Morgan and Peace Dollars represent two of the most iconic and sought-after silver coins in US history. These popular coins have a lot in common which means their differences are easily overlooked. Understanding the specifics of both Morgan and Peace Dollars can make it easier for investors to choose the right coin based on their investment goals.

Historical Significance

Morgan and Peace Dollars represent significant periods in American history in terms of the meanings underlying their designs and the motivations behind their mintings.

The Morgan Silver Dollar is intended to represent the fulfillment of the country’s Manifest Destiny in its westward expansion as well as the booming development of the industrial revolution. It holds the distinction of being the first silver coin minted following the Coinage Act of 1873 which temporarily demonetized silver in favor of the gold standard.

As its name implies, the US Peace Dollar celebrates global peace following WWI and America’s new position as a world leader. This classic coin was minted to meet the demands of the Pittman Act which required the production of millions of silver coins. Despite being the immediate successor to the Morgan Dollar, the Peace Dollar was the final silver coin ever produced for circulation in the US.

👉 Suggested Reading: The 2023 Silver Eagle Has Arrived! What You Should Know

Mint Dates

Production of the original Morgan Dollar lasted from 1878 to 1904 with a one-year resurgence in 1921 before the design was replaced by the Peace Dollar. As America’s final circulating silver coin, the Peace Dollar saw two minting periods in its original form from 1921 to 1928 and 1934 to 1935. Each period of production represents individual pieces of minting legislation. Both coins were reissued in 2021 to celebrate the centennial shift between Morgan and Peace Dollars with production slated for the foreseeable future.

Design

The designs of Morgan and Peace Dollars share many similarities, even though they were intended to represent disparate times in US history. Both coins feature a side profile of Lady Liberty on the obverse and a bald eagle on the reverse. However, that’s where the overlap ends.

Obverse

The Morgan Silver Dollar’s Liberty is wearing a simple but elegant diadem depicting the word “LIBERTY” and a Phrygian cap, commonly referred to as a liberty cap. The US motto “E PLURIBUS UNUM” is inscribed on the top, and 13 stars grace the bottom half of the coin. On the other hand, Liberty on the Peace Dollar boasts a radiating crown with flowing locks of hair. “LIBERTY” sits atop the profile with “IN GOD WE TRVST” beneath it.

Reverse

The bald eagle on the Morgan Dollar’s reverse side is clutching a bundle of arrows and an olive branch with its wings spread proudly. A laurel wreath encircles the lower half of the eagle as a symbol of honor and victory. The design is encompassed by “UNITED STATES OF AMERICA” and “ONE DOLLAR”. Alternatively, the Peace Dollar’s bald eagle rests atop a rock looking confidently at the rising sun depicted by sharp rays. “UNITED STATES OF AMERICA” and the US motto adorns the top of the coin while “ONE DOLLAR” and “PEACE” rest at the bottom.

There’s little difference between the original and modern Silver Peace Dollars or Morgan Dollars.

Purity

Investors will be pleased to know that both Morgan and Peace Dollars enjoy high silver purities, in accordance with US law. The initial mintings for each coin feature 90% purity (1878 – 1904, 1921 for Morgan Dollars, and 1921–1935 for Peace Dollars). Thanks to a boom in silver usage and advancements in technology, modern versions of these coins boast a 99.9% silver rating.

Although some Morgan and Peace Dollars hold inherent value beyond their weight in silver, most are only worth their melt value. Unfortunately, some sellers try to pawn off modern, graded bullion coins at prices far surpassing their true value.

Versions

Morgan and Peace Dollars come in circulating and uncirculated varieties, although the overwhelming majority are in the former category. A distinction can also be made between the original and modern versions. The original mintings of these coins were intended for daily use which means most entered circulation. A select few have survived in uncirculated conditions, but it’s important to note this is a minority. Conversely, all modern Morgan and Peace Dollars – those minted since the 2021 reissue – are bullion coins. Since these coins were designed for collecting instead of use, most maintain their uncirculated condition.

Mintings

The US Mint produced over three times as many Morgan Dollars when compared to Peace Dollars. This difference is owed to varied production lengths and the country’s changing coinage landscape. The Morgan Dollar experienced 27 years of production while the Peace Dollar only saw 24 years. On top of that, the US was benefitting from a massive boom in silver production when the Morgan Dollar was issued. By the time the Peace Dollar took its place, there was less of an emphasis on silver coinage.

Are Morgan and Peace Dollars good investments?

Morgan and Peace Dollars are among the most popular investment-grade coins. However, their true merit depends on the unique goals and budgets of each investor. Working with a reputable precious metals expert can help you determine how these coins align with your long-term investment goals. One of our advisors would be more than happy to help. Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.

Morgan and Peace Dollars represent two of the most iconic and sought-after silver coins in US history. These popular coins have a lot in common which means their differences are easily overlooked. Understanding the specifics of both Morgan and Peace Dollars can make it easier for investors to choose the right coin based on their investment goals.

Historical Significance

Morgan and Peace Dollars represent significant periods in American history in terms of the meanings underlying their designs and the motivations behind their mintings.

The Morgan Silver Dollar is intended to represent the fulfillment of the country’s Manifest Destiny in its westward expansion as well as the booming development of the industrial revolution. It holds the distinction of being the first silver coin minted following the Coinage Act of 1873 which temporarily demonetized silver in favor of the gold standard.

As its name implies, the US Peace Dollar celebrates global peace following WWI and America’s new position as a world leader. This classic coin was minted to meet the demands of the Pittman Act which required the production of millions of silver coins. Despite being the immediate successor to the Morgan Dollar, the Peace Dollar was the final silver coin ever produced for circulation in the US.

👉 Suggested Reading: The 2023 Silver Eagle Has Arrived! What You Should Know

Mint Dates

Production of the original Morgan Dollar lasted from 1878 to 1904 with a one-year resurgence in 1921 before the design was replaced by the Peace Dollar. As America’s final circulating silver coin, the Peace Dollar saw two minting periods in its original form from 1921 to 1928 and 1934 to 1935. Each period of production represents individual pieces of minting legislation. Both coins were reissued in 2021 to celebrate the centennial shift between Morgan and Peace Dollars with production slated for the foreseeable future.

Design

The designs of Morgan and Peace Dollars share many similarities, even though they were intended to represent disparate times in US history. Both coins feature a side profile of Lady Liberty on the obverse and a bald eagle on the reverse. However, that’s where the overlap ends.

Obverse

The Morgan Silver Dollar’s Liberty is wearing a simple but elegant diadem depicting the word “LIBERTY” and a Phrygian cap, commonly referred to as a liberty cap. The US motto “E PLURIBUS UNUM” is inscribed on the top, and 13 stars grace the bottom half of the coin. On the other hand, Liberty on the Peace Dollar boasts a radiating crown with flowing locks of hair. “LIBERTY” sits atop the profile with “IN GOD WE TRVST” beneath it.

Reverse

The bald eagle on the Morgan Dollar’s reverse side is clutching a bundle of arrows and an olive branch with its wings spread proudly. A laurel wreath encircles the lower half of the eagle as a symbol of honor and victory. The design is encompassed by “UNITED STATES OF AMERICA” and “ONE DOLLAR”. Alternatively, the Peace Dollar’s bald eagle rests atop a rock looking confidently at the rising sun depicted by sharp rays. “UNITED STATES OF AMERICA” and the US motto adorns the top of the coin while “ONE DOLLAR” and “PEACE” rest at the bottom.

There’s little difference between the original and modern Silver Peace Dollars or Morgan Dollars.

Purity

Investors will be pleased to know that both Morgan and Peace Dollars enjoy high silver purities, in accordance with US law. The initial mintings for each coin feature 90% purity (1878 – 1904, 1921 for Morgan Dollars, and 1921–1935 for Peace Dollars). Thanks to a boom in silver usage and advancements in technology, modern versions of these coins boast a 99.9% silver rating.

Although some Morgan and Peace Dollars hold inherent value beyond their weight in silver, most are only worth their melt value. Unfortunately, some sellers try to pawn off modern, graded bullion coins at prices far surpassing their true value.

Versions

Morgan and Peace Dollars come in circulating and uncirculated varieties, although the overwhelming majority are in the former category. A distinction can also be made between the original and modern versions. The original mintings of these coins were intended for daily use which means most entered circulation. A select few have survived in uncirculated conditions, but it’s important to note this is a minority. Conversely, all modern Morgan and Peace Dollars – those minted since the 2021 reissue – are bullion coins. Since these coins were designed for collecting instead of use, most maintain their uncirculated condition.

Mintings

The US Mint produced over three times as many Morgan Dollars when compared to Peace Dollars. This difference is owed to varied production lengths and the country’s changing coinage landscape. The Morgan Dollar experienced 27 years of production while the Peace Dollar only saw 24 years. On top of that, the US was benefitting from a massive boom in silver production when the Morgan Dollar was issued. By the time the Peace Dollar took its place, there was less of an emphasis on silver coinage.

Are Morgan and Peace Dollars good investments?

Morgan and Peace Dollars are among the most popular investment-grade coins. However, their true merit depends on the unique goals and budgets of each investor. Working with a reputable precious metals expert can help you determine how these coins align with your long-term investment goals. One of our advisors would be more than happy to help. Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.

Junk silver coins are circulated U.S. coins, typically minted before 1965, that contain 90% silver. Contrary to its name, junk silver is not junk at all. Instead, they’re coins with no numismatic—a fancy word for collectible—value and derive their worth exclusively from their content of silver.

Confused? Well, think about it this way.

We’ve all come home from work, emptied our pockets of change, and tossed it atop a dresser or into a change jar.

That overflowing jug of old shiny pieces of money is probably filled with junk silver. You might be a silver collector without even knowing it.

If you dig through that jar and find any coins minted in 1964 or earlier, you could potentially sell them—not for their face value of 10 or 25 cents but for the value of silver in the coin.

Junk Silver History

Before 1965, the U.S. Mint made all dimes, quarters, 50-cent pieces, and dollar coins with silver. That’s why dollar coins are called silver dollars.

With the Coinage Act of 1965, the U.S. Mint changed its recipe. As a result, it eliminated silver from many coins and began manufacturing them with a mix of nickel and copper.

One of the main reasons for this change was the dramatic increase in the bullion value of silver coins compared with their face value. Speculators began to hoard and melt the coins, which caused imbalances in the coinage system.

While many pre-1965 coins have become rare and sell for a king’s ransom, most junk silver coins are in poor condition and of no interest to collectors.

Today’s Silver Coin Market

Today’s silver coin market is quite different, especially for those looking to invest in the Silver IRA. IRS guidelines for precious metal IRA storage require investors to purchase new coins. Although uncirculated and in perfect condition, this type of coin still derives its value primarily from its silver content and not collectability. The market refers to them as bullion coins.

The IRS has specific rules about which silver coins it approves for use in a precious metals IRA.

The Silver IRA—a popular investment vehicle used to own physical silver inside a retirement account—allows for newly minted bullion coins that are not numismatic. It doesn’t allow for the pre-1965 junk silver coins.

What does this mean for your jar of change? That potentially rare silver dollar coin, which may be worth hundreds of thousands of dollars to a numismatist, is not allowed in the Silver IRA.

Junk Silver Coins

People often ask where to buy junk silver and how to spot a junk silver coin. Generally, the term junk silver typically applies to any U.S.-minted silver coin manufactured before 1965. But, in technical terms, a junk silver coin is any government-issued silver coin intended for circulation but now solely valued for its bullion (meltdown value).

The coin’s date is the easiest clue to check. All dimes, quarters, half dollars, and silver dollars before 1965 can qualify as junk silver. Next, examine the coin’s edge. If the edge of a coin has a solid silver strip, it’s likely silver. If you only see traces of copper, the coin is probably 40% silver.

Here is a list of popular coins that were once in wide circulation but are now considered junk silver:

• Barber Dime (1892-1916): 90% silver, 10% copper
• Barber Quarter (1892-1916): 90% silver, 10% copper
• Roosevelt Dime (1946-1964): 90% silver, 10% copper
• Mercury Dime (1916-1945): 90% silver, 10% copper
• Kennedy Half Dollar (1964): 90% silver, 10% copper
• Franklin Half Dollar (1948-1963): 90% silver, 10% copper
• Walking Liberty Half Dollar (1916-1947): 90% silver, 10% copper
• Washington Quarter (1932-1964): 90% silver, 10% copper
• Standing Liberty Quarter (1916-1930): 90% silver, 10% copper

• Eisenhower Silver Dollar (1971-1974; 1976): 40% silver, 60% copper
• Morgan Dollar (1878-1904; 1921): 90% silver, 10% copper
• Peace Dollar (1921-1928; 1934-1935): 90% silver, 10% copper

Some coins on this list—such as the Roosevelt Dime, Kennedy Half Dollar, and Washington Quarter—are still in production and circulation today. Those coins, however, do not have the silver content of their junk silver cousins.

Is Junk Silver A Good Investment?

With so much junk silver out there in the world, maybe you’ve taken a second to consider if it’s worth not just digging through your existing change jar but also actively purchasing junk silver. Is it a good idea?

The simple answer? It’s up to you. Before you head out to the marketplace to buy some junk silver in bulk, consider speaking with an expert on silver coins. A professional can walk you through the options and help assess whether junk silver is for you.

As with anything, there are pros and cons to junk silver.

Pros

Some investors love the ease of junk silver for the following reasons:

• It’s fractional and easy to sell or purchase.
• You can use it as legal tender to make purchases today.
• It’s recognizable by almost everyone, coin enthusiasts and novices alike.

Because junk silver pieces are fractional, it is usually quite simple to liquidate a little at a time. That fractionality also makes junk silver easy to acquire, as an investor can buy the amount they can afford at that particular time without saving up for a large purchase.

In the worst-case scenario, you can still use junk silver in circulation to buy gas, groceries, and goods and services. It is still money when it needs to be.

Junk silver is almost universally recognizable by both collectors and non-collectors. When they see it, people seem to know a U.S.-minted coin, making junk silver a convenient tool to liquidate or barter with.

Cons

Junk silver has three issues that an investor may find detrimental:

• It is heavy and takes up a large footprint.
• It is expensive relative to other silver bullion.
• It is not Silver IRA eligible.

The most common complaint about junk silver is that it is heavy and takes up a lot of space. Think briefly about the massive volume and weight of thousands of coins. Depending on the value, it is not uncommon for a bag of junk silver to weigh 40 pounds or more. It can be difficult to store in a safe, safety deposit box, or vault.

Junk silver can be expensive relative to other silver bullion products. They typically cost more per ounce than American Eagle coins, simple bars, or even rounds, all of which primarily derive their worth from the melt value of the silver. That fractionality and ease come with a bit of a price.

Junk silver coins are not Silver IRA eligible. The IRS does not allow junk silver inside a self-directed individual retirement account. You may only hold newly minted, uncirculated coins in such accounts.

What Is Junk Silver Worth?

The value of junk silver slides up and down with the daily fluctuations in the spot price of silver. Remember, junk coins have one factor that affects their worth: the price established in the spot market on that given day. Nothing more. Nothing less.

How To Buy Junk Silver

If you’re dead set on buying junk silver, you can do so from various sources, including the following:

• Coin dealers: Specific coin shops or online retailers specialize in buying and selling coins, including junk silver.
• Auctions: You can buy junk coins, including silver, at auctions. In some cases, the auctions may feature rare coins and precious metals.
• Private sales: Collectors might buy junk silver coins from private collectors or via online marketplaces, including eBay and Craigslist. Be safe when making these purchases, and confirm the coins’ authenticity first.
• Online retailers: Many online retailers allow you to purchase junk silver coins.

How To Sell Junk Silver

Because the spot value of silver is readily available to a reputable precious metals dealer, selling junk silver is straightforward. You’d simply need to ship or take your bag of coins to the dealer, who would weigh them and calculate the value based on that day’s spot price.

Remember that a realistic value for your bag may be somewhat under the day’s spot price, as the liquidator may charge seller’s fees to make a small profit to keep its lights on and pay its employees.

Only accept a price that you feel is fair while also being fair to the purchaser. Everyone should feel like they made a good transaction.

We at Advantage Gold are happy to help you assess the value of your collection and liquidate your junk silver. Contact us today and start the conversation.

Tags: junk silver, junk silver coins, where to buy junk silver

Junk silver coins are circulated U.S. coins, typically minted before 1965, that contain 90% silver. Contrary to its name, junk silver is not junk at all. Instead, they’re coins with no numismatic—a fancy word for collectible—value and derive their worth exclusively from their content of silver.

Confused? Well, think about it this way.

We’ve all come home from work, emptied our pockets of change, and tossed it atop a dresser or into a change jar.

That overflowing jug of old shiny pieces of money is probably filled with junk silver. You might be a silver collector without even knowing it.

If you dig through that jar and find any coins minted in 1964 or earlier, you could potentially sell them—not for their face value of 10 or 25 cents but for the value of silver in the coin.

Junk Silver History

Before 1965, the U.S. Mint made all dimes, quarters, 50-cent pieces, and dollar coins with silver. That’s why dollar coins are called silver dollars.

With the Coinage Act of 1965, the U.S. Mint changed its recipe. As a result, it eliminated silver from many coins and began manufacturing them with a mix of nickel and copper.

One of the main reasons for this change was the dramatic increase in the bullion value of silver coins compared with their face value. Speculators began to hoard and melt the coins, which caused imbalances in the coinage system.

While many pre-1965 coins have become rare and sell for a king’s ransom, most junk silver coins are in poor condition and of no interest to collectors.

Today’s Silver Coin Market

Today’s silver coin market is quite different, especially for those looking to invest in the Silver IRA. IRS guidelines for precious metal IRA storage require investors to purchase new coins. Although uncirculated and in perfect condition, this type of coin still derives its value primarily from its silver content and not collectability. The market refers to them as bullion coins.

The IRS has specific rules about which silver coins it approves for use in a precious metals IRA.

The Silver IRA—a popular investment vehicle used to own physical silver inside a retirement account—allows for newly minted bullion coins that are not numismatic. It doesn’t allow for the pre-1965 junk silver coins.

What does this mean for your jar of change? That potentially rare silver dollar coin, which may be worth hundreds of thousands of dollars to a numismatist, is not allowed in the Silver IRA.

Junk Silver Coins

People often ask where to buy junk silver and how to spot a junk silver coin. Generally, the term junk silver typically applies to any U.S.-minted silver coin manufactured before 1965. But, in technical terms, a junk silver coin is any government-issued silver coin intended for circulation but now solely valued for its bullion (meltdown value).

The coin’s date is the easiest clue to check. All dimes, quarters, half dollars, and silver dollars before 1965 can qualify as junk silver. Next, examine the coin’s edge. If the edge of a coin has a solid silver strip, it’s likely silver. If you only see traces of copper, the coin is probably 40% silver.

Here is a list of popular coins that were once in wide circulation but are now considered junk silver:

• Barber Dime (1892-1916): 90% silver, 10% copper
• Barber Quarter (1892-1916): 90% silver, 10% copper
• Roosevelt Dime (1946-1964): 90% silver, 10% copper
• Mercury Dime (1916-1945): 90% silver, 10% copper
• Kennedy Half Dollar (1964): 90% silver, 10% copper
• Franklin Half Dollar (1948-1963): 90% silver, 10% copper
• Walking Liberty Half Dollar (1916-1947): 90% silver, 10% copper
• Washington Quarter (1932-1964): 90% silver, 10% copper
• Standing Liberty Quarter (1916-1930): 90% silver, 10% copper

• Eisenhower Silver Dollar (1971-1974; 1976): 40% silver, 60% copper
• Morgan Dollar (1878-1904; 1921): 90% silver, 10% copper
• Peace Dollar (1921-1928; 1934-1935): 90% silver, 10% copper

Some coins on this list—such as the Roosevelt Dime, Kennedy Half Dollar, and Washington Quarter—are still in production and circulation today. Those coins, however, do not have the silver content of their junk silver cousins.

Is Junk Silver A Good Investment?

With so much junk silver out there in the world, maybe you’ve taken a second to consider if it’s worth not just digging through your existing change jar but also actively purchasing junk silver. Is it a good idea?

The simple answer? It’s up to you. Before you head out to the marketplace to buy some junk silver in bulk, consider speaking with an expert on silver coins. A professional can walk you through the options and help assess whether junk silver is for you.

As with anything, there are pros and cons to junk silver.

Pros

Some investors love the ease of junk silver for the following reasons:

• It’s fractional and easy to sell or purchase.
• You can use it as legal tender to make purchases today.
• It’s recognizable by almost everyone, coin enthusiasts and novices alike.

Because junk silver pieces are fractional, it is usually quite simple to liquidate a little at a time. That fractionality also makes junk silver easy to acquire, as an investor can buy the amount they can afford at that particular time without saving up for a large purchase.

In the worst-case scenario, you can still use junk silver in circulation to buy gas, groceries, and goods and services. It is still money when it needs to be.

Junk silver is almost universally recognizable by both collectors and non-collectors. When they see it, people seem to know a U.S.-minted coin, making junk silver a convenient tool to liquidate or barter with.

Cons

Junk silver has three issues that an investor may find detrimental:

• It is heavy and takes up a large footprint.
• It is expensive relative to other silver bullion.
• It is not Silver IRA eligible.

The most common complaint about junk silver is that it is heavy and takes up a lot of space. Think briefly about the massive volume and weight of thousands of coins. Depending on the value, it is not uncommon for a bag of junk silver to weigh 40 pounds or more. It can be difficult to store in a safe, safety deposit box, or vault.

Junk silver can be expensive relative to other silver bullion products. They typically cost more per ounce than American Eagle coins, simple bars, or even rounds, all of which primarily derive their worth from the melt value of the silver. That fractionality and ease come with a bit of a price.

Junk silver coins are not Silver IRA eligible. The IRS does not allow junk silver inside a self-directed individual retirement account. You may only hold newly minted, uncirculated coins in such accounts.

What Is Junk Silver Worth?

The value of junk silver slides up and down with the daily fluctuations in the spot price of silver. Remember, junk coins have one factor that affects their worth: the price established in the spot market on that given day. Nothing more. Nothing less.

How To Buy Junk Silver

If you’re dead set on buying junk silver, you can do so from various sources, including the following:

• Coin dealers: Specific coin shops or online retailers specialize in buying and selling coins, including junk silver.
• Auctions: You can buy junk coins, including silver, at auctions. In some cases, the auctions may feature rare coins and precious metals.
• Private sales: Collectors might buy junk silver coins from private collectors or via online marketplaces, including eBay and Craigslist. Be safe when making these purchases, and confirm the coins’ authenticity first.
• Online retailers: Many online retailers allow you to purchase junk silver coins.

How To Sell Junk Silver

Because the spot value of silver is readily available to a reputable precious metals dealer, selling junk silver is straightforward. You’d simply need to ship or take your bag of coins to the dealer, who would weigh them and calculate the value based on that day’s spot price.

Remember that a realistic value for your bag may be somewhat under the day’s spot price, as the liquidator may charge seller’s fees to make a small profit to keep its lights on and pay its employees.

Only accept a price that you feel is fair while also being fair to the purchaser. Everyone should feel like they made a good transaction.

We at Advantage Gold are happy to help you assess the value of your collection and liquidate your junk silver. Contact us today and start the conversation.

Tags: junk silver, junk silver coins, where to buy junk silver

There are many ways for investors to get exposure to the precious metals markets. You can buy shares of mining companies, buy shares of exchange-traded funds (ETFs) backed by gold or silver, buy or sell gold or silver futures contracts, and even purchase gold or silver certificates.

While investments like certificates and ETFs provide exposure to precious metals markets, they’re not a substitute for purchasing real, physical gold or silver. Let’s walk through how GLD and other ETFs compare to physical gold ownership and when they might make sense for your investment priorities—and when they don’t.

What Are Gold ETFs?

Gold ETFs give investors a vehicle for participating in the gold market without having to take physical delivery of the gold. ETFs are typically traded on a regulated exchange where investors purchase shares in the fund. Each share represents fractional, undivided ownership interest in the trust’s assets. These assets take the form of gold bullion and sometimes cash.

What Is GLD?

GLD—or the SPDR Gold Shares ETF—is one of the largest gold ETFs. As of August 2023, the fund’s roughly 29 million ounces held a net asset value (NAV) of over $56 million. Each of the ETF’s shares is worth 0.06052 ounces.

Other Gold ETFs

While GLD is one of the most popular ETFs, it’s not the only one. Other common choices for precious metals investors include the following funds:

• iShares Gold Trust (IAU): IAU holds over 14.152 million ounces and a NAV of $27.3 billion. The iShares Gold Trust is organized as a trust that includes physical gold bars at vaults in London and New York.
• VelocityShares 3x Long Gold ETN (UGLD): UGLD is a leveraged exchange-traded note (ETN) that is more complex than traditional gold ETFs. It’s meant for short-term holding.
• DB Gold Double Short ETN (DZZ): DZZ is an ETN that moves inversely to gold prices.

Are Gold ETFs the Same as Physical Gold?

Buying gold ETFs isn’t the same thing as purchasing physical gold, and it’s incredibly important that you understand this before you make either investment.

When you buy a gold ETF, you’re buying shares of a trust that holds gold bullion. When you buy physical gold, you’re taking direct ownership of actual gold coins or bars you can hold in your hand. You’re also not purchasing fractional shares. You’ll own each ounce of gold outright and can sell it for its current value.

Of course, buying physical gold comes with its own quirks. You’ll have to figure out a storage solution, either in your own home, in a safe deposit box, or in the custody of a depository. And while this does add to the cost of gold ownership, it gives you direct ownership and control over your gold.

Are GLD and Other Gold ETFs Good Investments?

GLD and other gold ETFs might be considered a good investment for specific types of investors. They’re an easy way to gain exposure to gold markets without the need to physically purchase, store, or insure gold.

Before you invest, do your research and consider your financial goals. Weigh them against your risk tolerance and investment timeline. That said, always consult with your financial advisor before you make an investment.

Risks of Investing in GLD

Investing in GLD (and other ETFs) does carry a few significant risks:

• Owning shares of an ETF such as GLD does carry counterparty risk. There could be accounting or custody errors, theft, or other issues that affect your investment.

• You do not have access to the gold held by the trust. In the unlikely—yet possible—case of an economic, currency, or geopolitical crisis, you have no actual gold to purchase goods or services or transact with.

• You have no way to audit the holdings of a gold-backed ETF or trust. You must rely on the trust and its auditors to tell you how much actual gold the trust holds.

• You must pay a management fee to participate in such an investment. Management fees can have an impact on your investment and eat away at any proceeds or profits.

• You cannot use your shares to buy basic necessities or barter. In a real crisis, shares of GLD may simply be viewed as a piece of paper.

• If gold prices decline, your investment can lose value without the benefit of owning and maintaining the gold in your possession.

• You essentially have zero control. You are told how much gold the fund owns and where it is held. You have no control over the management of the gold.

Benefits of Investing in Physical Gold

Buying physical gold offers plenty of perks compared with purchasing shares in mining companies or ETFs. When you purchase physical gold bullion, you enjoy the following benefits:

• You decide how much gold to buy.
• You decide where to store your gold bullion. You can store your gold at home, in a safe deposit box, in a depository, or use a combination of all three.
• You can buy and sell your gold anytime you choose.
• You can use your gold to purchase basic goods and services. In the unlikely yet possible event of an economic, geopolitical, or currency crisis, you could potentially use your gold to barter and purchase basic necessities such as food, water, and fuel.
• You do not pay any management fees when you own your own gold bullion.
• Physical gold bullion carries no counterparty risk. It cannot default, declare bankruptcy, or otherwise fail to deliver on obligations.
• You can store your gold so it remains accessible.

The Bottom Line

As you can see, owning shares of GLD or any other “paper” gold product is not the same as owning a physical gold bullion that you can touch and feel. While it can be excellent exposure to the market, it does not provide the same benefits of buying liquid, tangible gold that you can sell or trade.

If you do not own physical gold or precious metals, now may be the time to consider adding an allocation to your portfolio. If you own shares of paper gold products, now may be the time to consider additional options.

You either own gold, or you own paper…

If you are interested in learning more about the potential benefits of owning physical gold bullion, we encourage you to speak with one of our account executives today. Our precious metals professionals can show you the most convenient way to begin building a precious metals portfolio or add to existing holdings.

Talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA byopening a self-directed IRA account,contact usor call us at800-341-8584today.

Tags: is gld backed by physical gold

There are many ways for investors to get exposure to the precious metals markets. You can buy shares of mining companies, buy shares of exchange-traded funds (ETFs) backed by gold or silver, buy or sell gold or silver futures contracts, and even purchase gold or silver certificates.

While investments like certificates and ETFs provide exposure to precious metals markets, they’re not a substitute for purchasing real, physical gold or silver. Let’s walk through how GLD and other ETFs compare to physical gold ownership and when they might make sense for your investment priorities—and when they don’t.

What Are Gold ETFs?

Gold ETFs give investors a vehicle for participating in the gold market without having to take physical delivery of the gold. ETFs are typically traded on a regulated exchange where investors purchase shares in the fund. Each share represents fractional, undivided ownership interest in the trust’s assets. These assets take the form of gold bullion and sometimes cash.

What Is GLD?

GLD—or the SPDR Gold Shares ETF—is one of the largest gold ETFs. As of August 2023, the fund’s roughly 29 million ounces held a net asset value (NAV) of over $56 million. Each of the ETF’s shares is worth 0.06052 ounces.

Other Gold ETFs

While GLD is one of the most popular ETFs, it’s not the only one. Other common choices for precious metals investors include the following funds:

• iShares Gold Trust (IAU): IAU holds over 14.152 million ounces and a NAV of $27.3 billion. The iShares Gold Trust is organized as a trust that includes physical gold bars at vaults in London and New York.
• VelocityShares 3x Long Gold ETN (UGLD): UGLD is a leveraged exchange-traded note (ETN) that is more complex than traditional gold ETFs. It’s meant for short-term holding.
• DB Gold Double Short ETN (DZZ): DZZ is an ETN that moves inversely to gold prices.

Are Gold ETFs the Same as Physical Gold?

Buying gold ETFs isn’t the same thing as purchasing physical gold, and it’s incredibly important that you understand this before you make either investment.

When you buy a gold ETF, you’re buying shares of a trust that holds gold bullion. When you buy physical gold, you’re taking direct ownership of actual gold coins or bars you can hold in your hand. You’re also not purchasing fractional shares. You’ll own each ounce of gold outright and can sell it for its current value.

Of course, buying physical gold comes with its own quirks. You’ll have to figure out a storage solution, either in your own home, in a safe deposit box, or in the custody of a depository. And while this does add to the cost of gold ownership, it gives you direct ownership and control over your gold.

Are GLD and Other Gold ETFs Good Investments?

GLD and other gold ETFs might be considered a good investment for specific types of investors. They’re an easy way to gain exposure to gold markets without the need to physically purchase, store, or insure gold.

Before you invest, do your research and consider your financial goals. Weigh them against your risk tolerance and investment timeline. That said, always consult with your financial advisor before you make an investment.

Risks of Investing in GLD

Investing in GLD (and other ETFs) does carry a few significant risks:

• Owning shares of an ETF such as GLD does carry counterparty risk. There could be accounting or custody errors, theft, or other issues that affect your investment.

• You do not have access to the gold held by the trust. In the unlikely—yet possible—case of an economic, currency, or geopolitical crisis, you have no actual gold to purchase goods or services or transact with.

• You have no way to audit the holdings of a gold-backed ETF or trust. You must rely on the trust and its auditors to tell you how much actual gold the trust holds.

• You must pay a management fee to participate in such an investment. Management fees can have an impact on your investment and eat away at any proceeds or profits.

• You cannot use your shares to buy basic necessities or barter. In a real crisis, shares of GLD may simply be viewed as a piece of paper.

• If gold prices decline, your investment can lose value without the benefit of owning and maintaining the gold in your possession.

• You essentially have zero control. You are told how much gold the fund owns and where it is held. You have no control over the management of the gold.

Benefits of Investing in Physical Gold

Buying physical gold offers plenty of perks compared with purchasing shares in mining companies or ETFs. When you purchase physical gold bullion, you enjoy the following benefits:

• You decide how much gold to buy.
• You decide where to store your gold bullion. You can store your gold at home, in a safe deposit box, in a depository, or use a combination of all three.
• You can buy and sell your gold anytime you choose.
• You can use your gold to purchase basic goods and services. In the unlikely yet possible event of an economic, geopolitical, or currency crisis, you could potentially use your gold to barter and purchase basic necessities such as food, water, and fuel.
• You do not pay any management fees when you own your own gold bullion.
• Physical gold bullion carries no counterparty risk. It cannot default, declare bankruptcy, or otherwise fail to deliver on obligations.
• You can store your gold so it remains accessible.

The Bottom Line

As you can see, owning shares of GLD or any other “paper” gold product is not the same as owning a physical gold bullion that you can touch and feel. While it can be excellent exposure to the market, it does not provide the same benefits of buying liquid, tangible gold that you can sell or trade.

If you do not own physical gold or precious metals, now may be the time to consider adding an allocation to your portfolio. If you own shares of paper gold products, now may be the time to consider additional options.

You either own gold, or you own paper…

If you are interested in learning more about the potential benefits of owning physical gold bullion, we encourage you to speak with one of our account executives today. Our precious metals professionals can show you the most convenient way to begin building a precious metals portfolio or add to existing holdings.

Talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA byopening a self-directed IRA account,contact usor call us at800-341-8584today.

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Gold steady early Wednesday, battling a stronger dollar as investors awaited the latest inflation and GDP data for further direction. The dollar index rose 0.3%, its best session since Feb. 13.

U.S. revised fourth-quarter GDP data come out Wednesday, while the Federal Reserve’s favorite inflation measure, the personal consumption expenditures price index, is due out on Thursday with January figures. Both economic reports will be closely watched for signals on how long the central bank will keep interest rates high. The U.S. consumer price index and producer price index came in hotter than expected for January in data released earlier this month.

Lower Treasury yields provided the yellow metal with some support, though a firmer dollar put gold under some pressure.

Front-month gold futures rose 0.3% Tuesday to settle at $2,044.10 an ounce on Comex, though the most-active April contract retreated 0.3% in the first two days of the week. Bullion is down 1.1% so far this month after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently down $1.50 (-0.07%) an ounce to $2042.60 and the DG spot price is $2036.30.

In other economic news, U.S. consumer confidence unexpectedly fell in February, according to data released Tuesday by the Conference Board, as concerns over a possible recession grew. The decline follows three months of gains. U.S. durable goods orders also slumped in January, falling by the most in almost four years. Reports on weekly initial jobless claims are due Thursday and ISM manufacturing data Friday.

A series of Fed officials are scheduled to speak this week and may provide further guidance. They include Atlanta Fed President Raphael Bostic, Boston Fed President Susan Collins and the New York Fed’s John Williams on Wednesday; Chicago Fed President Austan Goolsbee, Bostic and Cleveland Fed President Loretta Mester on Thursday; and Bostic and San Francisco Fed President Mary Daly on Friday. Finance ministers and central bank chiefs from the G-20 countries are also scheduled to meet Wednesday.

About 97.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 2.5% expect a 25 basis point cut. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May, too. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month. High interest rates are typically considered bearish for gold.

Front-month silver futures, which rolled to May from March last week, edged up 0.1% Tuesday to settle at $22.76 an ounce on Comex, though the May contract is down 1.9% so far this week. Silver is down 1.8% so far this month after falling 3.8% in January and dropping 6.1% in December. It ticked up 0.2% in 2023. The May contract is currently down $0.137 (-0.60%) an ounce to $22.620 and the DG spot price is $22.40.

Spot palladium lost 0.9% Tuesday to $954.50 an ounce and is down 4.5% so far this week. Palladium is down 4.6% so far this month after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. Currently, the DG spot price is down $28.70 an ounce to $928.50.

Spot platinum rallied 1.9% Tuesday to $899.60 an ounce, though it’s down 1.2% so far this week. Platinum is down 3.4% so far this month after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently down $12.00 an ounce to $886.00.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold steady early Wednesday, battling a stronger dollar as investors awaited the latest inflation and GDP data for further direction. The dollar index rose 0.3%, its best session since Feb. 13.

U.S. revised fourth-quarter GDP data come out Wednesday, while the Federal Reserve’s favorite inflation measure, the personal consumption expenditures price index, is due out on Thursday with January figures. Both economic reports will be closely watched for signals on how long the central bank will keep interest rates high. The U.S. consumer price index and producer price index came in hotter than expected for January in data released earlier this month.

Lower Treasury yields provided the yellow metal with some support, though a firmer dollar put gold under some pressure.

Front-month gold futures rose 0.3% Tuesday to settle at $2,044.10 an ounce on Comex, though the most-active April contract retreated 0.3% in the first two days of the week. Bullion is down 1.1% so far this month after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently down $1.50 (-0.07%) an ounce to $2042.60 and the DG spot price is $2036.30.

In other economic news, U.S. consumer confidence unexpectedly fell in February, according to data released Tuesday by the Conference Board, as concerns over a possible recession grew. The decline follows three months of gains. U.S. durable goods orders also slumped in January, falling by the most in almost four years. Reports on weekly initial jobless claims are due Thursday and ISM manufacturing data Friday.

A series of Fed officials are scheduled to speak this week and may provide further guidance. They include Atlanta Fed President Raphael Bostic, Boston Fed President Susan Collins and the New York Fed’s John Williams on Wednesday; Chicago Fed President Austan Goolsbee, Bostic and Cleveland Fed President Loretta Mester on Thursday; and Bostic and San Francisco Fed President Mary Daly on Friday. Finance ministers and central bank chiefs from the G-20 countries are also scheduled to meet Wednesday.

About 97.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 2.5% expect a 25 basis point cut. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May, too. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month. High interest rates are typically considered bearish for gold.

Front-month silver futures, which rolled to May from March last week, edged up 0.1% Tuesday to settle at $22.76 an ounce on Comex, though the May contract is down 1.9% so far this week. Silver is down 1.8% so far this month after falling 3.8% in January and dropping 6.1% in December. It ticked up 0.2% in 2023. The May contract is currently down $0.137 (-0.60%) an ounce to $22.620 and the DG spot price is $22.40.

Spot palladium lost 0.9% Tuesday to $954.50 an ounce and is down 4.5% so far this week. Palladium is down 4.6% so far this month after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. Currently, the DG spot price is down $28.70 an ounce to $928.50.

Spot platinum rallied 1.9% Tuesday to $899.60 an ounce, though it’s down 1.2% so far this week. Platinum is down 3.4% so far this month after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently down $12.00 an ounce to $886.00.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.