in most parts of the free world with privacy. Because of it's global market, the price of gold cannot be manipulated by a single nation.
On the contrary, gold is widely thought of as the foundation of the world's monetary system.
In a world where other assets, such as currencies, are depreciated by high inflation or interest rates, gold acts as a superior hedge against inflation. Another reason for including gold in your investment portfolio is it's diversification qualities. In other words, the price of gold frequently moves in the opposite direction from equities and fixed income securities. In addition, in times of political and economic uncertainty, gold's value traditionally rises.
What Kind of Metals Should You Invest In:
The most private, liquid form possible. President Roosevelt has already proven that certain gold can become illegal over a weekend.
Don't take chances! The Fifth Amendment of The Constitution, particularly the Eminent Domain Clause, stands in the government's way of seizing collector coins. Only PRIVATE Gold Is As Good As Gold!
There are two types of gold coins, numismatic and bullion. The chief difference between numismatic coins and bullion coins lies in how they are valued. Unlike a bullion coin, which derives its value from it's gold content, the value of a numismatic coin is determined by a combination of variables including age, rarity and its condition.
Numismatic coins, such as pre-1933 United States gold coins, are highly sought after by astute collectors and investors for their beauty, historical value and investment potential.
For investors who value the ease with which coins maybe bought, sold and converted to cash, bullion coins make an excellent choice. Guaranteed by the issuing nation, a gold bullion coin is usually a legal tender coin and may have a nominal face value.
Bullion coins are bought and sold at prices that include a small premium over their intrinsic gold value. The bullion coin usually has no collector value, with the exception of some early issue date coins, which are valued for both their bullion content and numismatic appeal.