Precious Metals

Precious metals are rare, naturally occurring metallic chemical element of high economic value, which is not radioactive. Chemically, the precious metals are less reactive than most elements, have high luster, are softer or more ductile, and have higher melting points than other metals. Historically, precious metals were important as currency is as investment and industrial commodities. Gold and silver are often as hedges against both inflation and economic downturn. The best- precious metals are the coinage metals gold and silver. While both have industrial uses, they are better for their uses in art, jewelry and coinage. Other precious metals include the platinum group metals: ruthenium, rhodium, palladium, osmium, iridium, and platinum, of which platinum are the most widely traded. The demand for precious metals is not only by their practical use, but also by their role as investments and a store of value. A metal is precious if it is rare. The discovery of new sources of ore or improvements in mining or refining processes may cause the value of a precious metal to diminish. The status of a "precious" metal can also be by high demand or market value. Precious metals in bulk form are as bullion, and trade on commodity markets. Bullion metals cast into ingots, or minted into coins. The defining attribute of bullion is that it is valued by its mass and purity rather than by a face value as money. Many nations mint bullion coins. Although nominally issued as legal tender, these coins' face value as currency is far below that of their value as bullion. For instance, Canada mints a gold bullion coin at a face value of $50 containing one troy ounce of gold. Bullion coins' minting by national governments gives them some numismatic value in addition to their bullion value, as well as certifying their purity. The level of purity varies from issue to issue. The level of 99.9% purity is common. The purest mass-produced bullion coins are in the Canadian Gold Maple Leaf series, which go up to 99.999% purity. Note that 100% pure bullion is not possible, as absolute purity in extracted and refined metals can only be asymptotical. Many bullion coins contain a stated quantity (such as one troy ounce) of the marginally impure alloy. In contrast, the Krugerrand is one of many historic and modern bullion coins of 22 Kt Crown gold, with a stated content (usually one troy ounce) of "fine gold"[clarification needed (define)], with the other component(s) of the alloy making the coin heavier than one ounce in total. Still more bullion coins state neither the purity nor the fine gold weight on the coin, but are recognized and consistent in their composition and many historically stated a denomination in currency (example: American Double Eagle). One of the largest bullion coins in the world is the 10,000-dollar Australian Gold Nugget coin minted in Australia, which consists of a full kilogram of 99.9% pure gold. There have been a small number of larger bullion coins, but they are impractical to handle and not produced in mass quantities. China has produced coins in very limited quantities (less than 20 pieces minted) that exceed 260 troy ounces (8 kg) of gold. Austria has minted a coin containing 31 kg of gold. As a stunt to publicize the 99.999% pure one-ounce Canadian Gold Maple Leaf series, in 2007 the Royal Canadian Mint made a 100 kg 99.999% gold coin, with a face value of $1 million, and now manufactures them to order, but at a substantial premium over the market value of the gold. Gold and silver are often as hedges against both inflation and economic downturn. Silver coins have become popular with collectors due to their relative affordability, and unlike most gold and platinum issues, which are valued based upon the markets, silver issues are more often valued as collectables, far higher than their actual bullion value.

American Silver Eagle

The American Silver Eagle is the official silver bullion coin of the United States of America. The United States Mint first released it in November 1986. It struck only in the one-troy ounce size, which has a face value of 1 dollar and guaranteed to contain one troy ounce of 99.9% pure silver. The United States Mint certifies its content, purity, and weight. Silver Eagle bullion coins, along with American Gold Eagle bullion coins are viable investment alternatives to the gold and silver bullion coins produced by other countries. To ensure wide distribution of the coins, the United States Mint awarded a contract to Grey Advertising to assist in marketing and publicizing the coins domestically and internationally. The design on the coin's obverse taken from the "Walking Liberty" design by Adolph A. Weinman, which originally had been used on the Walking Liberty Half Dollar coin of the United States from 1916 to 1947. As this iconic design had been a public favorite—and indeed one of the most beloved designs of any United States coinage of modern times, silver or otherwise—it revived for the Silver Eagle decades later. The obverse inscribed with the year of minting or issuance, the word LIBERTY, and the phrase IN GOD WE TRUST. The reverse is by John Mercanti and portrays a heraldic eagle behind a shield; the eagle grasps an olive branch in its right talon and arrows in its left talon, echoing the Great Seal of the United States; above the eagle are thirteen five-pointed stars representing the Thirteen Colonies. The reverse inscribed with the phrases UNITED STATES OF AMERICA, 1 OZ. FINE SILVER ONE DOLLAR, and E PLURIBUS UNUM as well as the applicable mintmark. Like the American Gold Eagle and American Platinum Eagle bullion coins, the United States Mint does not sell Silver Eagle bullion coins directly to the public. In order to provide "effective and efficient distribution, which maximizes the availability of the coins in retail markets as well as major investment markets" the Mint utilizes a network of authorized purchasers to distribute the coins. The coins sold in bulk at a premium over the spot price of silver. The coins sold to banks, brokerage companies, coin dealers, precious metal firms, and wholesalers that meet the following requirements. Be an experienced and established market maker in silver bullion coins. Provide a liquid two-way market for the coins. Be audited annually by an internationally accepted accounting firm. Have an established broad base of retail customers to which to distribute the coins. Have a tangible net worth of $5 million. Authorized purchasers must order a minimum of 25,000 coins, which they sell to secondary retailers that sell them, in turn, to the public.