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Precious Metals for Twenty-Somethings

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Published : December 20th, 2012
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( 6 votes, 4.3/5 ) , 9 commentaries
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Category : Market Analysis





Anyone reading this blog – and following Silver Circle – possesses WISDOM beyond their years. I like to believe I had it, too; however, when I was in my twenties, financial SURVIVAL out-prioritized all else. That is, there were plenty of choices I would have liked to make, but few I was capable of executing.

I’m 42 now; so it’s not like I’m an old man. However, I have worked diligently since my first paper route at age 10, making me a 30-year “veteran” of the work force; including 16 years on Wall Street; four in the mining industry; and since last year, Marketing Director of Miles Franklin – one of the nation’s largest bullion dealers. Actually, I write a FREE newsletter five days a week to educate people about the TRUTH behind Precious Metals and financial markets – which can be accessed via our online archive, or by registering to have it emailed daily.

In 2002, I began my “TEN YEARS OF HEAVEN AND HELL” by buying my first gold mining stock. I had already sold my last “non-mining” stock in 2000 – at the beginning of the “Tech Wreck” – but felt confident miners would be good investments due to my expectation Precious Metal prices would rise.

I was correct about gold and silver prices – and until 2007, mining stocks as well. However, “OFFICIAL MANIPULATION” has all but destroyed mining investors since then; yielding my decision in 2008 to start divesting miners, and buying PHYSICAL gold and silver. Finally, in early 2011, I divested my last mining stock – FOREVER – and went 100% PHYSICAL. I have since slept the “SLEEP OF THE JUST,” escaped the government-manipulated “financial markets,” and helped countless others to do the same via ownership (not “investment”) in PHYSICAL gold and silver.

For decades, we have been brainwashed that “dollars” are money; when in fact they are NOT EVEN CLOSE to its actual definition. The dollar only meets the parameters of the black bullets below- i.e, the least important; but not the red bullets; which, if not properly understood, could mean the difference between financial LIFE and DEATH…

Gold and silver meet all such parameters; and thus, have maintained their value for 5,000 years of monetary history. Why gold and silver, you ask? Just take a gander at the short video below…

Why Did Gold Become Money?

Anyhow, my first advice to “twenty-somethings” – and anyone, for that matter – is to teach yourself that gold and silver are REAL MONEY; while “dollars” and “Euros” are simply fiat currencies, backed by NOTHING and destined to FAIL – like ALL 599 before it…

Research Shows ALL Paper Money Systems Failed

Secondly, I’d tell you to start trading a portion of your savings into such REAL MONEY; recognizing precious metals in your own hands are FAR SAFER than fiat dollars in a – likely insolvent – bank.

Finally, I’d tell you to focus on silver. Silver has been a monetary metal as long as gold; going back to ancient times, given the countless mentions of them in the bible. It is derogatorily called “poor man’s gold” because it is cheaper, but that doesn’t make it any less valuable for your invested dollar. In fact, due to the aforementioned price suppression, silver – the FAR SCARCER of the two metals – is significantly cheaper than gold. It currently trades at less than 1/50 the price of gold, but historically this ratio has been closer to 1/15; and due to said scarcity, I expect this ratio to eventually return – and potentially fall as low as 1/5.

One ounce American Silver Eagles and Canadian Silver Maples are the most popular silver coins, and trade at the highest premiums above the PAPER “spot price” quoted on financial websites. However, “generic rounds” like Silver Buffaloes are also very popular and widely recognized; trading at lower premiums than Eagles and Maples.

Above all, I believe you “MUST OWN JUNK SILVER;” that is, pre-1965 dimes, quarters, and half-dollars – all of which contained 90% silver. They currently trade at very low premiums to spot prices; but have multiple advantages to other coins. For one, they are the lowest denominated silver coins you can buy – a pre-1965 dime is worth about $3.00 today – making them extremely useful for barter if ever required. Secondly, they are more widely recognized than even Silver Eagles; and finally, if the government ever tried to confiscate Precious Metals (I highly doubt it), it is hard to believe they would confiscate actual American currency.



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Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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Hey Andy,

This is the first article of yours that I've had the pleasure of reading. Being a 20-something myself, its nice to see some content that targets my age. It's nice to hear that my 15+ years of diligent eagle and junk silver collecting is being applauded by someone. I definitely agree that physical is the way to go when considering metals. What are your thoughts on eagles as collectibles and their numismatic pros/cons? Would you encourage numismatic holdings as well as bullion?
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Recommend you stick with bullion for the time being. Collectibles offer the opportunity for fraud and not quite kosher deals. Wait till you really know and understand vintage coins before investing there.
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Some collectors might suggest that the #1 rule in numismatics is to never judge a coin by its age... What do you think about that Mark?

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Whitney i don't know who would give you a thumbs down for merely asking a question - that is rude and arrogant given you are new here and none of us have all the answers. Have a look at some of the SBSS stuff and see what you think. My opinion is that they will appreciate above and beyond the original purchase price rapidly. I was disappointed that i missed buying their first run of " In Debt and Death they Trust " coins. Still waiting for my "Trivium"
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Hi lwhitney,

To answer your question, i would have to say that older is not necessarily better. The real key is desireability. That is to say, you want to invest in things that others will want to buy from you at a later date. For a coin collector, what that comes down to is both the scarcity of the coin as well as its condition. There are many good sites on the web which will tell you how many of a particular coin were minted, what they are currently selling for and even if its value is trending up or down. As i am imagining that you are new to coin collecting, i would suggest that you stick to buying coins that have been professionally graded by one of the reputable firms that are out there in that many dealers (especially on eBay) will try to sell you an AU 50 coin as a MS 60 one. Once you have gained enough experience in grading coins yourself, you will be on safer ground buying coins that have not been professionally graded. Indeed, you may even come to the point when you see a coin that has been professionally graded at MS 62, let us say, and believe that it may actually be MS 65 and so you break the slab the coin comes in to have it regraded.

With regard the advice Cameron gave you, while it may be excellent, i do have my doubts. Those doubts are primarily based upon the uncertainty of knowing just how many people will want to own a coin from a private mint 30 or 40 years down the road. There may well be some, but they will be far fewer in number than those who would want a rare British or American coin in mint condition. Indeed, though this may just be a product of my ignorance on the subject, i am unaware of any coins from a private mint that have any numismatic value attached to them. And though i may be quite mistaken on this point, i am quite sure that when it comes time to sell, it would be far better to have a coin that many collectors would want as opposed to one that would interest only a few.

As an aside, let me caution you not to judge the merit of my advice by the overwhelming number of down arrows it is likely to receive. Just go down to your local coin shop and tell them why you are interested in becoming a collector and ask what they advise.

Good luck.
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I think coin collecting should be fun. If you enjoy it, then buy what makes you happy. BUT, don't confuse numismatics with investing. They are most certainly not the same. I think Silver Eagles are a great investment AND they're fun to collect. For example, the 1996 is a 'key date' coin. You'll pay significantly higher for that year Eagle than other one. I've bought my son a Silver Eagle slab ever year since he was a baby...1989. A nice collection!
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Thanks Mark! Amazing advice... Let me give you a thumbs up my friend!

Make sure to find your son a 1995-W Eagle if he doesn't already have one.
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Thanks... good advice as well. You & yours have a wonderful and prosperous new year sir!
You may wish to read a FREE 10 point guide on this subject by Andrew Crellin at....

happy collecting if you decide to go that way

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Thanks Mark! Amazing advice... Let me give you a thumbs up my friend! Make sure to find your son a 1995-W Eagle if he doesn't already have one.  Read more
Loren W. - 12/31/2012 at 2:52 PM GMT
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