EZE DIRECTORY

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In periods of deep market downturn, the type which puts markets into upheaval, investors turn to refuge securities such as precious metals, platinum or diamonds or any materials that will provide exchanging capacity. Now is the time to start keeping an eye on the junk silver index.

This is because paper valuables like notes, actions or anything that conveys immaterial riches during growth cycles, loses its appeal rapidly when the bad time arrive.

Paper wealth is under treath of losing purchasing strength in the course of economic crisis periods, this is also true for money. It is the source of the expression: "Gold loves bad news". It is difficult not to concede that it is not possible to eat worthless money bills or bonds that no one wants.

A good example is the Russion Revolution. When the Tsar's empire was overthrown, most owners lost any hope of getting back their investment, they were wiped out by politicla events. Once precious papers had become worthless overnight.

What does this have to do with coins and numismatics?

Well, if you are piling up considerable quantities of junk silver coin, you could be saving in case of leaner times, but you could also be placing a bet on the price of silver reaching unseen heights on the commodities market.

This is not contrary to common sense, as in periods of economic woes, there is more demand for precious metals from scores of people who hang on to it as refuge values, which invariably pushes the price upwards. It figures. Junk silver American dimes minted before 1964 contain 90% silver, as did scores of coins from other countries in those days, for example, Swiss franc coins.

A bit of quick counting will no doubt make one understand the wisdom of keeping junk coins as profitable bullion. If you own a 1000 grams of old dimes, then you are looking at 900 grams of pure silver. By checking what 100 grams of silver cost on the junk market, you will be looking at your current buying power.

That is not only handy to keep as extra security, but the silver you have hoarded will not just disappear. When money becomes worthless, you still have your precious metals to fall back on to buy the things you need.

On the other hand, destroying coins that are still in circulation is probably illegal in most countries. But what if you become aware that the dime that you want to use to make a call is worth more that its face value? You would be in effect overpaying if you would use it!

To put it more bluntly, would you pay for your bottle of milk with a gold coin that would fetch 350$? There you have it. I don't think anyone in his right mind would do this kind of thing.

There are still millions of silver coins in circulation today, but not so many people bother to check their change. So watch out for that coin that has a bit of shading or that looks dirty and worn out. You might just have stumbled upon a small treasure.

Article Source: EZEDIR.COM