We’ve had many customers walk in through our doors looking for jewelry or to sell their gold. As they approach our counter they notice the case full of coins and are intrigued by the trays that are covered end to end with various types of coins. Morgan Dollars, Peace Dollars, Kennedy Half Dollars, American Silver Eagles, Silver Buffalos, American Gold Eagles, Double Eagles, Mercury Dimes, you name it, our customers notice these coins and being to ask about them. They go from customer to investor looking to invest in gold.
The most common question is, why do people buy these? Our answer because they like to invest or to hedge themselves against the dollar in case of an economic collapse. It’s usually followed up by how does buying these coins have anything to do with investing?
Well here’s the answer Gold and Silver are traded in the stock market like any other stock. Thus the price of Gold and price of Silver change every 60 seconds as futures are traded on the stock market. The price is determined by the ounce, meaning that the price of an ounce of Gold and an ounce of Silver changes every 60 seconds and it is used to determine the price at which Gold and Silver is bought and sold.
How does this relate to coins? Well the coins that we sell at our shop are made of Gold or Silver. We sell these coins (and bars) in denominations of 1oz, 10oz, 100oz and other various weights that come through our doors.
For example our most popular product is the 1oz Silver Buffalo. This coin (round) contains 1 troy oz (31.1g) of 99.99% pure silver. This makes it easy to trade because it is based upon the weight used by the stock exchange. The current market price of silver is what most dealers and coin shops pay for that rounds. So imagine purchasing that silver round in late 2015 when silver was at ~$13 and then cashing out now where silver currently sits at ~$20 (August 2016). That would be an increase of $7 or 54%!
Why is the 1oz Silver Buffalo so popular for investors? That’s because coins and bullion are priced by adding the value of the precious metal content whether it be gold, silver, platinum or palladium, and the premium. The premium is the price that is added on top of the price of the precious metal to cover the cost of manufacturing the coin. Because of that our customers who are looking to invest purchase the Silver Buffalos because they have a low premium which lowers the cost of investment. Low premiums are key to investing especially since customers buy up to thousands of rounds which means that even a couple cents off the premium can result in significant cost savings.
Here at Accurate Precious Metals, we have a large selection of coins for both the investor and the prepper. We have large amounts of coins and bullion in stock so you walk out with product in hand at the lowest premiums. That’s because since we’re also a refinery we have special business relationships with the mints allowing us to pass on the savings to you!
Visit us today at AccuratePMR.com or call us at (503) 400-5608