Vic Bilson

Silver is the best investment

The National Inflation Association says Silver is the best investment.

In our opinion, investing into silver is the only sure way to tremendously increase your purchasing power over the next ten years.

Throughout world history, only ten times more silver has been mined than gold. If you go back about 1,000 years ago between the years 1000 and 1250, gold was worth ten times more than silver worldwide. From year 1250 to 1792, the gold to silver ratio slowly increased from 10 to 15 and the Coinage Act of 1792 officially defined a gold to silver ratio of 15. The ratio remained at 15 until forty-two years later when the ratio was increased in 1834 to 16, where it remained until silver was demonetized in 1873.

The gold to silver ratio remained between 10 and 16 for 873 years! It is only over the past 100 years that the gold to silver ratio has averaged 50. History will look back at the artificially high gold to silver ratio of the past century as an anomaly, caused by the dollar bubble and the world being deceived into believing that fiat currencies are real money, when in fact they’re all an illusion. Next decade, the fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.

While the vast majority of the gold ever produced remains sitting in vaults, 95% of the silver produced has been consumed by industry for thousands of applications in such tiny amounts that most of it will never be recycled and seen on the market again. Nobody knows the exact above ground supply of silver today, but most likely it is somewhere in the neighborhood of 1 billion ounces. That’s a total worldwide market value of only $17.4 billion, when the world has over $7 trillion in foreign currency reserves, mostly in fiat currencies that they will need to diversify out of due to rampant inflation.

Besides the fact that the world has been ignoring the monetary value of silver, silver prices are artificially low due to a large concentrated naked short position. It’s not a coincidence that the day silver reached its multi-decade high of over $21 per ounce in March of 2008, was the same day Bear Stearns failed. Bear Stearns was a holder of a massive short position in silver. In our opinion, this was likely a naked short position because there is nobody in the world who owns such a large amount of silver for Bear Stearns to have borrowed.

The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position. Because the silver market is so small and tightly held, if Bear Stearns was forced to cover their short position, silver prices could’ve potentially rose to $50 per ounce or higher overnight. The world would’ve seen how economically unstable our country is and confidence in the U.S. dollar would’ve rapidly deteriorated. JP Morgan still holds the silver short position they inherited from Bear Stearns. The concentrated naked short position in silver today is the largest short position in the history of all commodities, as a percentage of its market size. Eventually, JP Morgan will have to cover this short position or it could jeopardize their existence.

The best evidence that the short position in silver is naked and not backed by real silver, is the differential between what silver trades for on the Comex and what real people are willing to pay for physical silver on eBay. Every hour on eBay, there are dozens of one ounce silver coins selling for approximately $25. That’s about a 43% premium over the current spot price of silver. With so much demand for physical silver, we doubt the silver shorts in the paper market will be able to manipulate prices downward for much longer. A major short squeeze could be right around the corner and silver could take off in a way that shocks even those who are most bullish.

Some Do’s and Don’ts with Coin Collecting

Junk Silver Coin collecting is something that takes time to learn.

The most important thing to remember is that you are doing it for the right reason – if it is a passion, then it is something worth pursuing.

Collecting just for profit may work but it usually is not enough in the long run. A person really has to think about this since many people who have tried it for that reason have lost focus and failed.

Successful coin collectors take a lot of time to learn everything there is to know about numismatics. Good sources of information are the Internet, magazines, newsletters and brokers who can pass on information and news, when it happens. By using the resources a person can act fast before other collectors who want the same thing get the information first.

If a person tries to collect without knowing the basics, he will never succeed in this hobby.

MS69 First Strike American Eagle Knowing how to grade coins can also help the collector know the true value of the collection. This knowledge will be valuable if the owner decides to trade for something of greater value or it can prevent scamming and wasting money for something of little value. Be vigilant!

One of the virtues that coin collecting can teach a person is patience since the collection may take years to complete. Some of the well-renowned collectors in the world have spent many years before reaping the benefits.

Learning to think like a collector is very important. Being too eager is not good because the collector could be tempted to purchase or trade the wrong coin which could prove to be costly. Think twice about using the information given even if that came from a reliable source.

Coin collecting can be difficult especially if the person is just starting. A person, more than likely, can’t afford to buy items worth more than $10,000, so it is best to start small and study the market for three to six months so that he can be comfortable before going after bigger prizes.

Coin collecting is similar to sports – it takes time to excel at it and goals, both short and long term, have to be established. By following the rules and using common sense, the person can become one of many other successful coin collectors.

The Best Ways to Buy Silver

Mike Maloney discusses the best ways to buy silver in the following video.

Mike Maloney: GLD SLV ETFs = Potential Scams

I like what he says, “If you can’t hold it, you don’t own it.”

OWNx is a great program to dollar cost average your silver purchases. With OWNx, you can automatically save in silver for as little as $25 a week or $50 a month.

See: Dollar Cost Averaging with OWNx

Austrian Silver Vienna Philharmonic

One of my favorite silver bullion coins is the Austrian Silver Vienna Philharmonic produced by the Austrian Mint. Beginning in 2008, it is now the highest minted and most well-known silver bullion coin from Europe. The coin is legal tender in Austria with a face value of 1.50 Euros. It weighs exactly 1 troy ounce of .999 fine silver.

The design created by Thomas Pesendorfer to be used for a gold commemorative coin that was first issued in 1989. The Austrian Mint introduced the silver version of the coin in 2008. The design was unchanged and has remained the same each year as of 2015.

Obverse: The obverse design features a pipe organ from within the Musikverein, a concert hall in the Innere Stadt borough of Vienna. This is where the actual Vienna Philharmonic Orchestra plays its music. The German words “REPUBLIK ÖSTERREICH” (Republic of Austria) and “1 UNZE FEINSILBER” (1 ounce pure silver) are also minted on the obverse.

Reverse: The reverse design features an array of musical instruments such as the harp, violin, cello, flute, bassoon, and French horn. The words “WIENER PHILHARMONIKER” (Vienna Philharmonic) and “SILBER” (Silver) are also inscribed.

This is one of the many silver bullion coins available for delivery from OWNx.

Although also minted in gold, the market overwhelmingly chooses official silver coins over gold. For one, they are more affordable for average buyers and easily converted to fiat currency if needed. This 1 oz Silver Philharmonic Coin is among the world’s most popular, with over 40 million Silver Philharmonics sold over a recent three year time span alone.

Why Silver is the Place to Be

In case you don’t know the main reason why silver is the place to be, here’s a little excerpt from a Ted Butler speech.

Cambridge House Phoenix Silver Summit 2010
Silver Review and Outlook
February 4, 2010
Theodore Butler

“Last year, I observed silver’s past, or the time period covering thousands of years up until about 5 years ago. I tried to describe how silver was always a highly desired precious metal, valued for its beauty and value in jewelry and ornaments and as money, much like its fellow precious metal gold. And, starting 100 to 150 years ago, how silver evolved into a vital and strategic industrial commodity. This transformation of silver into a modern industrial material was predicated upon its physical and chemical properties. These properties included it being the best conductor of electricity, the best transfer agent of heat, the best reflector of light, the most efficient photographic chemical and the most versatile biocide. In fact, silver is used in more industrial applications than any other metal.

Because of the wide range of uses in which silver is the preferred ingredient, it began to be industrially consumed in prodigious quantities. So great was the industrial consumption of silver, that the world used more, starting around the beginning of World War II, than it could produce from mining and recycling. That over-consumption mandated that previously produced silver, in the form of world inventories, be consumed, in addition to mining and recycling. The net result was that over 60 or 70 years, the above ground inventories of silver were depleted by 90% or more. In other words, we have only 10% in world silver bullion inventories of what we had back 70 years ago. We had 10 billion ounces of silver bullion inventories then; now we have 1 billion ounces remaining.

At the same time, gold inventories grew dramatically over the past 70 years, as gold’s industrial consumption did not develop like silver’s did, mainly because gold was and is one of the most expensive materials in the world. It’s not that gold didn’t have its own special physical and chemical properties; it’s just that you don’t use an expensive material unless you have no other choice. The bottom line, silver’s inventories were used up; gold’s inventories grew

The net result of this was one of the most incredible situations ever witnessed in world history, namely, that a comparable commodity that was rarer than another commodity could be much cheaper than the more plentiful commodity. In above ground bullion inventories, gold is more plentiful than silver, yet silver is less than 1.5% the price of gold. Common sense should tell you that such a relationship is absurd and cannot last indefinitely. Investment sense should also tell you that price relationship is absurd and unlikely to last, creating the best reason to buy underpriced silver.

Finally, despite the ease by which these relative gold/silver world inventory statistics can be verified, less than one-tenth of one percent of the world’s citizens are aware of the fact that silver is rarer than gold. I would guess that a good percent of those who do know, are in this room today.”

So . . . . if you knew something that only “one-tenth of one percent of the world’s citizens are aware of – the fact that silver is rarer than gold” wouldn’t it be a good idea to be in a business that should benefit as more people learn about silver? Especially since it already is.

Help us spread the word about silver while you get Silver Eagles in the mail.

Kansas Legal Tender Act

Representative Michael Capps recently introduced HB 2285, the Kansas Legal Tender Act, into the state House and it is now in the House Committee on Taxation. This bill provides for sales exemption from and modification for sales of specie legal tender.

Kansas currently burdens you with sales taxes if you buy precious metals, and then charges capital gains taxes when you sell those same precious metals. Passage would pave the way for Kansans to use gold and silver in everyday transactions and would remove sales tax when exchanging specie. Since money itself is not taxed, it only stands to reason you should not be taxed when you trade one currency for another.

The Kansas Legal Tender Act would end this unjust taxation!

Utah became the first state in over 80 years to pass a law making gold and silver coin legal tender in 2011. The legislature followed up, approving a bill clarifying several tax measures and more importantly, expanding the definition of specie to include gold and silver coin approved by the state. Oklahoma, Alabama, Wyoming, Louisiana and Texas have also passed legislation recognizing gold and silver as legal tender.

I believe this legislation is justified by the United States Constitution which states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” States have simply ignored this constitutional provision for years as the Federal Reserve monopolized currency with their Federal Reserve Notes.

The U.S. Constitution established biblical commodity money as the only lawful medium of exchange in America and empowered Congress to coin silver and gold coins the values of which are to be “regulated” using a fixed standard of weights and measures. The value of the US dollar represented a certain equivalent weight in silver and could be redeemed in silver coins. The Constitution did not authorize printing paper money (Bills of Credit) – or Federal Reserve Notes circulating as money today. Only gold and silver coins were considered legal tender as a standard of payment.

Legal Tender

Congress adopted the Legal Tender Act of 1862, compelling people to accept paper notes in payment, and thus began circulating the first national United States currency. These bills of credit were known as Legal Tender Notes because of the inscription on each obverse face stating “This Note is a Legal Tender.” Legal tender or forced tender is payment that, by law, cannot be refused in settlement of a debt.

Remember, the U.S. Constitution prohibits any government from issuing what the Founding Fathers called “Bills of Credit” (and what we today would understand as paper currency redeemable in silver or gold), and outlaws any form of “legal tender” except silver and gold coins.

Art. I Sec. 10 Cl. 1, states, in part: “No State shall … coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; …”

This departure from the Constitution resulted in just as Frederic Bastiat predicted…

“When plunder has become a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.” – Frederic Bastiat in “The Law”

In 1868 the Supreme Court unanimously said that nothing other than coined money had been recognized by the legislation of the national government as lawful money. (Bank vs. Supervisors, 7 Wallace, p. 30.) In Hepburn v. Griswold (1870), the Supreme Court found the acts creating the greenbacks to be unconstitutional, ruling that forcing a creditor to accept payment in inflated currency was a violation of the 5th Amendment, protection of property under due process. That decision was later reversed following the appointment of two new judges by President Ulysses S Grant.

Dollar Cost Averaging with OWNx

OWNx is a great program to dollar cost average your silver purchases. With OWNx, you can automatically save in silver for as little as $25 a week or $50 a month.

I like the dollar cost averaging approach of accumulating silver by investing equal monetary amounts regularly and periodically over specific time periods (such as $50 monthly). By doing so, more ounces of silver are purchased when prices are low and fewer ounces are purchased when prices are high. The point of this is to lower the total average cost per ounce of silver, giving you a lower overall cost for the silver purchased over time.

Once you have signed up for a FREE OWNx account, click “Start Saving” and you will be directed to the signup wizard. Fill in the required information. After you have selected a frequency and amount, you simply select the date you would like to begin saving.

You can now accumulate .999 pure physical silver at a ~7.8% premium over the OWNx Base Price after your instant rebate. Your effective premium could easily be reduced further with the OWNx Rewards Program where you can earn a rebate for sharing OWNx with others.

Your .999 pure physical silver is allocated and titled in your name, insured 100% and stored at First State Depository located in Delaware. Silver stored at the depository will be assessed a monthly storage cost of 0.05% (0.60%/year). This cost will be deducted from your OWNx account automatically each month.

After you have saved at least 20 ounces, you may choose to exchange them for various deliverable forms such as 1-oz. rounds, 10-oz. bars, 100-oz. bars or full 1000-oz. bars and have it delivered to you. An exchange cost is applied when taking delivery which includes fabrication, handling, shipping and insurance.

Protecting the purchasing power of your savings is important! Today, the purchasing power of all forms of paper wealth, including your money, is being threatened. The global financial crisis has exposed the flaws in the most dangerous monetary experiment ever undertaken.

Since 1971, when the United States cut its final tie to gold as a means to back our money, we have been living in a world dominated by paper money. The problem is paper money (also known as “fiat” money) derives its purchasing power by nothing more than confidence in the ability of each nation to maintain a “prudent fiscal policy,” i.e. refraining from the temptation to create too much money and credit.

Anybody that has not been living under a rock in recent years knows that the Federal Reserve has been debasing our currency at an alarming rate as it has printed more and more fiat money and expanded the credit of the U.S. to mind-boggling heights.

Time is running out for the U.S. economy and your should begin to protect your savings from this debasement. Never in the history of mankind has any economic system survived the kind of debasement governments around the world are doing now with our money.

Understanding the Value of Gold Amidst Various Economic Conditions

gold-insurance
There is no doubt that during the latter parts of 2008, the United States’ economic condition went down from its former glory. Many investors became worried about the U.S. debt burdens and their possible impact on the currency, stocks, and real estate markets. This lack of confidence made many investors increase their stores of gold. Gold, among all the precious metals, is considered one of the most stable assets even during tough economic times. So, is gold investment good when the economy is down? What about when the economy is doing well? Let’s find out.

1.) Gold is a stable asset.

Gold would have not been money for hundreds of years if it weren’t for its stable value. The economic issues of “demand and supply” that affect other commodities are not as relevant to gold because this highly-valued metal is inflation-proof. Say you have a ten-dollar “bill” in one hand and a ten-dollar “gold” coin in your other hand. Which of these two has more value? The gold coin has more value, of course. Sure they were of equal value six decades ago. However, due to inflation, the ten-dollar bill has dropped dramatically in terms of buying power while the ten-dollar gold coin has tremendously increased in purchasing power. Is gold investment good? Definitely yes, because the value of gold appreciates over time.

2.) Gold is a highly-valued metal by many countries.

Gold, being one of the most important metals in history, is prized by nearly all nations of the world. Most countries, if not all, continue to trade in gold, making it one of the most liquid financial assets in any investment portfolio. Because of its universal value, investors will not have a hard time using gold in their transactions.

3.) There are several ways to invest in gold.

While buying bullion gold bars has been one of the most traditional ways to invest in gold, this treasured metal offers a variety of other investment opportunities to interested individuals. Some investors prefer gold exchange-traded products such as ETFs, ETNs, and CEFs to avoid the hassle of storing gold bars. Others invest in gold coins for their “safe haven” status. Some prefer gold certificates to avoid the pitfalls and large costs of transferring and storing physical bullion. Is gold investment good? Certainly, because one will definitely not run out of options when it comes to gold investing.

4.) Gold is considered a “safe haven” when the economy is underwater.

This “safe haven” status was again supercharged when Switzerland’s central bank established a limit on how much the Swiss Franc can gain. Severe recession results in weak currency. Interest rates are kept low and people get virtually nothing for their money in bank accounts. So, is gold investment good when the economy is weak? Absolutely. Because gold price increases when currencies weaken.

5.) The demand for gold is expected to surge in emerging-market countries.

The world’s love for gold shows no sign of weakening. Around 2,000 to 3,000 tons of gold are mined every year to meet the world’s demand for the said metal. A lot of developing countries, especially China, Brazil, India, and Russia are having an increased appetite for gold jewelries, watches, and other gold-based products. This growing interest in gold can be a very good advantage to those investors who want to make big profits from this demand.

These are just some of the reasons why this glittering yellow metal is so valuable to many investors around the world. Gold has long been considered a good investment because no matter what the condition of the economy is, gold always remains a highly priced asset.

Starting a Coin Collection

It is never too early or too late to have a hobby. Some people are hobbyists for fun while others see a bigger picture; and that is to make money. Some objects that may seem inexpensive now may become valuable or priceless later.

A few good examples are baseball cards, toys and stamps. Many people have made a fortune by collecting and selling on auction sites like EBay. Another collection that can become profitable is coin collecting.

collecting coins

Getting started is as easy as deciding what kind of collection you want. Coins are made every year and some are introduced years later so focusing on a particular time period and location is important.

Conducting research using reference books or the web can aid in coin collecting. You can learn almost anything about the coins to be collected and will help the collector discover those who want to sell coins.

Another good source of information is subscribing to a coin publication such as Coin World or Coinage Magazine. The local coin shop can also expand the search for those antique coins outside the collector’s city or state.

Being a member of a coin club can build the collector’s network. Some members may want to part with a particular coin in exchange for another, etc.

Coins that are no longer used generally have more value than those that are still active, because coins in the past were made of 100% silver or gold. Since the demand for silver coins increased and they were difficult to produce they are now made of 40% and 60% copper.

After completing the collection, the coins should be stored in a nice folder or album. This will keep them clean and easy for the individual to carry around and display.

Coins can be cleaned by soaking them in any of the following liquids: vinegar, rubbing alcohol, lemon juice or ammonia which will remove any dirt or encrustation that’s on the coin when it was acquired. Afterwards, they should be air-dried or patted dry with a soft cloth. Rubbing or polishing the coins is not advisable since it scratches and will decrease the market value of the coin.

Coin collecting can be a lot of fun. By deciding on a specific period to begin with then searching for it, the collector will have something valuable as an investment.

America the Beautiful Quarters 2016 Silver Proof Set

America the Beautiful Quarters capture the breathtaking beauty of America’s natural landscapes that have inspired countless poets, adventurers, and artists. Today, these hallowed sites are protected and are enshrined through the U.S. Mint America the Beautiful Quarters Program.

Now into its seventh year of inspiring designs, the program has finally crossed paths with the National Park Service’s 100th birthday. While these beautiful and historically significant national parks, forests and monuments were chronologically due to come up in 2016, they provide a perfect representation of American pride from sea to shining sea. This 2016 America the Beautiful Quarters Uncirculated Set gives you all five quarters from the year, including:

The majestic Shawnee National Forest in Illinois, with a view of Camel Rock and a soaring red-tailed hawk
Kentucky’s Cumberland Gap National Historic Park, dramatizing a frontiersman at the “First Doorway to the West”
Harpers Ferry National Historical Park in West Virginia, featuring the monumental John Brown’s Fort
Theodore Roosevelt National Park, with the forefather of the National Park Service looking out over the Little Missouri River in North Dakota, and
Fort Moultrie at Fort Sumter National Monument, featuring Sergeant William Jasper as he runs to protect the flag of South Carolina from the British

The 2016 America the Beautiful Quarters Silver Proof Set features all five designs as struck by the San Francisco mint using polished dies and specially treated 90% pure silver planchets — resulting in a set that features each intricate design in sharp relief with lustrous mirrored backgrounds. Each set is housed in a clear plastic lens along with mint packaging that features beautiful photography of each site.

Thoughts on 90% Silver Coins vs. Silver Bullion

While the accumulation of 90% “junk” silver is popular among many people, this guy in these video’s presents some interesting thoughts to consider as we try to protect ourselves with silver bullion.

Apart from the debate over 90% silver coins vs. bullion silver, I thought it important to note he talks about the changes made in laws (Financial Regulatory Reform Bill and Healthcare Reform Bill) making coin dealers fall into the same category as banks and other financial institutions.

It would seem to me the government is preparing to close the doors on silver investors from accumulating government issued silver coins. If we’re going to accumulate silver eagles or other denominated 90% silver coins, it might be best to accumulate those coins before January 1, 2012 when coin dealers will then be required by law to report to the IRS your silver purchases.

Hello? Can you see the door closing?

Since January 1, 2012, the federal government has the authority to implement price controls on what coin dealers are allowed to give you for your denominated silver coins. It seems to me this is a pretty good argument for not accumulating ONLY denominated silver coins, but to also own silver rounds and silver bars.

Of course, I don’t know what the federal government might do in the future. These ideas are just something else to think about.

Silver Shortages

THE SILVER SHORTAGE WILL COME
By Israel Friedman

(Israel Friedman is a friend and mentor to Theodore Butler. He has followed silver for many decades. He has written articles for us in the past. Investment Rarities does not necessarily endorse these views.)

Based on the supply and demand situation of silver, it`s only a question of time when a silver shortage will come. Nobody can predict exactly when this is going to happen, but we have more and more signs that those who control the price of silver are sweating to balance the supply.

The biggest question I have is, will the shorts be successful to cover their short position on time? Right now the CFTC seems to want to force all the manipulators to get in line by making them obey new rules of position limits, but I feel that the banks who are the big shorts will be exempt. Mr. Butler thinks that the CFTC will do the right thing, but I am skeptical. We argue about this a lot, as we both have strong opinions.

If the banks will not be forced to cover their short positions, only a true shortage in silver will bring the right price. Be prepared for that to happen. How much will silver be worth in a shortage situation? It`s tricky to calculate, because a real shortage has never happened in silver history. But it is how you must think. My own thoughts go back to what some things cost during and after World War II in Europe. When there is not enough of something is when you see real crazy prices.

So I will give you my calculation. It will be a gradual explosion of prices and slowly the users and the new investors will eat up the world visible silver, which today is around 500 million ounces. In my calculation the first 100 million ounces of visible silver will disappear at a price of $60 to $100 an ounce. The second 100 million ounces will disappear by $250, and the third 100 million ounces will disappear between $250 and the price of gold ounce for ounce.

We will be left with 200 million ounces of silver which the owners will be not taking profits on at any price. The bullion in private hands I calculate will be the first to take profits, but Silver Eagle holders will hold for the long run. I still believe that Silver Eagles will do the best investment-wise and I will not be surprised that at one point the Eagle price will trade much higher than the price of silver in a bubble mania.

I am a fanatic silver believer and what I write is only my private belief. There are not many believers in silver. Just look at CNBC, the newspapers, other media, and gold investors. Hardly ever a good word on silver. Silver for them is a forgotten metal. One day they will be shocked when the shortage of silver will come and the price will go up and then gold will be a forgotten sister. There is more gold in the world than silver, so parity in prices is a must.

I think Ted Butler spoke the truth in a recent speech he gave: “The supply/demand set up in silver, which has evolved over an incredibly long period of time, has been one continuous process promising to culminate in an explosion in price at some point. Quite simply, we are rapidly approaching that defining moment when there just won’t be enough physical material to go around at anything but rapidly escalating prices. Those escalating prices will encourage and drive others, including industrial consumers, to enter what should become a buying frenzy. Superimpose upon that the sudden destruction of a decades-old downward price manipulation and you have all the necessary ingredients for a price event that will be referred to forever.”

* * *

Get all the silver you can as fast as you can. Silver owners could be the wealthiest members of society when this meltdown continues. Remember “Wealth is not destroyed it is merely transferred”. What side of the transfer do YOU want to be on?

The Verity of US Coin Collecting

Whether they spend it or just collect it, some people are simply born to love the way money provides them the kind of gratification that they seek.

For example those people who are coin collectors simply love the sight of coins and many wish to display their collections as art.

In the United States, coin collecting started as early as 1652. During this period, business people and individuals alike, were known to engrave and distribute their personal coins.

Some people are so interested in coin collecting that they want to seek out various forms and categories and coins. The reason for this fascination for these coins is the very nature of U.S. coins.

The U.S. Mint carefully crafts U.S coins and over the past 30 years it has minted nearly 300 billion coins.

When the Articles of Confederation gave consent for the different states to create or manufacture their own coins, the U.S. coin collections grew at an unparalleled rate. That is why in the middle of 1780’s, states like Connecticut, Vermont, New Jersey, New York, and Massachusetts started creating various coins unique to their states. This prompted the start of “rare coin collection.”

To know more about U.S. coin collecting, here are some of the basic facts that you must know:

It was on 1787 that the primary “federally” approved coin of the U.S. was first made. It was in New Haven, Connecticut where the “Fugio Cent,” the name of the coin, was secretly manufactured.
The U.S. Mint is responsible for manufacturing the U.S. coins. The agency uses bands of metal that are rolled into loops, with the right breadth and measurements. Each kind of coin uses a particular kind of metal. For instance, metal strips that are made of zinc are used to manufacture pennies, while nickels are made of a 25% “nickel metal alloy” and 75% copper.

For this reason, U.S. coin collecting is further subdivided into categories such as the U.S cent, U.S. nickel, U.S. dime, etc.

People who would like to start collecting U.S. coins, should learn the intricacies or the hobby and find ways to acquire their first coins.

The hobby of U.S. coin collecting is not just a wonderful hobby but also a great way to preserve the nation’s culture and history.

Tips for Buying Bullion Coins

Bullion coins may have high values because they are not only limited; but also they may have been found in shipwrecks, or they may come from the ancient times. For these reasons, bullion coins are favorites among many collectors.

Ron Paul Silver Commemorative Silver bullion coins could be the most well known type of bullion that is selling very well on the internet and are among the most expensive and valuable items in the world.

Some high priced coins you’ll find include the silver ingot. The silver ingot was said to have been found in the Spanish ship Atocha that sank in the ocean. This ship was found to contain treasures and artifacts including silver ingots. Others claim that the silver ingots were recovered from an old Colorado Mining area. Coins were found everywhere and were said to have been hidden by the miners.

Canadian Maple Leaf The silver Maple Leaf Coins are also popular among collectors. These coins came from the Royal Canadian Mint and include the Walking Liberty half-dollars and the dealer roll first-strike 1994 U.S. Eagles. These items were a collection of the Franklin Mint which had more than 100 masterpieces in their memorabilia.

Most bullion collectors prefer the gold billion. Some famous bullion gold coins include the gold Krugerrands, which are from South Africa. The European Gold Crowns were released from the late 1800s to the early 1900s. Other items include the Canadian Maple Leaf Coins and the United States American Eagle Coins. British Sovereigns can also be found including the Swiss Helveteas and the French Roosters.

The awesome 10-ounce Swiss gold bar, China gold panda set, and the American eagle proof set coins can also be found and are considered to be the most seen coins on the internet. There are gold bullion found in the American Eagle set, Mixed Lots, Rounds, Bars, and any other similar categories that are found on some sites on the internet.

A type of bullion that is not well known is the Platinum bullion. It is not as in demand as great the silver and gold bullion coins. Platinum bullion can be purchased anywhere: some of them are the French Statue of Liberty coins, Eagle sets, and the Koala Proofs. The World Trade Center has also offered some Platinum bullions like the Englehard platinum bar, crucible dish made of platinum bullion, and the Johnson Matthew Year of the Dragon coins which were recovered from the safety vaults of the building when it collapsed.

These coins can be considered as thoughtful gifts aside from their being valuable since they can be kept as a souvenir from the person who gave it. A bullion bar that features a happy birthday greeting can be a thoughtful gift for a friend’s birthday especially if the bar has the date of the birthday on it. Some people also use them for their anniversaries as their gifts to one another – they search for those bullions that have the date of their engagement or the wedding year. Some brides also ask their groom to find her 24-karat gold flakes or silver flakes as her chosen token for their wedding.

Coin collecting of this type can be very expensive, especially when buying bullion, but here are some tips that can guide a person in his search for affordable bullion.

You must be sure of the type of bullion you would like to purchase before ordering or buying.
You must ask yourself, or the person you are buying the bullion for, what bullion he/she prefers and ask if they would like to come with you when purchasing the bullion.
You need to figure the delivery costs and add them to the agreed price.
You should be sure that the seller will guarantee delivery for the item if they have ordered it on the internet.
You should never make the payments using instant money transfer firms.
It is important to know the seller’s background and reputation in the business.

Starting A Silver Coin Collection

Starting a silver coin collection is a great hobby that you will quickly find yourself addicted to. There are numerous different coins that can be collected so it is a good idea to pick something like silver coins to focus on when you are just getting started. This will prevent you from getting overwhelmed.

When most people think about silver coins they assume this includes all nickels, dimes, quarters, half dollars, and dollars. They are all silver in appearance so it is not hard to imagine why people would think of them in that regard. In reality, many of these coins are not really silver at all. In fact, most of the coins produced today do not contain any silver at all. Because of a critical silver shortage in 1965, Congress passed the Coinage Act of 1965, which authorized the removal of silver content from circulating coinage (except for the Kennedy half dollar) minted after December 31, 1964, replacing it with a clad composition of 75 percent copper and 25 percent nickel.

In order to determine the types of silver coins for your collection that are available you will need to do a little research first. Spend some time getting to know the different types of coins that are out there and then learn the details connected with each one. Understand the levels of grading that are associated with each coin to help you get a better understanding of the overall value that each coin has.

Different Types Of Silver Coins You Can Collect

franklin_half Half dollars are great silver coins to collect. The United States Mint began producing this coin way back in 1794 which were then called the Flowing Hair Half Dollars. Several different varieties of the half dollar were minted between 1794 and 1964. During this time period these coins were made out of 90 percent silver.

Many people will find that collecting the earliest half dollars will not be an easy task. Coins from the 1700s and 1800s are likely to be pretty worn out which decreases their value. Even in this worn out condition old silver coins like this can still cost a small fortune.

1804_dollar_obverse Another popular silver coin to collect is the dollar. Just like the half dollar, production of the silver dollar began in 1794. There are a variety of different versions of the dollar and up until 1971 they were produced with a large amount of silver in them.

eisenhower_dollar When the United States Mint began producing the Eisenhower Dollar in 1971 they stopped using silver as its key ingredient. There were a few years where the mint produced special versions of this dollar but they were limited in release and aimed specifically towards silver coin collectors.

Passive/Residual Income

Passive income is magic.
It is the most incredible financial concept that you and I will ever encounter.

Passive income is the secret of the rich.

Lack of passive income is the plight of the poor. If you don’t have passive income you are financially poor. Period.

I know people who earn $200,000 per year who are poor. They have no passive income, and they save nothing. It’s unbelievable. I was on a teleconference call recently with a gentleman who was a millionaire with another company, yet he DID NOT even own his own home.

They may know how to make a lot of money, but they don’t understand what it means to be rich. They are shackled to their jobs and to their boss’ wishes. They may love their work, but they HAVE TO WORK. They don’t have a choice. To me, that’s imprisonment. It’s poverty. It’s slavery.

What is Passive/Residual Income?
Passive income is income that comes in month after month, without you having to work. It is a monthly income created from an investment source such as savings, stocks, oil wells, etc. A million dollars in the bank produces passive income, a platinum record will produce passive income.

But what if you don’t have a million dollars or a great singing voice? Can you still earn passive income? Yes! Now, with the Internet and an on-line business, it’s VERY possible… for anyone!

A $1,000/month commission payment from your home business is the equivalent of a $120,000 investment source at a 10% annual return… $12,000/yr. or $1,000/month. How long would it take to put together a $120,000 investment source?

There are seven principles you must understand if you want to produce passive income. These principals are well known by the super wealthy. These ultra- successful people will not even touch a project if it doesn’t meet the criteria that I’m about to share with you.

EVERYTHING I DO in business revolves around these simple principles – it’s the reason I have so much free time in life!

PLEASE MASTER THESE PRINCIPLES. They cost you nothing to learn and can make you richer than you ever dreamed.

The Seven Principles of Passive Income

Silver Bullion Offers a Lot of Financial Security

Investment in Silver Bullion Offers a Lot of Financial Security For the Future

Silver although not as popular as gold has carved its own place in the investment market. These days more and more financial advisors are getting their clients to invest in silver bullion because they feel that this will offer them a lot of financial security in the near future. Economists of the world believe that during troubled economic times, most countries, government, and people start looking back at traditional values and this is where investment in silver and gold begins.

The world has barely started to breathe a little since the recession but the highly volatile market trends have not changed much. It has been seen in the recent past that strong currencies like the U.S. dollar and the British Pound have started to lose value. The British Pound has lost as much as 30% of its actual value against currencies like Japanese Yen. At the same time, the United States is trying to print green dough’s in order to find its way out of the recession crisis. This method of saving bankrupt companies has increased the fear factor in the average citizen because another bout of recession can end it all for the US.

This is one of the reasons why people should start investing in stronger portfolios like silver. Silver bullion is not just here to stay but silver in itself is a life saver. It will help in protecting you from any financial insecurity in the coming years and also help in protecting your underlying wealth. At least, you will have something that can be traded – you can’t trade stocks during economic crisis.

The stock market can crash but gold and silver are resources that will not lose their value. One of the best forms of silver investment is through bullion. The best place to buy silver bullion from is the mints. You can invest in silver rounds and bars, in 100-oz silver bars, and much more. When you are investing in silver bullion, check for.999+, purity in the bars. Silver bars are available in several weights but the most common are:

– 1 Troy Ounce
– 5 Troy Ounce
– 10 Troy Ounce
– 100 Troy Ounce
– 5 Gram
– 10 Gram
– ¼ Troy Ounce
– ½ Troy Ounce

These silver bars are also available in different sizes and thickness as well and can vary from 18.3mm in length to 150mm. The width can vary from 30.3mm to 76mm while the thickness will vary from 1.12mm to 26.9mm. The purity will remain.999 but this is something that you should always check before investing. Any silver bullion having purity of less than.999 will have much lesser return on investment value.

There are several other aspects to consider if you are planning to invest in silver bullion like collecting information in the market performance in the last decade, types of bullion available, storage for silver bullion, transporting it and much more. The more informed you are, the better silver bullion investment you can make.

Article written by Kelly Hunter
Kelly Hunter owns and operates Silver Bullion Bars and writes about Silver Bullion Bars

Article Source: http://EzineArticles.com/?expert=Kelly_Hunter

Keeping Your Investments in Silver Safe

If you’re wanting to purchase Silver, always ask yourself why are you buying Bullion? For what purpose? Is it for your collection or for investment purposes? Be sure you know what kind of silver you want to buy, in coin form, bar form or in paper form (stocks, ETFs, exchanges etc.) When purchasing silver, you need to know lot of things regarding Bullion.

maples

Here are some safe ways or steps if you want to purchase physical Bullion (coins or bars):

First figure out what kind of Silver Bullion you want to purchase, coins or the bars.
Know your budget when you purchase silver.
Have a safe place to store your silver.
Always bear in mind the current price of silver and compare the price to other dealers.
Go around or shop for cheapest dealers in your local area.
After you shop around, go to online shopping so you can compare the different prices of silver.
You can also purchase silver at auction or from national mints.
If you purchase from other dealers like jeweler or silver dealers, be sure they have reputable record.

If you want to purchase silver, the best deal you can get is the wholesale price or as close to spot price as possible. As we all know, the retail price is different from the wholesale price.

When investing in silver, most wealthy people who can afford it, pay the wholesale price rather than the retail price. They will have a larger profit when they purchase Silver Bullion at wholesale prices. Most small dealers sell silver at retail prices in order for them to have the bigger profit.

So if you are wealthy, go to the direct supplier or dealer of silver so you can get a cheaper price. The price of silver changes everyday. When there is an economic crisis, the price of silver tends to go up. Silver as an investment can be very profitable business, BUT only if you know what you are doing.

When you want to purchase Bullion for your collection, you don’t need to purchase a lot. Just be sure you know the current price of silver and do go shop around in order to get the lowest or cheapest price.

Online shopping is also convenient in time. You can go shopping through the net in your spare time. The internet is open 24/7 and you can shop through different kinds of website regarding silver and other precious metals. You can also compare the prices easily since some websites of silver dealers have the price posted on their site.

Always be alert of fraud on the internet. Be careful and be safe in shopping online. If you know of some reputable silver site, then go and have a look at their inventory.

Do Commemorative Coins Interest You?

Commemorative coins have become very popular for many people. Some people just want to have different kinds of coins in their collections or they collect them as souvenirs. Many times they are used as traditional gifts for special occasions. These coins are not considered to be practical gifts, but are commemorative items that can be kept for years as special souvenirs when received by a special friend or loved one.

There is a strong demand for these coins among people who are collectors as they may have significant meaning to them. Others will want them to remember an important day or occasion. The mint date and the event celebrated by the coin could be one factor people consider them collectible items.

Since the 1970s, the individual coins were available in the market every year, but are now available as sets in packages or in special displays. Many collectors say that one reason they are marketed this way was the depreciation of their value starting in 1971. The introduction of the euro may also be a factor.

There are countries that have produce commemorative coins and used these coins for propaganda. There were monarchs who issued coins to commemorate past or current events and/or celebrations that recognized their authority.

The half dollar was produced in 1892 to commemorate the Columbian Exposition in Chicago. This was a celebration to mark the 400th anniversary of the expedition of Christopher Columbus and his discoveries in the world.

During the following year, the first quarter dollar commemorative was introduced to signify the Exposition as well, but it also gave honor to queen Isabella of Spain. She was the one who “back-pedaled” the political agendas on Women Rights.

The first commemorative coins that were made of silver were introduced in the 1900s. The coins were minted in honor of Lafayette and George Washington. In the following years, the half dollar coin was denominated, and the legal tender commemorative coins were created to mark celebrations rather than historical events. These coins are recognized today as classical sets of special coins of historical events between the years 1892 – 1954.

It was in 1932 that the Washington quarter dollar was released as the United States’ second commemorative coin in its denomination. It was issued for the 200th birth anniversary of George Washington. The coin also continues its circulation as a commemorative coin because of its popularity.

It was uncharacteristic to circulate a commemorative coin of the 1892 – 1954 era in the United States because the government had not intentionally put them into circulation, (they were not legally approved by the government for public use) so collectors will not pay the premium costs of these coins that are still in the market.

In 1975, that the Bicentennial quarter was introduced. It became the second circulating commemorative coin in the U.S., while the silver dollars and half dollars (1776 – 1976) were reissued as a special collector’s edition.

Many collectors have different agendas when collecting these coins. Some prefer commemorative coins from 1892 – 1954 while most collectors choose the modern editions. They know that these coins have different values depending on the series and/or editions.

Although there have been different series released, a proposal was submitted to congress that would mark the Lincoln cent for his birth anniversary. No one knows whether or not the 1-cent denomination commemorative coin will be minted.

The confusing part of these commemoratives that are circulating is the pattern of the denomination. The 1776-1976 commemoratives half-dollar and silver dollar may not be included in collections because of their scarcity. Most of the coins that are circulating are the quarter dollar coins.

Do’s and Don’ts of Coin Collecting

It takes time to learn coin collecting. The most important thing to remember is that you are doing it for the right reason – if it is a passion, then it is something worth pursuing.

Successful coin collectors take a lot of time to learn everything there is to know about numismatics. Good sources of information are magazines, newsletters, the Internet and brokers who can pass on information and news, when it happens. By using the resources a person can act fast before other collectors who want the same thing get the information first.

If a person tries to collect without knowing the basics, he will never succeed in this hobby.

nickels Knowing how to grade coins can also help the collector know the true value of the collection. This knowledge will be valuable if the owner decides to trade for something of greater value or it can prevent scamming and wasting money for something of little value. Be vigilant!

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