I’ve seen a lot of strange choices be made during my 52 years (and counting) on Earth. Some were made by others; some I made myself. Some worked out for the best, and others never had a chance. It is the latter I feel for a recommendation made by Forbes writer Clem Chambers in a recent article about gold investing.
Chambers seems to be a stand-up guy and I usually enjoy his articles. I don’t think a gold dealer paid him to encourage Swiss franc buying, but at the same time I don’t know how he could’ve arrived there on his own. There are very few hard and fast rules in life, but one of the gold market rules I have never broken involves buying Swiss franc gold coins.
Marketing companies, not to be confused with legitimate gold dealers, in California love to sell Swiss francs. Gold brokers from coast-to-coast known southern California as “Marketer’s Row” because of all the high margins, resellers and, of course, lots of shiny red sports cars. These are the companies who love to sell Swiss franc gold. Why?
Swiss 20 francs are fractional-weight coins, but not something simple like ½, ¼ or 1/10 of an ounce. Swiss 20 franc gold coins weigh 0.1867 ounces each, and they are only 90% pure gold. Imagine being an investor new to gold and trying to figure out how much you should be paying for $10,000 worth of these coins with a high-pressure salesman in your ear.
Chambers might encourage you to buy Swiss francs, but not the gold coins. This is something I don’t even feel right delving into because, well, I’m not a currency trader and I believe any and all paper money is inherently insolvent and unsustainable. As far as Chambers’ question about storage, well…I’d say pretty much everyone would love to have a safe deposit box or secret stashing place for coins and bars. I agree with his assessment of untrustworthy banks, and no, you can’t use a gold Eagle to buy groceries or gasoline. But, you’ll never need to. Why not?
Even if the dollar crashes, world governments need to keep paper money in play to keep their Ponzi schemes going. This makes it highly unlikely that we will ever revert to gold and silver coin-based transactions in our lifetimes. As far as holding a “ton of silver coins” in one’s basement, I’m sorry Mr. Chambers but I don’t know anyone who would want 64 monster boxes of American Eagle silver bullion coins. It’s a tad excessive.
If you want to buy gold, or if gold is one of the options you are considering to rid yourself of constantly devaluing dollars, consider widely-traded items like American Eagles, bullion bars, St. Gaudens or Canadian Maple Leaf coins. At the end of this blog is an offer box where you can request up to four free gold investing guides. Read them, take notes, write down questions, and call Certified Gold Exchange today at 800-300-0715 to get started.