Gold and Silver for Survival Purposes (Cont.)Third, the coins you buy for survival purposes should contain amounts with which Americans are comfortable. We understand one-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce coins. Americans do not easily grasp the concept of .2354 ounce or .1867 ounce.
For survival purposes, avoid arcane foreign coins. (Although more British Sovereigns have been minted than any other coin, Sovereigns are not well known in the U.S.) Simply buy the popular modern bullion coins, the best of which are the American Eagles. They come in four sizes: one-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce. For more information, visit Modern Gold Bullion Coins. (If you have been told that bullion coins are subject to confiscation and that old U.S. coins and/or foreign coins dated before 1933 are exempt, you really need to read Myths, Misunderstandings, and Outright Lies.)
Another plus for Gold Eagles: They sell at small mark-ups over the value of their gold content. Generally, Gold Eagles carry lower premiums than foreign coins of comparable sizes. And certainly, Gold Eagles are cheaper than old U.S. gold coins.
Finally, the question arises whether to buy gold or silver. Probably both, but if you are investing $5,000 or less, go exclusively with one-ounce silver rounds or circulated pre-1965 U.S. 90% coins. If you are investing larger amounts, say $20,000 up, you will probably end up with gold and silver.
If conditions were to deteriorate to the point that gold and silver re-emerged as the preferred forms of money, you would want lots of small coins. If you were buying canned food, you would need silver coins because gold coins, even 1/10-ounce ones, would have great value. If you have only silver coins and need something of high value, then you simply trade a larger number of silver coins.
At current prices, an investment in silver results in more than fifty times the bulk and weight than if the same investment were made in gold. Therefore, large investments in silver create storage and handling challenges for some people. If storage and handling is a problem for you, then go exclusively with 1/10-oz Gold Eagles for the first $5,000 or so. Still, try to have some silver coins on hand.
Although we prefer American Gold Eagles for survival purposes, Gold Maple Leafs, Krugerrands, and Kangaroos would serve nearly as well. We recognize that Maple Leafs, Krugerrands, and Kangaroos are foreign coins and that above we advise against foreign coins. However, Maple Leafs, Krugerrands, and Kangaroos are bullion coins that have the desired traits for survival purposes. They are stamped in English, come in convenient, well-known sizes, and sell at small premiums over the value of their gold content.
The choice of the form of silver for survival purposes is a toss-up between one-ounce silver rounds and circulated pre-1965 U.S. 90% coins. Rounds have their silver content and purity stamped on them. However, circulated pre-65 U.S. 90% silver coins once served as money and could do so again. Additionally, these coins circulated as recently as the late 1960s, and many Americans remember using them. Yet, pre-65 silver coins do not have their silver content stamped on them, but if the dollar were repudiated people would quickly learn the value of pre-1965 U.S. 90% silver coins.
If you are considering precious metals for survival purposes and would like to discuss the matter, call us at 800-528-1380. Our normal hours are 7:00 a.m. to 5:00 p.m. MST, Mondays through Friday. However, we often take calls before 7:00 a.m. and more often after 5:00 p.m. Sometimes we can be found in the office on Saturdays.
Call CMI at 1-800-528-1380 for answers to any questions or clarifications. Our hours are 7:00 a.m. to 5:00 p.m. Mountain Standard Time, Mondays through Fridays. Our offices are in the middle of the Phoenix, Arizona financial district. CMI has had the same bank account since its inception in 1973. References available on request