The talk shows are full of the high price of gold, especially since the soundness of the American dollar seems to be eroding. However, gold prices rise and fall regularly enough to scare many. It may be time, however, to consider another precious metal as a hedge against hard times. Finding out how much is silver worth to you today and in the future is considered a survival skill by many financial advisers.
It is essential that you understand how precious metals are valued and traded if you're thinking of them as an investment or as a hedge against economic collapse. Metals are tangible assets, which makes them a commodity. It also makes them a lot different than paper money, which is only as good as the government that stands behind it. In other words, paper money has the value that people set and accept. Commodities, on the other hand, have intrinsic value of their own.
Bars, or ingots, are one way of buying metals. Investors also trade in coins. Coins vary in value according to the weight of precious metal they contain. They also may have added value if they're rare, in very good condition, or have some historic background. For instance, a Roman coin or a Spanish doubloon recovered from an important shipwreck will be worth more than the intrinsic value by weight.
For centuries, silver has been counted in 'troy ounces' and 'troy pounds'. This was a system of measurement used in France in the Middle Ages and ever since. The system differs from the one we are familiar with for weighing things like sugar or flour. There are twelve troy ounces in a troy pound, and each ounce is slightly heavier than the one used for foodstuffs. Ingots are fashioned in differing weights, from 100 troy ounces to 5,000.
Prices for precious metals are very volatile. They are affected by consumer confidence in the dollar (the world reserve currency), by politics, by supply and demand, and by the value of other world currencies. If the dollar is 'weak', precious metals will be 'strong'. People who buy these metals for investment hope to be able to buy cheaply and sell when prices are high, thereby reaping a profit.
There is another factor in evaluating the worth of this valuable metal. There is a school of thought that gold might be confiscated by the government (this has happened before.) Ingots of precious metal may also be hard to use as currency in an emergency. For this reason, coins are considered by some the best investment. Merchants will be glad to accept them, especially if paper money is devalued.
'Junk-silver' is what coin dealers call American coins with merely intrinsic value. Their worth is calculated according to the weight of precious metal in them. Dollars, half-dollars, quarters, and dimes dated before 1965 are 90% pure. On troy weight value, a dollar would be worth over $10 on today's market. Some survivalists recommend having $1,500 worth of 'junk' for each member of the family, to be used in case of an emergency to buy necessities.
The value of this precious metal to you depends on what you want it for. As an investment, it's worth is what a troy ounce sells for at any given moment. As a hedge against inflation or the collapse of paper money, having it may mean the difference between life and death, or at least having the means to get what you need in times of chaos.
It is essential that you understand how precious metals are valued and traded if you're thinking of them as an investment or as a hedge against economic collapse. Metals are tangible assets, which makes them a commodity. It also makes them a lot different than paper money, which is only as good as the government that stands behind it. In other words, paper money has the value that people set and accept. Commodities, on the other hand, have intrinsic value of their own.
Bars, or ingots, are one way of buying metals. Investors also trade in coins. Coins vary in value according to the weight of precious metal they contain. They also may have added value if they're rare, in very good condition, or have some historic background. For instance, a Roman coin or a Spanish doubloon recovered from an important shipwreck will be worth more than the intrinsic value by weight.
For centuries, silver has been counted in 'troy ounces' and 'troy pounds'. This was a system of measurement used in France in the Middle Ages and ever since. The system differs from the one we are familiar with for weighing things like sugar or flour. There are twelve troy ounces in a troy pound, and each ounce is slightly heavier than the one used for foodstuffs. Ingots are fashioned in differing weights, from 100 troy ounces to 5,000.
Prices for precious metals are very volatile. They are affected by consumer confidence in the dollar (the world reserve currency), by politics, by supply and demand, and by the value of other world currencies. If the dollar is 'weak', precious metals will be 'strong'. People who buy these metals for investment hope to be able to buy cheaply and sell when prices are high, thereby reaping a profit.
There is another factor in evaluating the worth of this valuable metal. There is a school of thought that gold might be confiscated by the government (this has happened before.) Ingots of precious metal may also be hard to use as currency in an emergency. For this reason, coins are considered by some the best investment. Merchants will be glad to accept them, especially if paper money is devalued.
'Junk-silver' is what coin dealers call American coins with merely intrinsic value. Their worth is calculated according to the weight of precious metal in them. Dollars, half-dollars, quarters, and dimes dated before 1965 are 90% pure. On troy weight value, a dollar would be worth over $10 on today's market. Some survivalists recommend having $1,500 worth of 'junk' for each member of the family, to be used in case of an emergency to buy necessities.
The value of this precious metal to you depends on what you want it for. As an investment, it's worth is what a troy ounce sells for at any given moment. As a hedge against inflation or the collapse of paper money, having it may mean the difference between life and death, or at least having the means to get what you need in times of chaos.
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