Legislators in Texas are leading the charge against the Federal Reserve’s monopoly on fiat money by offering an option for people to conduct business in sound money. The principal idea reverses Gresham’s Law, wheregood money drives bad money out of circulation and the people can choose to decline to accept less valuable fiat money from the Fed.
If the bill becomes law, it would require the state comptroller to establish and provide for :
The issuance of gold and silver specie – A specie is a physical coin or token, typically made from a precious metal that is suitable for or customarily used as currency.
Require the comptroller to authorize the Texas Bullion Depository as issuer of the specie as legal tender in payment of debt and readily transfer the specie to another person
A mechanism to use 100% backed gold and silver digital currencies in everyday transactions
Use the digital currency as legal tender in payment of debt.
By electronic means readily transfer or assign the digital currency to another person.
Physical gold and silver backing the digital currency would be stored in a pooled account at the Texas State Bullion Depository.
The notion of being charged sales tax when investing in precious metals is a contentious issue to some. It also represents a line in the sand between some legislators and investors. Despite the long history of gold and silver being recognized as money, many states continue to tax their citizens for the privilege of owning these metals.
Some states have no sales tax, a couple others have provisions specific to precious metals, others impose varying levels of taxation. Taxing the exchange of money, which includes gold and silver, has been a topic of debate for many years.
The recognition of gold and silver as money dates back to ancient civilizations. These metals have been used as a medium of exchange for centuries.
The private ownership of gold became outlawed in 1933. Under government orders, millions of circulating gold coins were seized from citizens and melted down. Jewelry and numismatic coins were exempt from the ban. Any person caught hoarding gold was investigated, prosecuted and imprisoned.
During the prohibition years, coin collecting was viewed by many simply as a hobby. Some savvy investors used coin collecting as a way to discretely hold and hoard gold.
Many of the coins, although valuable for the intrinsic nature of the precious metal content, were viewed as merely collectibles. Many states allow for the taxation of numismatic collectibles.
During this time coin collecting quickly grew in popularity with many investors turning their attention to numismatics that were generally exempt from the ban. Whitman’s Blue Book was first published in 1942, followed by the Red Book in 1946.
Pre-1933 gold coins play a huge role for collectors and investors alike. These historic coins are from a period of time when the US economy was backed by gold.
For today’s investors, the premiums on pre-1933 US Mint gold coins have fallen significantly in recent years. In some situations, premiums for NGC and PCGS graded collectible double eagle coins can be lower than raw specimens. With cycles of numismatic premiums rising and falling over time these coins represent a solid long-term investment that could potentially bring numismatic returns.
Also during this time several countries began minting restrike gold coins. They are basically modern “reproductions” produced by the official government mint to the same standards as when the gold standard was agreed upon.
At the time, restrike gold coins were recognized as collectibles even though they had no numismatic value. It was a clandestine way for many gold investors to transact real money during the several decades when the ban on private gold ownership was place.
Many state laws regarding precious metals were written prior to 1974, during the times when ownership, buying as a hedge, or investing in gold was still illegal. The numismatic items that were bought and sold were viewed by the states as collectibles, thus taxable under most regimes.
Currently, six states have no sales tax on any purchases: Alaska, Delaware, Montana, New Hampshire, Oregon and Wyoming. While Nevada, South Dakota and Washington have laws or rules that exempt sales tax on precious metals purchases. Utah and Arizona have recently passed legislation that exempts precious metals from state capital gains taxes.
There is a growing recognition among state legislatures to exempt gold and silver purchases from sales tax due to its worldwide recognition as money. Lawmakers are recognizing the fact that gold and silver are relevant as a store of value and a hedge against fiat inflation.
While some states have recognized the historical and economic value of precious metals and are working to eliminate sales tax on them, other states still impose varying levels of tax on such purchases.
It is important for investors to be aware of the specific tax laws in their state when considering buying precious metals. Even in states that require taxation of previous metals it is possible to find a friendly local coin store or pawn shop that will gladly accept cash for silver.
The rules related to charging sales tax on precious metals are complex and vary across the 50 states and even amongst localities.
While trends towards eliminating or reducing sales tax on precious metals are growing, more states are beginning to recognize the importance of metals as real money and the value it brings in diversifying portfolios, protecting against economic uncertainties and being a stable asset.
There are many arguments against the taxation of the exchange of money into a store of value.
Double taxation: When precious metals are purchased with money that has already been taxed, it is essentially double taxation to also tax the exchange of those metals. This can make investing in precious metals less attractive, and may discourage investors from diversifying their portfolios.
Decreased competitiveness: If one state taxes the exchange of precious metals and another does not, it puts the taxed state at a competitive disadvantage. Investors may choose to purchase metals in a non-taxed state to avoid the extra cost, resulting in lost revenue for the state that taxes the exchange.
Economic impact: Taxing the exchange of precious metals can have a negative impact on local economies. Investors may choose to take their money elsewhere, and local precious metals dealers may suffer from decreased business. This can lead to job loss and a decrease in tax revenue for the state.
Encourages black market activity: High taxes on precious metals can encourage black market activity, where transactions take place off the books and taxes are not paid. This can lead to lost revenue for the state and can make it difficult for law enforcement to track the flow of money.
In the US, gold played a significant role in the economy when the country was on some form of the gold standard until 1971. During this period, the US dollar was backed by gold, which meant that the government had to hold enough gold to cover a large percentage of the value of all the dollars in circulation throughout the world.
However, the tax-free states in the US recognize the value of precious metals and the role they play in a diversified investment portfolio.
In addition to the tax-free states, several states have recently taken steps to remove or reduce sales tax on precious metals purchases.
For example, Mississippi, Kentucky, Maine, Wisconsin, Vermont, Minnesota, Alaska, Tennessee, Maine, and Idaho have all passed laws that either exempt precious metals from sales tax or reduce the tax rate.
These legislative actions reflect the growing recognition of the value of precious metals as a safe-haven asset and store of value.
These states have recognized the importance of precious metals as a store of value and have taken steps to remove barriers to their ownership. These states have made it easier for investors to protect their wealth with these assets.
Several states have recently introduced legislation to remove or change sales tax laws regarding precious metals.
For example, Mississippi, Kentucky, Maine, Wisconsin, Vermont, Minnesota, Alaska, and Tennessee have all either eliminated or reduced sales tax on precious metals in recent years.
Idaho and Maine are also considering gold reserve laws, which will allow the state to hold gold as a reserve asset.
Texas, often taking a leadership role in guiding other states, has introduced gold-backed digital currency law as an alternative to the anticipated Federal Reserve CBDC.
The state of Texas also operates a first-of-it’s kind bullion depository which allows for the segregated storage of precious metals for both individual and institutional investors in a secure and guarded facility.
It’s become pretty indisputable that the economy is in the worst state that many Americans can remember since the 2008 financial crisis and the deep recession that followed.
As a result, investors are clamoring for gold and silver bullion like never before. Demand for government issued coins, like the American Silver Eagle and the Canadian Silver Maple Leaf have skyrocketed in recent weeks since the start of the banking crisis.
However, the US Mint continues to be slow and unable to meet demands, which has caused significant increases in recent weeks to a recent high of around 60% over spot price. Some dealers, such as APMEX and JM Bullion are currently showing premiums for silver eagles at over 88% above spot price.
The US Mint outsources the manufacturing of planchets, which are coin blanks that are pressed by the mint to produce the coins. Working only with a handful of select manufacturers that meet the requirements.
Disruptions to both global and domestic supply chains effecting precious metals continue to impact investors and industry.
The raw materials used to mint Silver Eagles must be sourced from domestic silver mines, as prescribed by law.
The Mint has been unable to meet demand since 2021 when more than 28 million coins were sold. While investor demand remained strong in 2022, the Mint was only able to produce around 16 million coins.
So far in 2023, the Mint has reported sales over more than 6 million coins. However, numerous reports state the mint shifted production in late 2022 to start producing coins for the current year, which is the main reason the Mint was able to report 3,949,000 coins sold in January.
Sales reports show only 900,000 coins being sold in each month of February and March which is far below the Mint’s production capacity.
In 2015, the Mint sold 47,000,000 Silver Eagle bullion coins, the highest on record.
Year
1 oz ASE bullion coins
2019
14,863,500 coins
2020
30,089,500 coins
2021
28,275,000 coins
2022
15,963,500 coins
2023 (4 months)
6,199,000 coins
Recent Years Sales and Mintage Totals of 1 oz Silver American Eagle coins
It’s pretty indisputable that the economy is in the worst condition many Americans have seen since the 2008 financial crisis and the deep recession that followed.
This time around, the economy has been wrecked by a record combination of prevailing events.
It began before COVID was even a thing in September 17, 2019.
A few months later, the Biden administration put the entire country into lockdown, effectively shutting down every sector of the economy, aside from companies like Amazon, Walmart and other select corporations deemed “critical”.
Rising inflation began to take hold as the Fed continued to print more money to fund the pandemic with stimulus checks and other government handouts.
To combat the inflation crisis, the Fed responded with multiple steep increases in key interest rates that come faster than has happened decades.
Over the last week, APMEX, JM Bullion, SD Bullion and Money Metals Exchange have announced either increases in minimum order amounts or have added a few days to their shipping policies.
Gold has been trading steadily above $2,008 per troy ounce and silver closed the week at $25.07.
The demand for Silver Eagles have quickly increased because they are seen a trusted store of value over keeping cash with record inflation. Currently, the cheapest Silver Eagles have a premium of over 50% above spot price.
Other sovereign government coins with a lower premium are also reliable alternative for investors looking for a lower premiums.
Britannia, Philharmonic and Kangaroo have become the go to silver 1 oz coins that make an excellent store of wealth and are easy to stack and store at home.
According to inventory tracking of APMEX stock, it’s been reported that APMEX sales of silver on Thursday April 6 reach over 135,000 troy ounces, slightly higher than the Thursday following the collapse of SVB bank and the start of the current banking crisis.
Yesterday, estimated sales of #silver at APMEX were the highest I've ever recorded for a Thursday.
Sales were 135,405 ounces, 124% above an average Thursday, just barely passing March 16, the Thursday after Silicon Valley Bank collapsed. #silversqueezepic.twitter.com/AKCaL81Rq3
— Michael 🏳️🌈 #silversqueeze (@mikesay98) April 7, 2023
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One of the more mysterious properties of silver is that it is prone to tarnishing when exposed to air. The oxidation of sulfur-containing compounds in the air.
The process can occur rapidly, such as with artificially toned coins, or gradually, with some beautifully naturally toned numismatic silver coins selling for much higher premiums than cleaned coins.
Silver is prone to tarnishing and many investors of silver bullion, coins, and sterling silver antiques often have questions and want to learn more.
The tarnish that forms on the surface of silver is a layer of corrosion that can affect the appearance and luster of the shiny metal.
Why does silver tarnish?
Tarnish and toning are caused by a chemical reaction that occurs naturally when silver is exposed to air and moisture. The chemical reaction occurs when the environment contains trace amounts of sulfur substances.
The reaction produces a dark compound that forms on the surface called silver sulfide. This reaction can occur faster in humid environments or when silver is exposed to other chemicals such as chlorine.
Silver-sulfide is an inorganic chemical compound that is a dense black solid. The compound has a variety of uses, such as an ingredient in anti-microbial and anti-bacterial agents and as a photosynthesizer in photography.
It is a normal and natural process that occurs even in environments deprived of oxygen such as those found from shipwrecks like the SS Gairsoppa.
Some modern collectors prefer to buy toned silver coins because of the colorful beauty and history.
Artificial toning is becoming more common as stackers experiment by sealing silver coins in airtight containers with sulfur-containing foods like eggs.
It’s important to have silver coins evaluated and appraised by an expert to determine if there is added numismatic value.
Other factors can contribute to the formation of tarnish in unique patterns such as with tab-toned coins which are from long-term contact with rubber bands, cardboard templates and tape.
Physical contact with items containing large concentrations of sulfur-rich compounds can cause silver to tarnish at a faster pace.
A common question amongst new investors comes from strange tarnish patterns that happen from storing silver coins in soft plastic “coin flips”. The soft plastic contains PVC compounds that interact with the silver oxidation process and can produce black marks that are unsightly.
It is common to clean silver bullion coins and rounds that have no numismatic value. It will not effect the value. Silver bullion coins will always retain their intrinsic value whether they are tarnished or cleaned. Some investors prefer cleaning silver bullion coins to maintain the alluring luster.
E-Z-Est is a product widely used by both numismatists and bullion investors alike that can quickly restore the luster to silver coins. It is easily available from Amazon.com or from most local coin stores.
UV rays from sunlight have also been shown to speed up oxidation. Simply leaving a silver coin in the window can accelerate toning.
Toning vs. Tarnish?
Toning is natural as the silver reacts with various environmental factors, such as air, humidity, and light and can result in a wide range of colors on the surface. Some numismatic collectibles like Rainbow-Toned Morgan Silver Dollars show an incredible range of blue, green, purple, and gold hues that add significant numismatic premium. Natural toning is desirable in antiques and collectible silver coins as many see it as an enhancement to the beauty and value.
Artificial Toning
Artificial toning is achieved through various methods such as excessive exposure to sulfur, heat, and UV light from the sun or artificial sources.
There are a variety of tutorials online that demonstrate the use of commonly available chemicals such as potassium sulfide and liver of sulfur to create some unique and colorful toning that looks amazing.
Anodization is a process that uses electrolytic chemistry to accelerate the thickening of the silver-sulfide layer. Some collectors may use toning solutions or sprays to tone their silver items artificially.
While artificial toning can create an attractive appearance, these methods do not add numismatic value and are often considered by some collectors to be damaged coins.
As such, it is important to be cautious when purchasing toned silver items and to only buy from reputable dealers who can verify the authenticity of the toning when you are shopping for numismatic coins.
Whether toning increases or decreases the value of silver depends on the item and the market. In some cases, tarnish is seen as a patina that shows the authenticity and provenance, which can add significant premiums to historical coins and antiques.
Cleaning Tarnish from Junk Silver Coins
Circulated junk silver coins commonly show patina that can be unsightly in appearance. There may also be ugly gunk that builds over the many decades of circulation.
Junk silver has no numismatic value and cleaning it won’t harm the intrinsic value. Though most investors prefer to buy 90% silver coins with the original patina and may be skeptical when it comes to buying cleaned coins. Which could make it more difficult to sell.
It is common to come across BU condition 1964 silver quarters among 90% silver lots. The shine really stands out and there are some methods to clean junk silver in ways that won’t effect the underlying intrinsic value.
There are some readily available silver coin cleaning solutions such as E-Z-Est and polishing creams. These work best for small amounts.
One of the easiest at home methods uses only hot water, baking soda and aluminum foil and takes just a few minutes.
Silver Toning
Natural toning is highly desirable collectible coins and for antique silver items. It can enhance the beauty and value of silver. However, toning can also be a concern for those investing in bullion or coins.
In general, toned Silver can increase in value over time. A natural silver tarnish is considered good as it can enhance the uniqueness, rarity and desirability of silver.
Researching and seeking reputable dealers who can provide you with authentic, naturally toned silver items is important.
Understanding the causes and effects of silver tarnish is essential for those who invest in silver bullion, coins, and antiques. The main cause of tarnish is exposure to elements which leads to a chemical reaction producing silver sulfide.
Other factors, such as contact with certain materials and exposure to sunlight can also cause tarnish to form. While tarnishing can detract from the shiny appearance, many investors see it as an enhancement to the beauty and value of silver.
The Intaglio Mint creates unique and thoughtful designs that inspire thinking. For 2023, the Mint is releasing a variety of silver rounds that encompassing a wide array of thought provoking artwork that includes modern feline house cats, mythical creatures from folklore and literature as well as patriotic and military themes derived from ancient latin philosophical proverbs.
These silver medals are available from bullion dealers with incredible high-relief compositions that are minted in limited quantities of pure .999 fine silver.
Latin Allure Silver Rounds
The Latin Allure silver medallions incorporate phrases and quotes from ancient philosophers into unique modern works of collectable art. The coin series is popular for its military and patriotic themes around honor, death and life.
For 2023, the series includes both 1 oz and 2 oz silver rounds with intricate high relief designs that are only minted in limited quantities.
Crytozoology is a pseudoscience that studies, searches for and catalogs unknown, legendary, or extinct animals whose historical existence is disputed or unsubstantiated with modern evidence. It is more closely related to the investigation of cultural folklore as opposed to the science and study of animal species.
For 2023, the Intaglio Mint has created designs of creatures that have been part of the folktales for decades, sometimes even centuries.
Unicorn Silver Round – The unicorn is a mystical and powerful horse or goat-like creature that is said to have magical healing powers and the ability to produce drinkable water from poison. The sculptures and artists from the Intaglio Mint capture the spirit of the unicorn that has a storied history across countless cultures.
Jersey Devil Silver Round – The Jersey Devil is thought to have lived in the Pine Barrens of Southern New Jersey in the United States. The legend dates back to the 1700s. Sitings of the monster are still regularly reported and it has been blamed for the slaughter of livestock and other horrific events.
The Kraken Silver Round – The Kraken is a legendary enormous sea monster that is said to have lived off the coast of Norway around Scandinavia. The creature has a giant squid-like appearance with strong tentacles capable of grabbing onto a ship and pulling sailors to their death on the ocean floor.
Sleeping Cats
The Sleeping Cat silver round collection features the lovable and adorable feline companion enjoying one of their favorite ways to pass time. When asleep, cats will tightly wind themselves into a ball as a way to conserve body heat and keep warm. You can often find them curled up and cuddled together.
Available with three high-relief obverse images of felines posed in various sleeping positions. These rounds are minted from .999 fine silver and are available in limited mintage amounts each weighing either 1 troy oz and 2 troy oz.
The series consists of three silver rounds that are an homage to one of our most loved pets.
The reverse shows curved radial lines emanating from behind the center hallmark logo with inscriptions included for the weight and purity.
Intaglio Mint is a boutique private mint that was established in Sedalia, Colorado in 2010. They are an innovative manufacturer of coins, tokens and medallions commemorating events, places and historic remembrances. They also mint silver rounds with their own unique and creative designs that feature incredibly detailed and highly collectable themes.
Greek Mythology
The current year of the Greek Mythology coin series from Intaglio includes three fresh designs based on venerable gods and goddesses minted into 1 oz silver rounds.
Scylla Silver Round – In ancient Greece, the Scylla was a female creature with six-heads each with a mouthful of shark-like, razor sharp teeth. She walked on twelve feet and the heads of six baying dogs are said to extend from her loins.
Aphrodite Silver Round – The goddess of love, beauty, desire, and all aspects of sexuality was capable of seducing both gods and men gods and men with her incredible and whisper in the ear.
Bellerophon, Pegasus and the Chimera Silver Round – The Chimera was described by Homer as flying monster with the head of a lion, the body of a goat, and the tail of a serpent or snake that could breath fire. Bellerophon was a hero of the ancient Greeks for capturing and taming the Pegasus and riding it in battle against the Chimera.
This 2023 Armenia Noah’s Ark coin series is one that many collectors and investors adore for the biblical theme.
The reverse theme of the coin pays homage to the story of Noah and the Ark as described in the Book of Genesis, chapter 8. A peaceful dove is shown flying above the ark at the end of the rainstorm with the sun beginning to rise over Mt. Ararat in the background.
The image is surrounded by inscriptions around the design field that reads “NOAH’S ARK” in both Armenian and English.
On the flip side, the obverse features the Armenian Coat of Arms. It includes inscriptions for weight, purity, year of minting, and the denomination.
The outer rim is inscribed with the words “REPUBLIC OF ARMENIA”, again translated in both English and Armenian.
Each element in the design is crafted with masterful detail and precision with artisans applying different textures to bring the scene to life.
2023 Noah’s Ark Silver Coin Specifications
Minted in 1 kilo, 10 oz, 5 oz, 1 oz plus a wide variety of fractional ounce sizes.
Twelfth annual year of minting.
Limited annual mintage.
Minted with .999 fine Silver BU.
The obverse shows the Republic of Armenia Coat of Arms, with assay and minting inscriptions.
The reverse design portrays the story of Noah’s Ark from the Old Testament of the Bible.
Legal Tender coins backed by the Republic of Armenia.
Mount Ararat is a dormant snow capped volcano in modern day Turkey along the border of Armenia. In the old testament Bible, Mt Ararat is described as the final resting place for the Ark that survived the great flood and holds a significant amount of cultural significance to both nations.
These bullion coins are minted by Geiger Edelmetalle on behalf of the Republic of Armenia. Geiger is one of the world’s oldest private mints.
The mint was founded in the 12th century in Germany and has been involved in the precious metals trade for centuries. The Geiger Edelmetalle mint is a member of the LBMA (London Bullion Market Association) as a Good Delivery provider.
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 and testing can help protect you from scams. Testing can help 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 using it like 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. Most of the methods described here can be performed at home with simple and inexpensive tools you may already own. They allow one 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 not entirely 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 a good 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.
In case of doubts about the authenticity of your bullion, another option is to befriend your local coin shop to 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 provide an effective means of verifying 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 at angle will slide down the piece showing some slight resistance. However, if the magnet sticks to the bullion, it is likely to be counterfeit metal alloy or plated material.
This is because most metals used to fake silver bullion, such as copper, brass, or nickel, are magnetic and will therefore be attracted to the magnet.
Note that this method should be used with other forms of testing silver bullion, such as weight and visual inspection. However, using neodymium magnets can provide more confidence when investing in silver bullion.
A high-quality precision scale for precious metals that is accurate to at least 0.01 grams and also measures in troy ounces is a very affordable accessory.
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 then compare it to the manufacturer’s stated weight to and note any variances. When measuring in fractions of a gram there is 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.
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.
A container filled with water is needed to use water displacement in verifying silver. 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, the silver bullion is immersed in the water container, and the volume of water displaced is measured. The weight of the silver bullion is then divided by the volume of water displaced to determine the density of the silver bullion.
The density value can be compared to the known density of silver to verify its authenticity. This method is relatively inexpensive as it does not require any special equipment.
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 the authenticity. A set of calipers, sometimes referred to as a micrometer, is precision measuring instrument that can accurately measure the dimensions of an object, allowing you to compare the measurements of your coin against known specifications.
When using calipers, the first thing to do is to measure all dimensions of the piece, including its length, width, and thickness.
By comparing the measurements to those published by the original manufacturing mint. Most online bullion dealer listings information related to the dimensions of each piece as provided from the manufacturer. It is easy to compare the measurements of your piece with those provided online.
These measurements can also be used to calculate the volume of the coin, which can be compared to the expected volume based on the weight and density of silver.
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 some metal has been shaved off.
Unlike chemical testing or X-ray fluorescence (XRF) analysis, caliper measurements can be taken immediately 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 that is produced when it is bounced off surface.
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 used for testing silver purity. Acid testing 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, 18k gold testing solution can also be used when testing silver with a different color reaction as described in the video below:
Simple and easy to use acid test kits are readily available from Amazon and other online marketplaces and are inexpensive and the most reliable way method of testing silver and gold bullion at home.
Acid testing is the most trusted way to verify the purity of silver bullion. It’s important to note that care should be taken with the testing process, particularly with items that may have potential value as numismatics, collectibles or antiques. Additionally, acid testing should only be complementary to other verification forms, such as weight and size measurements and confirmation of stamps and markings when available.
Final Thought
While several ways are used to test silver purity, many investors may need more than just 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 still have concerns about a particularly piece, it may be best to visit a local coin shop or other precious metals dealer. You can ask them to test the piece in question on a Sigma Precious Metals Verifier.
Krugerrands have a rich, controversial history and remain a favorite of investors after more than 50 years.
Savvy investors are constantly on the lookout for a deal on trusted and reliable government issued coin, and the South African Krugerrand is often the one with the lowest dealer premiums.
The coin was introduced to promote the gold mining industry in South Africa. One of the unique selling points at the time was that it was the first government issued bullion coin to be minted and issued in a one troy ounce size.
2023 Gold Krugerrand Coins
The 2023 1 oz Gold Krugerrand is a bullion coin made of 22-karat gold. The coin features a portrait of Paul Kruger, the President of the South African Republic from 1883 to 1900, on the obverse side and a springbok, a medium-sized antelope found in South Africa, on the reverse side. The Krugerrand gold coin is minted in various sizes, including 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz.
2023 1/2 oz Gold Krugerrand2023 1/4 oz Gold Krugerrand2023 1/10 oz Gold Krugerrand
2023 Silver Krugerrand Coin
The South African Mint introduced the silver Krugerrand coin in bullion form in 2018. The coins are minted from .999 fine silver and feature the same, iconic, widely recognized design as the other coins in the series. The 2023 1 oz Silver Krugerrand coin is newly released and current year coins typically have lower premiums than previous year coins.
They often have the lowest dealer premiums when compared to other physical investments.
Investors can buy Krugerrands online from a variety of trusted and reputable bullion and coin dealers.
However, year-over-year sales of silver eagles are down so far in 2023.
For January, the mint posted sales of Silver Eagles, with 3,949,000 coins sold. This is substantially lower than the same period the previous year, when the mint posted sales of 5,001,000.
For the first week of February, the mint posted sales of just 450,000.
In recent weeks dealer we’ve seen premiums on current year silver eagles have been dropping.
However, some silver investors have found suitable lower premium replacements with silver coins from other mints.
