Category: Silver

While the talking heads try to convince the American public that the economy is firing on all cylinders, smart investors are taking their financial fate into their own hands. Instead of tossing their hard-earned dollars on top of an inflated stock market, they’re diversifying with gold and silver.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr. Precious Metals Advisor Damian White and Precious Metals Advisor Todd Graf explain why investors are strategically reallocating some of their portfolio and why NOW is an opportune time to buy physical gold and silver.

Approach the Stock Market with Caution

The stock market has never been a reliable indicator of the health of the broader economy, especially for everyday Americans. That’s why the recent highs across stock indices aren’t shaking any concerns investors have about the economy. Recent Gallup surveys reveal that 74% of people don’t have a positive view of the economy. With a historically low approval rating of 38%, the Biden administration’s incompetence isn’t generating much hope for a turnaround.

The US economy still faces a series of obstacles such as stubborn inflation, record levels of personal debt, and a looming US debt crisis. As the wealth gap expands, the middle class is getting crushed. The rich keep getting richer, and the poor keep getting poorer. For perspective, the average American is currently spending 11% of their disposable income on food which is at its highest point in decades.

Time to Reallocate Investments?

In light of the underlying economic risks, many investors are taking profits while the stock market is surging. They’re preemptively reallocating their wealth to more stable assets such as precious metals in anticipation of an economic downturn or full-blown recession.

Things look good on the surface right now, but…things can go south very quickly.

–Precious Metals Advisor Todd Graf

Gold Demand vs Gold Prices

Over the past four to five years, there’s been a widespread shift away from paper assets and into gold bars and coins. This considerable surge in precious metals demand was sparked by the pandemic and maintained by a gauntlet of economic and geological challenges including bank collapses, hot wars, ongoing inflation, and the southern border crisis.

Every time there’s a boom in gold buying, gold prices and premiums reach relative highs. The friction between heightened demand and dwindling supplies forces precious metals and coin dealers to increase their premiums as it costs more to locate and source physical metal assets. As a result, buying into surging demand isn’t ideal.

A Short-Term Buying Opportunity

Interestingly, while central banks continue to buy up gold bullion at record rates, there’s been a lull in retail investor gold demand as investors are distracted by a booming stock market and the siren calls of politicians promising a full economic recovery. This is a welcomed opportunity for investors looking to accumulate more physical gold at relatively low prices before the next rush into precious metals.

“Right now…is the opportune time to be buying precious metals. Prices are relatively stable…and…premiums have compressed to levels we haven’t seen in years.”

Damian White

Sr. Precious Metals Advisor

Of course, this buying window is going to close soon as more investors wake up to the growing risk of traditional assets. Time is of the essence.

Don’t Wait to Buy Gold, Buy Gold and Wait

Gold has remained the most effective and proven insurance policy for your wealth. Everyone can see and feel the economic turmoil. Forward-thinking investors are taking advantage of the surging stock market to take profits and shift into precious metals to hedge against the incoming flood of economic pressures.

Waiting around until the economy turns south will result in higher costs and higher premiums as gold and silver prices inevitably rise. Right now, we’re in the calm before the economic storm. It’s an ideal time to start accumulating or adding to your stockpiles.

Morgan and Peace Dollars represent two of the most iconic and sought-after silver coins in US history. These popular coins have a lot in common which means their differences are easily overlooked. Understanding the specifics of both Morgan and Peace Dollars can make it easier for investors to choose the right coin based on their investment goals.

Historical Significance

Morgan and Peace Dollars represent significant periods in American history in terms of the meanings underlying their designs and the motivations behind their mintings.

The Morgan Silver Dollar is intended to represent the fulfillment of the country’s Manifest Destiny in its westward expansion as well as the booming development of the industrial revolution. It holds the distinction of being the first silver coin minted following the Coinage Act of 1873 which temporarily demonetized silver in favor of the gold standard.

As its name implies, the US Peace Dollar celebrates global peace following WWI and America’s new position as a world leader. This classic coin was minted to meet the demands of the Pittman Act which required the production of millions of silver coins. Despite being the immediate successor to the Morgan Dollar, the Peace Dollar was the final silver coin ever produced for circulation in the US.

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Mint Dates

Production of the original Morgan Dollar lasted from 1878 to 1904 with a one-year resurgence in 1921 before the design was replaced by the Peace Dollar. As America’s final circulating silver coin, the Peace Dollar saw two minting periods in its original form from 1921 to 1928 and 1934 to 1935. Each period of production represents individual pieces of minting legislation. Both coins were reissued in 2021 to celebrate the centennial shift between Morgan and Peace Dollars with production slated for the foreseeable future.

Design

The designs of Morgan and Peace Dollars share many similarities, even though they were intended to represent disparate times in US history. Both coins feature a side profile of Lady Liberty on the obverse and a bald eagle on the reverse. However, that’s where the overlap ends.

Obverse

The Morgan Silver Dollar’s Liberty is wearing a simple but elegant diadem depicting the word “LIBERTY” and a Phrygian cap, commonly referred to as a liberty cap. The US motto “E PLURIBUS UNUM” is inscribed on the top, and 13 stars grace the bottom half of the coin. On the other hand, Liberty on the Peace Dollar boasts a radiating crown with flowing locks of hair. “LIBERTY” sits atop the profile with “IN GOD WE TRVST” beneath it.

Reverse

The bald eagle on the Morgan Dollar’s reverse side is clutching a bundle of arrows and an olive branch with its wings spread proudly. A laurel wreath encircles the lower half of the eagle as a symbol of honor and victory. The design is encompassed by “UNITED STATES OF AMERICA” and “ONE DOLLAR”. Alternatively, the Peace Dollar’s bald eagle rests atop a rock looking confidently at the rising sun depicted by sharp rays. “UNITED STATES OF AMERICA” and the US motto adorns the top of the coin while “ONE DOLLAR” and “PEACE” rest at the bottom.

There’s little difference between the original and modern Silver Peace Dollars or Morgan Dollars.

Purity

Investors will be pleased to know that both Morgan and Peace Dollars enjoy high silver purities, in accordance with US law. The initial mintings for each coin feature 90% purity (1878 – 1904, 1921 for Morgan Dollars, and 1921–1935 for Peace Dollars). Thanks to a boom in silver usage and advancements in technology, modern versions of these coins boast a 99.9% silver rating.

Although some Morgan and Peace Dollars hold inherent value beyond their weight in silver, most are only worth their melt value. Unfortunately, some sellers try to pawn off modern, graded bullion coins at prices far surpassing their true value.

Versions

Morgan and Peace Dollars come in circulating and uncirculated varieties, although the overwhelming majority are in the former category. A distinction can also be made between the original and modern versions. The original mintings of these coins were intended for daily use which means most entered circulation. A select few have survived in uncirculated conditions, but it’s important to note this is a minority. Conversely, all modern Morgan and Peace Dollars – those minted since the 2021 reissue – are bullion coins. Since these coins were designed for collecting instead of use, most maintain their uncirculated condition.

Mintings

The US Mint produced over three times as many Morgan Dollars when compared to Peace Dollars. This difference is owed to varied production lengths and the country’s changing coinage landscape. The Morgan Dollar experienced 27 years of production while the Peace Dollar only saw 24 years. On top of that, the US was benefitting from a massive boom in silver production when the Morgan Dollar was issued. By the time the Peace Dollar took its place, there was less of an emphasis on silver coinage.

Are Morgan and Peace Dollars good investments?

Morgan and Peace Dollars are among the most popular investment-grade coins. However, their true merit depends on the unique goals and budgets of each investor. Working with a reputable precious metals expert can help you determine how these coins align with your long-term investment goals. One of our advisors would be more than happy to help. Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.