Sabtu, 18 Agustus 2012

Numismatic Coins Are Government Minted Precious Metals

Discussions on the ever-increasing costs of living paired with looming deflation and recession are causes for concern. Many wonder where is the cash that was inhaled out of the worldwide economic system went while wondering how to protect themselves. If bond-backing funds can not be located, how much more could the dire economic situation intensify? The United States dollar has actually shed 95 % of its value since the 1913 formation of the Federal Reserve, while silver and gold values have dramatically increased.

President Roosevelt, in the post Great Depression era, prohibited people to own physical gold. Then after 1964, aluminum and clad replaced the silver in coins. Numismatic coins finally became available when the United States and International governments started minting highest graded silver as well as gold coins. Numismatics are regarded as legal tender because they are government issued.

Precious metal values commonly follow oil prices. Although the United States has the equivalent of 300 % of Saudi Arabia's oil. Access to shale oil beneath the earth's surface in the United States, however, has been cost prohibitive. New technologies called fracking, may be used to access the US oil and natural gas, but fracking is under dispute by environmentalists and it is costly. Using oil from US turf may bring down US prices, however, and immunize the US from rising overseas oil prices. But how does that relate to silver and gold?

If oil prices decline, precious metal values typically do as well. Silver, however, also known as "poor man's gold," is used for more than tooth fillings, has much higher demand than supply for commercial operations, and is in overall short supply. Given that silver regularly follows gold in volatility, it could perhaps recede in price over a brief duration, yet the rarity of silver vs. gold, oil or gemstones, may make owning some silver coins pay off in the long run.

Numismatics come in various grades, but the highest graded numismatic coins are called Mint State 70 or MS70 graded coins, which have numismatic worth plus the value of the precious metal from which they are made. While lower graded numismatics are imperfect and don't carry the highest numismatic worth, it may be prudent to own some of them in addition to MS70 coins, due to the precious metal value in them. Bullion coins often contain synthetic silver, whereas MS70 numismatic coins are government minted, graded by experts and are easier to sell for higher values.

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