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Gold & Silver

Gold and Silver Exchange

In this article we discuss what a gold and silver exchange is, as well as the basics of gold and silver. You will learn about the history of gold and silver, why you should own these precious metals and how to buy them.

What is a Gold and Silver Exchange?

A gold and silver exchange is simply a place, either a brick-and-mortar store or an online store, where you can buy and sell gold and silver. A gold and silver exchange will vary from store to store. Some Exchanges will buy jewelry, diamonds, coins and more. However, some only deal in coins.

Why Buy Gold Coins?

First, buying gold coins from a gold and silver exchange means you are buying something that you can hold in your hand. This may not seem important to you now, but it may be critical in the future. Cash can be destroyed and loses value. In addition, stocks go up and down in price. In addition, Banks and businesses fail every day. Living things, such as livestock and farm crops die. However, threats such as these do not impact gold.

Five Reasons to Buy Gold Coins:

  1. Store of value. National currencies (even the U.S. Dollar) come and go. But Gold has been around for thousands of years as real money. 
  2. Liquid asset. Large cities throughout the world trade gold and silver on a daily basis.
  3. Tangible asset. You can hold gold coins in your hand or put them in your safe. No waiting for the bank to open to get them. No worrying about destruction by fire or a hacker.
  4. It is a hedge against inflation. Silver tends to thrive during a crisis. Investors tend to jump into silver when stocks go lower.
  5. Privacy. No other asset offers privacy like a gold coin. A transaction in gold between you and another person is truly a private affair.

Gold in Your Portfolio

It is common to hold anywhere from 5-10% of your investment portfolio in gold. In fact, some very larger international portfolios hold approximately 30% of their assets in gold.

History of Gold

gold coins

Around 4,000-6,000 years ago, gold was first used as a commodity and as a money. Then, approximately 4,500 years ago, the people of Mesopotamia made jewelry from gold. Some historians believe that the use of gold is much older. Cultures such as the Egyptians used gold for purposes such as to decorate walls, burial sites and masks of cultures such as the Egyptians, the Greeks and the Romans. This is probably around the time when the first gold and silver exchange was formed. Back then, these exchanges operated much like a bank.

Gold and Silver Exchange and Trading

Circa 1500 B.C., gold was the official currency of exchange for merchants and traders in Egypt. Shortly thereafter, gold began to take hold as the superior trading currency throughout the world. Mining for gold became a major industry world-wide. Europe and Asia also began using gold coins for payment.

Gold Standard Dollars

Fast forward to the birth of the United States. First, in 1792, the United States passed the Coinage Act. The Coinage Act requires that silver and gold are the new standard for currency valuation. The Act defines the U.S. Dollar as equivalent to 24.75 grams of gold and 371.25 grams of silver. Next, the paper currency printed in the United States was officially backed and redeemable in silver and gold.

Once again, fast forward again, approximately 180 years. First, in 1968, the U.S. Government removed gold from backing the Dollar. Then in 1971, the price of the U.S. Dollar was devalued. Then, US Currency was no longer convertible to gold. As a result, gold does not back the American Dollar any longer. It should be noted that during the time from 1933 until 1971, it was illegal to own gold or purchase it from a gold and silver exchange.

The Beauty and Utility of Gold

Humans have long believed that gold jewelry and coins were things of beauty. For instance, women and men have donned gold jewelry for as long as we have kept track of history. Moreover, from a physical perspective, gold is malleable and easily altered to make jewelry, coins or even thin gold sheets. Scientifically, gold is non-reactive and non-corrosive, both of which are highly desirable characteristics. Gold is even safe to use in the human body. For example, dentists have used gold for years to repair teeth. In conclusion, gold has many uses.

Best Gold Coins to Buy

Now that you understand the history and significance of gold and why buying real gold coins is important, let’s explore the best gold coins to buy.

There are four important one-ounce gold coins that are important to buy. The four recommended gold coins are:

  • American Eagles
  • South African Krugerrands 
  • Canadian Maples
  • Austrian Philharmonic

The aforementioned coins are the finest gold coins available. The respected governments of each country oversee the minting and distribution of these fine gold coins. All four of these coins are well-known and recognized world-wide. As a result, gold coin buyers and sellers hold these four coins in high regard.

Best Gold Bars to Buy

If you have more money to buy gold and don’t want to have stacks of coins lying around, then buying gold bullion or gold bars is an option. Gold bars have a few options that make them desirable when compared to gold coins. Gold bars take up less storage space than a comparable Dollar value of coins. In addition, bullion bars have lower premiums compared to gold coins. And gold bars come in varying sizes from one gram up to 400 ounces.

Smaller to medium size bars are recommended for several reasons. Large gold bars are not very divisible. For example, how do you pay for dinner with a 400-ounce gold bar (currently valued around $800,000)? In addition, larger gold bars require assay when exchanging and there is also a higher rate of counterfeiting with large bullion bars.

Gold and Silver Exchange Coin Dealers and Coin Shops

When buying and selling gold at a gold and silver exchange, you have several options. The first option is to search for reputable coin dealers near where you live. To start, ask friends or look online for reviews of the local shops that buy and sell gold coins. Next, visit the gold and silver exchange or coin shops in your area and get to know who they are and what they offer. Find a dealer who you enjoy dealing with and who is knowledgeable about gold and silver coins. Finally, ask questions, like how they determine gold spot price or how their fees are determined. Get comfortable with whom you are dealing and get to know them.

If you are thinking about buying silver, then it may be a good choice. Many investors recommend including precious metals like silver in your investment portfolio. Commodities such as silver (and gold) have stood the test of time. In fact, silver has been used as money for thousands of years.

History of Silver Coins

For thousands of years, silver coins have been used as trading currency. Silver has the properties of money, which are portability, divisibility and tangibility. In fact, the US money was backed by silver and gold until 1933.

Five Reasons to Buy Silver Coins:

  1. Silver is a store of value. National currencies (even the U.S. Dollar) come and go. But Silver has been around for thousands of years as real money. 
  2. It is a very liquid asset. Silver (and other metals) can be easily bought and sold in most large cities around the world. It is exchangeable for most currencies this way.
  3. Silver is a tangible asset. You can hold silver coins in your hand or put them in your safe. No waiting for the bank to open to get them. No worrying about destruction by fire or a hacker.
  4. It is a hedge against inflation. Silver tends to thrive during a crisis. Investors tend to jump into silver when stocks go lower.
  5. Silver is private. No other asset offers privacy like a silver coin. A transaction in silver between you and another person is truly a private affair.

Silver Coins in Your Portfolio

It is common to hold anywhere from 5-10% of investment portfolio in silver. In fact, there are some very large international investment portfolios that hold even larger amounts of their assets in silver.

Why Everyone Should Own Silver Coins

Silver Maintains Value, is Secure, Private and is Real Money

Silver is real money, which is tangible and is backed by something of value. Moreover, you can hold it in your hand. Silver cannot be taken from your bank account, like cash. In addition, hackers cannot steal silver from your computer, like Bitcoin. Finally, silver can be kept safely and privately in a secure location.

Real money is resistant to inflationary forces and has a value that is based on demand. First, silver has a long history of maintaining its value against the currency of the day. No matter what the value of a dollar is, a one-ounce silver coin is always equal in value to one ounce of silver. In addition, silver maintains a special balance with the value of gold, which fluctuates.

Silver Coins Are Affordable and Practical

Purchasing silver, one-ounce coins, such as the American Silver Eagle, is one of the cheapest ways to buy silver. In addition, the Silver Eagle is arguably one of the best silver coins to buy. Currently, silver one-ounce coins sell for approximately $25. Additionally, silver coins can be purchased in smaller denominations. They easily fit in your pocket or purse and could be used for trading, gifts or even to exchange for cash. In addition, you can find a gold and silver exchange in most cities and in some more rural towns.

Silver Has a Limited Supply and Growing Demand

A Finite Supply of Silver Exists worldwide; It is Mined for Use in Jewelry, New Technology and Medicine

There is a limited supply of silver on Earth. Consequently, silver miners throughout the world have a finite quantity of silver available for mining. At some point, the amount of silver removed from mines will diminish and become zero.

At the same time, silver demand continues to grow. Silver has many uses in technology, jewelry, medicine and money. Jewelry made of silver has been popular for millennia, and continues to grow in demand. Moreover, there are many industrial uses for silver including batteries, solar panels and electronics. In fact, more than 50% of silver mined today goes to industrial use. And of course, silver coins remain in demand all over the world.

One other important point about silver coins is that they have traditionally outperformed gold in bull markets. For example, from 1970 to 1980, silver increased in price (compared to US Dollar) by over 3,000%.

Real money is sound money. Consequently, a silver coin is real, sound money.

How to Buy Silver Coins

Buying silver coins has never been easier. As a result, many silver sellers are competing for your business online and at your local coin shop. We’ll discuss coin shops in more detail. We won’t discuss purchasing paper contracts or electronic funds. obviously, buying funds or shares of silver is not recommended because you cannot hold it in your possession like a coin.

Finally, another option for finding the best silver coins to buy is buying online. Buying from a website has become more secure in recent years, but you must do diligent research to verify the buyer. Only buy from established suppliers that have been around for a long time and have positive feedback. Preferably you can get a recommendation from a friend.

Silver Coin Dealers and Coin Shops

There are several methods for finding silver coins and bars. The first option is to search for a reputable gold and silver exchange near where you live. Ask friends or look online for reviews of the local shops that buy and sell silver coins. Next, visit several coin dealers or coin shops in your area and get to know who they are and what they offer. Find a dealer who you enjoy dealing with and who is knowledgeable about silver and silver coins. They can be a great resource for learning about the best silver coins to buy. Ask questions, like how they determine silver spot price or how to determine the best silver coins to buy. Get comfortable with whom you are dealing and get to know them.

Best Silver Coins to Buy

The Best Silver Coins to Buy Are Trusted, Universally Recognized and are Safe

There are five important one-ounce silver coins that are best silver coins to buy. The five most highly regarded silver coins that are considered the best silver coins to buy:

  • American Silver Eagles
  • Canadian Maple Leaf
  • Austrian Philharmonic
  • Chinese Silver Panda
  • British Silver Britannia

These are the best silver coins to buy because they are recognized and trusted around the world. These coins are minted with precision and integrity. The minting is overseen and secured by the respective governments who are involved. When you travel around the world, all of these coins are well-known and recognized universally.  Buying any one of these is considered to be a relatively safe bet.

Best Junk Silver Coins to Buy

One often over-looked market for buying silver coins is the junk silver market. Junk silver coins are simply used silver coins that show wear and have no numismatic (collectible) value. Buying junk silver coins can be fun and rewarding, and tends to be low risk. Junk silver coins are typically sold near their silver melt value; however, recently, junk silver has traded at a premium because of higher demand for metals.

As a general rule, most pre-1965 silver coins in the United States are at least 90% pure silver. The most popular junk silver coins in the United States tend to be:

  • Morgan Silver Dollars
  • Peace Silver Dollars
  • Franklin Half Dollars
  • Walking Liberty Half Dollars
  • Roosevelt Dimes
  • Washington Quarters

The Bright Future of Silver Coins

Financial experts believe that silver has a bright future. Holding a tangible asset such as silver will always be highly regarded by investors. Having silver in your investment portfolio is considered by many to be a safe and secure option. It’s important to grow your wealth, but retaining a portion of your wealth is critical too. Silver coins are a real, tangible money that can be a store of wealth for a lifetime. We believe demand will continue to grow and that investors should continue to hold silver coins.

Get a copy of the “Free Gold and Silver Buyer’s Guide” today. It’s free and has some great information in it about investing.

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The Cheapest Way to Buy Silver

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Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.

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