To start out with, when writing a column each week, I have to do a bit of research, and I did so with the American Silver Eagle, which was first produced in 1986. I always thought they were produced at the U.S. Mint at West Point, New York, but I find that they are also produced in Philadelphia and San Francisco. All three are unionized, and that probably explains why they are $5 over spot, vs. the ever so popular ‘Buffalo,’ which is non-union, and is a bit over a dollar over spot. My ‘Red Book,’ which is the Bible of coinage in America, is a 2013 version, and I am ordering a new one post haste. I also have discovered that the reverse of the U.S. Silver Eagle, was changed in 2021, and of the thousand or more I have in my safe, none of them are 2021 or later. Our web site (coloradogold.com), has the new reverse with the Eagle clutching an olive branch. The new reverse, eventually may make the older reverse more collectible. The silver eagles, also have dates on them, and over the years, older dates may make them a long term better buy. Time will tell.
I have written a couple times across the 47 years I have been in business, and as I have always said, throughout history, the ratio between gold and silver, has always been about 16 to 1, or one ounce of gold, equals 16 ounces of silver, in prices. When Bunker Hunt was attempting to corner the world’s silver market, and was betrayed by the SEC, who refused to buy his futures contracts, the ratio, briefly, was 16 to 1, and it quickly went to 48 to 1, and now is down from about 89 to 1, to 82 to l. (I met Bunker Hunt, and was helping to count his silver. A big, heavy-set guy, who was very friendly). In other words, one ounce of gold, equals 82 ounces of silver in price. Both are ‘precious metals,’ and both are real money in all nations, at all times. Both are solid insurance against universal paper money eventually going to zero, with no monthly payments or knowledge by anyone.
As is obvious, with gold at close to $2400 an ounce, if the time ever comes to bartering, silver will be the best, unless you may be buying a used car or home. Think about this: The seller of the car or home, may use gold or silver, as part payment of your used car of home, so as to make the actual cash outlay lower, and resultant taxes lower! You might also think about the buffalo tenth ounce of silver, at under $4 in tubes of fifty, as a barter if lower value is wanted.
I think everyone should have at least a couple hundred ounces of silver or more, depending on your storage capacity, but after that, the difference is so great, that having thousands of ounces of silver as an inflation hedge, seems rather pointless, as when you may want to sell, the shipping costs may be high, compared to a few ounces of gold, or as a gift to your heirs if you die, they may be far happier with gold, vs heavy silver. Both gold and silver, are so infinitely superior to paper money denominated, un-backed dollars, or even worse, totally worthless other than gambling, bit-coins, which have gone from two to buy a pizza, to far lower than their peak, currently to about $60,000, and FOR WHAT? Nothing, as if you ‘buy’ one, you only get an entry in computers. Nothing physical. For one bit-coin, you can almost have thirty ounces of gold, or 2,000 ounces of silver!
Don Stott- don@coloradogold.com