The Importance of Investing in Silver Coins

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Ancient silver coins are perhaps the oldest form of mass currency in recorded history. Along with gold coins, they were among the first coins 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. It has always been the most affordable precious metal. Unlike gold, silver purchases do not have to be declared. It has unique properties, which make it ideal and essential for global industry. And 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 world of 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.

Silver and gold are of course used as a form of currency and also since ancient times they were used for gambling purposes. They are metal and usually disc shaped. Coins can be dated to the BC era. Around the year 700 BC. BC, the Mesopotamians used precious metals as a medium of exchange.

The United States Mint is a government controlled coin production facility. He also produced what is widely considered America’s finest silver coin, the Walking Liberty Half-Dollar. The Mint withdrew all silver from dimes and quarters. The silver content of half dollars has been reduced to 40%. The Mint continued to produce silver coins until 1971. In place of silver there was what is called a “Fiat Money System”. Fiat money is money with no real value. But is enforced as legal tender by the government. The problem arises when silver is mass produced without its real value increasing. The result is that “fiat money” loses its value and coins containing precious metals become more valuable.

Precious metals investors often ask “Should I invest in silver or gold”. Silver has always been the most affordable precious metal. Silver Eagles are easy to buy and sell at most coin, precious metal and brokerage firms. “Precious metals have had value in all civilizations and 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. Silver and gold, however, are much more popular precious metal investments than platinum and palladium.

To sum it all up. Silver and gold coins are probably the oldest form of mass currency in recorded history. These coins 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 increasing every day.



Source by Jim Swank

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