Collectible Coins as Investment Opportunities

Above, a 1976 gem proof Kennedy half dollar that contains 40% silver. Photo by Armand Vaquer.

Paper money is subject to inflationary pressures. The old adage, "it's not worth the paper it's printed on" comes pretty darn close to the truth. 

However, coin collecting is one hobby that holds its value and even can increase in value. 

Many people have lost their trust in banks following the recent collapse of three banks. This is especially so today as the government is trying to convert our financial system to Central Bank Digital Currency (CBDC) where people's privacy is threatened and their savings can be wiped out by the push of a button by some government hack.

EIN News posted an article on exploring the potential of collectible coins as investment opportunities.

They begin with:

MIAMI, FLORIDA, U.S.A, May 20, 2023/EINPresswire.com/ -- Want a rewarding hobby that combines history, art, and potential financial gain, look no further than coin collecting. As a seasoned collector or a newbie just starting out, the world of numismatics offers a wealth of benefits that go beyond the mere acquisition of shiny coins. This article will explore the timeless charm and investment potential of coin collecting, and why it can be a good investment for both new and old collectors.

My dad and I collected coins since the 1960s, just before the government ceased to mint dimes, quarters and, later on, half dollars in silver. For the past few years, I have accelerated my interest in coins as a hedge against inflation.

As the article points out:

-Financial hedge: Additionally, coins can serve as a hedge against inflation and economic uncertainties. Unlike paper currency, which can lose value due to inflation or economic fluctuations, coins are made of precious metals such as gold, silver, or platinum, which can retain their intrinsic value. During economic downturns, the demand for precious metals and rare coins tends to increase as investors and collectors seek alternative investments that can preserve their wealth. "So, if you have coins made with precious metals, you have made a wise financial decision."

To read more, go here.

Gold, Silver Hit By Heightened Recession Worries

Worries over a possible recession played a big role in the big drop in the spot price of silver yesterday.

But, not to worry, what goes down, must come up. (And vice-versa, of course.) This dip provided me with an opportunity to buy some more silver. Remember the adage: Buy low, sell high! 

Here's what Kitco News had to say:

(Kitco News) - Gold prices are lower and silver prices sharply lower in midday U.S. dealings Thursday. Some fresh banking jitters and weaker U.S. economic data today have rekindled concerns about an economic recession being on the horizon. Gold and silver market bulls are somewhat frustrated their metals are not performing better due to safe-haven demand amid the keener marketplace uncertainty. However, at least on this day it appears metals traders are more focused on the bearish weaker consumer and commercial demand implications a U.S. and/or global recession would have on metals markets. June gold was last down $17.10 at $2,020.10 and July silver was down $1.283 at $24.37.

Today’s producer price index report for April came in at up 0.2%, versus expectations for up 0.3% from March, and compares to a drop of 0.5% in the March report, month-on-month. Gold prices initially were given a modest boost after the tamer PPI print.

However, the weekly U.S. jobless claims report showed claims jumped higher than expected in the latest week, at up 264,000 versus the forecast rise of 245,000. That report, combined with PacWest bank shares dropping sharply after reports that deposits dropped 9.5% last week, unsettled the marketplace and reignited recession fears. The U.S. dollar index and U.S. Treasuries saw better demand today, on safe-haven bids. Still, it’s my bias that gold and silver will see better safe-haven demand if the banking turmoil heats up in the near term.

To read more, go here. 

CBS News: How To Buy Gold and Silver

Anyone "out there" wanting to know how to buy gold and silver?

Since the economy, banking, inflation, dollar and war saber-rattling has people in jitters, many are looking to diversify their financial portfolios. Some are interested in buying gold and silver, but just don't know how.

The good news is that CBS News posted an article on how to buy gold and silver.

They begin it with:

With an uncertain economic outlook and nagging inflation, some investors are looking to diversify their portfolios by investing in a variety of assets, like precious metals, alongside stocks and bonds. This type of diversification can help build a buffer against economic headwinds and potentially allow for new ways to make money.

But how do you actually invest in precious metals like gold and silver? While assets like publicly traded stocks have a fairly straightforward buying process, investing in gold and silver can be a little bit more complex, given the variety of ways to buy them.

The good news, though, is that you don't have to literally mine for gold to reap the potential benefits. There are several other ways to gain exposure to gold and silver in your portfolio.

To read more, go here. 

US States Look To Gold and Silver As Legal Tender

Above, Franklin silver half dollars. Photo by Armand Vaquer.

Note: I accidentally deleted the original post. Blogger was acting a bit erratic this morning. So, the best I can recreate it, here is the topic again. 

More states are looking into recognizing gold and silver as legal tender as the fiat currency (i.e., the dollar) is on shaky ground, rampant inflation, bank collapses and other economy woes are taking place.

On The Spot News posted:

As concerns about inflation and the stability of the US dollar continue to grow, a growing number of states are taking steps to recognize gold and silver as legal tender. 23 states have introduced legislation that would allow citizens to use precious metals to pay for goods and services, according to investment news website Invezz, here.

“Proponents of the legislation argue that gold and silver are more stable forms of currency, as their value is not subject to the same fluctuations as fiat currency,” writes Shivam Kaushik in the Invezz article. 

This sentiment is echoed by many in the precious metals industry, who see the current economic climate as a sign that gold and silver could become increasingly important as alternative currencies.

Several states introduce legislation, significant for the US dollar

The states that have introduced the legislation include Arizona, Wyoming, and Texas, all of which have taken slightly different approaches to the issue. In Arizona, for example, the state Senate has passed a bill that would recognize gold and silver coins minted by the US government as legal tender, and would remove state capital gains taxes on the exchange of precious metals. In Wyoming, a similar bill has been introduced, which would also allow for the creation of a depository to hold precious metals for use in transactions. Texas has introduced legislation that would recognize gold and silver coins as legal tender and create a depository to allow citizens to store their precious metals in a secure facility.

The governor and the Democrat-controlled New Mexico legislature have no interest in following suit even though the state is sandwiched between Arizona and Texas. They are more interested in the abortion issue rather than doing anything to benefit citizens.

To read more, go here. 

China, Brazil Deal Leading To Dollar Collapse?

Above, better start investing in precious metals in case of a dollar collapse.

The leftist government of Brazil and Communist China have struck a deal on Wednesday to ditch the U.S. dollar in trade transactions. The Saudis may also be involved.

According to Fox Business:

Brazil and China have reportedly struck a deal to ditch the U.S. dollar in favor of their own currencies in trade transactions. 

The deal, announced Wednesday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais – or vice versa – rather than first converting their currencies to the U.S. dollar.  

Some are saying that if this trend continues and other nations join in on ditching the dollar, it could lead to a collapse of the greenback and lead to a new U.S. currency, controlled by you-know-who.

That is one reason why silver is pushing $24/toz spot price.

According to Monex:

The Biden administration say the banking industry is "just fine", while other see the bank crisis is "only just beginning." Glenn Beck discussed this on Tucker Carlson last night. To view the video, go here.

It would be prudent to look into investing in precious metals to protect one's financial health.

To read more, go here.

Why Silver Coins Will Always Be A Favorite

The turmoil in the banking industry continues.

The collapse of Credit Suisse in Europe has burned quite a number of people.

According to CNBC:

“The $17 billion wipeout of Credit Suisse bondholders has not gone down well in Europe.”

One section of Credit Suisse’s bondholders is set to be wiped out following the struggling bank’s takeover by UBS, causing them to see investments worth 16 billion Swiss francs ($17 billion) become worthless. The Swiss regulator FINMA announced Sunday that the so-called additional tier-one bonds, which are widely regarded as relatively risky investments, will be written to zero as part of the deal.

For the rest of us, protecting our wealth is becoming more urgent and there is one way of doing so.

From Insider Paper:

Silver coins have been around for centuries and have become the favorite of many avid collectors. Silver coins are a great way to start a collection and can be found in various shapes, sizes, and designs. Here are some reasons why silver coins are so popular among avid collectors.  

Investing in silver is one of the safest ways to protect wealth as its value tends to remain stable even during economic downturns or market volatility. By investing in silver coins, you can diversify your portfolio and offer better risk management capabilities than investing solely in stocks or bonds.

To read more, go here. 

Fed Raises Interest Rates To Highest Levels Since 2007

Well, they dood it! (As Red Skelton would say.)

The Federal Reserve Board met today and raised the interest rate a quarter of a percentage point.. 

From the Daily Caller:

The Federal Reserve hiked its target federal-funds interest rate by a quarter of a percentage point Wednesday, the ninth in a series of hikes that started in March 2022.

The hike brings the Fed’s target rate to a range between 4.75% and 5% with the Fed maintaining its pace of slowed increases. Most economists expected a quarter-point interest-rate hike in an effort to bring inflation down, but the current banking calamities contributed to the possibility of a pause, according to Bloomberg.

As of Wednesday morning, markets were estimating over 90% odds that the Fed would hike rates by a quarter-point, CNBC reported. This brings rates to their highest level since late 2007.

To read more, go here. 

Federal Reserve: Rate Hike Day Today

Investors are waiting with baited breath (no, not with an anchovy on the end of their tongues) for the announcement of how much the Federal Reserve will jack up interest rates today

As for me, I'm just relaxing at home with some wine and cheese..

According to Financial Times: 

US stocks opened marginally lower on Wednesday as investors looked ahead to the Federal Reserve’s monetary policy decision, in which the US central bank is expected to raise rates again to keep up the fight against inflation.

The blue-chip S&P 500 fell 0.1 per cent, while the tech-heavy Nasdaq dipped 0.2 per cent. The KBW Bank index lost 0.6 per cent, and shares in First Republic, the regional lender at the centre of the crisis, dropped 2.7 per cent.

Futures markets indicate traders are expecting the Fed to raise rates by 0.25 percentage points from the current range of 4.5 per cent to 4.75 per cent.

To read more, go here.

Reminds Me of the Mortgage Meltdown

Above, at Monument Valley last October. I am better off during these
 uncertain times than I was 16 years ago during the Mortgage Meltdown.

The bank collapse, inflation and financial uncertainty in recent weeks (actually in recent years, at least since Biden started occupying the White House) is reminding me more and more of the mortgage meltdown of 2008.

It affected me in a couple of ways. First, I was working for David Morse & Associates, a third-party insurance claims administrator, for a number of non-standard insurers. We handled claims for several of them. 

Trouble started in late 2007. We were getting plenty of claims work, but like a Chinese water torture, co-workers were getting laid off over several weeks. Finally, it was my turn. It was explained to me that the company got a percentage of the premium monies the insurers received as payment for administering their claims. But as the mortgage meltdown started, fewer polices were being underwritten by those insurers. Therefore, our company's income became less and less. So they had to lay off workers.

Next, I had a 401k retirement account. When the meltdown got worse, I started losing money in my account. 

While I was working for the third-party administrator, my supervisor wondered why I would do my periodic shoots to maintain my security gun permit. I told him that it was my hedge in case of job loss in insurance and one gets better pay in security if they have a gun permit. When I got laid off, he then fully understood.

After the lay-off, I worked in security mainly for the medical benefits. I also worked for an independent adjuster, but that job had no benefits. (This was just prior to ObamaCare, which really screwed things up.)

I worked the adjusting job during the day and wrote my reports while at my security posts in the evening or during the graveyard shifts.

In 2015, I decided to retire at age 62. I was financially secure with the work I was doing and from farm income I was receiving (that I inherited in 2010 after my mother passed away). Social Security benefits kicked in during the spring of 2016. 

Now that I am retired and own my own home, I don't have to worry about getting laid off. The house has no mortgage and I am getting my Social Security payments, which covers my monthly living expenses just fine since I don't have rent or house payments to make. I am in full control of my investments, so I have no worries there (I recently made some adjustments to protect them).

On the current situation, Forbes wrote:

Layoffs, return-to-office mandates, hiring freezes and reduced compensation will be results of Silicon Valley Bank’s collapse,

It looks like the country might be in or a wild ride...again!

3 Things You'll Want to Own If the Sh*t Hits the Fan

Above, the ammo shelves at the Albuquerque Cabela's. Photo by Armand Vaquer.

Some people are starting to relax a bit when it comes to the current financial situation. The actions the Federal Reserve has taken in the aftermath of the bank collapses, even though some of which are misguided and stupid, have calmed them a tad.

But there are those who aren't quite that confident of things and are preparing for worse-case scenarios.

Yahoo! Finance posted an article on three things you'll want to own if things go, well, see the title of this blog post (it's also Yahoo's article title).

They start it out with:

As the world watches with trepidation the recent string of bank runs, liquidity crises and outright failures sparked by the collapse of Silicon Valley Bank and Signature Bank, many are considering where this crisis will lead.

The global banking system is surely in hot-water at the moment, but most analysts only see it as a temporary, solvable problem. It would probably take an extreme, rare crisis of a much larger scale to take global civilization down.

While the likelihood of a total societal collapse is extremely low, you still might want to prepare for the worst. In this article, Benzinga discusses three essential items you'll want to own if the unthinkable occurs — gold, ammo and alcohol.

To read more, go here. 

Mints To Hold Conference In Canada

Above, yours truly and Mitch Geriminsky with U.S. Mint Director Ventris
 C. Gibson at the National Money Show earlier this month in Phoenix.

With things going haywire in the financial world lately, delegates representing the world's mints (including the U.S. Mint) will be holding a conference in Canada in October. One would think they would meet sooner given the situation the financial markets are in.

Numismatic News reported:

Readily accessible cash is critical to the ability of societies to go about their daily lives, according to the International Mint Directors Association.

The IMDA and the International Mint Directors Network will gather more than 300 delegates from the minting and related industries to discuss the future of circulation coins, collector coins and bullion on October 15-18 in Canada. It is the first time in five years the Mint Directors Conference will be held.

Looking ahead a Foundation of International Mint Industry Association statement reads, “2022 closes with a world economy struggling to deal with heightened geopolitical uncertainty and with growth rates for 2023 at best challenged and potentially in decline. The inflation ‘genie’, generally under control over the past decade or so, is now out of the bottle and as central banks attempt to reign it in, the impact of a rapidly increasing interest rate response is placing households and consumers under serious strain.” The FIMIA was established as the successor to the Mint Directors Conference in June 2022, the former organization having been founded in 1962.

To read more, go here. 

Will Bank Collapses Cause A Run On Gold and Silver?

Above, 2022 Canadian silver Maple Leafs. Photo by Armand Vaquer.

People are anxious over the banking crisis.

They are concerned that their bank savings accounts will go up in smoke, leaving them flat broke. They are beginning to turn to buying precious metals such as gold and silver.

The question arises, will this cause runs on gold and silver, thereby driving up prices?

An article in Yahoo! Finance takes a look at this.

They begin with:

The recent failures of Silicon Valley Bank and Signature Bank, two of the largest banks in the United States, piled on top of existing crises like inflation and the war in Ukraine, have raised concerns about the stability of the global financial system.

As investors search for ways to protect their wealth in these uncertain times, many are looking to precious metals, especially gold and silver, as a safe haven. The question on the minds of countless experts and analysts is whether bank runs and failures could lead to a run on gold and silver, driving their prices up.

The failures of Silicon Valley Bank and Signature Bank have exposed the vulnerabilities of the banking system, even in developed countries. In light of these incidents, some experts are warning that more bank runs could occur, particularly in the face of ongoing global crises such as geopolitical tensions, inflation and economic uncertainty. As these factors continue to shake the financial world, investors are turning to gold and silver as a means of preserving their wealth.

Analyst Mike Gleason of Money Metals Exchange explains in an FXStreet article that bank runs can lead to a run on gold and silver as investors seek to safeguard their assets from the risks associated with traditional banking institutions. Physical gold and silver can be a great choice in these situations because they are considered some of the best safe-haven assets and incur no counterparty risk.

To read more, go here. 

Banks Buying Up Gold and Silver

Above, 2022 American Silver Eagle reverse. Photo by Armand Vaquer.

Even before the current bank crisis, I have been buying silver bullion coins over the past several months. 

Generally, I buy what I like (my favorite is Morgan silver dollars). Silver is a lot more affordable than gold, which is around $1,985/toz. Silver is about $22.59/toz today.

It appears that I am not the only one buying precious metals. 

According to the Gateway Pundit, central banks are also buying precious metals. As the following article's title states, they're "buying everything in sight."

They begin with:

The ongoing banking crisis has exposed flaws in the various financial systems governing western capitalism in the Biden era. While companies like BlackRock as well as the Biden-Harris regime pushed companies, financial advisors, and individual investors toward “woke” ESG purchases, their cronies at central banks have been busy buying up physical precious metals.

Gold and silver in particular have been hot.

In fact, the bank runs of recent weeks had been quietly preceded by “vault runs” with physical precious metals being moved out of the Comex system. Now that the cat appears to be out of the bag, central bankers are ramping up purchases of physical precious metals even more.

To read the full article, go here. 

Banking Crisis Triggered 'Resting Bull Market' In Gold, Silver?

Last week, the banking world went topsy-turvy when some banks had collapsed. While this resulted in major anxiety, there was one area of finance and money that actually benefitted.

That was in precious metals. 

An article in Bitcoin.com (I have no investments or interest in bitcoins, but I thought the article was interesting) by Jamie Redman states that the banking crisis awakened a "resting bull market" in gold and silver. Those metals could see higher gains.

The article starts with:

At the start of the week, a troy ounce of .999 fine gold was trading at $1,813 per unit. Seven days later, gold rose 9.65% against the U.S. dollar to the current spot price of $1,988 per ounce. Gold’s rise comes at a time when confidence in the global banking system is at an all-time low, and five major banks have received bailouts. An ounce of fine silver also increased in value, rising more than 12% from $20.01 to $22.59 per ounce this week.

The rest of the article is worth a read. To do so, go here.

Gold and Silver Spot Prices Soar

Above, the National Money Show in Phoenix March 4. Photo by Armand Vaquer.

Gold and silver have done exceptionally well this week, thanks to the collapse of two banks.

Gold is closed in and passed the spot price of $2,000/toz. According to Monex Live Prices, it is at $2,001.00/toz.

Silver also soared, reaching its highest spot price since February 2. It is at $22.72/toz. according to Monex.Live Prices.

It was predicted that precious metals would stand to gain from the uncertainty of the economy and the bank collapses. 

This is definitely a great way to finish the week. I'm glad I bought when the silver spot price was down.

Silver Firmly Over $22.00/troy ounce Spot Price

Silver has regained much of the spot price it had lost during the weeks preceding the crashes of the two banks.

Today, the trend continues as it is back firmly over $22.00/toz spot price.

According to Monex's Live Prices:

Yesterday's Awakening of Gold and Silver

With the collapse of two banks last week, the financial world in the U.S. had a bad case of the jitters yesterday.

While Wall Street was down (but not as down as it could have been), precious metals were up...bigtime! I am glad that I bought silver while it was down during the previous weeks. (Remember: Buy Low, Sell High!)

During the previous weeks, both gold and silver were in a state of malaise (Holy Jimmy Carter!) in anticipation of what the Federal Reserve might do in regard to interest rates. But the bank collapses changed all that and woke up gold and silver. People were beating down the doors to buy gold and silver.

Silver rose around 6% and gold rose around 2% during the day. 

Today, this is where silver's spot price is at:

And, this is where gold's spot price is at:

It will be interesting to see how things shape up today.

Biden: Banking System Is "Safe"

The man who has the "Midas Touch in reverse", His Fraudulency Joe Biden promised today that people should have confidence in the banking system after two banks went belly up last week.

The Daily Caller reported:

President Joe Biden addressed the closures of Silicon Valley Bank and Signature Bank on Monday, telling Americans to “have confidence” in the banking system because the administration is taking steps to hold those responsible “accountable.”

The president promised that the banks’ customers will “have access to their money” on Monday and that taxpayers will not be forced to bail out the banks.

The Federal Deposit Insurance Corporation (FDIC) took control of the New York-based Signature Bank on Sunday after the Friday collapse of Silicon Valley Bank (SVB). The collapse of SVB is the largest bank meltdown since Washington Mutual in 2008, and will likely have reverberations across the tech sector.

When Biden said that those responsible will be "held accountable" over the fiasco, two thoughts came immediately to my mind: "That'll be the day!" and "This I gotta see!" 

I don't see how anyone would have any confidence in anything Biden says or does. He's been a disaster since day one.

To read more, go here.

Silver Up 6.23%

In the financial banking world, today is shaping up to be one wild ride.

I just checked Monex on the latest spot price for silver.

Here's where it stands:

This is in stark contract over last week. 

Money Metals Exchange posted the following on what's happening today and last week's numbers:

 

What a difference a couple of bank collapses make!

Here We Go! More Bank Trouble

It appears that Robert Kiyosaki's prediction maybe coming true. And then some.

From Gateway Pundit:

Here we go.
First Republic Bank is down 66% this morning before Monday’s open.

The Western Alliance Bancorporation is down 62

 To read more, go here.