The Coke & Pepsi Of Precious Metals

You may be better served by purchasing either 100 ounce bars or coins, or both.

To be sure, coins are the ideal, as they are recognizable by even those who have minimal knowledge of precious metals.

But there are so many to choose from. Would you purchase the ones that were the most attractive to your eye? Certainly, Philharmonics and Libertads are very pretty coins.

But again, if your purpose is insurance, you wouldn’t choose what you like to look at; you’d choose what’s most recognizable to buyers – especially those who may be new to precious metals and are desperate to get their hands on them in the midst of a crisis.

Every dealer will have his own personal favorites and a responsible dealer will be likely to recommend those coins that carry a low premium. As an investment, a low premium is very much a primary concern.

But again, you may seek that which is the most recognizable to the greatest number of possible buyers. When we consider this aspect of a purchase, we’re not thinking cool-headed investment logic, we’re thinking panic-buying. This is a different realm entirely.

To get a handle on this, imagine that you’re in a far-flung country somewhere. You don’t know the language and you’re not sure you can trust those around you. You’re thirsty and you come across a restaurant that looks questionable at best. They offer you a glass of water for free, but you worry that it may make you sick. You see bottles of soda in a cooler, but the labels are in foreign languages and, again, you have no idea whether they’re safe.

But then you see bottles labeled “Coke” and “Pepsi.”

You recognize instantly that they represent the greatest likelihood of safety at a time of great uncertainty.

It matters little which you prefer. You’ll take either.

And this may be essentially what we’re headed for in precious metals in the future.

In precious metals, the Coke and Pepsi are American Eagles and Canadian Maple Leafs.

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Disclaimer: The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the ...

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