Precious Metal Coins: Investment without a promise to pay

As gold continues to make strides as an investment alternative to currency, its historical war time legacy as a safe harbor against troubled economies is becoming more and more evident. The misunderstanding of gold, including the time to buy is now over, are of little value to a gold coin or silver coin investment facts.

Precious Metals cannot be inflated by printing more of it.  It is for this reason why it is sought after as an alternative currency today. Precious metal cannot be devalued by government decree and unlike printed currencies it is a store of value which does not depend on anybody’s promise to pay.

Gold and silver are assets which are no one else’s liability. Bonds and bank deposits are promises to repay money borrowed from the investor. Even Gold and Silver ETF’s are not always backed by enough underlying gold and silver to support the full market value of the ETF. The value of this printed category of investments relies on the fact that they are promises to repay money borrowed. Paper investments depend on the investor’s belief this promise will be fulfilled.

As hyperinflation, junk bonds and most recently Bernard Madoff’s promise to pay demonstrates these promises are questionable and can lose value quickly. Precious metals do not reside in this questionable space.  A piece of gold is not dependent on a financial system.  Its value has 5,000 years of humanity and history backing its sustainable worth.

New to our vaults and we believe to have great potential for increasing in value in these modern times is the Australia 2010 Dreaming Series. These modern world precious metal coins come in gold, silver and platinum in various weights. As with all of our world coins, we hand pick these gold coins, silver coins and platinum coins because we believe they will have the best possible investment outcome over time.

Remember, there are no guarantees about whether or not a coin or any collectible, material thing or instrument in any asset class including collectible coins as an asset class will increase in value. www.coinmerc.com

Picking Coins for Investment

When picking coins as an investment, there are many factors to consider before making a purchase. Buying hard assets, just like any other investment class, is a combination of being informed and buying at the right time. Each one of our coins is hand selected and we feel each will give you the best possible out come when making a purchase. There are no guarantees of future performance for any asset class, including collectible coins as an asset class.

There are several reasons why we believe the Russian 2008 190th Anniversary of the Federal State Unitary Enterprise "Goznak" 1818 Approval of Paper Currency as Legal Tender - 5oz Silver Proof has good investment potential.  First, to point out the obvious, the mintage is very limited, as only 1,500 coins of this issue were minted during its release in 2008.  Secondly, the Bank of Russia rarely produces coins with gold gilding, let alone 5oz silver coins with gold gilding.  In addition, the theme of Russian currency has always been and continues to be one of the most, if not the most popular, non-animal, themes in Russian coins.  Furthermore,  the coin sold out very quickly when it was issued in 2008.  Finally, the coin is beautiful and commemorates an important event in Russian financial history.  Remember, when buying collectible coins or any asset class, there are no guarantees and past performance of a coin’s return is Not indicative of future results.

Silver is lining its own future

As gold continues to get a lot of press, silver quietly widens its undervalued gap in relative value, lining its future with, yes, silver. As the precious metal market chatters a buying message, it is apparent silver's indifference to adjust to gold’s bull run is going to come to an end.

Unlike gold, silver is widely used as an industrial commodity. Its use in jewelry and electronics has declined in the recent recession and new applications as an anti-microbial and other new to market uses has silver slated for a heavy rebound.

An historic price adjustment will bring this statistical disparity to a close. The silver/gold differential will revert to the mean, to the benefit of owners of silver assets. The bottom line: silver’s price performance historically holds a close correlation to gold’s price performance.

In early 2008 gold's market value was averaging $1000 per ounce and silver peaked at approximately $21 per ounce at the same time. Gold today is at or near record levels and silver took a fall to approximately $10 per ounce at the beginning of 2009 and has precipitously rebounded to $17.50 per ounce today.
Silver is lining its own future.

Coin Mercantile’s silver coins are priced very competitively and we have a unique selection of modern world silver coins. It is our strong believe that silver on a per ounce basis is likely to double in the next few years with global population growth driving and accelerating the world’s demand for precious metal commodities. Silver, in our opinion, will be one of the greatest beneficiaries.

With the mind of an investor, try our collector picks like the heavily in demand and pictured here 2009 China Silver Proof Kilo 60th Anniversary of the Founding of The Peoples Republic of China. And through the eye of a collector, consider the 2006 Spain 50 Euro Christopher Columbus- 5oz Silver Proof. A silver lined future is a bright one for the foreseeable future.

Predicting the Value of Modern World Coins

Market forces working toward rare modern world coins are collectability, precious metal trading value, and value of the dollar as well as others including the mintage. Understanding these market forces enables investors and collectors alike to understand and predict the value of coins. Predicting the moving landscape of these forces collectively is the process for a collector’s investment success.

One of the greatest and often unpredictable forces of a coins availability and subsequent market price is collectability. Trends in coins collectability point at historic events, sets, mintages, and themes. Traditional collectable themes include cars to animals, minis to tigers. Shipping today is the just released Perth Mint 2010 Year of the Tiger Gold Proof and Silver Proof. The collectability of these coins is high. The mintage is low. And the quality is excellent.