Using Silver and Gold Bullion to Preserve Wealth

The demand for physical precious metals has surged recently as the US Mint struggles to keep up with production of gold and silver bullion coins to meet this demand. Coins such as these two 2011 Gold and Silver Eagle Proof Coins are required by law to be produced in quantities sufficient to meet the public demand.

At times when the US Mint was not meeting full demand or the supply was insufficient, the production of collector coins did not take place. This had led to the cancellation or delay of collectible proof and uncirculated versions of the coins.

For 2011, the US Mint is no longer subject to the requirement to fulfill public demand for bullion coins before collector coin can be produced. This was the result of legislation passed towards the end of the prior year, which modified production requirements. Even without the change in law, the US Mint seems to have made progress in acquiring sufficient precious metals blanks and increasing production capacity.

What Caused the Demand to Surge

What is the reason for such as surge in the demand of gold and silver bullion coins?

Preservation of wealth in gold and silver bullion is easier and more affordable among middle-income workers compared with investing in properties. “Gold and silver bullion were more economical for the middle income group than properties as they could be bought in small portions and according to the customer’s capacity.” as told by online-based trader Mynet Capital Sdn Bhd’s executive chairman Terry Ghani

“It’s a tactical asset because you can capitalise on price appreciation…at the same time a strategic asset as a long-term wealth preservation,” he mentioned in an interview recently.

Mobility is a Factor

He went on to say that gold or silver bullion was also better than investment property in terms of mobility, explaining that in case the owner needed to move to another place, it would be easier to sell the bullion in the open market as it was the most widely accepted form of precious metal. Take this 2011 Silver Eagle Roll for example. That’s a roll of 20 American Silver Eagles that can be stored and moved from place to place quite conveniently.

Gold and silver bullion can also help tackle inflation, he said, adding that they could hedge against inflation in the long-run. “Gold and silver are less volatile compared to stocks and other commodities. It is an effective portfolio diversifier,” he said.

What was once a long-time practice of the wealthy is now becoming more and more common among the middle class as they learn that gold and silver can be an affordable investment in their overall wealth preservation strategy. Many companies that offered bullion via the internet even did so at a lower price than normal because they capitalize the internet for their business and keep their overhead costs low. Although they offered bullion at a lower price, the quality was equivalent to investment grade gold which was higher than jewelery grade.

With the current uncertain economic climate, there is no question that gold and silver are “in play”.» Contact Cornerstone Asset Metals today to learn more about using silver and gold bullion to build and preserve wealth.

Past performance is not an indication of future potential values.