Historically, investors and collectors hold gold and silver as protection for their savings and for their wealth at large. The United States has a storied history with precious metals, but whenever the purchasing power of the dollar has fallen the public has turned to gold and silver.

Precious metals make quality investments because you can leverage them as a hedge against inflation, deflation and currency devaluation, reducing the volatility of your portfolio. It sounds simple, but is a fact that could make a substantial impact on your earned wealth.

If you think about portfolio diversification in terms of selecting another mutual fund or stock, you’re still in the “paper” boat, you’re not doing anything to truly diversify.

The Basics of Precious Metal Investing


  • Available in: bar and coin form, silver, gold and platinum
  • Value: precious metal content & cost fabrication
  • Unique quality: Require social security number for liquidation above certain minimums
  • Examples: South African Krugerrand, the Canadian maple Leaf and the American Eagle Coins



  • Value: principally based on condition, grade, scarcity and demand (rather than precious metal content)
  • Unique quality: potentially exempt from future government confiscation
  • Examples: proof coins and those graded by Professional coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC)


Proof Coins

Considered the collectors version of mass-produced bullion coins, proof coins are minted through a unique process that involves the striking of select dyes multiple times to produce softly imprinted, detailed images. Each proof coin undergoes an inspection process to become designated as a proof coin. Proof coins, like the American Eagle, are issued with the official U.S. Mint Certificates of Authenticity.

Proof coins are considered rare; they are minted on a limited basis with their value based on mintage, rarity, condition, age and demand.