Why do I need Gold and Silver for my family?
It's not about getting rich. It's about protecting what You have. Think of gold and silver as wealth insurance.
Money that is simply held onto in the form of dollars loses purchasing power... to the tune of 6.5% a year. So, $100,000 saved in the bank will be worth only $80,000 after just three years... even though Your bank account may still say $100,000 You'll only be able to purchase what $80,000 was worth when You originally saved it.
Gold, however, acts as a hedge. As the dollar goes down in value, gold goes up. Think about it, as dollars continue to purchase less and less, the amount of dollars it takes to buy an ounce of gold will continue to go up. If You change Your dollars into gold, and wait, when You change them back into dollars, the amount of dollars You'll get back will be more and will usually beat inflation.
If Your great-grandfather in 1913 put $1 million dollars in a box for You to open in 2013, it would be worth $41,638.71 in terms of 1913 buying-power. However, had he changed that $1 million into gold and put that into a box, it would be worth $64 million if You changed it back into 2013 dollars.
(And that would be worth even more today! Back then gold was $1,200 an ounce... now it hovers around $1,800.)
Money that is simply held onto in the form of dollars loses purchasing power... to the tune of 6.5% a year. So, $100,000 saved in the bank will be worth only $80,000 after just three years... even though Your bank account may still say $100,000 You'll only be able to purchase what $80,000 was worth when You originally saved it.
Gold, however, acts as a hedge. As the dollar goes down in value, gold goes up. Think about it, as dollars continue to purchase less and less, the amount of dollars it takes to buy an ounce of gold will continue to go up. If You change Your dollars into gold, and wait, when You change them back into dollars, the amount of dollars You'll get back will be more and will usually beat inflation.
If Your great-grandfather in 1913 put $1 million dollars in a box for You to open in 2013, it would be worth $41,638.71 in terms of 1913 buying-power. However, had he changed that $1 million into gold and put that into a box, it would be worth $64 million if You changed it back into 2013 dollars.
(And that would be worth even more today! Back then gold was $1,200 an ounce... now it hovers around $1,800.)
Why American Gold and Silver Eagles? Why not foreign gold? Or tiny bars?
For starters, little tiny bars are a TOTAL rip off when You calculate what You're paying an ounce. It's way too much, for way too little, and no one wants to buy them.
Foreign gold gets complicated quickly, and while it's true foreign gold has lower premiums, it also doesn't share the same tax advantages, and they're not nearly as liquid in the United States.
American Gold and Silver Eagles are immediately trusted and extremely liquid. They also have some amazing tax properties that Your tax professional will have to tell You about. Yes, You pay a higher premium to get them, but they generally retain their premium when You go to sell them.
Foreign gold gets complicated quickly, and while it's true foreign gold has lower premiums, it also doesn't share the same tax advantages, and they're not nearly as liquid in the United States.
American Gold and Silver Eagles are immediately trusted and extremely liquid. They also have some amazing tax properties that Your tax professional will have to tell You about. Yes, You pay a higher premium to get them, but they generally retain their premium when You go to sell them.
Why 1/10 Ounce American Gold Eagles? Why not 1/4, 1/2, or 1 ounce Gold Eagles?
If You can afford to drop $2,000 on a single 1 ounce gold coin, You probably don't need our services. For the rest of us, saving up $275 or so for a 1/10 ounce coin is quite the accomplishment.
At Faithful Over Few, we trade in 1/10 ounce coins for many reasons. First, traction - You get to see Your stock pile growing more quickly and thus You will be more likely to stick with it. You sticking with the program, means Your family grows more and more financially secure with every passing month. Also, should financial troubles arise, You don't have to liquidate huge chunks at once.
Imagine, You have a $500 emergency. Because You are invested in a smaller size gold coins, You can simply trade in two 1/10 ounce coins at Your local pawn or coin shop rather than having to liquidate a whole one ounce $2,000 coin and lose Your whole gold stash all at once.
At Faithful Over Few, we trade in 1/10 ounce coins for many reasons. First, traction - You get to see Your stock pile growing more quickly and thus You will be more likely to stick with it. You sticking with the program, means Your family grows more and more financially secure with every passing month. Also, should financial troubles arise, You don't have to liquidate huge chunks at once.
Imagine, You have a $500 emergency. Because You are invested in a smaller size gold coins, You can simply trade in two 1/10 ounce coins at Your local pawn or coin shop rather than having to liquidate a whole one ounce $2,000 coin and lose Your whole gold stash all at once.
Why Silver American Eagles?
For many different reasons, silver is due to rise any second now. It is more volatile than gold, but that's also why You want it... especially while it's cheap.
Over the entire course of human history with two specific exceptions in two specific locales, silver has traded at 1/12 the price of gold. Think twelve ounces of silver for one ounce of gold... for basically all of human history. Right now, however, silver is out of whack. If gold is $1800/ounce, silver should be trading at $150... not the $25-ish it sits at.
Think about it, You could pay for ten $35/silver one-ounce coins, only to wake up and see silver move to it's rightful $150 mark... and now those same ten coins would be worth $1,500.
So why is silver undervalued? Silver futures and certificates artificially flood the market with nonexistent silver... By some estimates there's 200% more silver in stock-based paper IOUs than actually exists in the world! This keeps the silver price low, because it increases the perception that there's more silver in the world than there actually is.
Further, there only a couple active silver mines in the world. Most new silver is simply the byproduct of searching for another metal like gold or copper. But that said, we use silver in almost all electronics... and then we just throw it away. Thus, some actually expect silver prices to meet or surpass that of gold.
Regardless, one day soon, we'll wake up and see that silver has skyrocketed. When that day inevitably happens, You'll be very grateful You have a little silver in Your home.
Over the entire course of human history with two specific exceptions in two specific locales, silver has traded at 1/12 the price of gold. Think twelve ounces of silver for one ounce of gold... for basically all of human history. Right now, however, silver is out of whack. If gold is $1800/ounce, silver should be trading at $150... not the $25-ish it sits at.
Think about it, You could pay for ten $35/silver one-ounce coins, only to wake up and see silver move to it's rightful $150 mark... and now those same ten coins would be worth $1,500.
So why is silver undervalued? Silver futures and certificates artificially flood the market with nonexistent silver... By some estimates there's 200% more silver in stock-based paper IOUs than actually exists in the world! This keeps the silver price low, because it increases the perception that there's more silver in the world than there actually is.
Further, there only a couple active silver mines in the world. Most new silver is simply the byproduct of searching for another metal like gold or copper. But that said, we use silver in almost all electronics... and then we just throw it away. Thus, some actually expect silver prices to meet or surpass that of gold.
Regardless, one day soon, we'll wake up and see that silver has skyrocketed. When that day inevitably happens, You'll be very grateful You have a little silver in Your home.
How do I store Gold and Silver?
You'll want to store Your gold and silver in locations that feel secure to You. About the only thing that is the natural enemy of gold and silver is theft or loss - just plain forgetting where You put it.
Most home burglaries last 8 to 10 minutes and they tend to focus on the master bedroom and master bath. Therefore, You're going to want to hide Your gold and silver three layers deep... somewhere else - somewhere where it won't be easily thrown away by You or any other unsuspecting family member. Obviously, not everyone needs to know You have gold and silver, either.
Silver will gain patina over time. Coin capsules, silica packets, and tarnish strips can help slow down aging, but this should not affect the value of the metal greatly or at all.
*Faithful Over Few cannot be held liable for lost or stolen gold and silver.
Most home burglaries last 8 to 10 minutes and they tend to focus on the master bedroom and master bath. Therefore, You're going to want to hide Your gold and silver three layers deep... somewhere else - somewhere where it won't be easily thrown away by You or any other unsuspecting family member. Obviously, not everyone needs to know You have gold and silver, either.
Silver will gain patina over time. Coin capsules, silica packets, and tarnish strips can help slow down aging, but this should not affect the value of the metal greatly or at all.
*Faithful Over Few cannot be held liable for lost or stolen gold and silver.
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