American Silver Eagle Coins: Why should one invest?

I will give you two reasons: to protect yourself against price inflation and to have a level of security in the event of a currency collapse.

In the latter case I also suggest you consider storing freeze dried food.

Inflation is not rising prices. Rising prices is a direct result of the money supply being inflated. The Federal Reserve along with fractional reserve banking create money out of thin air. When this happens the value of the dollar becomes diluted. This is why gold, silver, food and other real goods become more expensive over time. The reality is your currency is loosing value.

As you can see in the chart below the federal reserve has been a little more extreme lately in the creation of new money. This will lead to higher prices, including silver eagle coins.

Silver and gold are both great hedges against inflation. However I recommend silver over gold for two reasons. Silver is actually more scarce then gold (which could add to the price in the future) and if the dollar collapses then it would be more practice to trade with silver coins then it would be with a ounce of gold. That is to say that smaller, day to day, transactions would be easier with silver.

Where should you buy American Silver Eagle Coins?

American Precious Metals Exchange is the source I recommend for buying silver bullion. It has been the best price and I haven't had any problems with them.



Disclaimer: I am not a financial advisor and you should consider any investment carefully as all investments carry risk. However I still strongly believe the risk of holding dollars is greater then holding silver.