Is It Bullion’s Turn Now?

Coin collectors always have one eye on the bullion value of their coins and may also directly collect bullion in the form of gold, silver and platinum coins and bars. The last few weeks have been turbulent times indeed for all kinds of investors. Cryptocurrencies collapsed, and now seem to be reviving, thanks in part to an anonymous purchase of $400 million worth, which has made that volatile market bullish again. Ups and downs in cryptocurrencies are normal for those volatile items, but the stock market too, after a record year of growth, has been jittery too. It has made back most of the loses of recent weeks, but all this uncertainly raises the inevitable question – is it time for bullion to take off?

Gold and silver prices have been much higher in the past – gold is today $1,300, which is well below its historic high of just under $2,000 in November 2011. Platinum is around $1,000 today, but it was almost $2,200 back in 2008. Silver looks even more promising, since it currently sells for around $16 and ounce, but was $48 in April of 2011. If each currency was to hit it previous high, that would be 54% growth on gold, 120% on platinum, and a full 200% on silver. Of course, nobody can predict the future, but based on past behaviour of the markets, anyone is free to speculate on where things might go. Based on past performance, in uncertain times, when the air is full of wars, rumours of wars, social tensions, and economic uncertainty despite an appearance of normality, precious metals are always seen as safe havens.

Given that, collectors, both cautious and more adventurous ones, might decide that now is a valuable time to pick up some bullion, just in case things get interesting. The most popular picks for gold are American Gold Eagles and Canadian Gold Maple Leaf uncirculated coins. These come in several sizes – 1 ounce, ½ ounce, ¼ ounce and one-tenth ounce – which means that everyone can get into the market, even if they have just a small amount to invest. For Platinum the American Platinum Eagle coins come in the same sizes as gold, so again there is a range available to suit your wallet. Silver has a much lower ounce-price, so 1-ounce coins are the norm. In some ways, you can think of silver as the equivalent of ‘penny stocks’, which despite their low unit price have made fortunes for the smart and lucky.

If you are not yet ready for the cryptocurrency playground, you can always stay rooted in the real world and buy cryptocurrency commemoratives in silver bullion. There are 1 oz. Silver Rounds available as solid representations of a variety of virtual currencies – Bitcoin, Ethereum, Litecoin, ZCash, and several other members of what is for many still a very ethereal concept. Coin collectors like to feel the weight of their assets, and with the volatility of the cryptocurrency markets, and the potential for big rises in silver, those who stick to something real could end up coming out on top. Who knows, but at least you can have some fun trying to find out.