Best Buys In Bullion
As promised in my article entitled “Bread and Butter”, I will share with you what I consider to currently be the best buys in gold and silver bullion, and why.
Firstly, all items must enjoy our two prerequisites, low premium and high liquidity. You want the best of both worlds. Yes, you can find lower premium items, but demand is poor. You can also find items that have very high liquidity, but their premiums are much higher than you need to pay.
So, here are my recommendations for both gold and silver that enjoy the best of both. Although specific suggestions may change, this list has been largely consistent for many years:
GOLD (maximum 5% premium over spot)
- Canadian Maple Leaf – 1oz. and 1/2 oz.
- South Africa – Krugerrand – 1 oz., ½ oz. and 2 Rand (.2354 ounce)
- Austria (Hungary) – 1oz. Philharmonic, 100 Corona (Korona) and 20 Corona (Korona)
- French & Swiss – 20 Franc
- UK/Britain – Sovereign
SILVER (maximum 5% premium over spot)
- Pre-1965 U.S. 90% silver coins – Dimes, Quarters, Half Dollars
- Generic 1 oz. silver ingots (round form only)
- 100 oz. silver bars (IRA approved only)
Cautionary items:
- Mexico – 50 Peso too large and poor secondary market
- Australian – too thinly traded
- Chinese – too many counterfeits
- Italian, Spanish, Latin & South American – limited secondary market
All Things Considered – John’s Commentary:
If you generally stick to these items you will avoid paying excessive premiums and not have to sacrifice liquidity. Stick with the bread and butter.
“Until government administrators can so identify the interests of government with those of the people and refrain from defrauding the masses through the device of currency depreciation for the sake of remaining in office, the wiser ones will prefer to keep as much of their wealth in the most stable and marketable forms possible – forms which only the precious metals provide.” – Elgin Groseclose
