Our good friend Mark Skousen says his luck has definitely gotten better since he started carrying a “lucky” silver dollar. Here’s why he thinks you should, too. He even has a way you can get one for free!
When gold was legalized in the United States in 1975, Americans could invest in precious metals by buying either (a) older coins such as the Double Eagle St. Gauden gold coins and the Morgan or Peace silver dollars, (b) bags of “junk” silver (pre-1965 halves, quarters, or dimes), or (c) foreign bullion coins, especially the South African Krugerrand, a one-ounce gold coin.
Investing in convenient one-ounce bullion coins like the Krugerrand became so popular that in 1985, President Ronald Reagan -- a long-time believer in sound money -- signed into law the Gold Bullion Act. It instructed the U.S. Mint to produce gold and silver bullion coins in convenient sizes to match the popularity of the Krugerrand.
Since then the U.S. Mint has produced millions of American eagle gold coins and silver bullion coins, all from ore mined in the United States. The gold eagle is a legal tender gold coin that has a nominal value of $50. Coins are available in 1, ½, ¼, and 1/10 ounces. Since 1997, a platinum bullion coin with the same dimensions has been available.
The U.S. gold, silver and platinum coins are legal tender, but do not circulate. Investors buy them and store them in safe deposit boxes. They are seldom used as medium of exchange, although Utah became the first state to pass a law allowing American eagle coins to be used in transactions without tax consequences. (More on this development below)
Return of the Silver Dollar
I like the gold and platinum coins from the U.S. Mint. But my favorite by far is the silver eagle. It is truly unique. It is a legal tender coin that has a nominal value of $1 and contains exactly one troy ounce of silver. Thus it is about 10% larger than the old Morgan and Peace silver dollars.
The photos below will show you what the silver eagle looks like. But they fail to capture the august majesty of the coin. For that, you have to hold one in your hand.
The new Silver Dollar has several features worth noting that will warm the heart of every hard-money advocate:
The front has a beautiful rendition of Miss Liberty draped in an American flag; the mintage year; the words “Liberty” and “In God We Trust;” and a spectacular rising sun (Ben Franklin’s preferred symbol of America’s rising fortunes).
The obverse has the words “United States of America,” the official insignia of the United States, an eagle clutching arrows in one claw (signifying military strength) and an olive leaf in the other (signifying our commitment to peace). The 13 stars above the eagle represent the original 13 colonies that formed our union.
The new silver dollar is a striking coin of tremendous beauty. I think it belongs in every investor’s portfolio.
Why Silver is a Good Long-Term Investment
I am a strong believer in silver as a long-term investment. The new silver dollar is one of my favorite ways to own the metal, to accumulate wealth for yourself, and to transfer it to future generations.
Silver is unique in that it is both an industrial and monetary metal. Its price is far more volatile than gold’s. When the economy is weak, silver is likely to trade more like a base metal, where supply and demand have a greater impact.
But silver is money….just as gold is money. It is not just another commodity. There is also a strong monetary demand for silver. Asians (especially in India) have had a strong cultural affinity for silver, where they have hoarded it for generations.
Here in the U.S., silver has served as part of the foundation of our monetary system since our country was formed two centuries ago. Today the U.S. Mint produces over 30 million silver bullion coins a year.
My Good-Luck Charm
While the price of silver has been volatile, its long-term return has been dramatic. In 1960, the silver dollar was equal in value to a paper dollar. Both were legal tender. Since then, the paper dollar has lost 95% of its value, while today an American silver eagle is worth over $40. How many investments can you name that have increased in value 40 times since 1960?
This will help explain why a silver eagle is both my favorite coin and my personal good-luck charm. I carry one in my pocket at all times. It is my good-luck piece.
And guess what? Ever since I started carrying one, my luck has improved. My recommendations in my newsletter and trading services have gotten better. My own investment performance has improved. I don’t know how to explain it, but I promise you, it’s true.
If silver eagles are so popular, with tens of millions being purchased every year, why do you never see one? Where are they all?
They are being hoarded by smart investors who believe they will go up in value. In the past year they’ve certainly been proven right, as the price of silver more than doubled. That’s why millions of these gorgeous coins are hidden away in safe-deposit boxes and vaults.
When I’ve shown my silver dollar to friends and colleagues, most have said they’d never seen one before. That’s a shame. Recently I showed my “lucky” coin to Phyllis Schlafly, the grand old lady of conservative politics. Even though she is a huge fan of Ronald Reagan, who signed the American Eagle Gold Act into law, she had never seen one. So I gave her a 2011 silver dollar. Call it coincidence, but her organization, the Eagle Forum, is flourishing like never before.
Utah is the first state to make American eagle gold and silver coins legal tender, and can be used to buy goods and services without any tax consequences. I hope this new law spreads to other states, but it probably won’t cause precious metals to be used in transactions due to “Gresham’s Law.” This law states that “bad money drives out good.” In this case, the bad money is paper currency, which you will spend, and the good money, the American eagle silver dollars, will go in your pocket, or a safe deposit box.
How to Get a FREE American eagle Silver Dollar
I urge all of you to buy an American eagle silver dollar and keep it on you as a good luck piece. When you see me, take it out and show it to me. I’ll do the same.
Show it to your friends. Make a statement to them about your belief in honest money. Have a contest to see who can spin a silver dollar the longest. (My son Tim holds the family record at 25 seconds.)
Now you understand why the American eagle silver dollar is the official symbol of FreedomFest, my annual gathering of liberty lovers. It represents sound money and liberty. This year I’m urging all the attendees to bring a silver dollar with them.
In fact, if you haven’t already signed up for FreedomFest, here’s a deal you can’t refuse: Register today or call Tami Holland at 1-866-266-5101, and you will receive a FREE silver dollar at FreedomFest. It will be my personal gift to you. So do it today!
I hope you will join me at this year’s extravaganza, set for July 14-16 at Bally's/Paris Resort in Las Vegas. Speakers include Judge Andrew Napolitano, Steve Forbes, John Mackey, Steve Moore, Alex Green, and many more. Michael and Rich Checkan will be there. So will Chip Wood, who has been our MC since day one.
Attending our three-day extravaganza on behalf of liberty will change your life. I guarantee it. Steve Forbes said it best: “FreedomFest is so good I changed my schedule to attend all three days.” So please plan to join us, will you?
Many of our events will be held in the Glen O. Kirsch Memorial Room. We are proud to salute Michael’s long-time partner and the cofounder of Asset Strategies International. Glen was a real hero of the hard-money movement.
We hope to see you there. In liberty, AEIOU,
Thanks, Mark. We’ll see you – and hopefully, many subscribers to these alerts – at FreedomFest this July. In the meantime, if anyone wants to buy some of these beautiful coins (or any other precious metals, for that matter), we’ll remind them that our phone numbers are 1-800-831-0007 and 301-881-8600.