One year ago, I would have recommended silver eagles as the best and safest way to invest in silver. Not anymore.
And this could pose an added dilemma for some of you on the fence. It's not enough that investing in silver is unconventional to begin with. Now you find the most popular silver coin selling for much higher prices than the silver spot.
But make no mistake—you want to invest in silver and you want to do it now!
The silver eagle coin shortage has finally made it to the mainstream. Yes, for the first time, there is a shortage of physical silver and eagles are becoming tough to find and expensive to buy.
I'm not one for conspiracy theories, but the well-documented, blatant manipulation in
silver and gold prices
over time could very well have led us to this point. As a result, eagles are selling with higher premiums, pushing them ever closer to the numismatic realm.
One of the keys to smart investing is getting the best bang for your buck. Maybe I take this too personally, but the ongoing disconnect in spot price and actual supply of physical silver adds annoying premiums to eagles that I just don’t like for the small investor.
Don’t get me wrong—this is not an argument against premiums. The coin dealer certainly needs to make a living and protect our precious assets. He provides an important service while assuming a great deal of risk.
Quite simply, though, I view silver as commodity first, and as money second. Therefore, it’s best to buy with as low a premium as possible, along with taking physical possession of the silver you purchase.
The U.S. Mint produces eagles and they are not currently meeting demand. As I said, I’m generally not one for conspiracy theories, but if I were, consider:
If I were in power and wanted to keep the gold/silver-safe haven crowd quiet, prices low, and shut down the most sought after investment denomination—another tool to go with the mix of other methods for
keeping the flock away,
—why not stop silver eagle production?
I should also remind you at this point that we are in the midst of uncharted financial waters. You can watch it unfold in the mainstream news: the worst housing situation since the Great Depression, oil prices, inflation, joblessness, and more.
And, yes, silver has historically been tied to gold. The
will get pounded right along with the price of gold as the financial news gets worse and the threat of a stock market sell-off looms ever closer.
Silver as an Alternate Currency
Some doomsday-hyperinflation guys will tell you to buy silver eagles because of the U.S. hallmark or the guarantee of U.S. backing. In essence, the theory is that it'll be easier to barter with them in a real collapse.
I'm not convinced. In fact, the problem with the us silver eagle may be the markings. Having a face value clouds the issue around barter.
Because silver rounds are denominated by weight and purity, they could be easier to trade. People who want to do business, regardless of how bad things get, will want to take real silver in trade, like
90% junk silver
or silver rounds
And they will figure out fast how to tell if it’s the real thing.
Here's the 90% calculator...
The bottom line is that eagles may be getting harder to find and too expensive anyway.
You can read more about the case for precious metals as a hedge against inflation or other type of currency crisis here.
To read more about Silver Eagles and the supply shortage, click here.
For more detail about silver eagle coins, click here.
Silver Eagle Coins Are A Smart Investment
Silver Eagle Coin: Valuable and Beautiful
Your Financial Security in a Silver Eagle
Protecting You Purchasing Power With the Silver Eagle
The Silver Eagle Wealth Protection Plan
Silver Eagle - Five Tips For Investing Now
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