Traditional “paper investments” like stocks and bonds have performed poorly in the last few years. Even more tangible, long-term traditional investments like real estate have fallen prey to global economic factors like government-manipulated interest rates, inflation, and devaluation of the dollar. Investors everywhere are now abandoning their strategy of profit sharing and equity building through stocks, bonds, and real estate, and seeking to invest in precious metals.

Precious metals have historically shown to perform in the opposite direction of printed money, or “fiat currency”. Fiat currency is merely a promissory note that is issued by governments. Historically, fiat currencies have been backed by gold until massive overprinting of the currency drives the value of it down, or renders it virtually worthless. A prime example of such fiat currency is the post World War I German Marc, which many of us remember from pictures in our history books, was burned in stoves, or carried in wheelbarrows. A few fortunate German citizens who chose to invest in precious metals (specifically, silver coins), managed to avoid destitution.

Today, the U.S. dollar is the currency used by all countries as their main reserve currency. Massive overprinting of dollars by our Treasury Department (over 40% in the past three years), has devalued the dollar to the point where investors worldwide are turning to precious metals as a means of preserving their wealth.

There are many options to consider for those who invest in precious metals. It is paramount for each individual to conduct his/her own research to determine his or her own, specific financial needs.

Kenneth Hansen

An ever-increasing number of investors are now braving the precious metals market in an effort to escape their current financial quandaries. Recent economic trends have wreaked havoc on traditional investments like stocks and bonds, and investments in precious metals have historically shown to be a financial haven against such elements as government-manipulated interest rates, inflation, and dollar devaluation. The last inflationary cycle of the 70’s featured the dollar losing 60% of its’ spending power, while the price of gold went over1000%. This information alone may prompt some overzealous buyers to dive headfirst into the nearest precious metals investment, but I don’t recommend that course of action. It is always crucial for each investor to first evaluate his/her own specific financial needs, before even considering a precious metals investment. A great deal of disappointment and heartache can be avoided by this simple practice. Once this is done, it is advisable for an investor to familiarize himself/herself with precious metals prices.

Precious metals prices are generally referred to as spot prices. Spot prices fluctuate round the clock worldwide, and careful scrutiny is needed in monitoring these precious metals prices, depending upon any given investors specific financial needs. For example, if an investor is considering a long-term investment in a precious metal, constant vigilance over the metal is unnecessary. For the short-term investor, however, anything less than constant vigilance over precious metals prices would be considered foolhardy.

Investors should also do extensive research into which specific type of precious metal investment is best for them. For example, a bullion investment would have a different price than a rare coin investment, since rare coin has numismatic value, and bullion’s value generally lies in its’ precious metal content, and thus, hovers around that metal’s spot price. These types of discrepancies should be evaluated, when considering precious metal prices.

Danny Burns

Most people would agree that the key to success in virtually every endeavor is preparation. Logic tells us that the individual or group that is the most prepared to succeed will consistently enjoy greater success. Military leaders and war historians are only too familiar with the credo that “Battles are won before they are fought”. Sports enthusiasts adopt this philosophy to competition, believing largely that, “Games are won before they’re played”. Legendary basketball coach Bobby Knight was quoted as saying, “The will to win is not nearly as important as the will to prepare to win.” Still another school of thought from the minds of big business and finance, preach “Digging your well before you’re thirsty”. All of these perspectives converge on the common denominator of preparedness. As you may have guessed, it especially applies when investing in gold coins.

Research is the fundamental key when investing in gold coins. A detailed evaluation of each investors’ own, specific financial needs is the first step. An investor should examine options like whether to hold their gold coins for inside their retirement account, or consider physical possession, or even perhaps a little of both. Investment safety, and potential profit are also key contributing factors.

Investors also must research the coin or coins they are considering investing in. Although a coin may be attractive to a perspective buyer, it may not be the coin that best fits his or her specific financial needs. Some thorough research can make all the difference when investing in gold coin. Also, always be sure to conduct a background check on any gold dealer you plan to invest with. Approvals from the Better Business Bureau are preferred. Internet websites like “Rip-off Report” are also helpful.

Victoria Lopez

Precious metal funds are another way of saying a precious metal investment, which happens to be increasing in popularity due to the modern-day mayhem that we are experiencing in the majority of financial markets. It is also a common way of referring to the funding of a particular account such as an Individual Retirement Account and even a safety deposit account with gold, silver or platinum. Wise investors around the nation have begun shifting failing equities in exchange for historically safer assets such as precious metal funds. There are three main ways to begin investing in gold, silver and platinum and below I will briefly explain how they are used:

Bullion Coins = Bullion coins like the American Eagle and Canadian Maple Leaf are a popular short-term investing method that is mostly used by investors who want to profit from sudden moves in the market, yet it can also be used as a long-term investment as long as the owner doesn’t fear the possibility of bullion confiscation.

Bullion Bars = Bullion bars like the Johnson Massey and Credit Suisse are also a popular short-term investing method that can be used exactly like the coins, the only difference is the shape and the consisting metal which is usually .9999 fine. This is the traditional way to invest in precious metal funds.

Certified Coins = Certified coins like $20 Saint-Gaudens and $5 Indian Head are becoming more popular due to their historical tendency to profit faster than bullion in the long term along with preservation potential that cannot be achieved with standard investments at the moment. They are also non-confiscatable which means that the United States Government cannot take them away because they are considered rarities.

Arthur McGuire

Today’s investment trend is to forego the traditional, “paper investments” like stocks and bonds, for the more tangible assets like precious metals. Investors, who have learned from history, are aware of the similarities between today’s economic developments, and those from the Depression era, as well as the inflationary cycle of the 1970’s. All of these eras share the correlation between the decline of the dollar’s value, poor performances in banking and stock investment, and the rise in value and popularity of precious metals.

Diversified precious metals investments in gold, silver, platinum, and palladium, have historically proven to offset the losses of other investments. It is generally accepted practice for financial advisors to instruct their clients to have as much as one-third of their total assets in precious metals.

Ever since Pres. Nixon lifted the gold standard in 1973, the price of gold has been allowed to “free-float”, which meant our currency no longer held any real precious metal backing. Over time, this resulted in the over-printing of paper currency, which devalued existing currency, as well as traditional investments like stocks and bonds. Inflation then reared its’ ugly head, and smart investors ran to precious metals, as a means of protecting their dwindling portfolio’s worth. For example, investors who got into gold early in the 1970’s made over 1000%.

Our government was so in need of precious metal in 1933, that Pres. Roosevelt issued and Executive Order to confiscate virtually all gold from U.S. citizens, and making it illegal to own. It was through this maneuver, that our dollar regained value over time, and the nation was lifted out of the Great Depression.

As I stated, it is wise to diversify investments in precious metals. While most investors tend to concentrate on gold and silver, they should also be aware of the benefits of more exotic metals like platinum and palladium. Platinum may increase in value due to trends in jewelry making, while technological advances may create a greater demand for palladium.

Mario Febber

The more I think about it, the more I consider today’s chaotic global market to be much like the aftermath of a six-year-olds’ birthday party. Not just any party, I mean a big party with all the trimmings, complete with confetti, balloons, a clown, a magician, and even a pony. There would be games, prizes, and even a piñata. Every screaming six-year-old would be having the time of his/her life, right up to the end, when each kiddie has a turn taking wild, blind swings at the piñata. The party ends when some lucky boy or girl finally smashes the piñata, and everybody scrambles for a few last treasures or treats. Everybody goes home. Great party. Now who’s gonna clean up this mess?

The party that I just described represents the behavior of our nations’ banks and government for almost the past two decades. The government kept interest rates low, to tempt consumers and investors into borrowing money. Banks, in turn, made a staggering number of loans, with no regard to factoring in the rise in the cost of living, or a loaner’s ability to repay the loan. Everybody was happy to take what was in front of him or her, snatching with both hands, and gobbling up everything they could. The party was in full swing. Any time a bank got low on money, the Federal Government would print more, and the party rolled on.

The piñata from the party represents today’s global market. At many parties, something usually gets broken, and the party abruptly ends. The scattered contents of the piñata represent all of the devalued, and defunct businesses and investments. The precious metals market, as it has in the past, is again answering the call to cleanup duty.

Danny Burns

Most financial experts generally agree that it is good practice for investors to hold approximately one-third of total assets in precious metals. The old saying, “Don’t keep all of your eggs in one basket” is applicable here. It is widely accepted that investors should diversify their portfolios in order to avoid an unforeseen decline in one single Investment. It is also recommended that investors do extensive research in order to determine which investments best suit their own specific needs.

With many investments, unforeseen developments in financial, economic, and political venues often stymie and investors’ plans for financial security and gain. Diversified investments contained in a given portfolio may help to offset the losses incurred by one particular investments’ poor performance. Historically, investments in precious metals such as gold and silver are the main line of defense against such losses. For example, an investors’ stock holdings might lose a large percentage of their worth due to hostile takeover, or government buyout (which is the case often times today). Historically, those same investors’ precious metals holdings would act as a hedge against the loss that those stocks have incurred.

Another reason to invest in precious metals is due to the devaluation of Fiat currencies worldwide. Historically, the overprinting of these currencies results in their ultimate self-devaluation. Subsequently, those with precious metals holdings still possess real wealth.

Lastly, and investors’ precious metals holdings can also be diversified into more exotic metals such as platinum or palladium, whose properties have been found to be useful in technological and scientific developments.

Larry Penn

Usually, the best advice is the simplest. Often times, when we find ourselves agonizing over a tough decision, the “old standbys” leap from our memory, and aid us in our time of need and worriment. Always, the sharpest tool to use in a decision making process is common sense. It is common sense that usually kicks these clichés of smart thinking to the forefront of our minds. It’s the kind of thinking that our grandparents taught us. It’s also the best type of thinking to use when dealing with precious metals sellers.

It has been said that fools rush in where wise men fear to tread. This is the first bit of advice I can relay to anyone who is considering dealing with any precious metals seller. The economic conditions today, have many investors in a panic to dump their current investments, and invest in precious metals. The last thing to do is to rush to a seller of precious metals, and make a foolhardy investment. Every single investor should first carefully evaluate their own financial needs; to determine which precious metals investment is best for them.

“Don’t judge a book by its’ cover”, is another familiar pearl of wisdom that we’re all familiar with. A given precious metals seller may have a beautiful establishment in a great location, with a huge advertisement budget. On top of that, the seller may seem to be “one heckuva guy or gal”. Always do a background check on any precious metals seller. Better Business Bureau approvals are recommended.

Lastly, “Don’t put all of your eggs in one basket”, also rings true. For best results, investors are advised to diversify their precious metals holdings to more than one type of precious metal.

Danny Burns

As traditional investments like stocks, bonds, and even real estate stagnate amidst the quagmire of global economic panic and confusion, commodities like precious metals are breathing new life into fledgling portfolios worldwide.

Farmers have always used the saying that, “The chickens are coming home to roost”, and Biblical references like, “You reap what you sew”, are also applicable to today’s financial woes. The unfortunate truth is that the financial crises that we all face are the result of more than a decade of greed-based decisions to keep interest rates low. Lower interest rates prompted massive borrowing by consumers and investors. Irresponsible banking officials “rubber-stamped” the loans, with no regard for the rise in the cost of living quotient. Meanwhile, our legislative branch looked the other way, and a maddening cycle of over-extended lending and borrowing was initiated.

Furthermore, when the cost of living began to negatively affect consumers’ and investors’ ability to repay their loans, banks began to borrow from our nation’s Federal Reserve. Again, at no time did rising interest rates discourage borrowing. When the Federal Reserve began to feel the squeeze of this economic backlash, our Treasury Department simply printed more fiat currency. The U.S. Banking system had abandoned the gold standard over 20 years before, so this new currency had no real value. On top of that, the U.S. Government began to lend banks and large corporations money to stimulate the economy. Again, interest rates stayed in hibernation, so another, more vicious cycle of irresponsible lending, borrowing, and worthless currency printing was left to “tailspin”.

Historically, when dollars show little real value, precious metals prices also show theirs. Since ancient times, precious metals have always retained their value. An ounce of gold still holds the same buying power it held almost 5,000 years ago.

Danny Burns

Precious Metals Prices are becoming a more significant statistic in the eyes of financial analysts. Historically, the two most watched prices are gold and silver. Global economic upheaval due to years of irresponsible loaning and even more irresponsible borrowing and spending has spurred an inflationary cycle that has not been seen since the 1970’s. During that cycle, inflation, interest rate hikes, and overprinting of currency caused economic stress that lasted into the 1980’s. Stocks and bonds performed poorly, and the Dollar lost nearly 60% of its spending power. During this same cycle, precious metal prices increased in value, as opposed to those of stocks and bonds. Gold led the precious metals price charge by increasing 1000%. Silver also did well, as many investors used silver to diversify their precious metal holdings. Silver investments were also more affordable for those who couldn’t handle a gold budget. More exotic metals like platinum and palladium are also excellent for diversification, since unforeseen technological advances may spur a demand that could drive up these precious metal prices. For example, the auto industry created a demand for platinum when environmental laws forced carmakers to modify their exhaust systems to reduce air pollution. Manufacturers of electronics have also created a demand for exotic metals, with the advancement of microprocessors and other technological developments. Recently, silver has been found to have useful properties in the making of underwear for military personnel. Combat soldiers benefit from the addition of silver to their government-issued skivvies, as silver-lined fabric allows for longer lasting wear, and odor absorption.

Danny Burns