Precious metals are a commodity that acts as a hedge against cycles of economic inflation (when currency is depreciated). They are fine metals like gold and silver that are stamped .999 or .9999 pure. The value of these precious metals fluctuates with the market, and their going rate in the market is called “spot” price. Now if you trade shares of the paper asset form of these metals you will pay “spot” price per share. If you want to physically own your own precious metals, than you will be paying spot price plus a premium.
This isn’t the good ‘ol days of the 1950’s where an ounce of gold would set you back about thirty five dollars (yes, I said $35)! People were also only making about $1.50 an hour for labor back then, but I’ll weigh in on that topic in another post. Investing in precious metals today can quickly eat away at your hard earned income, especially if you are trying to stack the physical asset form and are paying those dealer premiums (which this is the most recommended form of investing in metal commodities). If you are interested in adding precious metal commodities to your asset portfolio, but don’t have a lot of money to invest, I suggest you start looking for junk metal!
This isn’t the good ‘ol days of the 1950’s where an ounce of gold would set you back about thirty five dollars (yes, I said $35)! People were also only making about $1.50 an hour for labor back then, but I’ll weigh in on that topic in another post. Investing in precious metals today can quickly eat away at your hard earned income, especially if you are trying to stack the physical asset form and are paying those dealer premiums (which this is the most recommended form of investing in metal commodities). If you are interested in adding precious metal commodities to your asset portfolio, but don’t have a lot of money to invest, I suggest you start looking for junk metal!
All that Junk in the Trunk
One man’s trash is certainly another man’s treasure in the case of metals. Scrap metal like copper cables, old washers/dryers, catalytic converters, etc. have recyclable value. Not only getting paid for the service of taking your items too large for trash day, to the dump, but sometimes getting the extra bonus of collecting valuable junk metals, like copper, brass, aluminum, and other non-ferrous metals. You can test the metal with a magnet to see if it is a non-ferrous metal. If the magnet slides off, then that junk metal has more value at the recycling center. I use ScrapRegister.com to get an idea of what the spot price is for various scrap metals by the lb.
You can keep the Change
I want to urge you, before you make your next trip to aimlessly dump all your change jars into the nearest Coinstar machine, understand what you may be giving away at a discount. Before 1965 millions of U.S. quarters, dimes, half dollars, and silver dollars have a metal composition of 90% silver. Meaning those coins today, are worth many times over their original face value! Even nickels minted between 1942 & 1945 had a 35% silver composition. Half-dollars dated 1965 – 1970 have 40% silver content, and between 1971 and 1976 so does the Eisenhower silver dollar. So what this all means is that whatever those coins have for a silver content are worth their weight in fine silver based on their percentage of spot price! I use Coinflation.com as a quick reference on the current value of any coinage. You may be able to sell these coins at pawn shops, hobby shops, jewelry vendors, “we buy gold” outlets, and even put them up for auction on Ebay!
One man’s trash is certainly another man’s treasure in the case of metals. Scrap metal like copper cables, old washers/dryers, catalytic converters, etc. have recyclable value. Not only getting paid for the service of taking your items too large for trash day, to the dump, but sometimes getting the extra bonus of collecting valuable junk metals, like copper, brass, aluminum, and other non-ferrous metals. You can test the metal with a magnet to see if it is a non-ferrous metal. If the magnet slides off, then that junk metal has more value at the recycling center. I use ScrapRegister.com to get an idea of what the spot price is for various scrap metals by the lb.
You can keep the Change
I want to urge you, before you make your next trip to aimlessly dump all your change jars into the nearest Coinstar machine, understand what you may be giving away at a discount. Before 1965 millions of U.S. quarters, dimes, half dollars, and silver dollars have a metal composition of 90% silver. Meaning those coins today, are worth many times over their original face value! Even nickels minted between 1942 & 1945 had a 35% silver composition. Half-dollars dated 1965 – 1970 have 40% silver content, and between 1971 and 1976 so does the Eisenhower silver dollar. So what this all means is that whatever those coins have for a silver content are worth their weight in fine silver based on their percentage of spot price! I use Coinflation.com as a quick reference on the current value of any coinage. You may be able to sell these coins at pawn shops, hobby shops, jewelry vendors, “we buy gold” outlets, and even put them up for auction on Ebay!
