Something You Should Know About Your Bank
Have you heard of Free Silver Loophole that many banks either don’t know about or don’t have time to care about? It’s quite a simple theory really.
“Did you know that there’s a loophole in the U.S. retail banking system that enables you to get real, “hold-in-your-hand” silver – from practically any bank in the U.S.?
And to collect this silver all you have to do is say five simple, but specific words?
I’m talking about places like Bank of America… Wells Fargo… and Citibank… just to name a few.”
See “back in the day” coins actually had some precious metals in them. Now days, coins are made of cheap metal, making it more cost effective for the U.S. Mint to print. There is very little copper in pennies and very little if any nickel in nickels. Soon it may cost more to actually make these coins then the monetary value they are worth.
Let’s go back to that “back in the day” bit. While many people collect coins because they are rare or old, some savvy investors have found a way cash in on the precious metal boom. Specifically, Silver. How, you ask? It’s really quite simple and very easily over looked.
The half dollar 50 cent piece, created long before the famous rap artist “50 Cent”, was one of the most commonly used coins in U.S circulation. Now, for various reasons, the coins are not in production any longer, and in reality have all but been phased out of purposeful use. Many soda and vending type machines these days don’t even recognize the half dollar piece. In fact, before everything went to tickets in Las Vegas, the 50 cents piece may have been most useful in slot machines.
What it comes down to is asking your bank for change. Even though any coin that was printed before 1971 are worth more than their face value, it is the 50 cent piece most people focus on. Why? Because at one point, they were so commonly used. And…they are printed so very rarely beyond a certain date, unlike other coins. So your chances of getting a coin that was printed before 1971 is much better in this denomination.
Here is an excerpt from Wikianswers.com:
“American 50 cent pieces were made of 90% silver up till 1964.
When silver was removed from dimes and quarters in 1965 the Mint decided to continue minting half dollars from so-called “debased” silver consisting of a core of 80% copper / 20% silver with outer cladding of 80% silver, resulting in an overall content of 40% silver / 60% copper. That composition was used for circulating half dollars from 1965 to 1969, and in collectors’ coins dated 1970.
Since 1971 all circulating half-dollars have been made from the same copper-nickel metal that’s used in dimes and quarters. “
Is this something you should focus on as an investment strategy? No, not really. However, precious metal prices have only increased over time, and dramatically over the passed few years. (check out the charts below)
One thing I loved to do as a kid was check out my parents’ and grandparents’ old coins and group them by date and value. I had simple book back then that told me specifics on values by date, mint, rarity etc…It’s a great hobby for kids, that can pay off dividends down the road. And if precious metal prices keep rising, not too far down that road. Here is a link to a book at Amazon perfect for this type of thing, The Official Red Book: A Guide Book of U.S. Coins 2013 (Guide Book of United States Coins).
Check out this chart from Infomine.com on the historical prices of silver:
Check out the historical price of gold:
The charts are like this for basically all precious metals, they are outpacing inflation by leaps and bounds. Just as with any type of investing, precious metals do have their fluctuations, but as long as the long term trend is up, then most gold and silver investors don’t worry about that. Most just keep accumulating. Some believe gold prices could reach as high as $5,000 per ounce. Could it? Who knows, but “back in the day” many said it would never reach the levels they are at now. So where are those guys? Probably out there saying Gold will never reach $5,000 an ounce!
If you are interested in learning more about Gold and Silver investing, a great guide and resource is from a very popular Gold and Silver Investing Blog, check it out here. Many experienced investors already use them and they are great for beginners and novices.
Good luck, and remember, it’s always a great feeling to be able to rely on someone else for investing advice, but until you actually find that source….do your own due diligence, and be sure you have an investing or retirement plan that fits your needs. Employ proven, sound, disciplined investment strategies for your long term portfolio.