Fluctuations caused by a global pandemic as the bear market trends downward have investors shifting their attention away from stock tickers. There are myriad reasons to eye precious metals or coins as an investment, according to Saint Jovite Youngblood, owner of Youngblood Metals Mining. Many are eyeing coins as a potential buffer and safer bet. Any time there are incidents in the world, survival enthusiasts think of the value of precious metal and how it can be instrumental for survival – packable and valuable tools for trading.
Flip through the pages of history and that is exactly the service that coins and metals have provided.
While the composition of coins has shifted in some cases, so has the minting technology. From the Lythians’ primitive head of a lion to the busts of U.S. Presidents to a coin homage to Queens, the advancements and leaders of civilizations can be tracked.
“When you hold a rare coin in your hand, you can feel the history behind it, and get a sense of the person who made it, the people who traded it for various survival needs: food, shelter, warmth. The astounding history within each coin can be sensed,” Saint Jovite Youngblood said.
As the coins themselves have evolved, so have some of the reasons for procuring them.
Berkshire Hathaway Inc., owned by investor Warren Buffet, may own as much as 130 million ounces of silver. While Buffett never explained his reasons for so large a stockpile in precious metals, anyone can guess – perhaps it is seen as simply an investment or it could be viewed as insurance against inflation.
Another glance at history and glimpses of hyperinflation in Germany just after World War I surface – the wheelbarrows full of cash taken to grocery stores for a loaf of bread.
There is a reason why the United States currency was backed by the gold standard for so long.
“Precious metals provide stability,” Saint Jovite Youngblood said.
A glimpse into the modern history of South America reveals the downfall of the Argentinean peso and the Paraguayan guarani in 2002. Banks shuttered initially during the economic meltdown and upon reopening, they limited the amount of money that could be withdrawn, according to a story by CMI Gold & Silver.
The same thing happened to Brazil soon after. The country defaulted on international debts and the value of Brazil’s currency, the real, immediately plummeted.
But some residents of these countries prepared for such a disaster by converting their assets to gold or silver, protecting them from the eventual downfall of their countries’ currencies.
In short, those that had precious metals were able to dodge much of the stress that the upheaval created.
But to be clear, investing in precious metals is a good idea for Americans, too, not just South Americans, Saint Jovite Youngblood said.
Economists have long considered the responsibility of the United States Federal Reserve and what it would mean if too much paper currency is printed, a potentiality considering the long departure from the Gold Standard.
In the end, when there are so many variables in the world, there are also psychological benefits of having a backup plan in case of a financial catastrophe.
There are certain coins and metals that could be deemed appropriate for different scenarios. It is a science in the truest sense.
It’s wise to develop some education about which coins would be deemed most valuable in different situations, including an assessment of the percentage of various metal alloys. In addition, it’s a good idea to understand what precious metals would be better used in bartering or for emergency purposes.
For example, Saint Jovite Youngblood said, there are differences between gold and silver.
“It really depends on how much money you have to invest,” Youngblood said.
Your portfolio is always important while talking about investing, even among precious metals.
Long-term, investing in gold, silver, and valuable coins is a smart strategy.”
CMI also suggests that the ideal scenario would be to invest in both gold and silver. But if you have less than $10,000 to invest, CMI suggests going for silver only, especially one-ounce silver rounds.
But investing in silver also results in 50 times more weight than the same investment in gold, so there’s a potential storage issue with silver. If that’s a problem, then gold might be a better option.