A funny thing happens to gold and silver most Decembers. Prices tend to go down and this December may be the best time buy gold and silver since last summer. Prices for both metals have been on a slight downward trend, from a high of $1549 on September 3 for gold to $1460 as this article is being written (November 26) with a notable dip since the beginning of the month. Silver peaked at $19.27 the same day and has slid to $17.07.
Buy the December Dip?
Experts say a slight year-end downturn isn’t unusual for both metals and many see a strong upside for them as the US monetary supply continues to grow unchecked, auguring inflationary pressures, and while interest rates remain historically low. In fact, some optimists see gold approaching $2000 in the near future with silver possibly outperforming it. More cautious analysts nonetheless see historical patterns arguing for a significant rise in the metals’ prices at the beginning of each new year.
If the bullion bulls are correct and gold and silver are set for a steady rise, then the best buying opportunities will occur during the inevitable dips along the way, including this December.
Investing vs Speculation
As we’ve said before, speculation is, well, speculative. It’s best done with a large amount of research, a crystal ball, and good measure of luck. Investing, on the other hand, takes a longer-term look at history, trends, and current conditions. And few investments have done better long-term than gold. Silver, though subject to wilder swings, has performed well historically, too.
Hedging Your Bets
Bullion has long been considered a good hedge against inflation and economic downturns, and while it is a popular asset to hold, gold and silver coins are another option to consider. Besides their bullion value, coins have a numismatic (collectible) value that can often outpace the value of the metals they contain.
Collectible coin value depends on many things, principal among them quality, rarity, and desirability. But even common coins such as American Eagle gold and silver proof and bullion coins gain in value as time passes. While their principal worth remains in their bullion value, over time their collectible value increases, too, adding another benefit to them as investments. American Eagles and other US bullion coins are also eligible to include in IRAs and other tax-deferred savings programs.
Gifts of Silver and Gold
Silver and gold have been among the most appreciated gifts since the beginnings of civilization thousands of years ago. They still rank among the most treasured today. Gold and silver coins make stunning centerpieces for pendants, bracelets, and cufflinks. Larger items like 1 oz. gold and silver American Eagle coins are perfect choices for necklaces and pendants and smaller coins work beautifully in bracelets and charms. And what could be classier than a pair of cufflinks made with 1/10 oz. 22 karat 2019 Gold American Eagle coins? Their 5/8-inch diameter is perfect for setting in links as well as charms, bracelets, and rings.
Don’t have the budget for gold? American Silver Eagle and circulated Morgan Dollar coins offer beautiful alternatives in one-ounce sizes. Vintage US 90% silver dimes, quarters, and half dollars give additional size options along with added historical context.
Gold and silver coins make great gifts in themselves. They not only have value as precious metals, individual coins and sets can have extra meaning when tied to birth years and other special occasions. Several, like American Silver Eagles, even come in special gift boxes and holiday holders and themes for added charm and appeal. Besides their inherent beauty and value, gifts of silver and gold will be treasured long after other gifts are discarded or forgotten.
The Great American Coin Company® has an extensive selection of coins and bullion for your collecting, investment, and gift-giving needs. Visit our website to see the many options available for collecting and giving throughout the year.