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Community Voice Responses (March 21, 2017)

From the Feb. 24 Numismatic News E-Newsletter:


Do you collect bullion to safeguard against uncertainty in currency?

Here are some answers sent from our e-newsletter readers to Editor Dave Harper.

I do not collect bullion to safeguard against the uncertainty of currency. I collect bullion because it’s worth something, easily collected, easily stored and easily converted back into currency if I need to deal with someone that requests currency for payment. The banks pay little to no interest in my savings/checking accounts, and I see no reason to keep letting them have my money for free, but what do I know.

Coach D. Jennings
Petersburg, Mich.

Not really though I have switched from solely buying junk silver, Peace and Morgans to also purchasing each year an American silver Eagle as they are quite stunning.

William Stewart Lane
Middlebury, Vt.

This form of wealth is least likely to be duplicated as the U.S. Secret Service comes down harshly on counterfeiters. In addition, real wear and tear would have to appear upon all attempts at counterfeiting, same as 1964 was the final year of 90 percent minting. I term this silver pocket change as “small denomination precious metal instruments,” of which they are. One day they will come back into actual vogue through necessary usage.

U.S. silver dollars of 90 percent purity are favored most by this numismatist. Their actual silver content is higher, and the Morgan dollar identifies directly with the Old West, a powerful attractant. Their size makes a statement, and everyone acknowledges them when shown, purchased, sold and gifted. Circulated specimens are how I tip waiters in Quebec and Ontario, not paper notes or a credit card. We received royal service, especially when we returned later to that same establishment during our vacation. The U.S. dollar is most welcomed with our Canadian allies, but imagine the surprise and welcome they displayed upon being tipped with precious metal in the form of a silver dollar.

Sock them away along with other 90 percent currency for the times ahead. By the way, 40 percent Kennedy half dollars are way too cheap in relation to their content against prices being asked.
One day, the world will be cashless, or at least most of the major nations, guaranteed. We will then see gold and silver come back into play via the underground economy, for none of the large central banks will tolerate anyone but their cartel and that of nations’ treasuries to hold physical precious metal. Imagine, gold and silver along with basic food and water and non-GMO seeds will be traded in various underground economies. Ha ... tragic, but bet the proverbial farm on it. I am reminded of the film “Mad Max, Beyond Thunderdome” and the scenes in bartering for whatever one needed. Define “irony,” please.

Paul V. Battaglia
Milford, N.H.

Yes. But I also enjoy collecting coins as a hobby.

Mort Fine
New Jersey

Yes, this has been a no-brainer for decades. This has always been a good hedge against currency. Of course, I’ve made a small bit, and used it for necessities (such as in a move). No matter, know the fluctuations, then the rest is easier.

The above is for the “in between” times. Just to be sure, adding on to your own retirement is always a must. Add on a “flux” here and there to be sure that your “golden years” are in the mix. This can be bullion, or in coinage. A person whom I trusted mentioned “coin of the realm” is more of an assurance of profit in this area.

Gary Kess
Berkel en Rodenrijs, Netherlands

Yes, I do; however, I am not too sure it matters at my age. Here is an example. Between 1981-2004 gold values remained about the same. That’s 23 years you will have to sit on it. Gold soared in 2005 to 2011. If you were knowledgeable or lucky you profited, but many lost. Here is why. If gold goes way up, it is impossible to resell at those high prices, thus you are stuck with it. I urge anyone to try and sell gold when it becomes too high. No one will buy it from you. Everyone will wait and let the price fall before they buy. That may be another 23 years. Gold works if you buy it when you’re very young, say in your 20s and hold it for a lifetime. When you’re in your 60s, sell it and make one heck of a profit. However, who buys gold in their 20s? Very few do. So, it is best not to invest too much in precious metals.

Steven R. Angle
Address withheld

Bullion? Yes, but mostly in coin, even if they are not a high grade.

David Light
Address withheld

No, I don’t. I am strictly a type collector.

Richard Weber
Address withheld

Yes, I have 1-ounce silver bullion coins and 90 percent silver pre-1965 coins stashed away for “a rainy day.” I also have completed a pre-1933 gold type set except for the dollar coins, which I don’t appreciate as much because of their size. Although these gold pieces can come into play in a crisis, I own them for their beauty and history.

Joe Goral
Address withheld

Yes, I do.

William Johnston
Address withheld

Both types have advantages. However, if one buys the right numismatic coin that is rare and only a few are known, one has a good chance of making big money. Years ago I purchased a BU 1870-CC Seated Liberty dollar. It is showcased on the cover of my 2nd edition book on COIN CHEMISTRY. I do believe that it is the finest specimen known and it has DMPL surfaces. This coin is a part of an 10 piece CC denomination set all in BU. I have given this set to one of our grown children. My wife will not get me be buried with any of my numismatic properties so I might as well give them away. Pictures of my 1870-CC dollar have been pictured in a lot of numismatic literature. Someone even pictured it on the Internet. I do like CC coins and have visited the CC Mint twice in my life time.

Weimar White
New York

There are only three basic reasons to own precious metals, to be used as alternative money (in case of fiat collapse), wealth insurance (inflation protector) and investment (growth of capital).

Almost all major financial planners now recommend that you should have 5 percent to 10 percent of your net worth in precious metals.

I tend to follow wealth insurance. In 1964 a quarter would buy a gallon of gas. 53 years later, that same silver quarter will still buy a gallon of gas.

Name withheld

This article was originally printed in Numismatic News. >> Subscribe today.

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