Have you been thinking about whether or not you should buy physical silver?
If you are someone who has never purchased before, and you don’t know what to buy, the choices can be daunting.
Physical silver can be purchased in a variety of ways including: junk, rounds, privately minted, or government-issued.
You can also buy coins based on their historical, or numismatic, value.
There’s no one way that is right for everyone.
It really depends on what your purpose is for wanting to hold physical silver, or any other asset in your portfolio.
With that mind, let me tell you why I specifically purchase American Silver Eagle Coins.
Why I buy American Silver Eagle Coins!
This question can only be answered once you have determined why you want to hold physical silver.
For me, I hold physical silver not as as investment, but as a hedge against the US dollar.
In short, if the dollar were to become completely worthless at some point, I want a back-up.
And that back-up needs to be something that holds intrinsic value.
Additionally, it must be easily portable and transactionable.
Real estate, oil, and other hard assets do not meet those criteria.
I specifically buy US-minted silver coins because I live in the USA.
I want to hold US-minted silver coins because I believe that they’ll be most readily accepted in this country than all other silver coins.
As a counter example, if I held junk silver coins containing differing silver amounts, I don’t want to be disputing with a vendor regarding how much my silver coin is really worth.
All US-minted 1 oz. silver eagles are .999 pure in silver content.
In a scenario where monetary transactions are completed in silver or gold, there will be no dispute over the value of a 1 oz. US-minted silver coin.
How Much Should One Own?
Most proponents of precious metals ownership will say one should own between 5% – 15% of your net worth.
My personal preference is 10% although I don’t have an issue with 15%.
I don’t believe there’s a reason or need to go higher than that.
Why Do I Want to Own Precious Metals?
Various people have differing reasons why they own precious metals, including silver.
I’ll be clear — I don’t own them as an investment.
Historically, gold and silver are money.
Only in recent years have governments decided to call pieces of paper, money (without the backing of gold or silver.)
I own some silver (and gold) because I want to possess actual money.
We own life insurance policies to safeguard our families in the event the breadwinner dies prematurely, for example.
In the same way, I want to own real money if and when the US dollar ever became worthless.
It’s not a prediction.
It’s simply a reasonable attempt to safeguard my family financially in the event our national currency became more valuable as kindling than it does as a store of value.