Throughout many historical economic depressions, precious metals have been used as a hedge against financial uncertainty. During our recent economic climate, coin
collecting has taken on a new status among investors that is no longer primarily the pastime of eccentric individuals. The role of certified coins, such as the American Silver Eagle, is beginning to take center stage as the value of silver steadily increases.
Many financial advisors are publicizing silver as the new gold. Time will tell if silver has the potential to outperform gold, but, for now, it is no secret among investors that adding silver to an investment portfolio is a savvy way to diversify and retain one’s fiscal holdings.
As the fall in fiat money, such as the American dollar and the European euro, sets the stage for the world economic climate, the viability of a precious metal investment draws the attention of buyers worldwide. In addition, the current economic depression has boosted silver sales simply because of its affordability when compared to gold spot prices.
Investors opting for silver over gold are becoming a phenomenon that sees no end in the near future. As a result, silver prices are likely to continue their rise as demand increases and supply diminishes. This supply and demand ratio is predicted to keep silver prices at a steady rise for many years to come.
Consider the domino effect on asset dominance that a poor economy initiates in countries around the globe. For instance, jewelry is a popular commodity in most cultures, but gold jewelry prices far exceed the budget for the majority of people. Silver is typically the next best option and, consequently, sales of silver jewelry have been on the rise. Again, the demand for silver rises and silver prices continue to hit record highs.
As governments continue to issue more fiat money, inflation results, which further boosts precious metal value. Silver, in particular, has a strong foothold in industry and, therefore, is predicted to remain unscathed for many years to come.
Certified coins, such as the American Silver Eagle coin, have an additional numismatic value which is determined by such aspects as a coin’s historical worth, rarity factor, and quality. American Silver Eagle coins will always be worth their weight in silver, but have the additional potential of considerably increased value due to these other factors. As a result, such coins have piqued the interest of many investors.