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Gold IRA vs Physical Gold

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In today’s uncertain economic climate, ensuring your financial future is more important than ever. Investing in gold, either through physical coins and bars or via a Gold IRA, is one of the best ways to protect and potentially grow your wealth.

Gold has long been considered a safe haven, a hedge against inflation, and a form of portfolio protection against market volatility.

As a timeless store of value, gold has always been seen as a hedge against economic instability. But when it comes to investing in gold, the big question remains: should you opt for a Gold IRA or invest in physical gold?

Diversification of Your Portfolio

Diversification is one of the primary reasons people invest in gold. Adding gold to your portfolio can provide balance and reduce overall risk. While traditional portfolios are divided among stocks, bonds, and cash, true diversification involves spreading investments across different asset classes, regions, and industries.

Gold stands out because it tends to perform well even when other assets tied to Wall Street are underperforming. This makes gold a crucial hedge against market volatility. When a financial crisis hits, assets heavily reliant on Wall Street may suffer significant losses. However, gold typically rises in value during these times, providing a buffer against the downturn.

Why it matters: Gold’s negative correlation with the stock market means it can act as a stabilizer, helping to protect your portfolio during economic downturns.

Mitigation of Risk

Historically, gold has proven to be a steady and strong asset, maintaining its value even during market downturns. Unlike many other assets, gold is not dependent on the performance of the stock market, making it a safer investment during turbulent times. Its liquidity also adds to its appeal, as it can be easily converted into cash, offering a reliable safety net.

Why it matters: When markets are volatile, having an asset like gold that retains value can help mitigate losses in other areas of your portfolio.

Gold IRA: The Benefits and Challenges

What is a Gold IRA?

A Gold IRA (Individual Retirement Account) is a self-directed IRA that allows you to invest in physical gold, as well as other precious metals, in addition to the traditional investment vehicles like stocks and bonds. This type of IRA is governed by the same rules as other IRAs, but the key difference lies in the assets it holds.

Gold IRA Benefits

  1. Tax Advantages: Like other IRAs, a Gold IRA offers tax benefits. Contributions can be tax-deductible, and the gains on your investment grow tax-free until you start taking distributions in retirement. This tax-deferred growth is one of the major attractions of Gold IRAs.
  2. Physical Ownership: A Gold IRA allows you to own tangible gold. This can include gold bars and IRS-approved bullion coins. Owning physical gold can provide a sense of security, especially in times of economic uncertainty, as gold is often seen as a stable store of value.
  3. Professional Management: The custodian of your Gold IRA handles the paperwork, storage, and insurance for your gold, reducing the hassle of managing physical assets.
  4. Diversification: Including gold in your retirement portfolio adds an extra layer of diversification, potentially reducing risk.

Gold IRA Challenges

  1. Fees: Gold IRAs come with various fees, including setup fees, storage fees, and custodian fees, which can eat into your returns.
  2. Liquidity: Unlike stocks or bonds, gold isn’t as liquid. If you need to sell quickly, you might face challenges in getting the best price.
  3. Regulations: There are strict IRS regulations regarding the types of gold that can be included in an IRA, which limits your choices.

Physical Gold: The Benefits and Challenges

What is Physical Gold?

Physical gold refers to tangible gold assets like gold bars, coins, and rounds that you can purchase, hold, and store independently of any retirement account.

Physical Gold Benefits

  1. Direct Ownership: You have full control over your gold, which you can hold and store as you see fit. If you can’t hold it, you don’t truly own it.
  2. No Counterparty Risk: Being in possession of gold coins does not rely on any third-party financial institution’s solvency; its value is inherent and universally recognized.
  3. Liquidity: While it can be less liquid than some assets, physical gold is relatively easy to buy and sell in various markets.

Physical Gold Challenges

  1. Storage and Security: Storing gold securely is a significant responsibility and may involve additional costs, such as purchasing a safe, renting a safety deposit box, or contracting with a local depository.
  2. No Tax Advantages: Unlike Gold IRAs, there are no tax benefits associated with holding physical gold. There are also no reporting requirements when holding. However, reporting requirements vary at time of sale.
  3. Premiums Over Spot Price: Physical gold often comes with premiums above the spot price, which can reduce your return on investment.

Which is Better for You?

Risk Tolerance: If you’re comfortable managing tangible assets and are looking for an investment that you can physically hold, physical gold might be your best bet. However, if you prefer a hands-off approach with tax advantages, a Gold IRA could be more suitable.

Gold is a Defense Against Inflation

Gold is traditionally regarded as a hedge against inflation. During periods of high inflation, the value of paper currency tends to decrease, while the value of gold remains stable or even increases. This makes gold an attractive option during inflationary periods, such as the 1970s, when inflation peaked at 11% and gold’s annualized growth rate soared to over 30%.

Why it matters: In today’s economic climate, where inflation is rising, gold offers a way to preserve purchasing power and protect against the devaluation of currency.

Financial Goals: If your goal is long-term retirement savings with potential tax benefits, a Gold IRA aligns well with this objective. On the other hand, if you’re looking for a quick way to diversify your portfolio or want a hedge against short-term market volatility, physical gold might be more appropriate.

Storage and Management: If you don’t want to deal with the logistics of storing and insuring your gold, a Gold IRA provides a managed solution. However, if you value having full control over your assets, physical gold gives you that autonomy.

Funding a Gold IRA

To start investing in a Gold IRA, you must first fund the account. This is commonly done through a rollover from an existing retirement account, such as a 401(k), 403(b), TSP (Thrift Savings Plan), or another IRA. The process typically involves transferring the assets from your current retirement account to your new Gold IRA, which your IRA custodian can facilitate.

Distributions from a Gold IRA

When you reach retirement age and begin taking distributions from your Gold IRA, you have two primary options:

  1. In-Kind Distributions: You can take physical possession of the gold held in your IRA.
  2. Liquidation: You can sell the gold in your IRA and receive the proceeds in cash or a wire transfer.

Both options offer flexibility depending on your needs and preferences at the time of distribution.

When it comes to gold investing, both a Gold IRA and physical gold offer unique benefits and challenges. Your choice depends on your personal financial goals, risk tolerance, and how you prefer to manage your investments. By understanding the nuances of each option, you can make an informed decision that aligns with your long-term financial stability.

In a world of economic uncertainty, gold remains a timeless asset that can help safeguard your wealth for generations to come. Whether you choose a Gold IRA or physical gold, the key is to align your investment strategy with your financial goals to secure a prosperous future.

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Comparing the American Gold Eagle vs American Gold Buffalo

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The U.S. Mint’s responsibility for issuing investment-grade bullion coins began with the passage of the Gold Bullion Coin Act of 1985, which led to the production and release of the American Eagle series in 1986. These coins are designed to provide a trusted store of value and wealth for investors.

Today, the Gold Eagle and Gold Buffalo are the two gold bullion coins produced by the U.S. Mint. While both coins are esteemed for their purity and craftsmanship, they have distinct features that appeal to different types of investors and collectors.

American Gold Eagle

The American Gold Eagle was established by the Gold Bullion Coin Act of 1985 to provide a trusted investment vehicle for precious metals. The first Gold Eagle was released in 1986.

1 oz Gold Eagle Type-2 Reverse

The 1 oz Gold Eagle coin contains one full troy ounce of gold. The coin itself is minted with 22k, or 91.67% gold, with the remainder comprised of a mix of silver and copper. The alloyed composition makes it more resistant to scratches and dents, ideal for handling and storage.

The obverse design features Lady Liberty holding a torch and olive branch. The design was created by Augustus Saint-Gaudens and was originally used on the $20 Saint-Gaudens Double Eagle from 1907 until 1933.

The reverse of design of coins minted until the middle of 2001 depicts a family of eagles that was designed by Miley Busiek.

Partway through the 2001 mintage year, a new design featuring the head of a bald eagle that was created by designer Jennie Norris.

Gold Eagle Premiums and Liquidity

The longer history and extensive production have made it a staple in the bullion market with investors.

When buying, Gold Eagles typically carry a lower premium over the spot price of gold compared to the Gold Buffalo due to its 22k composition and wider availability.

The Gold Eagle is a highly recognized and traded globally, making it a very liquid asset. When selling, dealers will often offer a small premium over spot price during normal market conditions.

Approved for inclusion in Precious Metals IRAs.

American Gold Buffalo

The American Gold Buffalo was authorized by the Presidential $1 Coin Act of 2005 with the first issue available in 2006.

Although newer, it quickly gained popularity with investors seeking the highest quality 24k gold.

Gold Buffalo

The overall design is based on the 1913 Buffalo Nickel, designed by James Earle Fraser. The obverse features a profile of a Native American chief.

While the reverse features a depiction of an American bison, also designed by Fraser.

Gold Buffalo Premiums and Liquidity

When buying a Gold Buffalo coin, it is common to find that these carry a higher premium over the spot price of gold due to its pure gold content, collectible design and lower annual mintages.

These coins are also highly recognized and traded in the secondary bullion markets, though slightly less liquid than the Gold Eagle due to its newer introduction. When selling to a bullion dealer or coin store, it is common to receive an offer that is priced slightly above melt value under normal market conditions.

Approved for inclusion in Precious Metals IRAs.

.999 vs .9999 fine

Both the American Gold Eagle and the American Gold Buffalo are excellent choices for gold investors and collectors, each with unique attributes.

Aside from the design, the primary difference between the coins is the difference in the purity of the gold.

The Gold Eagle, with its historical design and durable composition, is ideal for those seeking a robust and widely recognized investment.

While each contain a full 1 troy ounce of fine gold, due to the inclusion of the copper and silver, the American Eagle is 22k gold, or 91.67% with an overall weight of 1.0909 troy ounces.

The Gold Buffalo was created due to investor demand for 24k gold coins, such as the Canadian Maple Leaf or the British Britannia, and appeals to purists and collectors who value its 24k gold purity and classic American design.

Availability

The US Mint manufacturers bullion coins based on monthly sales demand. This just in time, mint on demand model, has become common in government minting operations as a way to keep manufacturing costs low.

The American Gold Eagle is more popular with investors due great awareness because of its long mintage history. Monthly sales figures show that more investors buy American Gold Eagle coins, with an average of 18,000 coins for the 1 oz denomination, with even larger amounts in some of the fractional sizes such as the 1/10 oz and 1/4 oz coins.

Monthly sales figures for the American Gold Buffalo average around 14,500 coins.

Both of these coins are backed by the US Mint. Current year coins are readily available from online bullion dealers and coin stores throughout the country. It is important to note that when shopping for gold coins, the dealer premiums on current year coins are typically higher than those in the secondary market, due to premium increases from the US Mint.

Ultimately, the choice between the two depends on individual preferences regarding purity, design, and investment goals. Whether you prefer the historical significance and durability of the Gold Eagle or the pure, high-quality gold of the Gold Buffalo, both coins represent a valuable addition to any investment portfolio.

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What is a Kilogram?

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The kilogram is the standard for measuring everyday items such as food and body weight and commodities like silver and gold.

The definition of a kilogram is part of the International System of Units (SI), widely used globally in science, industry, and everyday life.

In precious metals, a kilogram bar is a standard unit used by investors and large institutions like central banks.

Scientific Definition of a Kilogram

Scientifically, the kilogram is defined by taking the fixed numerical value of the Planck constant ℎ as 

6.62607015×10−346.62607015 × 10^{-34}6.62607015×10−34 joule seconds (J·s)

with the meter and the second being defined in terms of the speed of light and the cesium frequency, respectively. This definition links the kilo to fundamental physical constants, ensuring long-term stability and precision​.

In scientific research and various industries, the kilogram is crucial for precise measurements is widely used in calibrations and standards for manufacturing processes, pharmaceuticals, and materials science.

History of the Kilogram

The history of the kilogram is deeply rooted in the development of the metric system during the French Revolution and has evolved significantly over time.

Origins of the Kilogram

The kilogram was first defined in 1795 as the mass of one liter (10^-3 cubic meters) of water at the freezing point. This was part of the metric system developed during the French Revolution to create a uniform system of measurements based on natural constants.

In 1799, the definition was refined, and a platinum artifact known as the “Kilogramme des Archives” was created as a unit of mass and became the basis for the kilo until the late 19th century.

The International Prototype Kilogram (IPK)

The General Conference on Weights and Measures (CGPM) established the International Prototype Kilogram (IPK) in 1889, made of a platinum-iridium alloy. This artifact was stored at the International Bureau of Weights and Measures (BIPM) in Sèvres, France.

By BIPM – https://www.nist.gov/si-redefinition/kilogram, CC BY-SA 3.0 igo, Link

The IPK was the primary standard for the kilo for over a century, with numerous copies made and distributed to various countries for calibration purposes.

Issues with the IPK and Re-definition Efforts

Over time, it became apparent that the mass of the IPK and its copies could change due to surface contamination or material degradation, leading to inconsistencies.

This prompted the scientific community to seek a more stable and precise definition based on fundamental constants of nature.

The Kilogram Today

On May 20, 2019, the kilogram was redefined based on the Planck constant (h), a fundamental constant of nature. This marked a significant shift from using a physical object, to a definition based on a fundamental property of physics.

The new definition uses the fixed numerical value of the Planck constant, 

h=6.62607015 × 10−34Jsh = 6.62607015 × 10^{-34} {Js}h=6.62607015 × 10−34Js

along with definitions of the meter and the second, to establish the kilogram. This approach ensures long-term stability and precision. This is also the benchmark used for determining today’s gold price per gram.

This redefinition also aligns with the broader goal of basing all SI units on fundamental constants rather than physical artifacts.

Summary

The kilogram’s history reflects the evolution of metrology from practical measurements to highly precise and stable definitions based on the fundamental constants of nature. The shift from the IPK to a constant-based definition represents a major milestone in scientific measurement, ensuring greater accuracy and consistency in scientific research and industry.

For more detailed information, you can refer to sources such as:

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What was Roosevelt’s Executive Order 6102?

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When Franklin Roosevelt was elected in 1932, public confidence in and support for the nation’s banking system were at an all-time low. Roosevelt’s campaign capitalized on Hoover’s failings and promised a new approach to the economic crisis.

During the banking panics of 1930, 1931, and 1933, the Federal Reserve failed to provide adequate liquidity to struggling banks. This inaction led to numerous bank failures and a significant reduction in the overall money supply as people hoarded gold coins at home.

Just one day after taking office, Roosevelt declared war on ordinary American citizens by referencing an old World War I statute called the “Trading With The Enemy Act” of 1917. He declared a four-day bank holiday and closed all banks, including the Federal Reserve.

A few days later, the Emergency Banking Act was signed into law, which gave Roosevelt unprecedented power and control over the economy.

Just a month later, Roosevelt signed Executive Order 6102 mandating that all American citizens hand over their gold, including bullion, coins, and other forms, to the US Treasury.

Public Response to EO 6102

During his “fireside chats,” Roosevelt portrayed gold confiscation as a patriotic duty, suggesting that citizens should support the government’s efforts to revive the economy.

Under threat of prosecution from the Federal Government, millions of ordinary citizens were forced to hand over their gold or go to jail. In exchange, the government “generously” compensated people at the mandated gold price of $20.67 per ounce.

The executive order immediately ordered the US Mint to destroy all newly minted 1933 gold coins, except twenty coins, which were documented to have been stolen.

Citizens were allowed to keep a nominal amount of gold, up to $100 worth of gold. That was the equivalent of just five $20 St-Gaudens Double Eagle Gold Coins in those days. Today, those five coins are worth more than $12,000.

After the order, the US effectively went off the gold standard and allowed the Federal Reserve to increase the money supply by printing more fiat currency. Just thirty years after establishing the Federal Reserve in 1913, Roosevelt signed over control of the economy to a cartel of bankers who profited from the debt created by the government.

Exceptions to the Gold Confiscation

The exception allowed citizens to own small gold jewelry and up to $100 in gold coins.

Scott’s Stamp & Coin Company Advertisement from April 1934

There were exceptions for gold coins, such as collector coins, those with numismatic value, and those that were rare or unusual.

A 1934 issue of The Coin Collector’s Journal featured an advertisement for a local coin shop in New York City that sold uncirculated $2.50 quarter eagle gold coins from the 1920s for $4.50, a 180% premium.

Other denominations show similar premiums due to the dollar’s devaluation, which increased the price of gold from $20 to $35 per ounce.

Many investors looking for the stability of gold became coin collectors practically overnight. In addition to maintaining their intrinsic value today, these gold coins carry cultural heritage and historical significance. Americans during that time understood the actual value of gold.

In today’s market, it is common to find inexpensive Pre-1933 gold coins at bullion prices that may have an added jewelry clasp. This became a common way for citizens to continue to hoard gold. These bullion coins often have lower premiums and can be a cheaper option when compared with graded collectibles.

One of a Kind 1933 Saint-Gauden’s $20 Double Eagle Gold Coin

One of the stolen coins was sold to King Farouk of Egypt. It was lost for decades before being turned over to the FBI by a coin dealer from London named Steven Fenton in 1996.

The one-of-a-kind 1933 Saint-Gauden’s $20 Double Eagle gold coin eventually became legalized. It was first auctioned by Sotheby’s in 2002 and purchased by shoe designer Stuart Weitzman. The coin hit the auction block again in 2021, fetching over $18,000,000.

Legal Challenges Against Executive Order 6102

Executive Order 6102 faced several legal challenges based on its constitutionality and the forced seizure of private gold.

The most notable case is Norman v. Baltimore & Ohio Railroad Co. (1935), which reached the U.S. Supreme Court.

This case and Perry v. United States revolved around gold clauses in contracts. These clauses stipulated that the government was required to repay the bond in gold or the equivalent value of gold coin, which was standard practice in many contracts before 1933.

Perry v. United States involved a U.S. government bond with a gold clause. The bondholder, Mr. Perry, argued that the government had failed to uphold the bond terms by not repaying it in gold, as promised.

After Executive Order 6102, Congress passed the Joint Resolution of June 5, 1933, to address these clauses by declaring them null and void.

The government argued that gold clauses significantly threatened the nation’s recovery efforts during the Great Depression.

Supreme Court Ruling on Executive Order 6102

The Supreme Court agreed that, while the government had technically violated the terms of the contract by not paying in gold, the bondholder had not suffered any actual damages because the bond’s value remained the same in dollars.

The Court upheld the government’s action, ruling that Congress had the constitutional authority to regulate the currency under the Commerce Clause and that abandoning the gold standard was necessary for economic recovery.

This ruling allowed the government to continue printing money without being constrained by the need to redeem it in gold.

Conclusion

The legal challenges to Executive Order 6102 were significant, as they questioned the federal government’s ability to seize private property and regulate the monetary system during an economic emergency. Although these challenges raised valid constitutional concerns, particularly regarding property rights and contractual obligations, the U.S. Supreme Court consistently upheld the government’s actions. The Court’s decisions in cases like Norman v. Baltimore & Ohio Railroad Co. and Perry v. United States solidified the government’s authority to regulate currency, invalidate gold clauses, and move away from the gold standard, ultimately allowing for more flexible monetary policies to support economic recovery.

After Executive Order 6102, the U.S. government invalidated all gold clauses in contracts, effectively making it impossible to demand repayment in gold or its equivalent value. The Supreme Court upheld the government’s action, ruling that Congress had the constitutional authority to regulate the currency under the Commerce Clause and that the abandonment of the gold standard was a necessary measure for economic recovery.

While these challenges did not overturn the executive order, they raised significant questions about the limits of government power during times of economic crisis.

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7 Simple Ways to Test Silver at Home

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With the rise of trading through social media and other online marketplaces, it’s important to note the prevalence of fake coins and bars on the market.

Testing can help protect you from scams and ensure that the silver item you have is indeed made of genuine silver and not a counterfeit or an alloy.

Silver bullion is a popular investment choice for portfolio diversity, as a hedge against inflation and high interest rates, or simply as a savings account or store of value.
As with other investments, verifying that you have genuine silver is a normal part of the due diligence.

You can perform most of the methods described here at home with simple and inexpensive tools you may already own.

These tools allow you to quickly and easily verify silver for purity and determine if any suspicious items in your stack are not genuine.

Ice Melt Test

The ice silver testing technique involves placing a piece of ice on the surface of the silver bullion. The ice should melt quickly and evenly across the surface. If the ice melts unevenly or leaves spots or blemishes on the surface, it may indicate that the bullion is not pure silver.

Pure silver has a high thermal conductivity, which means it can transfer heat quickly and evenly across its surface.

When you place ice on refined silver, the heat from the silver rapidly melts the ice, creating a thin layer of water across the surface. If the silver is not pure, it may have a lower thermal conductivity, which can cause the ice to melt unevenly or leave spots on the surface.

While the ice test can be a helpful way to verify the authenticity of your silver bullion, it’s important to note that it is partially foolproof. Other metals have a high thermal conductivity and could pass the ice test even if they are not pure silver.

Additionally, some counterfeiters have figured out ways to thicken the silver plating on some fake bullion coins that can pass the ice test.

It’s an excellent recommendation to use multiple methods to test silver bullion beyond checking for hallmarks or engravings, such as accurately measuring its weight and dimensions or performing a magnet test.

If you have doubts about the authenticity of your bullion, another option is to befriend your local coin shop and have it examined by a professional before making any investment decisions.

Magnet Test

Verifying silver can be made much simpler with the use of neodymium magnets.

Neodymium magnets are among the most powerful permanent magnets, capable of producing a high magnetic field. When placed close to a piece of silver bullion, they can effectively verify its authenticity.

Silver is non-ferrous, which means that it is not magnetic. If the silver is genuine, the magnet will not stick to it but slide down the piece at an angle, showing some slight resistance.

However, if the magnet sticks to the bullion, it will likely be a counterfeit metal alloy or plated material.

This is because most of the metal alloys used to fake silver bullion, such as copper, brass, or nickel, are magnetic and will, therefore, attract the magnet.

You should use this method along with other forms of testing silver bullion, such as weight and visual inspection, as this can be unreliable with some pieces. However, using neodymium magnets can provide more confidence when investing in silver bullion.

You can buy a set of tiny neodymium magnets from Amazon for under $10.

Measuring with a Precision Scale

A very affordable accessory is a high-quality precision scale for precious metals that is accurate to at least 0.01 grams and measures in troy ounces.

A scale allows you to weigh the bullion accurately and determine its weight in grams or troy ounces.

Once you have an accurate weight, you can compare it to the manufacturer’s stated weight and note any variances. When measuring in fractions of a gram, there are likely to be some variances in weight, even between silver rounds of the same manufacturer and design.

In addition to weighing the bullion, you can use a scale to help measure its density with the Water Displacement test.

Test Silver With Water Displacement

Water displacement is a technique that measures the volume of an object submerged in water and the amount of water it displaces.

This method can be used to verify the weight and density of silver bullion at home. It involves filling a container with water and using a precision scale.

The container should be large enough to submerge the silver bullion completely.

First, the weight of the silver bullion is measured using a scale. Next, you immerse the bullion piece in the water inside the container and measure the volume of water displaced.

The weight of the silver bullion is then divided by the volume of water displaced to determine its density.

You can compare the density value to the known density of silver purity you are measuring to verify its authenticity. This method is easy and inexpensive as it requires no special equipment other than a scale.

Silver has a density of 10.49 grams per cubic centimeter, meaning a piece of silver bullion should have a specific weight based on its size. By measuring the weight and volume of the bullion, you can calculate its density and compare it to the expected density for silver to ensure that it is authentic.

Measuring Coins with Calipers

Calipers can be an effective method for measuring coins to help verify their authenticity. A set of calipers, or micrometer, is a precision measuring instrument that can accurately measure the dimensions of an object.

This allows you to compare the measurements of your coin against known specifications.

When using calipers, the first step is to measure all dimensions of the piece, including its length, width, and thickness.

You can then compare the measurements to those published by the original manufacturing mint. You can find these on most online bullion dealer listings. The manufacturer provides information related to each piece’s dimensions.

It is easy to compare the measurements of your piece with those provided online.

You can also use these measurements when calculating the coin’s volume using the water density test described above.

Additionally, when measuring the dimensions of the bullion, calipers can help identify signs of tampering or alteration. For instance, when the thickness of a bullion bar fluctuates along its length, this could indicate that someone may have shaved off some metal.

Unlike chemical testing or X-ray fluorescence (XRF) analysis, you can take caliper measurements of a piece at any time without requiring specialized equipment or extensive preparation.

Silver Ping Test

Pure silver makes a distinctive sound when it impacts another object, such as a solid countertop. The Ping Test analyzes the ringing sound produced when the coin gently bounces off the surface.

Each coin and purity produces a unique pitch and reverberation that can be tested with a mobile device. Various Apps are now for both IOS and Android mobile devices that analyze the frequencies that resonate against a known database of other coins.

Acid Testing Method

Acid testing is a common method for testing silver purity. It involves using a simple solution to test the silver’s purity. The process is straightforward. A small sample of the silver is taken using a special jeweler’s stone. When the acid is applied to the sample, it will react by changing color.

Additionally, an 18k gold testing solution can be used when testing silver with a different color reaction, as described in the video below:

    

Simple, easy-to-use acid test kits are readily available from Amazon and other online marketplaces. They are inexpensive and the most reliable method of testing silver and gold bullion at home.

Acid testing is the most trusted way to verify the purity of silver bullion. However, you must be careful during testing, particularly with items with potential value, such as numismatics, collectibles, or antiques.

Additionally, acid testing should only complement other verification forms, such as weight and size measurements and confirmation of stamps and markings when available.

Final Thought

While there are several ways to test silver purity, many investors may need more than third-party grading or testing services. Fortunately, the above are a variety of methods that you can use to verify the authenticity of your silver bullion at home.

If you are still concerned about a particular piece, it may be best to visit a local coin shop or other precious metals dealer.

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New Global Gold Standard Emerging from Recession

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The dollar emerged as a reserve currency following World War II as part of the Bretton Woods Accord. This was due to the United States having the largest gold reserves at the time. Bretton Woods provided fixed gold prices that was pegged to the USD making it the central spoke for trade.

NPR did a report in 2019 that gives some history on the Bretton Woods agreement, the development of the World Bank and International Monetary Fund or other organizations involved in evangelizing the use of the dollar in international trade.

More About Bretton Woods

In 1971, economic conditions were not entirely different than they are today. At the time, the economy was suffering from a relatively high rate of inflation, the ongoing war in Vietnam led to significant budget deficit and mounting debt, and there had been a longstanding decline in the U.S. monetary gold stock, and a recent, sharp rise in external dollar liabilities held by central banks.

Corruption in government had also reached a tipping point which later led to Watergate, the Church Committee and other investigations.

In August of 1971, Nixon held a top-secret meeting at Camp David with his top financial and economic advisors that included the likes of Arthur Burns, John Connally, Paul Volker and others.

Together they created a strategy for a controversial policy that removed the dollar from the gold standard which disrupted the global economy.

Long term, the decision to remove the dollar from the gold standard led to a decline in central bank holdings that reached the lowest point around 2010.

Since the financial crisis in 2008, Central Banks have been following the lead of BRICS nations and continued their gold buying streak in 2022. Globally, central bank holdings have now reached their highest point since 1974.

The Biden Administration faces additional problems today that didn’t exist in 2008.

Russia began exchanging rubles for gold and requiring foreign nations to pay for gas and oil in rubles to flout US sanctions. Some of this has been factored into gold prices this year.

Recent news of Qatargate involving the arrests of several prominent members of the European Parliament is more evidence of the corruption ingrained in the dollarized financial system.

Although the origins of Bitcoin remain up for debate, the original cryptocurrency also developed in response to the 2008 Global Financial Crisis that resulted from the US recession.

Cryptocurrency ledgers provide a shared and public transaction record that could provide central banks with more transparency.

However, the adoption of CBDC as proposed by the G7 as a programmable currency is fraught with controversy. Much of this causes confusion with consumers who are already struggling with mass adoption of crypto.

The recent crash of the FTX crypto exchange highlights significant issues of corruption within the current system that continues to spread to other sectors of the economy. plus the evidence of the emergence of a global BRICS currency backed by the combined gold reserves of member nations are just two of the additional challenges.

Discussions of a BRICS mixed basket currency began to emerge following the global financial crisis in 2008. Which was triggered by lax lending standards, record amounts of consumer debt and other factors that fueled the first housing bubble.

BRICS countries have been in discussion to establishment of a new digital reserve currency that is a mix of member countries.

The BRICS reserve basket currency allows member nations to engage in trade bypassing the USD. The strength of their local currency will help to strengthen their influence in the basket.

Some economist see this as a real threat to the dollar as a global reserve currency, thus reducing the demand for dollars worldwide.

On a macro level many of these things are seen as good indicators of strong demand and long term upward movement in gold prices.



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Is it legal to own Precious Metals?

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For over 40 years, from 1933 until 1974, the US government made it illegal for citizens to own gold.

Thanks to President Gerald Ford, it is legal for everyone to own gold, silver and other precious metals since 1974.

History of Precious Metals Prohibition

In the early 20th century paper currency was far less common than today. Paper bills were often only available in large denominations commercial and interbank transactions. Much of the currency in circulation was coinage minted of silver and gold alloys.

Economies were still based on the gold-standard. The coins in circulation were minted of 21k gold, which is a mixture of 90% gold and 10% copper for strength and wear resistance during everyday circulation.

Gold coins before 1933 were minted in denominations that include the $2.50 (quarter eagle), $5.00 (half eagle), $10 (eagle) and $20 (double eagle).

In 1921, following the end of the first World War, the Morgan Silver Dollar was replaced with the Peace Silver Dollar. Both coins were composed of an alloy containing a mix of 90% silver and 10% copper. The amount of pure silver in each $1 USD coin being 0.7734 troy ounces.

Also during that time smaller denominations of coins, including the dime, quarter and half-dollar, we also minted from the same silver and copper mixture. The US Mint continued to issue 90% silver coins through 1964.

When clad coins began to circulate in 1965, some citizens remembered the gold seizure that happened thirty-two years early.

The roaring 20’s led to the Great Depression. Wall Street Banks, along with regional banks under purview of the young Federal Reserve system were happy to give out margin loans, unsecured credit in fiat currency.

During the economic hardship many people lost faith in the banking system. Instead of depositing cash into banks, many people turned to hoarding cash at home in the form of gold and silver coins.

During the Great Depression, Roosevelt used an obscure and obsolete piece of legislation meant to prevent the German government to profit from patents in the United States during the World War I as justification for his numerous Executive Orders to confiscate gold coins from the economy.

On April 5, 1933, after enduring several years of the Great Depression, President Franklin Roosevelt signed Executive Order 6102.

With the swipe of his pen, Roosevelt made it a crime for any US citizen to own gold coins, gold bullion or even gold certificates, which were a form of gold-backed fiat currency that was exchangeable for gold. In exchange, the government offered citizens $20.67 in fiat for each ounce of gold that was surrendered.

All gold was ordered to be surrendered to the government. Within the first thirty days the Treasury was able to collect roughly one third of the $1,400,000,000 in gold that was in circulation.

Any person who failed to comply with the presidential order faced imprisonment and fines of up to $10,000. Many private citizens and investors were put on a list, targeted, arrested, prosecuted, fined, imprisoned and had their gold seized.

The order did exempt some items. Such as jewelry, numismatic collectibles, items used by industry, some professions and artists.

In defiance to the order, people drilled holes or attached hasps to the coins to convert coins into pendants to hang on a chain to meet the minimum standard of jewelry.

The seizures, arrests and prosecutions of those who did not surrender their gold continued for most of 1933. Roosevelt signed additional Executive Orders throughout the year.

One of which gave the Justice Department the authority to build a list of citizens suspected to be ‘gold hoarders’. Essentially acting as a government backed gestapo.

During the summer of 1933, agents from the Justice Department visited the homes of “known hoarders of gold” to confiscate more than $38,901,009 worth of gold.

The Emergency Banking Act of 1933 was supposed to help restore faith in the banking system and the economy after the Federal Reserve led the country into the Great Depression.

The prohibition on private ownership of gold continued for 41 years.

Nixon Shock

During the early 1970s, Nixon was facing rising unemployment, high inflation, the looming oil crisis and political foes. In August of 1971, the President called together top economic advisors for a secret meeting at Camp David.

Notable participants in the meeting included Federal Reserve Chairman Arthur Burns and Treasury Secretary John Connally. Also present, then Undersecretary for International Monetary Affairs and future Federal Reserve Chairman Paul Volcker.

Following this meeting Richard Nixon authorized then Treasury Secretary John Connally to break the Bretton Woods Agreement that had defined the rules of international trade amongst many countries following World War II.

Without consulting any international leaders, the actions included the immediate suspension of the “gold standard”.

Nixon directed the Treasury Secretary to abolish the convertibility of dollars into gold through the London Gold Pool. This also removed the fixed price of gold from $35 an ounce to a market based system.

By 1973, the US gold standard that was established by Bretton Woods had been replaced. The new system based on free floating exchange of fiat currencies.

Following the resignation of Nixon, one of the first laws signed by President Ford included a bill which reversed Roosevelt’s Executive Orders.

The bill authorized expansion of the World Bank and included provisions that legalized citizens full authority to purchase, hold, sell, or otherwise deal with gold in the United States or abroad. It has been legal for anyone to own, hoard, buy and sell gold in the United States since December 1, 1974.

The gold bull run that followed culminated in a price peak of $850 USD per ounce in January 1980.

Sovereign Gold Bullion Market

The Gold Krugerrand was the first gold bullion coins to be sold to investors when it debuted in 1967.

At the time, apartheid sanctions against South Africa made it difficult to invest in Gold Krugerrands. The top gold coins of the day included the Gold 100 Corona from Austria and the Mexican 50 Pesos Gold Coin. These vintage gold coins have maintained their popularity with investors.

In 1979, the Royal Canadian Mint introduced the first mintage of the Maple Leaf 1 oz Gold Coin.

The basic design of the Canadian Maple Leaf 1 oz Gold Coin has remained largely unchanged since its creation.

The US Mint made several failed attempts during the early 1980s to woo precious metals investors. One notable attempt is the American Arts Commemorative Series Medallions.

There are ten medallions that are part of the American Arts Commemorative Series that were minted from 1980 through 1984.

The larger medallions are minted 1 troy ounce of pure gold.  While the smaller medallions contain 1/2 troy ounce of pure gold. At the time of release, the medallions were poorly received by collectors, the public and investors.

These medallions were struck from an alloy containing .900 fine gold. Today, these medallions are popular with gold stackers and investors and can are often on sale in the secondary market very close to spot price.

While the series was a commercial failure, it paved the way for Congress to create and establish the guidelines for the American Eagle series of coins from the US Mint.

Gold American Eagle

The American Eagle series premiered in 1986. It continues to be one of the most popular precious metal investment vehicles in the world.

It has been more than 52 years since the Nixon Shock moved off the United States off the gold standard.

Private ownership of gold, silver and other precious metals remains legal throughout the United States today.

Demand from investors continues to grow as more people continue to lose faith in the banking system, traditional investments like stocks and bonds as well as the federal government’s ability to manage and regulate effectively given the massive amount of corruption plaguing Washington.

As of 2023, more than 47 million ounces of gold have been used in minting of four denominations of American Gold Eagle coins. Investor demand for American Gold Eagle coins remains strong after 37 years.

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Where is the best place to buy silver?

FindBullionPrices.com

There are a lot of online bullion dealers. With so many online dealers how do you decide which bullion dealer is the best company to buy from?

It doesn’t matter if you’re an investor looking for the lowest price investment, or if you’re a collector wanting to find the best prices on silver coins to add to your collection. Investors and collectors both are always searching to find the best prices on silver from online bullion dealers.

Finding which online bullion dealers have the best prices for silver will depend on which bullion items you’re looking to buy and when you’re looking to buy.

FindBullionPrices.com is the best website for tracking the prices and premiums of a large variety of gold, silver and platinum coins, bars, rounds and bullion items for sale by online bullion dealers.

All of the online bullion dealers will carry a core set of gold, silver and platinum bullion products. All will have some sort of selection of:

  • Gold, silver and platinum Sovereign government coins such as American Eagles, Canadian Maple Leafs, etc…
  • A large variety of silver rounds from popular private mints
  • Silver bars, gold bars and platinum bars
  • Hand poured items from specialty mints
  • Circulated “Junk” Silver.
  • and much, much more

With so many trusted and reputable online bullion dealers offering such similar products how do you decide which company is the best to buy from? There are several factors to consider, including customer service, shipping charges, sales tax and of course most importantly, the lowest premiums over spot price for what you want to buy.

There are several trusted and reputable online bullion dealers that stand out from all the others.

Some of the best companies to buy silver from include Silver Gold Bull, Golden Eagle Coin, Bullion Exchanges, BGASC, JM Bullion and others.

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Compare Premiums to Determine Which Silver Dealer Has the Best Price

FindBullionPrices.com
shipping silver bullion

When you buy silver and gold bullion from online dealers the pricing displayed on their websites can be confusing. It can sometimes be hard to tell if you’re getting a good deal or not.

All bullion dealers, whether online or a local coins shop, price their bullion relative to the spot price of the precious metals. The price the dealer charges over spot price is called the dealer premium.

The only way to know whether or not you’re getting the best price when you buy precious metals online is to compare the dealer premiums over spot price.

Comparing dealer premiums for a particular item, whether it’s the latest American Silver Eagle coins, 10 oz silver bars, or Pre-1933 gold coins, can be a tedious and time consuming job. Looking for the same item across multiple dealer websites takes time.

FindBullionPrices.com provides tools to help simplify the process for buying silver and gold bullion from online dealers. We pull the latest prices from many trusted and reputable bullion dealer websites for over 300 unique products.

Each product listing is designed to make it easier to decide which dealer has the best deal when you buy bullion online. The product listings display the current spot price, including the melt value for each item. The current price the dealer is selling an item for is displayed, along with the calculated dealer premium over the melt value.

For each product we try to show as many dealers as possible that are selling a particular gold or silver coin. Dealer inventories can change quickly so we may not always show every dealer that is selling a particular item, though we try to do the best we can.

Shipping Charges and the Myth of Free Shipping

Many online bullion dealers offer free shipping when you place an order over a certain dollar amount. For a lot of bullion dealers, the free shipping threshold is that orders over $99 ship for free. The cost of the shipping is generally included in the dealer premiums.

Several online bullion dealers offer free shipping for all orders regardless of the dollar value of the order. These dealers typically have much higher premiums per item to cover the shipping costs.

Still, there are other dealers that are more transparent in their pricing and cost structure. They may not offer free shipping at all, or have a higher minimum order dollar value threshold for offer free shipping.

As silver and gold bullion are commodities, market conditions dictate the price trend which affects the price you pay. As with any business, each dealer has different levels of overhead, operating costs and desired profit margins.

Some online bullion dealers prefer high volume with lower margins while others may charge a heavy premium, especially when purchasing lower quantities or lower order values.

The top trusted and reputable online bullion dealers willing to compete on both service and price, who are interested in establishing long-term stacker customers that will continue to buy from them on an ongoing basis, are the dealers will to compete on price and provide the best customer service.

Payment Methods and Types

Our dealer listings section has a page that shows the payment methods accepted by dealer accepts and displays information regarding the shipping policies, minimum order value thresholds for free shipping and more.

Virtually all online bullion dealers accept credit cards, checks and wire transfers for payment. Dealers that accept credit cards and PayPal as payment methods typically incur a fee for each transaction. The fee that credit card companies and PayPal charges the dealer are typically 3% to 4% of the dollar value of the order. These fees are included in the cost.

Online bullion dealers often display on their product pages two or three different prices. Dealers will usually display the Cash Price and the Credit Card/PayPal price, and some dealers may display a third category that have begun accepting BitCoin and other cryptocurrencies for payment.

Paying the Cash Price for Silver & Gold Bullion

The lowest price is the Cash Price. The Cash Price when you buy gold or silver from an online dealer represents the equivalent to walking into the store and paying cash. This is obviously not possible when making an online transaction, so this price also often represents the price if you were to mail a check to the dealer, use an e-check option or perform a wire transfer.

Some  credit card companies and payment processors have requirements that forbid merchants from charging a fee for accepting credit cards as a payment method. Online bullion dealers get around this by offering the items for sale at a Credit Card/PayPal price that is typically 3% to 4% higher than the Cash Price. While the Cash Price is often referred to as a discounted price for using Cash, Check, e-Check or wire transfer as a payment method.

 

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Sales of American Eagle gold and silver coins drop to 11 year low

FindBullionPrices.com
best place to buy American Silver Eagles online

According to sales data released by the U.S. Mint this week, sales of both American Silver Eagle (ASE) and American Gold Eagle (AGE) coins were down in 2018.

According to sales data, the U.S. Mint sold 245,500 ounces of Gold Eagle bullion coins during 2018. This was down from 302,500 ounces in 2017 and 985,000 in 2016.

Silver Eagle bullion coin sales dropped in 2018 as well. In 2018, the U.S. Mint sold 15,700,000 one-ounce Silver Eagle bullion coins. This was down from 18,065,500 in 2017 and 37,701,500 in 2016.

Silver Eagle bullion coins are sold to dealers in 500 coin Monster Boxes. Many precious metals dealers that are still holding onto 2018 dates coins have lowered the premiums to as low as $2.20 per coin, which is only 20 cents more than the premium charged by the U.S. Mint.

Additional information can be found in this Reuters article and via the U.S. Mint Production Sales Figures.

Overall, the spot price of gold ended 2018 with a 2.1% loss, the spot price of silver lost 9.7% throughout the year.