Why Coins that are Legal Tender and Sovereign Mint Produced are a Better Investment
There are various mints across the globe that produce precious metal products in gold, silver, platinum, and palladium. For investors looking to diversify their portfolio and include precious metals as an inflationary hedge, it is important to state why we recommend sovereign mint, legal tender, and investment-grade products.
Sovereign mints are government or national mints that produce legal tender coins for a particular country they represent. Let’s take a look at some reasons why investment-grade, legal tender coins produced by sovereign mints are considered a better investment.
Held to a Higher Standard
The IRS has established clear guidelines concerning the purity of IRA-eligible precious metal products. Except for the Gold American Eagle, which is 91.67% pure, the IRS requires gold, silver, platinum, and palladium products to be at least 99.5% pure. Most Legal tender coins produced by Sovereign Mints follow the purity, weight, and face value standard to help ensure a broader market demand because many investors opt to purchase precious metals through an accredited retirement account. A broader demand for a tangible asset will promote better liquidity and bring a likely higher value at the time of liquidation.
Tangible Assets
In uncertain economic times, investors look at safe haven tangible assets such as physical gold, silver, platinum, and palladium coins. Tangible precious metals are considered safe haven investments because there’s no debt attached to your holdings, as no one is borrowing or loaning against your tangible investment. These assets are known to hold their values and provide sustained returns over time as long-term investments due to the absence of debt when inflation is present.
Legal tender coins offer added security due to their designated mint marks and are generally accepted as payment worldwide. Their legal tender designation and the upside potential when inflation is on the rise make them an excellent hedge for investors looking to diversify their portfolios.
Easily Convertible
Unlike USD or other fiat currencies, legal tender coins are not merely a promise to pay, backed by the good faith of a government; instead, they are an actual payment considered an alternative form of payment to fiat currencies. Legal tender coins are easily redeemable and accepted around the world.
Rise in Value
The underlying precious metals (gold, silver, platinum, and palladium) hold an inverse relationship to the U.S. dollar. In simple terms, when USD’s value decreases, precious metals’ value should rise. Furthermore, downward trends in paper-based assets and stocks can cause precious metals to move higher as investors move to a defensive position and away from perceived market volatility
Invest with Orion Metal Exchange
Orion Metal Exchange is a precious metal exchange whose cost-effective and best-in-class services have earned a top rating on Trustpilot and Retirement Living. We provide best gold coins for investment-grade products produced by the leading sovereign mints globally.
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