The Gold and Silver Mine – Investing in gold and silver remains popular

February 15, 2014 in Bullion, Coins, Collecting, Gold, Gold Coins, Gold Eagles, Numismatica, Numismatics, Opinion, Precious Metals, Silver, Silver Coins, Silver Eagles, US Federal Reserve, US Mint

By: Douglas Keefe. The Gold And Silver Mine. February 15th, 2014 (

While I sit here writing this week’s article, gold is attempting to break through the $1,300 per ounce level while silver is trading at over $20 per ounce. Maybe by the time you read this, gold will be trading over $1,300.

What is causing this movement? Well, many people feel the economy is slipping and things could get much worse. Many reports coming out of Washington aren’t up to the expected levels, the most recent being a disappointing jobs report. And it appears the new Federal Reserve Chairwoman Janet Yellen is planning on keeping the money printing presses running at full speed for the time being.

This is resulting in interest in precious metals as a hedge against bad times. A report I read stated that government sales of American Gold Eagles (those are gold coins sold for their gold value) for January this year was up 60 percent over last year and that silver eagle sales tripled. Now these are sales of physical coins, not paper transactions, so this tells me more people are buying and storing for monetary protection. They feel it is better to have access to the actual item rather than just having a piece of paper saying your metal is stored somewhere. There have been many scams in the past where a company offers to store your bullion after you purchase from them, only to find when their vaults are opened, they are empty.

I am often asked what gold and silver items I feel are the best investment, so here is my opinion.

For gold, there are choices from coins currently minted by many different countries such as the United States, Canada, China, South Africa and many others. There are also many gold coins available from countries from the time when they were actually used in commerce. Plus you can buy actual gold bars, but be careful as counterfeiting can be a problem, especially with 10 ounce bars. The premium charged over the spot price of gold varies depending on which coin you purchase. I feel the best choice is to stick with our own gold eagles and to get them in various weights of 1-ounce and 1/10-, ¼-, and ½-ounce sizes. The reason for the smaller sizes is that if you many ever need to raise a small amount of cash by selling some gold, you can do so by selling a smaller coin. Remember, though, that the premium over the spot price of gold for the smaller coins is greater than for the 1-ounce coin – the smaller the coin, the greater the premium.

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