This allows politicians and the Fed to print more and more as they wish. This unbridled printing is responsible for inflation and expanding the money supply. In fact, the main reason President Roosevelt took the U.S. off the gold standard in 1933 was to make it possible to expand the money supply since there was no longer a requirement to back each dollar with gold once the dollar was no longer denominated in gold. 

This is one of the fundamental reasons people turn to gold.

Common sense tells us that the more dollars that are created out of thin air, the more worthless each one becomes. The government continues to “create money” that has no real value to spur the economy and pay debts. Many people are concerned that, long term, the value of the dollar will decrease as it has for decades. That is one reason an average home cost $25,800 in 1971 and $512,800 in 2025. The value of the dollar has dropped substantially. Conversely, the price of gold in 1971 was almost $38 an ounce and in 2025 has hit $3,400 an ounce. While the cost of a home is up about 20 times, the value of gold has risen almost 100 times. The dollar dropped 88% in value between 1971-2013!

GOLD

Gold is considered REAL money. It is the metal that has been accepted for payments for thousands of years and tends to hold its buying power over the centuries. Gold is bought both as a hedge and as an investment. Simply put gold is a currency that the government does not control.

Most financial experts recommend that anywhere from 10%-20% of an average portfolio be held in gold or silver.

As the dollar goes down in value, the price of gold goes up. So gold tends to go up in price when many more traditional investments go down. Buying gold is like buying an insurance policy against the likelihood of a devalued dollar.

Keep in mind, there are times the dollar does go up in value and gold goes down in response, as we saw from 2012-2015. This simply means that gold does indeed hold its relative value, just not necessarily year to year.

Trying to pick the bottom or top prices for any investment is risky, and that is why many people buy gold as a hedge against the dollar, government debt, and world crises. These are times people look for a safe haven for their money, which is exactly the role gold fulfills.

Nearly 1/3rd of all the gold mined every year goes directly to investors.

The central banks worldwide buy thousands of tons of gold as a reserve, even though their own currency is NOT backed by gold. These same central banks control our paper money supply and have convinced most of the population that gold is a relic of times past, as they hoard their gold and attempt to control their economies with paper currency.

The reality is that fiat money has only been around for less than 100 years. The list of countries whose fiat money has failed is long.

Here in the U.S., most people seem to think we are immune from such failures. However, as the national debt continues to increase and the Federal Reserve struggles to keep the economy growing, concern is building. After all, paper money’s intrinsic value is
ZERO!

Today’s Federal Reserve Note (the paper money we spend) is not redeemable for gold, silver, or anything else. The ties to gold were cut completely in 1971 by President Richard Nixon. Up until then, foreigners could still trade their dollars for gold. Once this tie was broken, inflation ravaged the U.S. economy.

Many people don’t realize that gold was illegal for Americans to own from 1933 to 1974, when it was finally legalized again by President Gerald Ford.

Gold provides the perfect hedge against negative events in the stock market or during world crises. The financial crisis of 2008 (Oct 2007-March 2009) saw the stock market dip by as much as 7,600 points or 55%! Trillions of dollars were lost, and investors lost much of their life savings. During that time, gold was up 26% and continued to a new high in 2011 of $1908 or 154% increase.

The long-term trend is for the dollar to continue to drop over time. This has been the trend ever since the dollar was taken off the gold standard, and there is no reason to believe it will change.

HOW TO BUY GOLD

Gold is available in many forms. For example, many countries sell gold “bullion coins.” Many people don’t understand the difference between bullion and coins or what is meant by bullion coins.

Gold or silver bullion can be in coin form or bar form. To be considered a bullion item, the coins or bars will trade based on the price of the metal NOT on the collector’s premium or rarity of the coins.

Examples of bullion would include:

There are dozens of other examples.

Coins such as $20 St. Gaudens and $20 Liberty coins are affected by the price of gold but also have a collector value attached to the coins and are usually a poor choice for anyone interested in simply buying gold. As of this publication most of these coins have  completely lost their collector value.

There are other reasons to buy these numismatic coins, but you generally pay much higher mark-ups, and they are not appropriate for most gold buyers. Some dealers will attempt to sell these coins based on the fluctuating premiums (cost of the coin above its actual gold value). The idea is to buy when the premium is very low and profit when the premium rises. The problem is that the premiums have been dropping for decades, and you are betting on premiums rising based on dealer demand for the coins. While this is a legitimate strategy, most buyers end up paying such a high markup that it’s rare for the buyer to cover the spread (difference between buy and sell prices) and make a profit even when gold sky rockets . Even then, the appreciation is minimal compared to gold.

Be cautious of dealers using scare tactics, such as gold confiscation or IRS reporting, to talk you into these numismatic coins. These emotionally charged reasons for buying are a red flag, and the arguments simply are not true. If you ARE concerned about reporting or confiscation, call American Federal at 1-800-221-7694 to discuss this, or ask for our booklet “The Truth Behind Confiscation,” which goes into this concern in great detail.

Most investors should consider a low premium (the amount you pay above the actual value of the gold or silver) coin or bar.

My favorite is the American Gold Eagle. These coins are popular world-wide and have a few advantages. They are defined as numismatic coins in the legislation that created the coins, so if confiscation is a concern, they offer the best protection. All American Eagle coins are also exempt from reporting requirements, so you never get bogged down in paperwork when you sell.

NUMISMATIC COINS FOR FUN NOT PROFIT

I love old high grade collectable coins. Even a few of the modern coins are interesting. I collect coins because I love the history and the story the coin tells.

There was a time it was fairly easy to make money in rare coins but those days are gone. I don’t recommend rare coins to most of my clients, simply because it’s very hard to make a profit. There are always exceptions but the best performing coins start in the six figures and go to tens of millions of dollars. The average investor buying coins for $1,000, $5,000 or even $30,000 isn’t likely to see substantial profits.

If you own coins you can send us a list and we will evaluate your investment for free.

GRADED OR CERTIFIED COINS

The latest trend in the precious metals’ market are coins certified by PCGS or NGC. This can be a complicated market. The rule of thumb here is don’t pay much more for a certified coin than an uncertified coin. Most of the high-grade certified coins are little more than bullion coins which are worth only a few percent more than the value of the actual  precious metal. Several of the earlier date Gold and Silver Eagles have sizable collector premiums, and dealers will use this information to convince buyers to buy the newer coins at high prices.

However, the later years are very common even in MS70 or PR70 condition, and paying big premiums for these newer coins is not likely to pay off. The fact that the coin is certified, graded, and authenticated may make it worth an extra $100 or so over the price of a “raw” or uncertified coin. The extra $100 or more may be worth the gamble or may be worth the peace of mind that a buyer has an authentic coin. Unfortunately, many dealers charge as
much as $5,000 to $12,000 for 1-ounce gold coins in PCGS or NGC holders. The high prices are normally just extra profit for the dealer, and you are not likely to recover that money when you sell. The safest bet is to call AmFed or other dealers to see what a coin may be worth before you purchase any certified coins. My recommendation to most investors is to keep it simple. Don’t buy based on emotion or fear.

Buy bullion coins, which should cost 5%-20% over the actual price of gold, depending on the size of the coin. Smaller coins cost more. These coins will go up or down dollar for dollar with the price of gold and are most liquid when you decide to sell. Liquidity should be your main concern next to price. A bullion coin is simply any precious-metal coin that fluctuates daily with the price of gold, silver, or platinum.

One last note on price.

With the internet, there are literally hundreds of “dealers” competing to sell you gold. Going for the absolute lowest price is not always the best strategy. Many dealers will offer gold “at cost” but delay delivery for up to a year. Others are selling too cheap simply for cash flow, and you risk never getting delivery.

There are dozens of stories of dealers going out of business while owing millions of dollars in gold to clients. One discount dealer in California was just sued by the Feds for cheating clients out of $52 million.

He collected money from customers buy never purchased their promised goods.

Be very cautious when buying online, except for a few well-known dealers. There are hundreds of counterfeits coming from China. I regularly see counterfeit 1oz Bars as well as many other gold coins.

Deal with a someone who has been in business for a long time like American Federal—four decades of experience are better than a few years from a novice dealer. American Federal also provides timely updates and continued education as well as alerts to clients when the market moves up or down, or when there are changes in the market which affect client holdings. These updates can be much more valuable than saving a few dollars on your initial purchase. I feel it’s important to deal with a dealer like American Federal who
keeps you informed after the sale.

SILVER

Silver is often called the poor man’s gold. In fact, silver has been used as “money” much more extensively than gold. Many like the fact that you can buy many more ounces of silver than gold for the same amount of money, plus it is divisible in much smaller dollar amounts. For example, a single silver dime is worth around $2.00-
$3.00.

Much has been written about silver shortages and the gold/silver ratio.

While the amount of silver mined each year is rarely enough to meet demand, it should be noted that huge amounts of silver come from recycling. There have been hundreds of millions of ounces used to make coinage throughout the world, and much of this still exists. This is one reason prices seem to “crash” quickly when silver reaches certain price levels.

SILVER-to-GOLD RATIO

The silver-to-gold ratio is another selling point. The average ratio over the past 40 years has been around 60 TO 65 ounces of silver equal to 1 ounce of gold. When the ratio is higher than that, it indicates silver is undervalued in relation to gold. When it is lower, gold is the better value.

Interestingly, when the markets are very low, the ratio tends to be high and vice versa as prices top out. This can increase profits as prices crest. This can also increase profits tremendously if you buy or sell at extreme ratios but can work against you in a falling market. Silver tends to go up the same as or more than gold in a bull market, but it falls in price much more quickly than gold in a down market.

Many dealers claim the ratio is 30 to 1 or even 15 to 1 in order to sell more silver, but as I said earlier, the real ratio has been closer to 60 to 1 compared to gold.

Silver is also more of an industrial metal than gold, and the price can be affected more directly by global economies. Obviously when the economy does better, demand in silver grows as an industrial metal. Gold, on the other hand, tends to fluctuate more based on economic factors, as discussed earlier.

There are many ways to purchase silver, from old pre 1965 dimes, quarters, halves, and silver dollars to modern bullion coins and various sized silver bars. Bars typically come in a variety of sizes from 1 ounce, 10 ounce, 100 ounce, and 1,000 ounce. The one warning : Silver gets heavy quickly, especially compared to gold or platinum. So if you start accumulating silver, be aware that you will be handling a lot of weight and sheer bulk.
$100,000 in gold will fit in your pocket, while $100,000 in silver will weigh about 200lbs.

PRE-1965 90% SILVER COINS

These silver coins include half dollars, quarters, and dimes minted in 1964 and earlier. They are commonly referred to as junk silver or 90% silver.

Silver coins are one of the most popular ways of buying and holding silver. They trade as a commodity in the same way as silver bars. Pricing changes daily based on the spot price of silver.

Many people like to hold 90% silver for several reasons.

1. Liquidity—it trades every day based on the price of silver. You can buy or sell any amount very easily.
2. Perfect for barter—many people like the added benefit that these are the actual coins once used for day-to-day transactions all across the country. Most people recognize them and understand that they are old silver coinage

They are perfect for barter since you can trade such small amounts, as little as 10 cents. During the first gas shortage in the late 1970s, some gas stations accepted a silver dime for a gallon of gas. This was a great find for me as I was in college at the time and had quite a stash of silver coins since I was a collector. It is the first time I was actually able to use silver coins to barter for something I needed. I have also traded silver dollars for lunches here in Carefree, AZ.

These coins are a great, inexpensive way of buying silver and generally cost less per ounce than many of the modern silver coins. 90% silver is typically trad- ed by the “bag” or its face value—a Bag is $1,000 face value of old coins. Generally, a bag is 715 ounces of silver. The coins are also traded in 1/2, 1/4 and 1/10 bags, as well just about any face- value amount. Need to cash in just enough for groceries? That’s easy because of the small unit sizes. There are some variations of bags of silver.

Some dealers will sell bags of specific coins, such as Walking Liberty Halves and charge huge premiums. The same is true of uncirculated bags. Don’t pay more than 10%-15% more for these specialty bags. Dealers often try to add an extra 30%-50% to your cost, and it’s mostly pure profit.

To figure out how much the silver content in a bag is worth, simply multiply the spot price of the silver by .715. This would tell you the amount of silver in $1 face value of 90% silver. One dollar face value would equal 2 halves, 4 quarters or 10 dimes.

For example, if the spot price of silver is $35 per ounce, $1.00 face value of 90% silver would be $25.03 (35 x .715). Since that is $1.00face value of 90%, then a $1,000 face value bag would be $25,030. Ten dollars face value would be $250.30 worth of silver.

Expect to pay 1%-7% over the actual silver value depending on the market.

To discuss your personal needs and goals call 1-800-221-7694 to speak to an experienced associate.

SILVER BULLION COINS

There are a large variety of silver coins ranging mostly from 1oz to 10oz, 100oz, and kilo in size.

Occasionally, even smaller, privately produced “rounds” as small as 1/10 ounce are available, but generally the premium (amount you pay above the actual value of the silver) is so high that these smaller sizes don’t make sense.

Many different countries produce 1-ounce silver coins, including Australia, Canada, England, China, Austria, Mexico, and of course the U.S. Though I normally recommend the U.S. Silver Eagles, any of these 1-ounce coins certainly accomplish the goal if you want to own silver in an easily tradable, liquid form. They are easy to buy and easy to sell when the time comes. Compare prices when you purchase to get the best deal.

The big difference is usually the amount you pay for the actual coin.

The premiums can change quite dramatically depending on availability.

For example, there have been times that the U.S. Silver Eagle has sold for $6 to $15 over spot, as opposed to their normal price of roughly $4.50 over spot-silver prices. This is one reason it pays to talk to your precious-metals experts at American Federal before you purchase any coin or bar.

Typically different governments makes 1-ounce silver coins, which are sold by the box of 500 coins. The coin can also be purchased by the roll, which is 20 or 25 coins, depending on which particular coin you are considering, as well as individually. Generally, you will get the best price by purchasing a mint box of 500 coins (monster box).

The new Australian Kangaroo 1-ounce silver coin is also available in a 250-coin box.

Expect to pay slightly more if you buy a few individual coins or a few rolls.

One thing to be aware of is specialty coins that are sold certified or graded by PCGS or NGC. 

Many dealers will charge multiples of the actual silver value for certified coins, low vintage coins, or specialty coins in odd sized such as 1/2oz, 3/4oz, 1.25oz Canadian coins or Commemorative

Issues ounce, to name just a couple. These specialty coins typically are sold for very high prices as collectables and should be avoided mostly when offered at the retail price.
Again, the safest bet is to call us at American Federal before you purchase. We can tell you if the coin you are interested in is priced right or is simply a promotional gimmick.

SILVER BARS

Silver bars are mostly privately minted. There are a huge variety of refiners. The most common bars are 1-ounce “rounds,” which resemble coins since they are round and can also have a variety of different designs. As stated earlier, there are also 1-ounce silver bars, 10-ounce bars, 100-ounce bars, and even 1,000-ounce bars.

The key is to buy bars made by respected refineries, such as Engelhard, Johnson Matthey, Sunshine, or Royal Mint of Canada, to name a few of the major refiners.

Bars are typically a little less expensive than actual government coinssince they are privately produced. When buying bars, buy only from well-known dealers as there are many fake bars or bars filled with metals other than silver that have been floated in the marketplace. That actually goes for any coin or precious metal you purchase. You aren’t getting a bargain if your bar or coin is not genuine!

For more information call American Federal at 1-800-221-7694 and talk to one of our precious-metals’ experts about the best option for your particular needs.

PLATINUM

FUNDAMENTALS FAVOR PLATINUM

Platinum is a lesser known precious metal. Only about 10% of the platinum produced is used for investments purposes. The balance is used for industrial uses and jewelry. This PGM (Platinum Group Metal) is much more rare than gold or silver. A look at basic facts about platinum leads me to favor platinum independently of the ratios and to confirm my recommendation to purchase platinum or to trade silver or gold for platinum. Besides the simple fact that both silver and platinum are precious and industrial metals, platinum is much easier to handle, store, and ship, while giving you the same industrial/precious components.

There are some basic factors that strongly support platinum:

1. Platinum is 30 times more rare than gold.
2. Platinum is a relatively new commodity.
3. Currently, gold is 242% more than Platinum. Making Platinum grossly undervalued
4. Platinum is far more scarce than other metals, and even though it is 30 times rarer, it is consumed, not hoarded, like gold.
5. Annual platinum production is 118 tons per year compared to over 3,600 tons of gold or 26,000 tons of silver.
6. 80% of all platinum production comes from three—yes, three—mines in South Africa, all of which have been plagued by strikes and falling production as the mines get “played out.” That’s a very precarious position for industrial users of the metal.
7. 90% of platinum comes from only two countries—South Africa and Russia.
8. Investment demand for platinum constitutes only 10% of demand; therefore, small increases in investor demand can have a big impact.
9. The current platinum/gold ratio is a major buy signal.
10. There are very few substitutes for platinum, so demand will not drop anytime soon.
11. Platinum is used for catalytic converters on both diesel & gasoline engines. Hybrid cars use twice as much platinum as gasoline-powered cars.
12. Electric car mandates are being canceled and EVs are having a tough time finding a market. This is very positive for platinum.
13. There are NO substantial above-ground stockpiles of platinum. Above-ground stockpiles of gold are about 160,000 ounces.
14. Platinum IS money. In 1983, the Isle of Man became the first nation to create a legal-tender platinum coin. It was followed by Australia, China, Canada, Great Britain, and the U.S. in 1997. It can even be used to pay bills with an app you can get on your phone!

It’s nearly impossible to increase the supply of platinum when demand picks up. That’s one reason we at American Federal really believe platinum has a place in any precious metals portfolio.

PLATINUM VS GOLD

Although platinum is 30 times rarer than gold, the price ratio compared to gold can fluctuate wildly. At one point, platinum hit $2300 while gold was Less than $1000 an ounce. Other times, platinum has been as low as 70% LESS than gold.

These ratios help us decide if platinum is underpriced or overpriced.

Whenever platinum is priced less than gold to as much as 10% more than gold, the market is telling us it is under-priced.

PLATINUM VS SILVER

Platinum is a real alternative to silver for several reasons.

1. It is an industrial metal as well as a precious metal.
2. It is much more portable than silver.
3. You can easily put $10,000 or $20,000 worth of
   platinum in your pocket. The same amount of silver
   would easily weigh 50 to 110 pounds.
4. Platinum is much scarcer, and there are
   hardly any large, above-ground stockpiles.

Platinum is available as bars or coins, both bars and various ounce bullion coins are very liquid and easy to both buy and sell with a simple phone call. The most popular coins are:

1) U.S. Platinum Eagles in 1/10, 1/4, 1/2, and 1-ounce sizes
2) Australian Platinum Koala and Platypus 1-ounce coins
3) Canadian Platinum Maple Leaf coins
4) Swiss Thaler
5) Isle of Man Nobles
6) 1-ounce and 10-ounce bars
Platinum is an area of the precious-metals’ markets that is often overlooked but could  provide additional profits. If you already own silver and gold, this metal could be a great addition to any portfolio.

For more in-depth information about platinum, call

1-800-221-7694 to request a copy of “Is Platinum Perfect for You?”

OTHER PRECIOUS METALS

There are other “precious metals,” such as palladium and rhodium, that could be considered for some portfolios. These metals are traded less frequently and should be considered only after you have a core position in the three basic precious metals: gold. silver, and platinum. For information, concerns or questions you may have about any of these metals, call and talk to one of our experts. Whether you are new to precious metals or a seasoned metals’ buyer, call American Federal at 1-800-221-7694 or find us online at www.americanfederal.com, and let our experts educate you, answer your questions, and guide you to the best buys for your specific needs. We can review your holdings and help you decide If precious metals are right for you.

About Us

For over 45 years, we have been serving buyers and sellers of coins and precious metals. We carefully monitor the market to stay one step ahead of our competition. One of the reasons we are still in operation after 40 years is because we’ve earned a reputation for
being transparent and trustworthy. In an industry where many customers often worry about being taken advantage of, we’re proud of the fact that American Federal Rare Coin & Bullion has become known for our ethics.

You will not find a more knowledgeable, professional, honest, ethical and experienced team, but that is not what sets us apart. We also have a strong commitment to the quality of our work and to the clients we serve. Loyalty and relationships link our staff to our clients.

Our passion and compassion in what we do resonates to our clients and they realize this is more than a job; it is our commitment to provide the best advice and protect our clients' collections. It is our goal to build long-term relationships with our clients. We realize, as with any relationship, it takes communication, trust, and positive results to maintain you as our client.