Silver is currently known as the new Gold. Because? Because when gold prices rise, as they have recently, investors look for a less expensive alternative. That is why silver is called poor people’s gold.
Coin and bullion sales have been so strong (the US Mint is now rationing American Eagle coins) that dealers say they can’t keep up with demand from small investors.
Financial experts believe that the current economic problems facing the world are only going to get worse. Those who study financial trends urge the public to turn their paper money into tangible assets. The feeling is that, sooner or later, physical assets trump paper.
Experts believe that silver is once again about to skyrocket like it did in the 1970s. Back then, an ounce of silver was just north of $1.00. It kept going up and up to over $47.00, for a win percentage of over 3500%! As of this writing, an ounce of silver costs just over $17, an increase of more than 30% this year. I have read that analysts are expecting an increase of more than $50.00 an ounce in the next 2 quarters. Wow!
Here is the fact. The world is running out of money. It is used in world currencies, jewelry, medical industry, clothing, photography, electronics, solar energy, water purification, silverware, nuclear power plants, etc.
How is silver different from gold? Simply put, silver is a consumable, it runs out. For the most part, there are no real or synthetic materials that can be used in place of silver. We can’t live without it.
More than 90% of the silver that is extracted is used for industrial purposes.
According to the Law of Supply and Demand, when the supply of an item or material decreases while the demand increases, the price of said material will increase substantially.
Few Americans know that in 2002 it became law that the government must buy back silver from the public when US silver reserves fall below a certain level.
If you read section 2594, or section 2 of the American Eagle Silver Bullion Program Support Act, you will see that Congress determines that
(1) The American Eagle Silver Bullion coin leads the world market and is the largest and most popular silver coin program in the United States;
(2) Established in 1986, the American Eagle Silver Bullion Program is the most successful silver bullion program in the world;
(3) From fiscal year 1995 through fiscal year 2001, the American Eagle Silver Bullion Program generated revenues of $264,100,000 and earnings sufficient to significantly reduce the national debt;
(4) with the depletion of silver reserves in the Defense Logistics Agency Strategic and Critical Materials Reserve, it is necessary for the Treasury Department to acquire silver from other sources to preserve the American Eagle Silver Bullion Program
In short, the American Eagle silver bullion coin plays an integral role in our nation’s economy. The government can’t stop making them, as the profits have slashed the national debt.
In addition to the collection of Silver American Eagle Bullion Coins, there is a notable increase in sales of Numismatic Collectible Coins. Harry Newton, editor of Technology Investor Publication, writes: “Interesting times! We are seeing a lot of movement into investment and collectible coins and coins, especially higher grade coins. There has been a 35% increase year to date in prices and about 200% in volume For High Grade Securities Proofs 65 and above and Mint States MS 65 and above there is substantial demand with record prices being achieved we understand investors feel more comfortable holding hard assets like coins than real dollars in cash or other currency balances and there is a persistent daily movement of the latter into tangible assets.”
Not all American Silver Eagles are minted and graded Mint State (MS) coins. Only about 10% are MS-70. Unlike bullion coins that are valued solely based on their silver weight, the value of a numismatic silver coin is determined by several factors: its rarity, the number of coins originally minted, history, and age and condition. of the coin
Numismatic coins are bought and sold within the coin collector community without regard to the current price of silver. Numismatic coins are prized for their beauty, historical significance, and their potential investment value. Therefore, numismatic coins sell at a significant premium over their intrinsic silver content.
