Investment Archives
Silver Monthly says that the term silver junk coins are used by investors to describe coins that are in circulation, contain silver, and offer no value as a rare collectible coin. Junk coins are typically pre-1965 coins and contain up to 90 percent silver. Like silver bullion coins, junk coins have their silver value tied to the current spot price of silver. While, silver bullion coins like the American Silver Eagle may contain more silver, junk silver coins offer a great entry point into precious metal investing.
Silver is used as a profitable investment, and as a hedge against a volatile economy. However, junk coins do offer some advantages over traditional silver bullion coins. First, since the coins are still circulated they can be used to buy products and services at their legal tender value. Second, junk silver coins do not typically have the higher premiums associated with bullion coins. Premiums are over the spot price and are often added to bullion products.
Investment, Junk Silver Coins, Monex.com, silver bullion coins, silver investors, silver market price
In order to attempt to bring back purchasing power for fiat currency, on April 5, 1933, Franklin D. Roosevelt signed the Executive Order 6102 which banned U.S. Citizens from owning gold coin, bullion, and certificates. The only exception was for gold coins that had numismatic value. To accomplish this, the Federal Reserve bought back all gold for $20.67, the equivalent of $371.10 today.
Decades later, South Africa began production of the first gold bullion coin that was made available to the public. The Krugerrand was technically legal tender and had a face value, but like all bullion coins, the intrinsic precious metal value outweighs the face value significantly. The coins were clearly made as an investment vehicle, and not for spending. This loophole allowed global citizens to enjoy owning gold in affordable increments, at a cost that was not significantly more than spot price.
Australian Nugget, British Britannia, Canadian Maple Leaf, Chinese Gold Panda, Executive Order 6102, Federal Reserve, numismatic value, South African Krugerrand, standard bullion
Treasuries can be considered as the safest investments in the world and they earned a good reputation from that.
Treasuries are backed by “the full faith and credit” of the U.S. government. The risk of default on these fixed-income securities is NIL. Not even the safest corporate bond in the world can make that claim. If you’re primary goal is to not lose money, treasuries are for you. When you buy a Treasury Bill, Bond or Note you’ll get your interest payments and you’ll get your principal back.
They are not a risk-free. There are, in fact, two very clear risks to holding Treasuries.
business environment, Business Sense, Cash Investment, corporate debt, Extra Income, Financial Competence, Financial Market, Government Bonds, Inflation risk, Investment Opportunity, Market Value, safest investment, Savings Management, Treasuries Investment, Treasury Bill, Valuable Investment
Another “Pay-As-You-Go” concept. Such a system does not create savings, which means when inflation and or interest rates are above zero, money is essentially lost. With our demographic upheaval of worker to retiree ratios, it became a Ponzi Scheme. Someone is left holding the bag when the cash runs out; as things stand, that means everyone under 50.
When Social Security starts paying out more than it takes in, whether it be 2012, 2015, or a few years later, the system will be running a deficit in real terms because the trust is virtual. If you put $10,000 in the bank, take it all out for some home repair and maybe a few weekends in Vegas, that money is gone, IOU or no. If you write an IOU to yourself to replace that ten-grand, and you stick to your word, you still have to come up with the money somewhere…that original 10k, again, is already gone. The Social Security Ponzi Scheme thus was a not-so-elaborate method of shoveling trillions of dollars into the mouths of politicians and out onto their pet projects…original intention aside.
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