| Why Are American Silver Eagle Coins a Good | | | | At the close of the market the same day, one troy |
| Investment Now? | | | | ounce ofsilver was selling for $21.30. On that day the |
| Like other precious metals, silver is often used as | | | | gold/silverratio was 1:67. In other words, one troy |
| aninvestment. Although no longer considered to be | | | | ounce of goldwould buy 67 ounces of silver. |
| legaltender in the US, silver has been regarded as a | | | | Silver has been appreciating rather dramatically since |
| store ofvalue and a form of currency throughout the | | | | 2005. |
| world for morethan 4,000 years. | | | | To put things into perspective, the yearly |
| If you compare the price of silver to the price of gold | | | | cumulativeaverage price of silver in 2000 was $4.95. In |
| youwould see that silver is considerably more volatile. | | | | 2005 theyearly average cumulative price rose to $7.31. |
| That'sbecause there are fluctuations in the way silver | | | | Throughout |
| is used. | | | | 2009 the average cumulative price of silver was |
| There can be large fluctuations between store of | | | | $14.67. |
| value andindustrial uses that affect its valuation. And, | | | | It appears that silver is rising in price very dramatically. |
| becausesilver has lower market liquidity than gold its | | | | Perhaps it's because people are concerned with the |
| volatilityalso is greater. | | | | economy. |
| Silver still often tracks the price of gold because of | | | | Since the global recession began in 2008 investors |
| theintrinsic value of the metal. However, the gold | | | | have beenincreasing their demand for precious metals. |
| silverratio can vary by quite a bit. The lower the ratio | | | | That's becausewhen inflation increases precious |
| the moreexpensive silver is when you compare it to | | | | metals have historicallyincreased in value. |
| gold. | | | | One of the most popular ways to invest in silver is to |
| In 1792 the United States fixed the gold/silver ratio by | | | | buysilver coins. One example is the American Silver |
| lawat 1:15. This meant that you could buy 15 troy | | | | Eaglebullion coin. The American Silver Eagle is the |
| ounces ofsilver with one troy ounce of gold. During the | | | | officialsilver bullion coin of the US. It is only struck in |
| 20th centurythe ratio was 1:47. In other words, on | | | | onetroy ounce sizes and is guaranteed to contain one |
| average, one troyounce of gold would buy 47 ounces | | | | troy ounceof 99.9% pure silver. |
| of silver. | | | | Theses coins sell for a very small premium over the |
| On September 22, 2010 gold hit a new high. At the | | | | spotprice of silver. Because of that American Silver |
| close ofthe market one troy ounce of gold was selling | | | | Eaglecoins have become one of the most popular |
| for $1,291.20. | | | | ways many peopleuse to invest in silver. |