Analysts who have been studying the reasons for the sustained demand for this metal say that at present, the following are the factors encouraging more investors into gold. These factors are sure to keep prices from tanking any time soon too.

Factor 1: Gold is Strengthening in its Position as Safe Haven Investment

Thanks to the debt crisis in the European economies, several world currencies are now quite unstable. While the Euro and Pound are directly impacted by the financial crisis and responding accordingly, the uncertain climate prevailing in the Western economic hemisphere is dealing its share of blows to the dollar too. Gold is holding strong as the lone safe haven asset in the Western economies that seem on the verge of collapse.

Factor 2: The Fed Statement Regarding Subdued Interest Rates

Late in January, the U.S. Federal Reserve announced that it would focus on keeping borrowing costs low through 2014. This is expected to boost economic activity. However, the pledge to ensure exceptionally low key interest rates has also resulted in boosting the price of precious metals like gold and silver quite significantly. As yields from paper assets are bound to be unattractive during this phase, it is only natural for investors to move into assets that will afford profits through price gains. Gold bullion is the best asset to fill this gap.

Factor 3: Gold is a Global Asset that Enjoys a Huge Market

Another factor that is in favor of buying gold is that this precious metal can be bought and sold with ease anywhere in the world. This opens up a huge worldwide market for gold investors to trade in. Given that other economies like China/India have a consistent demand for the metal, this is a great advantage. Even if demand falters in the U.S. market, the investor can always find a ready buyer elsewhere willing to pay a good price for his gold holdings.

However, statistics show that investors are now quite keen to buy gold, especially in the form of gold coins. In fact, U.S. Mint data informs us that gold coins are now being sold at the fastest pace since mid 2010. Clearly, the time is not yet past for investors to move into this metal.

Why Gold Started Strong?

There are a few reasons why gold has started quite so strongly this year. Several factors, including the economic upheaval in European countries and the fluctuating fortunes of the dollar, have been impacting prices. However, the current bullish trend being adopted by gold traders may be attributed to the Fed’s pledge to ensuring that interest rates are kept subdued until 2014.

While gold had already started strong this year, this Fed resolve lead several traders to believe that the positive position will continue. In general, when interest rates are low, precious metal products like gold coins, gold bullion in other forms become more appealing to investors. This is because the investor gains returns through price increases.

Savvy investors seek to assess the opportunity cost of holding on to gold. As long as interest yielding investments continue to offer subdued returns, they have no reason to invest more and more in such avenues. This cash is more profitably invested in gold coins, which are clearly escalating price wise.

Gold Coins – A Good Investment

Gold coins continue to be the most preferred gold bullion investment form for investors. The main reason for this preference is that these are easy to buy and store. Another important aspect to consider is that it is possible to determine the purity of gold coins especially if you are purchasing all time favorites like American Eagles. They come with a certificate of purity which tells you exactly what you are paying for.

If you have decided to buy gold coins take care to purchase them from a well known and reputed dealer online to make the process hassle free and quick. Reputed dealers deliver the product to you through insured post so that you receive the coins in perfect condition without any hitch.

Interview shot at Cambridge House International’s Vancouver Resource Investment Conference 2012 (http://cambridgehouse.com/).

Why Buy Silver Now?

This is a great time to buy silver according to experts. Several savvy investors have already started moving into this precious metal in lieu of equity investments this year. These are the reasons that have aided this decision of theirs:

Expected Spike in Demand

While silver has always enjoyed good demand, 2012 may be the year when this demand spikes significantly. Analysts believe that demand from China and India for this metal may increase by about 40% this year. Given that these are two of the biggest markets for precious metals, this phenomenon will push silver prices up quite dramatically.  

The Limitations of Finite Supply

The fact that silver is used in so many end products, combined with the fact that there is limited silver in existence makes for an interesting situation. The goods in which this metal is used are typically discarded when they stop working. No one extracts the precious metal from such discards, and the silver is allowed to go waste. On the other hand there is a limited supply of silver on Earth. The result – there will come a point in time when silver will become really, really rare and then prices will soar sky high. Buy in before this happens.

The Presence of a Ready Market

Many investors also buy silver as an alternative to holding cash. This metal is accepted worldwide and can be used in place of currency if the coinage of any country is drastically devalued. Given the constant state of flux that the dollar has been in, in recent times, many cautious investors are investing in silver so that they will have something of value to exchange if the dollar becomes worthless.

While it is impossible to predict exactly how the markets will move and where commodity prices will be in the future, it is clear that silver is a safe asset to buy right now. The best part is that even the smallest of investors can invest in silver coins if not buy wholesale silver thanks to its affordable pricing.

If you have been thinking about investing in precious metals there is no time like the present, especially if you are keen to buy silver as part of your portfolio. Silver has always been a most sought after metal for investors both big and small. In fact, many savvy investors who have successfully achieved their yield targets have a portion of their portfolio invested in silver as well as gold. This double pronged approach allows them to derive the benefits offered by either of these metals. Here are a few points about silver for you ponder.

Why Buy Silver Now?

This is a great time to buy silver according to experts. Several savvy investors have already started moving into this precious metal in lieu of equity investments this year. These are the reasons that have aided this decision of theirs:

Expected Spike in Demand

While silver has always enjoyed good demand, 2012 may be the year when this demand spikes significantly. Analysts believe that demand from China and India for this metal may increase by about 40% this year. Given that these are two of the biggest markets for precious metals, this phenomenon will push silver prices up quite dramatically.  

The Limitations of Finite Supply

The fact that silver is used in so many end products, combined with the fact that there is limited silver in existence makes for an interesting situation. The goods in which this metal is used are typically discarded when they stop working. No one extracts the precious metal from such discards, and the silver is allowed to go waste. On the other hand there is a limited supply of silver on Earth. The result – there will come a point in time when silver will become really, really rare and then prices will soar sky high. Buy in before this happens.

The Presence of a Ready Market

Many investors also buy silver as an alternative to holding cash. This metal is accepted worldwide and can be used in place of currency if the coinage of any country is drastically devalued. Given the constant state of flux that the dollar has been in, in recent times, many cautious investors are investing in silver so that they will have something of value to exchange if the dollar becomes worthless.

While it is impossible to predict exactly how the markets will move and where commodity prices will be in the future, it is clear that silver is a safe asset to buy right now. The best part is that even the smallest of investors can invest in silver coins if not buy wholesale silver thanks to its affordable pricing.

Jeffrey Jaffe’s Study

Finance professor at the Wharton School, Jeffrey Jaffe explored exactly this point in his study back in 1989. He found that in the period between September 1971 and June 1987, an average monthly return of 0.89% was recorded from the S&P 500 Index. During the same period, gold stocks yielded 1.42 %.

Jaffe concluded that while there is significant volatility in gold bullion prices, the fact is that the metal does not rely heavily on stocks and is not impacted significantly by stock performance. That is why investing a reasonable portion of your portfolio in gold coins or adding gold in IRA is a great diversification strategy to reduce risk.

Recent Trends

While on the subject of volatility, the fact is that nearly all of the last decade has witnessed immense fluctuation in all asset classes thanks to various socio-economic causes. One thing has emerged quite clearly through all of this – commodities, all of the 14 of them, have performed positively.

Among these, precious metals earn top place as the best performers of the lot. Statistics show that gold has demonstrated a 19 percent annualized return over the past decade. In fact, this metal has outperformed the S&P500 10 year annualized return. In 2011, while all of the commodities did not show the same positive performance gold did increase in price quite significantly.

How Much to Allocate to Gold?

Clearly, investing in gold is definitely not passé, volatility or not. While it is not a smart move to invest your all in gold bullion, you should definitely have some exposure to this precious metal. The degree to which your portfolio is invested in gold bullion is a matter of individual preferences. However, experts recommend a 10 to 20% exposure to the precious metal to derive the greatest benefits.

How much exactly you invest within this percentage range depends on a number of factors including your risk appetite, the current prices and price movement of gold. Other factors such as your perception of the present economic condition and expectations for the future should also be taken into consideration. Read up on what the experts are saying about prospects for gold and do your own research about the current and future market conditions before you decide on how much gold you want to buy.

http://www.zerohedge.com/news/one-2011s-best-performing-hedge-funds-sees-gold-2500-shortly

What Are Junk Silver Coins?

The term “junk silver coins” originated in the 1970s and was originally used to describe a bag of normal, circulated silver coins (no rare coins were included).  These bags would contain silver coins that were struck in the year 1964 or earlier, as these silver coins had 90% silver purity.  Each bag of junk silver coins contains all half dollars, all quarters, or all dimes.

Before 1965, all of the dimes, quarters and half dollars in the United States were composed of 90% pure silver, and 10% copper. However, the melted value of the silver soon exceeded the worth of the coins themselves, so these coins were then taken out of circulation, with a lot of those silver coins being melted. The coins that outlasted the melting process, however, are the junk silver coins that are now a fantastic investment opportunity.

Why Invest in Junk Silver Coins?

There are a lot of reasons why investing in junk silver coins has become increasingly popular. For one, the silver comes in bags and in denominations, making it quite easy to divide up a bag and determine the worth of each coin. You can easily count your coins and check just what your junk silver coins are worth.

Secondly, junk silver coins are just that – coins.  Though they are worth more due to their high silver content, they still do have legal tender face value.  You could easily use your silver coins as money in a store as normal currency, if ever necessary.  This makes it particularly more appealing than, say, buying a gold bar or a certificate for an investment in silver stocks.

Lastly, this type of investment is considered to be one of the lowest premium methods of investing.  Silver is a precious metal, and its worth is continuing to rise despite the recession that most countries are currently in.  It’s easier to obtain and more affordable than all other precious metals.

Different Coins have a Different Worth

As mentioned earlier, each back of junk silver coins is separated into denominations. Each bag of junk silver coins generally tallies up to have a face value of $1000 (or approximately 715 ounces of silver), but the coins all contain all dimes, all quarters, or all half dollars.

Here’s where it can get a bit more tricky.  Different coins contain a different amount of silver per ounce, meaning that it has a different worth.  Here are some of the different types of coins you’ll find when checking out junk silver coins and their silver content:

Junk Silver Coins: Dimes

• Dimes Seated Liberty (1837 to 1852): 0.07726
• Seated Liberty (1853 to 1873): 0.07205
• Seated Liberty (1873 to 1891): 0.7234
• Barber Dime (1892 to 1916): 0.07234
• Roosevelt Dime (1946 to 1964): 0.07234

Junk Silver Coins: Quarters

• Barber Quarters (1892 to 1916): 0.18084
• Standing Liberty Quarters (1916 to 1930): 0.18084
• Washington Quarters (1932 to 1964): 0.18084

Junk Silver Coins: Half Dollars

• Barber Half Dollar (1892 to 1915): 0.36169
• Walking Liberty Half (1916 to 1947): 0.36169
• Franklin Half Dollar (1948 to 1963): 0.36169
• Kennedy Half Dollar (1965 to 1969): 0.14789

Junk Silver Coins: Dollars

• Silver Dollars (Trade Dollar) (1873 to 1885): 0.78761
• Morgan Dollar (1878 to 1921): 0.77343
• Peace Dollar (1921 to 1935): 0.77343

How Do You Calculate the Value of Each Coin?

In order to calculate the value of each of your junk silver coins, you will need to start by finding out what the current silver price is.  Let’s say, for example, the current silver price is $40.  Let’s also say that you are interested in finding out the value of your Morgan Dollars.  You take the sale price, and then multiply it by the amount of silver per ounce.  In this case it would be:

$40 (current silver price) x 0.77343 (quantity of silver per ounce) = 30.9372

For junk silver coins, this value ($30.9372) represents the “spot” value, which is very different from the “face” value, which we will get into in just a moment.

How Do You Buy Junk Silver Coins?

If you’re in the market for silver coins, two of the easiest ways to acquire them is to either visit your local coin shop, or you can go online and find legitimate silver sellers on sites like eBay.

When it comes to the price, you may hear two different ways in which the pricing is described.  There is the “spot” value, as mentioned above, or there s the “face” value.  The “face” value is referring to the actual denomination of the coin, which is then multiplied by 15.  So the Kennedy Half dollar (worth 0.50) would then be multiplied by 15 and this would give us a “face” value of $7.50 per Kennedy Half Dollar.  This will tell us that you should not be spending more than 15% (or $7.50 per coin) above the spot value in order to make a good investment with your junk silver coins.

The only exception to pricing comes with half dollars.  You can always expect to pay just a little bit more for half dollars as fewer half dollars were minted than dimes or quarters.  They also, as you have probably noted, have a far higher silver content than dimes and quarters (with exception of the Kennedy half dollar, which only has about 40% silver content).

 Why You Should Invest in Junk Silver Coins

If you are looking to invest in coins rather than bullion, here are some final thoughts to take into consideration:

•  Junk silver coins sell at a premium or below premiums on 1 ounce silver rounds and 100 ounce bars
•  Coins hold a far higher upside price than any .999 silver bullion products
• During a rise in the precious metal markets (like we’re experiencing now) United States junk silver coins pick up premiums

As you can see, junk silver coins are an investment that can reap dividends.

Why is it Good News for Gold/ Silver Investors?

If you have invested in gold coins, gold bars or silver bullion, you may have been following the fate of these investments through the recent financial crisis in the European economies. You would have seen that when currencies become unstable, the market often turns to precious metals as a safe haven investment. This shift boosts the price of gold or silver offerings quite significantly.

Worldwide, when economic uncertainties arise, investors move away from cash based assets into precious metals which are a better store of value. Since metals are a global investment, a rise in prices in one part of the world does have an impact on the rest of the world markets too.

The Greek Connection

The Greek financial fiasco already did its bit to push precious metal prices up for a substantial part of the previous year. Even now, after a second bailout from the European Financial Stability Facility (EFSF) this economy is nowhere near stable as yet. In fact, the recent failure of talks between the Greek government and creditors could set back restructuring efforts quite dramatically and with disastrous results for the economy. However, the continuing uncertainty will bolster precious metals prices.

The Inadequacy of the EFSF

With the downgrade of France and Austria’s AAA rating on Friday, the promised contribution from these countries to the EFSF is now clouded in doubt. If this contribution is not forthcoming, the bailout fund loses a good €180 billion that should have been in its coffers. This substantially reduces the bail out money that was intended for the rest of Europe apart from Greece. This could have some very serious consequences for those European countries that were hoping for some financial aid to straighten their books.

All of these factors and happenings have only made for even more uncertainty in the markets in these economies. As a result, investors, especially those who were burned during the recession thanks to their cash backed assets, are likely to be staying safe. Investing in gold coins and gold bullion in other forms or opting to buy silver is the logical next step for such investors. With demand from these buyers likely to go up, there is no doubt that gold is all set to maintain its consistent growth in terms of value in coming months.

The History of the Morgan Dollar

Way back in 1859, there was a Comstock Lode from Virginia City, Nevada that was made available to the public.  In that payload there was easily $400 million dollars worth of gold and silver.  As you can imagine, with such an influx of precious metals and being worth so much, the price of silver and gold dropped drastically.  In order to try and bring back the value of silver and gold and stabilize the economy, the federal government stepped in and created the Bland-Allison act.  Because of the Bland-Allison act of 1878, the US Treasury had to purchase any where from $2 to $4 million dollars worth of silver bullion each and every month, done with the intention of increasing the value of silver over time.  Mint coins were created from this bullion, and the new coins were then mined and named after George T. Morgan, the Chief Engraver o the US Mint at the time.

As with most things, the silver bullion eventually ran out, and in 1904 the production of silver dollars came to a grinding halt.  The silver was melted down, and in 1912 Morgan Dollars were once again produced to the total of 86 million coins.  Fast forward 30 years, and in 1942 a new Silver Act was formed.  This act made it so that all silver coins once again had to be melted down, and then turned into bullion.  Approximately 8 out of every 10 Morgan Dollars were melted down.  So you can perhaps see why people want to buy Morgan Dollars – they are definitely a rarity.

Not All Morgan Dollars are Created Equal

Before you run out to buy Morgan Dollars, it’s important that you do your research first.  The first thing that you need to know about them is that any of the Morgan Dollars that have a grade of AU-50 and below are only worth their silver bullion value. Some exceptions to the rule do exist, such as any Morgan Dollars that you may find that are minted in Carson City.  This is because in the 1800s, millions more Morgan Dollars were produced than necessary, so they simply sat in a vault.  As a matter of fact, more than half a billion Morgan Dollars that were minted between the years of 1878 and 1904 never even went into circulation.

TIP:  Want to know where your coin was printed?  Many American coins all have small letters printed on the coin which tells collectors just where the coin was printed.  “CC” is for Carson City, “D” is for Denver, “O” is for New Orleans, “P” is for Philadelphia and “S” is for San Francisco.

The point that we’re trying to drive home is that Morgan Dollars that are in uncirculated grades are common.  So common that they are only worth their silver bullion value, as mentioned above, so do not allow yourself to be fooled by anyone selling coins into paying a higher price for those particular Morgan Dollars.

This is not to say that you should not buy Morgan Dollars that only have a silver bullion value.  It’s to advise you that all because a Morgan Dollar is 100 years old and is in mint condition does not necessarily make it any more valuable than a slightly scratched up one from the same year.  Most investors will tell you, however, that if you want to buy Morgan Dollars, you should buy only the highest grade.

Why Buy Morgan Dollars at the Highest Grade?

When looking to buy Morgan Dollars, first look into buying Proof Morgans (a “proof’ coin is one that has been struck by using a high quality minting process).  This type of coin has performed the best out of all of the other Morgan Dollars on the market in recent years.

The next best options are the MS-65 or any higher grade dollars.  Yes, they will set you back considerably more money than the MS-60 to MS-63, but the MS-65 will make you more money in the long run. When looking to buy Morgan Dollars, the MS-65s are far more rare, which makes them a better investment.

TIP:  It’s important that when looking to invest in Morgan Dollars that you consider the source of the grade as well.  When visiting dealers, bear in mind that not all dealers and grading services hold the same type of grading standards.  For example, coins that are in slabs from either NGC or PCGS are worth more than coins from other grading services because they have consistent and non-subjective standards for grading their coins.

Other Tips on Purchasing Morgan Dollars

Looking to buy Morgan Dollars should take some time, so don’t expect to walk away with your investment the first day you look around.  There are some standard things to look for in any silver coin, such as:

• Sometimes a minting error increases the value of a coin.  Most minting errors result in coins being melted down again, so those few that were not melted down are rare and worth significantly more.
•  If you find a coin from a place where coins are no longer made, then it will be worth more.
• The artisan employed to design the coin may affect a coin’s worth.

One of the most important tips that we can give anyone when it comes to going to buy Morgan Dollars is that they always take the individual coin with them after purchase.  When you buy Morgan Dollars, you are not buying a certificate showing that you “own” one that is in some faraway destination.  When you buy Morgan Dollars, the dollar goes home with you.

Speaking of which, it’s important that you invest in either a fireproof safe or vault, or open up a safety deposit box at the bank.  These coins hold a lot of value, so you should do your best to protect your investment – and your future – when you buy Morgan Dollars.