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Silver Investing

Bullion is the most widely traded form of the precious metals. Bullion refers to precious metal in the tradable form of bars, wafers, ingots, coins and rounds. The minimum purity of the precious metal in bullion is 0.995, all of Golden State Mint's silver bullion rounds are minted of .999 fine silver. By far, the most popular, most liquid form of bullion is the coin. Bullion is the most affordable way to own precious metal. Bullion can reduce the volatility of a portfolio while adding significant profitability. Bullion survives and actually thrives on inflation. When economies falter and currencies become devalued, bullion tends to retain its value. For example, between 1971 and 1981, the U.S. Dollar lost more than half of its value, while silver prices rose nearly five times. Throughout history, silver bullion has served mankind as a primary monetary metal. It is durable, divisible, convenient, has utility value and cannot be created by fiat.

For the average investor, silver can be an effective means of diversifying investment assets and preserving wealth against the ravages of inflation. Although the value of silver may vary, it has an intrinsic value that is immutable and permanent. Accordingly, many experts suggest that investors should include it among their investment assets.

What is the advantage of buying silver bullion rounds over other forms of silver?

Silver bullion rounds are a safe, low cost and convenient way to own silver. Rounds are easy to buy, sell, count and stack. They are portable, offer privacy and take up very little storage room. They are especially convenient when measured against other silver investments. When measured against silver coins they have the same weight and purity but can be bought for a much smaller premium. Prices vary but often rounds can be bought for $2 less premium than coins. This means on a purchase of 100 rounds over 100 coins you could be getting approximately 13 ounces of pure silver FREE.

Why should you place your trust in precious metals?

There have been many thousands of articles posted on the Internet on why a person should own precious metals, especially now in light of what is presently happening with the world economy. There are three fundamental reasons to own precious metals.

1. Paper Money's Track Record

If you learn only one thing from this site, remember this: Throughout recorded history, every fiat paper currency eventually reached its true intrinsic value. All paper currencies eventually went to zero.

Based on its previous track record, we do not believe the US Dollar, or any other world currency, will be an exception to this rule. According to the US Bureau of Labor Statistics, the US Dollar has lost approximately 95% of its purchasing power since 1913. (Source: US Bureau of Labor Statistics) Looking at the dollar chart above, odds are that it will continue to loose what remains of its value. (For a great overview on where we are headed, visit the National Inflation Association and view their three part video.)

2. Precious Metals' Recent History

If you are old enough, think back to the early '80 and remember prices. At today's prices, things looked pretty cheap. According to the same BLS Inflation Calculator, what you pay $1.00 for today would have cost you $.39 in 1980, and that is calculated using their "honest" inflation numbers. With few exceptions, pretty much everything you buy to live everyday costs about 150% more than it did in the '80's; except precious metals.

In 1982-3, silver traded between about $5 and $14. But isn't that about where it is today? Using the BLS calculator again to adjust for inflation, buying $18 silver today is that same as buying $8 silver in 1982. Or put another way, $18 silver should actually be about $40, just adjusted for inflation.

3. Why Silver over Gold?

In a June 10, 2009 article posted on Gold-Eagle.com, Jeff Nielson states:

"Science has ... determined that silver is approximately 17 times as plentiful in the Earth's crust... For roughly 4,000 years, the average gold/silver ratio was 15:1. These ratios are especially interesting today, given that the price ratio is currently, extremely skewed in gold's favor - at more than 60:1."

There are hundreds of articles in support of this. In our opinion, silver will gain much more if the prices adjust back anything close to their historic ratio.