Increasing Wealth - Silver American Eagle Coins - Numismatic Coins

Silver is currently being referred to as the new(2) Established in 1986, the American Eagle Silver
Gold. Why? Because when gold prices increase,Bullion Program is the most successful silver bullion
such as they have recently, investors seek aprogram in the world;
lesser expensive alternative. That's why silver is(3) From fiscal year 1995 through fiscal year
called poor-man's gold.2001, the American Eagle Silver Bullion Program
Coin and bar sales have been so robust -- the U.S.generated revenues of $264,100,000 and
Mint now is rationing American Eagle coins -- thatsufficient profits to significantly reduce the national
dealers say they can't meet small-investordebt;
demand.(4) with the depletion of silver reserves in the
Financial experts are of the opinion that theDefense Logistic Agency's Strategic and Critical
present economic problems the world is facingMaterials Stockpile, it is necessary for the
are going to get worse. Those who study financialDepartment of the Treasury to acquire silver
trends are urging the public to convert their paperfrom other sources in order to preserve the
money into tangible assets. The feeling is thatAmerican Eagle Silver Bullion Program
sooner or later, physical assets trump paper.To summarize, The American Eagle Silver Bullion
Experts feel that Silver is once again poised toCoin plays an integral role in our nation's economy.
skyrocket just like it did in the 70's. Back then, anThe government cannot stop making them, being
ounce of Silver was just north of $1.00. It keptthat profits have dramatically reduced the national
rising and rising to over $47.00, for a percentagedebt.
gain of over 3500%! At the time of this writing,In addition to the collection of the Silver American
an ounce of Silver goes for a little over $17, upEagle Bullion Coins there is a noticeable increase in
over 30% this year. I have read that Analystssales of Numismatic Collectible Coins. Harry
are expecting a rise to over $50.00 an ounceNewton, editor, Technology Investor Publication,
within the next 2 quarters. Wow!writes this: "Interesting times ! We are seeing a lot
Here is the fact. The World is running out ofof movement into collectible and investment
Silver. It is used in World Currencies, jewelry, thecurrency and coins especially higher graded coins.
medical industry, clothing, photography, electronics,There's been a 35% increase so far this year in
solar energy, water purification, silverware, nuclearprices and about a 200 % in volume. In the high
power plants , etc.grade values , Proofs 65 and up and in Mint
How does Silver differs from Gold? To put it quiteStates MS 65 and up there is substantial demand
simply, Silver is a consumable, it gets used up. Forwith record prices being reached , we understand
the most part, there are no real or syntheticinvestors are more comfortable holding hard
materials that can be used in place of Silver. Weassets like coins than actual cash Dollar or other
cannot live without it.currency balances and there is a persistent daily
Over 90% of the silver that is mined is used formove out of the latter into hard assets."
industrial purposes.Not all American Silver Eagles are slabbed and
According to the Law of Supply and Demand,graded Mint State (MS) coins. Only about 10% are
when the supply of an item or material decreasesMS-70. Unlike bullion coins that are valued solely on
while the demand is increasing, the price of thethe basis of their silver weight, the value of a
said material will increase substantially.numismatic silver coin is determined by several
Few Americans that are aware that in 2002 itfactors: its rarity, the number of coins originally
became a law that the government mustminted, history and the age and condition of the
purchase silver back from the public when thecoin.
United States Silver Reserves dip below a certainNumismatic coins are bought and sold within the
level.coin collecting community with little regard for
If you read s.2594, or Support of American Eagletoday's silver price. Numismatic coins are cherished
Silver Bullion Program Act section 2, you will seefor their beauty, historical significance, and their
that Congress finds thatpotential investment value. Hence, numismatic
(1) The American Eagle Silver Bullion coin leads thecoins sell at a significant premium over their
global market, and is the largest and most popularintrinsic silver content.
silver coin program in the United States;