QUESTION:
I have purchased over some time 500 silver coins from a coin dealer in my city of Gainesville, Florida. I don’t know if purchasing silver/gold in this manner is the most cost effective way, being that one needs to pay extra per coin purchased.
Is there a better way to purchase/sell gold/silver other than a local dealer? Is purchasing and holding physical metal better than paper? What might be the recommendation from Armstrong Economics regarding this?
ANSWER:
You are better off with coins rather than bars. Coins are more recognizable to the average person. Common pre-1965 US silver coins are better. No rare dates or premium for high quality. Stay away from the collector coins.
In gold, the same would apply. I would prefer common $20, $10, and $5 US gold coins. You can always claim you are a coin collector. That at least worked back in 1934. Maybe it will work again, but Teddy Roosevelt was a big ancient coin collector so Franklin knew that and excluded collector coins.
