Should You Buy Foreign Gold & Silver Coins?

Starting out as a coin collector when I was seven, and eventually evolving into a precious metal bullion investor as an adult, I consider myself to be pretty knowledgeable about the subject of gold and silver coins. At least USA coins, that is.

Investors are confronted with a myriad of silver and gold coin & bullion choices today. A heck of a lot more than when I first started collecting. There are the American Gold Eagle (AGE) one ounce coins, the American Buffalo gold coin, the half ounce Presidential Spouse issue, the American Silver Eagle (ASE), junk silver (pre-1965 dimes, quarters, halves, silver dollars) among others. Of course, all of the above coinage are US Mint products. When you include the Coins of the World, however, choices expand exponentially. Suddenly, you must contend with the Canadian Maple Leaf, Austrian Philharmonic coins, the French Roosters ( pictured above), the Swiss Gold Helvetia 20 Franc, the Chinese Panda, the Australian Kookaburras, Mexican Silver Pesos and the Silver Libertad, etc.

So, if you're a US citizen interested in acquiring silver and gold coins as hedges against inflation, hyperinflation, and survival trading, should you buy substantial amounts of gold and silver coins from foreign countries? My answer is no, and here's why:

1. Most Americans do not speak foreign languages. A coin featuring anything but English will be treated with suspicion and trading reluctance.

2. Foreign coins originally designed for circulation may not be easily convertible to troy ounces. The Swiss Gold Helevtia has 0.1867 troy ounces of gold. For Americans already challenged in the math department, that type of coins means a lot of multiplication and moving of decimal places. American Gold and Silver Eagles bullion coins in contrast not only feature familiar images but easy-to-read troy ounce information. Even junk silver coins can brag of familiarity benefits, and a quick education course including these 90% silver coins can include a snippet about how $1.40 in junk silver equals one troy ounce of pure silver.

3. Many foreign numismatic coins and bullion products carry higher premiums than US Mint products. For example, the ASE carries a current premium of $4.59 on APMEX.com, but the Chinese one ounce Panda has a hefty $10 added cost above spot! Collectors who anticipate a healthy market for specialty coins in the future may find such high premiums acceptable, but those preparing for anything from hyperinflation to economic collapse may see these tacked on costs above silver spot price as wasteful.

4. Lastly, the knowledge equation. Most Americans today know virtually nothing about gold and silver pricing, much less the differences between US coin and bullion products and those of foreign nations. A crash course will be required before trading with the previously uninformed during a crisis. For US bullion coins, the silver content markings of the US Mint on the hundreds of millions of ASE's in investor closets will tell them all they need to know. The prep course for US 90% junk silver is slightly more extensive, but the fact that they're all dated pre-1965 and that $1.40 in any combination of dimes, quarters, halves, and silver dollars equals one ounce of pure silver, can be absorbed fairly fast.

Note: I think that 40% silver Kennedy halves (1965 - 1969), proof coins, and private bullion products should be avoided mainly due to the fact that they make the education process markedly harder. In addition, Americans have been exclusively using US Mint products as money for over 200 years. I firmly believe, (despite vociferous believers to the contrary), that privately minted bullion "rounds" will be an anathema to the average American. Besides, the US Mint has never to my knowledge been accused of short-changing their products as far as precious metal content is concerned. Mainly, because there is no profit motive to do so. Private companies, on the other hand, have had and would continue to have a powerful incentive to sell debased PM products at full purity pricing.

Rick

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

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You're Never to Old to Prepare for Hyperinflation!

At a recent friendly dinner a senior citizen friend of my wife asked whether she was too old to be concerned about the teetering economy and approaching hyperinflation. After all, her tried and true conservative investments had gotten her this far, so why not count on them to take her a little further?

Well, first I told her the heart-breaking story of Lott Hendlich a German war window from WWI who lived through the 1922-1923 hyperinflationary chaos (which you can review by reading Hyperinflation and Broke Billionaires) an article I wrote back in December 2010.

My reply was that economic paradigm were changing so fast that strategies that may have worked for decades here in the US were in danger of becoming useless as economic models. The German woman Lott, had in the 1920's thought she'd has enough to maintain an upper class existence for the remainder of her life, only to eventually discover to he horror that her life savings could barely buy a postage stamp a few hyperinflationary years later.

I can't tell anyone for sure when and how economic change and chaos will descend, I'm not a psychic. What I can tell you and what I assured our dinner guest was that doing nothing and hoping everything turns out for the best is not a solid investment strategy. The American government and our Federal Reserve Banks are making the very same mistakes that the Germans made in the early twenties. If things continue as they are progressing our unbacked fiat paper money will eventually revert back to its native worth...zero!

What did I advise her to do? The same thing I'd told my readers to do. Get you hands on as much physical gold and silver coins as you can afford. Remember, buy for maximum bullion content, junk silver pre-1965 US dimes, quarters, halves, bullion versions of American Silver Eagles or Gold Eagles. DO NOT get conned into buying super rare or super high quality burnished or first strike coins. You just get less precious metals for your money and the dealer gets higher profits.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles

PS. I have a article I've written on using IRA money to buy silver and gold hyperinflationary edges as well.

Rick

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How to be Prepared for Hyperinflation!

You're part of the 1% of Americans who have the vision to see that hyperinflation is coming to America, most likely within the next few years. Believe me, you've already taken the most important step which any twelve stepper would second - you agree the US HAS A PROBLEM! Our country has become a SPEND-A-HOLIC!

The next steps you take could mean the difference literally between life and death for you and your family. My recommendations are as follows:

Firstly, take stock of your financial situation. What monies do you have available that you can put towards preparation. Include any non-precious metals collectibles you own (stamps, numismatic coins valuable due to rarity or condition, antique items, baseball cards, old comics etc.,). How much could you get for them if you sold them on eBay? Be realistic, please. Remember most collectibles took a serious value hit during the present recession. Sell these items ASAP. During hyperinflation the masses can't afford to eat properly. History tells us that during times of extreme national stress like economic collapse, items not related to basic survival revert to their inherent worth...nothing! Owning the first Superman comic book ever printed is cool, but a starving man won't trade a sandwich and a glass of clean water for it when the SHTF (..it hits the fan).

Secondly, divide the money into two groups on a 50-50% basis. Half the money should go for food & water, fuel, medicine, and self defense. The other half should go towards the purchase of junk silver coins (pre-1965 US dimes, quarters, and halves) and American Silver Eagles.

Long term storable survival foods like MRE's (meals ready to eat) and freeze dried foods made by Mountain House are the best. I like the MREdepot for Class C MRE's and you can find more info here on Mountain House foods. Water is the most important item of all, and it is very difficult to stock adequately. If you have a well, make sure you can still draw water if the electricity is out. Wilderness water filters and purification tablets are good to have as well. Camping fuels can be stored easily for cooking purposes. Keep over-the-counter pain killer pills well stocked, and web chatter says fish antibiotics are made by the same companies that make human antibiotics. I really can't say about this last point - but always obey the law. The defense part of the equation is necessary to defend your family should lawlessness breakout as prices soar and food becomes harder to get. A good selection of rifles, shotguns, and Glock pistols that you can shoot along with a healthy ammo supply is best.

Lastly, your remaining 50% should be spent building up a supply of silver for trading purposes. Both silver and gold have been used as money for 5000 years. In previous national hyperinflation experiences these precious metals have allowed owners to preserve their standard of living while others starved and froze. If you have a large amount of funds available for this purpose, you might want to buy American Gold Eagle one tenth of an ounce gold coins as well as silver. Keep the gold and silver in a safe and/or hidden away where you can get at them. Safe deposit boxes won't do you any good if the banks are closed by government mandate.

The above information is just the Reader's Digest version of what you need to know. See my other blog articles for more information and do your due diligence.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

CLICK ADS BELOW FOR FREE DISCOUNT!

Why is Gold Valuable?

Have you ever wondered why gold has been valued by mankind for over 5000 years? Was civilization always destined to be dazzled by the allure of the shiny gold metal? Well, two guys from NPR, Jacob Goldstein and David Kestenbaum, got a hold of a Table of Elements and started to do some homework. Here's what they found:

There are 180 or so elements eligible for review on the earth. Unfortunately, most of them are gasses, they explode, they’re radioactive, or they’re too common or too rare. Eliminating elements that fall into those categories "leaves us with just five elements: rhodium, palladium, silver, platinum and gold"--precious metals, Goldstein and Kestenbaum write. But silver tarnishes, rhodium and palladium were discovered only in the 1800s, and platinum melts at 3,000 degrees--way too hot for pre-industrial man. The reporters asked their expert, chemical engineer Sanat Kumar: "If we could run the clock back and start history again, could things go a different way, or would gold emerge again as the element of choice?" Kumar explained, "For the earth, with every parameter we have, gold is the sweet spot... It would come out no other way."

Today Gold is still a good choice in these uncertain economic and political times. Two highly rated companies that sell a variety of gold coins are APMEX Gold and Silver and Silver American Eagles.
Fight hyperinflation before it visits your local grocery store today!
Rick