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How to Save Room for Gold and Silver

How to Save Room for Gold and Silver
January 12
20:15 2016

In the recent years, many smart investors have turned to investing in gold, silver and valuable coins. Unlike the traditional investment options, precious metals tend to stay relatively stable in the long run, hence promising predictably steady returns.

When it comes to investing in valuable coins, you need to understand that each coin has a value, as does the entire collection. Hence, a wise investor will opt to build a collection which actually enhances the overall value of the individual pieces. When effectively and carefully assembled, coin collecting can be truly worth much more than the face value sum of its’ parts. There are also some investors who prefer to buy silver bars and gold coins from trusted sources. This can be a wise move since silver and gold will most certainly rise in value over time.

Value of Coins

There are interesting stories of coins which can sell for thousands and thousands of dollars at an auction, and also stories of silver and gold coins which have the potential to climb in value as precious metals increase in price. Some valuable coins, such as those that are created by the U.S Mint, are usually meant to be collectors’ items. The material used and limit in numbers can make these coins valuable over time.

Difference between Face Value and Actual Value

Face Value

The face value is the written value that’s located on a coin itself. Face value is usually assigned by a government as a way of denominating the coin’s price as a legal tender.

Actual Value

While the face value of a coin is easy for one to determine, calculating its actual worth will require much more knowledge of various key factors, some of which include; melt value, historic value, mint year, rarity or scarcity, collectability, aesthetic features and grade of the coin — along with other factors.

A coin’s actual value isn’t something one can see at first glance, but it’s rather a combination of various different qualities which a knowledgeable collectable coin expert can identify. Bottom line, the face value of a coin is the cover, while the other factors which go into determining its intrinsic worth are what make the coin much more valuable.

If you’re interested in making a wise investment that’s going to last, you should try investing in precious metals. Coins that are made of silver or gold have intrinsic value, and will bring great stability to your financial portfolio by off setting unpredictable ups and downs that come with paper currency.

Think of Investing

When you’re saving money, it’s wise to keep gold and silver in mind since they offer numerous benefits — some of which include:

-Inflation hedge; Silver and gold are precious metals which have been commonly used as a trading medium for centuries. The idea is when the contemporary currency’s purchasing power has steadily declined, purchasing power of silver and gold has remained stable.

-Inherent value; Silver and gold are basically tangible assets that have inherent value that’s based in part on their scarcity and in part on their actual industrial uses. Moreover, investing in silver and gold gives you access to physical investment. It’s readily available in coins and bars which can be stored in a bank or at home in a safe deposit box.

Some of the other reasons why you should keep gold and silver in mind when you‘re saving money include:

  • Protects your savings against currency devaluations
  • Protects you in case there’s ever a severe banking crisis
  • Protects your financial portfolio in case of an economic crisis

Image credits to Mark Herpel

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