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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Is The Silver Sky Falling?

The spot price of silver took a bit of a tumble recently, sending silver-futures prices down to $35.28 an ounce from nearly $50 in just five trading days. The prime culprit was the COMEX, which increased its margin requirements 84% during the week. Margin calls came in fast and furious, forcing many small speculators to sell their positions to cover. The COMEX (sometimes called the CRIMEX), claims the increased margin requirements were instituted to decrease the "volatility" in silver futures trading. Others say it was a last ditch attempt by the troubled trading entity to avoid default, due to woefully inadequate silver reserves on hand to cover paper positions.

No matter what you chose to believe the question still remains: Is the silver sky falling?

Firstly, the bullish long-term financials of silver have NOT changed. See Why You Must Buy Silver Now!

Secondly, the paper spot price of silver may have been manipulated downwards, but physical silver is already recovering. I've seen rolls of silver eagles and junk silver recently selling on eBay for as much as 20% above the current spot price. I like eBay because it illustrates what the "real market" price is for silver coins, bullion, etc. The banksters can manipulate the paper spot price with a variety of shady tactics, including raising margin requirements, but the thousands of small auctions happening everyday on eBay are beyond their powers (or even notice). In addition, huge internet sellers like APMEX are not only out of silver eagles until May 13th, but they're charging (and getting) a $5.29 premium on each eagle they sell. All indications are that any physical seller that actually tried to sell close to spot would probably be out of stock in a matter of hours.

Lastly, trust in your physical silver. Continue to buy on the pullbacks. Check out the latest "silver bears" video http://www.youtube.com/watch?v­=u9LcKcXpCDE for some interesting insight into the insider manipulations behind the present price drop. WARNING: The bears work blue. If strong language bothers you, beware.

My opinion? The Silver Sky is NOT Falling!

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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Why Junk Silver Ain't Junk!

Those paying attention to world events, inflation, and the destruction of the US Dollar are buying silver. However, there are many forms of silver available for buyers including bars, rounds, American Silver Eagles, foreign silver coins, and 90% US silver coins or junk silver. I believe junk silver coins (dimes, quarters, halves) minted for circulation up to and including 1964 make the best investment for the following reasons:

• First and foremost, during intense bull markets in silver - like the one we're experiencing right now - junk silver tends to outshine (and outperform) silver bullion.


• Junk silver is a finite commodity.


• Junk coins are no longer being produced (the scarcity factor).


• Junk coins are easily recognizable.


• Junk coins are divisible, meaning you're able to use small amounts to pay for something.


• Junk coins require no assaying.


• Junk silver was produced by the U.S. government, meaning everyone everywhere recognizes what you've got, so you don't need to run any tests to prove its value.


• Junk coins are utilitarian, meaning you could actually put change into a payphone (remember those?) or a vending machine to purchase a product or service.


• Junk coins were produced by the US government itself - and remain "legal tender". Therefore it is unlikely they will be confiscated by said government.

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

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Should I Pay To Store My Gold / Silver?

Many gold & silver sellers today offer buyers the option to store their precious metals for them in their secure vault for a fee. To some concerned about theft or storage, this solution could seem like a good deal. The buyer gets to own gold and silver without the worries associated with keeping these valuable metals at home. So, is it wise to give your precious metals investment to your seller for safekeeping? Heck, NO! Why? See below:

• Conflicts of interest - The seller is running a business. Like every business profit and cash flow are primary concerns. The temptation for a vendor to "sell" you imaginary gold or silver and then charge you fees for its storage at his facility are very real. The situation practically begs for a ponzi scam set up. Even a basically honest seller with sub par business skills could find himself in a financial tight spot if a large amount of deposits are withdrawn precipitously or through plain mismanagement.

Example: Earlier this month, FBI agents seized computers, records and safe-deposit box keys from the Tigard home of Lawrence Henry Heim, president of U.S. Gold & Silver Investments Inc. in Portland. The FBI says the mail and wire fraud investigation stems from unfulfilled investor orders made as long ago as 1998 and as recently as October 2010.

Heim and his company also face three lawsuits -- one in federal and two in state courts -- seeking more than $875,000 and alleging breach of contract. One of the suits was filed on behalf of the estate of the late Portland high-tech pioneer Tom Holce.

According to the lawsuits, first reported in Willamette Week, Heim's company has not delivered on at least $875,000 of U.S. gold and silver coins. In some cases, the suits say, investors asked Heim to store coins on their behalf. In others, Heim entered into contracts with investors for which he would pay interest while holding the coins, according to the lawsuits.

• Bankruptcy & Legal Problems - What happens if a business storing your PM's goes bankrupt, or its assets are seized for civil and criminal legal proceedings? There's just no clear answer to this vexing question.

Example: Bernard Von Nothaus, the founder of the Liberty Dollar was arrested in 2007 and over $7 million dollars worth of copper, silver, and gold bullion owned by investors storing their PM's with the company were seized by the Federal government. Von Nothaus was recently convicted of counterfeiting, and faces 15 years in jail and substantial fines. In addition, the US government is seeking court permission to permanently confiscate all the bullion seized. As it stands now, the investors in the Liberty Dollar stand to lose their entire stored bullion, or at best face long legal battles to regain ownership.

There are plenty of other reasons not to entrust your gold and silver to others, but I hope the above two "horror stories" will be sufficient to dissuade anyone from pursuing this foolish investment choice.

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!

US Treasuries = TRASH!

The wisest and most successful bond investor of all time, Bill Gross, has dumped his bond fund’s $150 billion investment in U.S. bonds. One should not ignore the importance of this event. The largest bond fund in America no longer believes that Treasury bonds are a good investment. Moreover, Gross is not alone. Blackrock, the world’s largest money manager, is now underweighting Treasuries overall and reducing the duration of the bonds it still holds. That means they are dumping their long-term bonds, which are the most sensitive to interest-rate changes, in favor of Treasury instruments that mature in a year or less. Other bond funds, such as the $20 billion Loomis Sayles funds, are also forgoing Treasuries in favor of high-yield corporate bonds. Virtually everywhere you look, from great investors such as Warren Buffett to insurance companies such as Allstate, everyone is dumping their long-term U.S. debt and either buying debt that matures in less than a year or moving their money elsewhere.

So who is still buying U.S. debt ? According to Bill Gross, the “old reliables” — China, Japan, and OPEC — are still in the market for 30 percent of all new debt. The rest, however, is being purchased by the Federal Reserve. There is no one in else in the market. For the first time ever, Americans are refusing to purchase their own country’s debt.

Gross estimates that the “old reliables” are still good for $500 billion a year in purchases, and will be for some time in the future. This is pretty much the amount they’ve had to buy in the past to rebalance capital flows distorted by the U.S. trade deficit. Gross, however, may be wrong this time. Japan, needing to finance its reconstruction, is much likelier to be a net seller of U.S. debt, while China’s economy is slowing and actually ran a trade deficit in the last quarter. That leaves only one buyer of consequence — the Federal Reserve.

Meanwhile, there are already signs that inflation, while still subdued in the United States, is looking to break out. It has begun wrecking havoc through many areas of the globe, for example providing the catalyst for much of the upheaval in the Middle East. And when it strikes here, the Fed will be out of options. It will have to turn off the money pumps, raise interest rates, and batten down the financial hatches. The resulting recession will be long and nasty.

It is time to face facts. Spending is so out of control that Treasuries are no longer a safe haven for investors. The markets are saturated with U.S. debt and increasingly unwilling to absorb more. There is only one way out of this mess — cut spending, fast and deep.

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

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6000 Years of Gold Fever!

4600 B.C. Ancient civilizations begin to use gold as jewelry because of its beauty.

1500 B.C. The gold-bearing regions of ancient Nubia make Egypt a wealthy nation.

1323 B.C. Egyptians create Tutankhamun's funeral mask, a triumph of gold craftsmanship.

1200 B.C. Egyptians master the art of beating gold into leaf and develop the lost-wax jewelry casting technique, still used today.

1091 B.C. Squares of gold, about the size of postage stamps, become a form of money in China.

560 B.C. The first gold coins are minted in Lydia, now a region in Turkey, after a refining breakthrough ensures consistent purity.

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Funeral mask of Tutankhamun (14th century B.C.)

334 B.C. Alexander the Great and his army cross the Hellespont into the Persian Empire, sezing gold now valued at up to $980 million.334 B.C. Alexander the Great and his army cross hHellespnt into the Persian Empire, seizing gold now valued at up to $980 million. 334 B.C. Alexander the Great and his army cross the Hellespont into the Persian Empire, seizing gold now valued at up to $980 million.

334 B.C. Alexander the Great and his army cross the Hellespont into the Persian Empire, seizing gold now valued at up to $980 million.

218 B.C.–202 B.C. The Romans gain access to Spain's gold-mining region during the Second Punic War.

58 B.C. Julius Caesar conquers ancient Gaul, acquiring enough gold to repay all of Rome's debts.

50 B.C. The Romans issue a gold coin, the aureus, which circulates for almost 400 years.

309 A.D. Roman Emperor Constantine launches the gold solidus. It circulates for nearly 1,000 years in various forms..

696 An Islamic gold coin, the dinar, is minted in Damascus.

1284 Venice introduces the gold ducat, whose weight and purity remain unchanged for 500 years.

Money Museum

Aureus (Rome, 128 A.D.)

1492 Christopher Columbus discovers the new world, leading to the Spanish Conquest. By 1510, Inca gold from Colombia and Peru pours into Spain.

1663 The Guinea, named after Africa's "Gold Coast," is first minted in Britain and becomes its main circulating coin.

1694 The Bank of England, the first central bank to have gold reserves, is established.

1700 Gold is discovered in Brazil, which becomes the world's largest gold producer by 1720, tripling the world's output.

Money Museum

Solidus (Byzantine Empire, 705-711 A.D.)

1717 Sir Isaac Newton, master of the Royal Mint, fixes the price of gold at £3.17s.10d, essentially putting Britain on a gold standard until 1931.

1787 Ephraim Brasher, a goldsmith, strikes the first U.S. gold coin.

1792 The Coinage Act places the U.S. on a bimetallic silver-gold standard.

1817 Britain introduces the sovereign, a gold coin valued at one pound sterling. It becomes the dominant coin in international trade for the next 100 years.

1837 Gold weight in the U.S. dollar is lessened so that an ounce is valued at $20.67.

Money Museum

Dinar (Gupta Empire, 375-414 A.D.)

1848 John Marshall finds gold flakes while building a sawmill near Sacramento, triggering the California gold rush. The discovery transforms world gold production, which escalates tenfold during the next decade.

1852-1853 Britain and France mint substantial quantities of gold coins from California and Australia. Gold begins to take over from silver as the most widely circulating currency.

1862 The Latin Monetary Union is established, setting standards for silver and gold coins in France, Italy, Belgium, Switzerland and, later, Greece. The countries accept each other's coins as legal tender.

Money Museum

Ducat (Venice, 13th century)

1871 Germany issues the mark, a new currency based on gold. Ten more European countries join the gold standard during the 1870s, leading to a collapse in the silver price, as nations disposed of silver coins.

1873 The U.S. adopts an unofficial gold standard after silver is eliminated.

1887 John Steward MacArthur patents the MacArthur-Forrest process for using cyanide to extract gold from ore, leading to the extraction of gold in South Africa.

1896 William Jennings Bryan urges a return to a bimetallic system in his "Cross of Gold" speech at the Democratic national convention.

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Gold Washing in California, an 1896 engraving

1898 Prospectors discover gold in Klondike, Alaska, prompting the century's final gold rush.

1898 Prospectors discover gold in Klondike, Alaska, prompting the century's final gold rush.

1900 The U.S. adopts the gold standard through passage of the Gold Standard Act.

1913 The Federal Reserve Act requires backing Federal Reserve Notes 40% in gold.

1931 Britain abandons the gold standard.

1933 President Roosevelt prohibits private holdings of gold coins, bullion and certificates to alleviate a banking panic.

1934 The Gold Reserve Act of 1934 gives the government permanent title to all monetary gold and halts minting of gold coins. Only Federal Reserve Banks may hold certificates, putting the U.S. on a limited gold bullion standard. President Roosevelt reduces the dollar by increasing the gold price to $35 per ounce.

Money Museum

Stater (Tribe of the Parisii, 120-100 B.C.)

1935 Construction begins on the bullion depository at Fort Knox, Ky.

1944 The Bretton Woods agreement establishes the basis of the post-war monetary system. The U.S. dollar is set to maintain a conversion rate of $35 to one ounce of gold.

1961 Central banks of the U.S., U.K., and six European countries form the London Gold Pool and agree to buy and sell at $35.09 per ounce.

1968 The London Gold Pool collapses, leaving the U.S., Britain and other European nations unable to maintain the gold price at $35. The gold price begins to float freely for the first time.

1971 President Nixon closes the "gold window," stopping all gold sales and purchases and ending conversion of foreign-held dollars into gold.

1973 U.S. devalues the dollar and raises the official selling price of gold to $42.22 ounce. Dollar selling continues, which leads to currencies being allowed to float freely.

1975 Americans are allowed to hold gold other than jewelry for first time since l933. Krugerrand sales and gold-futures trading begin in the U.S.

1976–1980 The International Monetary Fund abolishes its official gold price, freeing governments to trade gold in private markets.

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Bloomberg News

Gold futures are traded on the Comex floor of the New York Mercantile Exchange.

1980 Gold reaches an intraday high of $875 on Jan. 21 but falls to $591 by year-end.

1981 The U.S. forms a Gold Commission to make recommendations on government policies about the role of gold in domestic and world-wide monetary systems.

1999 The euro is introduced, backed by a new European Central Bank holding 15% of reserves in gold. The Bank of England sells half of the U.K.'s gold stocks, pushing down prices to $250 an ounce.

1999 Europe's central banks enter the Central Bank Gold Agreement, which limits their annual sales of gold into the market. This action stimulates a rise in the gold price during the next decade.

2009 Central banks return to buying gold for the first time in two decades.

2011 Gold hits an intraday high of $1,445 on March 7.

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!

A Return to the Gold / Silver Standard?

The State of Utah has passed legislation that would allow gold and silver coins to be used as a legal tender in the State. This fiscal move is widely viewed as a hedge against the value erosion that the US Dollar is currently undergoing.

The new wave is not restricted to Utah, as a dozen states have proposed such a bill.

In Virginia, the legislature there has passed a bill (which is yet to be signed by the governor) that would allow the state to mint gold, silver and platinum coins. This is expected to protect the state from the scourge of high inflation.

In fact, a Virginia delegate tried to initiate a resolution that would allow the state to have its own currency, but the effort fell through. Recently, there were unconfirmed reports that China is on a move to opt for a gold standard.

The US had been on gold standard for a major part of the 20th century, but Richard Nixon decoupled gold from currency in 1971.

In November last year, World Bank President, Robert Zoellick called for considering by nations a return to gold standard to better accommodate currency fluctuations.

The Utah bill is yet to be signed by the State Governor. Once this is through, there are arguments that the legislation may spur the US Congress to consider adopting gold standard.

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!

What is the Gold / Silver Ratio?

CLICK CHART TO ENLARGE

The chart (above) shows the gold / silver ratio for the last few years. The ratio simply put describes how many ounces of silver will buy one ounce of gold. Historically, the ratio was pegged at 16 ounces of silver to one ounce of gold. Indeed, this value relationship of the two precious metals actually mirrors their relative abundance in the Earth's crust.

In more recent times the ratio has swung heavily in favor of gold as silver was demonetized, averaging around 55. Currently the ratio is about 40x and thus above the median of 55x. This means that silver is attractively valued relative to gold. A low was hit in 1920, when 15 ounces of silver would buy 1 ounce of gold. 1940 saw a row of historical highs, when one ounce of gold bought 100 ounces of silver. We experienced similar values in 1990.

Looking back over the centuries, we find that gold has been substantially more expensive since the beginning of the 20th century than in the previous three centuries. The long-term median (since 1687) is 15.7x. This also reflected the actual ratio of physical supplies: gold is about 16 times more scarce than silver. According to USGS, the measured and assumed silver resources are about 6 times as high as the ones of gold. Therefore silver is at the moment clearly undervalued at a ratio of 40x relative to gold.

Note: 3/25/11 - GOLD/SILVER RATIO touched more new lows this week. Closed today at 38.486. Shhhh -- Listen. Come close and I'll tell y'all something you won't hear anywhere else, but don't tell anybody. At 38.486 the ratio stands below its 10 year, below its 20 year, below its 30 year, below its 50 year, below its 60 year, and below its 110 year average. In fact, it's nearer the 220 year average than the 110 year. Put that into perspective: the 10 year average is 60.53, 22 points higher.

[Using a gold:silver ratio of 16:1 equates to a price of $90 per ounce for silver based on the current ballpark price of $1430 per ounce for gold and suggests a price of $650 if gold were to reach a parabolic top of $10,400!]

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

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The Rise & Fall of American Coinage!

The power and wealth of a country and its trajectory in history can be viewed through the study of the changes that occur to their monetary system and coinage. A particularly interesting parallel can be drawn between the history of the Ancient Romans and the present-day USA. Although separated by several millenia, the USA seems intent on following the identical path that Ancient Rome walked from rise to ruin as mirrored in the gradual debasement of their silver coinage.

Ancient Rome: Silver Content of Denarius coin (about size of USA nickel coin)

Republican Period

269 BCE 6.8 grams

211 BCE 4.5 grams

Imperial Period

Emperor Augustus (Early Empire) 27 BCE - AD 14 3.9 grams

Emperor Nero (Early Empire) 54 AD - AD 68 3.4 grams

Mid - Late Empire Mid Third Century 3.0 grams (varied during period)

Emperor Gallienus (Late Empire) 260-268 AD (alone) Copper coin with thin silver wash


USA (Early Republic - Mid-Late Imperial Period)

American Republic Various Presidents 1792 - 1964 90% silver 10, 25, 50 cents, $1.00

Early Empire 1965 - 1969 40% silver halves - all others made from base metals

Mid - Late Empire 1970 - 2011 All circulating coins cupro-nickel base metals

Ancient Rome began to decrease the silver content of its coins as the economy suffered, and Emperors looked for new ways to gain revenue without raising taxes. Where once the denarius was widely accepted in commerce throughout the Western World and Asia, it eventually became worthless and shunned as useful coinage due to the gradual debasement. Although my not-so-subtle political commentary re the USA is subject to discussion, the pattern of the systemic devaluation of the American coinage is not. The USA is clearly following the same destructive path that Ancient Rome followed to its doom.

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

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What's Greshams Law?

Gresham's Law was named for Sir Thomas Gresham, an English financier that lived 500 years ago in Tudor England. He observed that "bad money always drives out the good" whenever the government forces both coins to be accepted on a equal basis in commerce. "Good" money was defined as coins with commodity value equal to or higher than their governmental decreed value, and "bad" coins were slugs that were made from debased metals whose inherent commodity value was lower than the face amount. In essence, on a level field of commerce, Gresham noted that people tended to pay with the bad money and hoarded the good, while vendors gave change in the bad and likewise held onto the good.

In the USA the best example of Gresham's Law occurred in 1965 when the government eliminated the 90% silver content from dimes and quarters, and reduced the Kennedy half dollar to a 40% silver & 60% copper alloy. Immediately, the older precious metal coins all but disappeared from circulation as they were mason-jarred in favor of spending the new base metal coins and debased 1965 Kennedy 40% silver halves. In response to the popular hoarding of the old 90% silver coins LBJ famously pronounced, "if anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content".

We know today that Johnson was not only a lousy President, but also a similarly dismal prophet, as the value of 90% and 40% "junk silver" coins continues to soar! In fact, in 1970, only a few years after LBJ stepped down in disgrace, the US removed the last silver content from the circulating Kennedy half. Once again despite Johnson's earlier prediction, the 40% silver halves rapidly vanished from commercial transactions as the new base metal 50-cent pieces were thrown at cash registers in their place.

Yet another example of Gresham's Law in action occurred in December 2006 as the commodity prices of both copper and nickel rose substantially. Suddenly, the commodity value of 1909-1982 copper pennies and nickels were worth more in metal content than their face value as coins. In response, Congress passed a law making the exportation and melting down of pennies and nickels illegal. As in the case of the earlier 90% silver coins, many pennies and nickels are currently being hoarded by speculators hoping to take advantage of the valuable copper and nickel content in the old one-cent and the current five-cent pieces if/when the anti-melting law is repealed.

The conclusion to be drawn from Gresham's Law is obvious. Good money will always be desired as a reserve of wealth, especially while the US and other governments continue along the path of gradual debasement of coinage and proliferation of inherently worthless "fiat" paper money! Buy and hold silver and gold US coins, and sit back while the tsunami of paper money & slug coins wash all others away!

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!