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Sovereign coins (gold or silver) come from government mints, are recognizable, and enjoy a guarantee of quality, purity, and liquidity. These coins are desirable, easy to liquidate, and readily accepted.
Why Preppers should also be Stackers
Precious metals, especially gold (Au) and silver (Ag), are among some of the most sought-after elements on earth. They have been used as money for thousands of years. Having physical gold and silver is one of the ways ordinary people can protect their wealth and hold their “money” outside the financial system. People who amass physical metals are sometimes referred to as “stackers.” “Preppers,” on the other hand, are people who prepare for natural disasters and other possible dangers by storing food, water, and necessary survival gear and supplies. People who prepare are usually also concerned about the fragility of the financial system.
Pre-1965 dimes, quarters, half-dollars, and dollars are not junk. They contain 90% silver and are prized their supply is limited.
In this article, we examine some of the benefits of owning physical gold and silver and how ordinary people can use precious metals to protect themselves from inflation, 3rd party risk, economic uncertainty, and the debasement of the currency. We also discuss some factors people need to consider when buying physical gold and silver.
Money vs. Currency
The words “money” and “currency” are often used interchangeably, and many assume that they mean the same thing but don’t. What most people consider “money” is an IOU, or what is commonly known as “fiat currency.” The U.S. dollar, and most other world currencies, are considered “fiat” because they are not backed by anything other than the promises made by the government issuing the currency and the people’s faith and confidence in that government.
Sovereign Coins
When most people consider buying physical gold and silver, their first choice is usually the highly recognizable, sovereign coins that come with a guarantee of quality, purity, and liquidity. A government mint produces these coins; they’re considered highly desirable and are the most liquid and readily accepted.
Collecting sovereign coins from different mints around the world can be enjoyable. Stackers are preparing themselves with what they consider to be “real money” in a world filled with uncertainty.
For this article, when we discuss “sovereign coins,” we’re referring to coins from six of the world’s major government mints, as follows:
- United States Mint – Eagles
- Royal Canadian Mint – Maple Leafs
- Austrian Mint – Philharmonics
- Royal British Mint – Britannias
- Australian (Perth) Mint – Kangaroos
- S Africa National Mint – Krugerrands
Silver coins can come from private (left) or sovereign mints (right) from around the world. Besides being valued for their silver content, many of these coins are also highly collectible.
Buying Physical Gold and Silver
Buying physical gold and silver can be very exciting and rewarding. However, before making purchases, you should research the field and become familiar with at least the basics. Here are some things to consider:
- Trust: There are many ways to buy physical metals. From the brick-and-mortar pawn shop or local coin dealer to the many online options. While price will always be an important consideration, the primary concern among buyers, especially new buyers, is trust. Knowing that you’re dealing with a reputable seller is a critical part of the process.
- Spot Price: Spot price is primarily used to determine the value of raw (unprocessed) ore. The progression from mining companies to refiners to mints is lengthy, complicated, and expensive.
- Premiums: A premium is an additional cost above the spot you must pay for physical metals. Premiums may vary depending on the type, amount of product you’re buying, market & economic conditions, and supply and demand.
- Counterfeit Gold/Silver: The best way to avoid fakes or counterfeits is to buy from a reputable dealer with a reputation to protect. They have the knowledge, experience, and equipment to ensure that all products leaving their shop are thoroughly tested for metal content and authenticity.
Sovereign silver coins generally come in 1oz denominations designated as either 0.999 or 0.9999 fine silver. Most experts feel there is little difference between the two.
Talking to an Insider
I contacted Dunagun Kaiser from Liberty and Finance for some perspective. Dunagun is a licensed broker with Miles Franklin Precious Metals Investments and a popular YouTube financial channel host. Dunagun offered ideas on how gold/silver can help round out a viable preparedness plan. Below are some of his comments:
“Originating out of a decade of interviewing expert guests in the preparedness focus area, the need to reduce risk of catastrophic loss of each family’s financial future and ability to carry on daily transactions, for needed supplies in case of a disruption to our banking system and currency, emerged as a critical subject of highest interest to our subscriber base.
Silver has sometimes been referred to as the poor man’s gold. These coins are not only beautiful, but also highly desirable and a great way to preserve wealth over many generations.
Less than ½ of 1 percent of Americans own any precious metals or related investments. As such, they remain fully exposed to risks of banking, stock and bond markets, inflation, and even possible restrictions on access to their funds. Having control of your precious metals allows you to work outside the current electronic banking system while giving you immediate access to your nest egg. It also allows you to control tangible wealth during a lengthy emergency or any other financial system disruption.
See the links at the end of this article for more answers to frequently asked questions about the history and role of precious metals in a family’s financial survival plan.
Wrap-Up:
While having a survival plan, food, water, supplies, gear, and knowledge/skills is critical to protecting yourself and your family; you should also protect yourself financially. In an uncertain world, physical gold and silver can add a level of comfort to your preparations by providing real money and a store of wealth that is not susceptible to much of the turmoil that is so common to today’s unpredictable financial markets.
Sources:
Dunagun Kaiser, Founder & CEO – Liberty and Finance, LLC
https://www.youtube.com/c/LibertyandFinance
1-888-815-4237
