The Real Value of Gold and Silver Coins

This is one of the hardest questions to answer in the world of both precious metals and numismatics. A coin can have a value based on the content of the material it is made of and it can also have a premium value based on how rare it is.

Some copper or steel pennies and 5 cent coins are worth more than a one ounce $20 solid gold Double Eagle. This is where the world of numismatics comes into to play in the way some of these small pieces of metal are given a price tag.

When you are trying to build up a nest egg or a survival cache of valuables, it is best to put as much distance as you can between yourself and items of value because of popularity rather than their real and true physical value.

A perfect example is diamonds. Diamonds may be a girls best friend, but common diamonds (3 carats and under) are very common. The only reason why they have a value today is because the people that own them are not selling them. It is almost the same as the way OPEC runs their oil cartel.

Russia, Canada and the U.S. produce so many perfect one carat diamonds per year they are measured in the metric tons. Let me say that again, they are measured by the metric ton. Do you think something that is measured in the same increment as quartz has a real value? Last year more diamonds were dug up and put on the market than topaz and rubies combined, and that is not because of the market demand.

If you want to bank your hard earned savings for the future and protect yourself against the potential pit falls of a fiat money paper collapse of the economic system, you need to look to both gold and silver.

Gold because it is traditionally 20X more valuable than silver and silver because it is much easier negotiable in small quantities.

Stay away from the gold and silver coins that have a premium because they have a value based on their minting, year or origin. Just buy gold and silver coins that are very known people will take from you as a form of legal tender if they will no longer take the paper money the government is pumping out.

The whole concept of creating a survival cache for you and your family that mostly consists of a form of currency is to stock pile a type of currency that people will be very easy for you to spend. A 12.5 or larger bar of gold is not the way to go. You need to stay under the “radar” while at the same time being able to go to the bakery with a 1964 silver dime to buy a loaf of bread.

People have been predicting the end of the world and society for years and even generations. It has and is happening in some places and I personally really feel the pain and sadness each of those children and parents carry with them every time they dodge bullets as they take their loved one to the grave yard.

But if you think that just because I live here or there I am safe from a total break down of society, you better take two or three step back and think again.

Some of the most stable governments that we as Westerners have looked to in the past for support and natural resources are falling apart right in front of our eyes and there is probably an element out there that is trying to destroy our way of life also.

If you feel the need to protect the future of your family by purchasing gold or silver coins, then you need to buy coins that are not valued by numismatics. You need to buy coins that are valued by weight and recognizable standard value.

Stones, gems and jewelry are not the best way to go either. Just stick to the currently minted legal tender produced by governments that are recognized as the ones that produce a quality product.

You cannot go wrong with this type of plan. In the end, if the world is ok, you still have your gold and silver, you just may have missed out on the next dot com bubble.

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