Category: Gold and Silver News

Most investors have a conceptual understanding of gold’s value. However, many people still wonder: Why is gold so expensive? After all, this yellow metal has very minimal practical applications when compared to more functional precious metals such as silver. Yet, gold prices far outpace the values of other investment-grade metals.

In reality, gold’s value is the result of a millennia-long human fascination that has overseen the evolution of a shiny metal into one of society’s most enduring and valuable assets. Understanding the history of gold’s value can shed some light on its current price and future evaluations.

Early significance among humans

For thousands of years, humans have imbued gold with tremendous symbolic, cultural, and religious significance. A combination of gold’s aesthetic luster, durability, malleability, and rarity made it a popular choice for societies throughout time. The ancient Egyptians and Aztecs considered gold a byproduct of the gods. This link between gold and divinity is echoed by various ancient civilizations worldwide.

In its earliest uses, gold was used for decoration on jewelry, artifacts, ornaments, and buildings. Typically, only the most affluent and highest-ranking members of society had access to gold, further cementing its association with wealth and prestige. This deep-rooted connection between humanity and gold laid the foundations for this metal’s eventual rise as the preeminent force in economics.

Use as a medium of exchange and currency

Gold’s connotation with wealth, status, and power made it the perfect medium of exchange for burgeoning economies. It was highly coveted and widely recognized among members of early civilizations. The earliest examples of gold used as a store of value and means of trade date back to Ancient Mesopotamia, Egypt, and the Indus Valley Civilization around 3,000 to 2,500 BCE.

It would be another several hundred years until gold was used in official currency. The Kingdom of Lydia is famous for minting the first gold coin in 630 BCE. These early coins were created with an alloy of gold and silver, owing to gold’s malleability. Eventually, neighboring and succeeding civilizations followed suit, spreading the use of gold in government-issued currency across the globe.

Advantageous properties and characteristics

The preference for gold as a principal component in currency isn’t exclusively explained by its aesthetic appeal and association with wealth. Gold also exhibits several unique characteristics that make it a practical choice for coinage:

• Durability – Resistant to various forms of corrosion including tarnishing and rust.
• Malleability – Easily shaped into coins of various fractional sizes without breaking or cracking
• Portability – A high value-to-weight ratio makes it a practical form of daily currency
• Scarcity – Exists in relatively scarce amounts which underpins its value and status as a store of wealth

These properties helped cement gold’s use in the production of currency throughout the development of civilizations.

Gold standardization in economies

When modern economies began issuing paper forms of currency, governments looked to gold to provide a solid foundation of value. This tether between bills and the yellow metal led to the establishment of the gold standard. The United Kingdom was the first country to formalize a tie between its paper currency and this precious metal in 1821, followed by the United States and other major world economies throughout the 20th century. The economic cost of World War II led to the global abandonment of the gold standard, but the resulting Bretton-Woods Agreement still tied the US dollar, as the world reserve currency, to gold.

👉 Further Reading: A Return to the Gold Standard?

Ongoing demand from fait failures

The transition to a fiat economy and the dissolution of the gold standard didn’t diminish the importance of gold in the global economy. Despite the move away from a gold-backed currency, governments worldwide have continued to accumulate and maintain substantial gold reserves to support their currencies, which have become increasingly devalued over time. Far from offering a viable replacement, the shortcomings of paper currency systems have only underscored gold’s enduring value as a cornerstone of economic stability.

Since the 1930s, the US dollar has lost 99% of its value against gold. The economic consequences of an untethered currency and limitless government spending have driven central banks to buy up record amounts of gold over the past few years. The gold standard and the Bretton Woods Agreement played a pivotal role in solidifying gold’s significance, acceptance, and utility on the global economic stage. The momentum created by these frameworks has carried on long after their demise.

Limited industrial demand

Ironically, gold’s low industrial demand when compared to silver or palladium contributes to its strong price action. While high industrial demand consumes a significant portion of other precious metals’ availability, the gold supply is protected by its limited application. The overwhelming majority of gold ever mined remains in an accessible form and can always be recycled into different forms. This results in greater price stability and steady demand. In contrast, more industrially dependent metals experience greater demand inconsistencies and price volatility, harming their reputation as reliable stores of value.

Natural supply constraints

The relatively inelastic global gold supply is one of the primary reasons it’s so expensive. If gold resources were abundant, the saturated market would lead to significantly lower prices. Not only is the natural supply of gold limited, but the process of exploring, mining, and manufacturing gold is costly and time-consuming. This results in a fixed supply of gold which contributes to stable price movement.

On the flip side, gold demand has been steadily increasing for years as central banks and retail investors diversify with precious metals in the face of waning economic conditions. The combination of a static supply and a growing demand results in higher gold prices as the market adjusts to these dynamics, further reinforcing gold’s value as a hedge against inflation and economic uncertainty.

View as a safe haven asset

Gold’s premium value isn’t only driven by demand at the global or national level. For centuries, everyday investors have viewed gold as a safe-haven asset, providing a backstop against the volatility of paper currency and paper-backed assets such as stocks, bonds, and ETFs. Historically, gold prices maintain their strength and even increase in value as the rest of the economy slides. The widespread view of gold as a hedge against economic pressures results in steady demand which strengthens prices and reinforces its status as a stable asset. This positive feedback loop strengthens gold’s well-earned reputation

Why gold is never too expensive.

Seeing the impressive spot price of gold can lead some budget-conscious investors to assume this asset is out of their reach. However, gold’s divisibility ensures it’s never too expensive for any investor to own. This metal’s malleability allows it to be broken down into various fractional sizes which is anything smaller than the traditional one troy ounce size. The resulting spectrum of gold coins, bars, and other physical products provides various entry points for investors below the current spot price of gold.

If you’re eager to make the most out of your gold investment, claim a FREE copy of our Precious Metals Investment Guide. It covers everything you need to know about diversifying your portfolio with gold, silver, and other precious metals.

Most investors have a conceptual understanding of gold’s value. However, many people still wonder: Why is gold so expensive? After all, this yellow metal has very minimal practical applications when compared to more functional precious metals such as silver. Yet, gold prices far outpace the values of other investment-grade metals.

In reality, gold’s value is the result of a millennia-long human fascination that has overseen the evolution of a shiny metal into one of society’s most enduring and valuable assets. Understanding the history of gold’s value can shed some light on its current price and future evaluations.

Early significance among humans

For thousands of years, humans have imbued gold with tremendous symbolic, cultural, and religious significance. A combination of gold’s aesthetic luster, durability, malleability, and rarity made it a popular choice for societies throughout time. The ancient Egyptians and Aztecs considered gold a byproduct of the gods. This link between gold and divinity is echoed by various ancient civilizations worldwide.

In its earliest uses, gold was used for decoration on jewelry, artifacts, ornaments, and buildings. Typically, only the most affluent and highest-ranking members of society had access to gold, further cementing its association with wealth and prestige. This deep-rooted connection between humanity and gold laid the foundations for this metal’s eventual rise as the preeminent force in economics.

Use as a medium of exchange and currency

Gold’s connotation with wealth, status, and power made it the perfect medium of exchange for burgeoning economies. It was highly coveted and widely recognized among members of early civilizations. The earliest examples of gold used as a store of value and means of trade date back to Ancient Mesopotamia, Egypt, and the Indus Valley Civilization around 3,000 to 2,500 BCE.

It would be another several hundred years until gold was used in official currency. The Kingdom of Lydia is famous for minting the first gold coin in 630 BCE. These early coins were created with an alloy of gold and silver, owing to gold’s malleability. Eventually, neighboring and succeeding civilizations followed suit, spreading the use of gold in government-issued currency across the globe.

Advantageous properties and characteristics

The preference for gold as a principal component in currency isn’t exclusively explained by its aesthetic appeal and association with wealth. Gold also exhibits several unique characteristics that make it a practical choice for coinage:

• Durability – Resistant to various forms of corrosion including tarnishing and rust.
• Malleability – Easily shaped into coins of various fractional sizes without breaking or cracking
• Portability – A high value-to-weight ratio makes it a practical form of daily currency
• Scarcity – Exists in relatively scarce amounts which underpins its value and status as a store of wealth

These properties helped cement gold’s use in the production of currency throughout the development of civilizations.

Gold standardization in economies

When modern economies began issuing paper forms of currency, governments looked to gold to provide a solid foundation of value. This tether between bills and the yellow metal led to the establishment of the gold standard. The United Kingdom was the first country to formalize a tie between its paper currency and this precious metal in 1821, followed by the United States and other major world economies throughout the 20th century. The economic cost of World War II led to the global abandonment of the gold standard, but the resulting Bretton-Woods Agreement still tied the US dollar, as the world reserve currency, to gold.

👉 Further Reading: A Return to the Gold Standard?

Ongoing demand from fait failures

The transition to a fiat economy and the dissolution of the gold standard didn’t diminish the importance of gold in the global economy. Despite the move away from a gold-backed currency, governments worldwide have continued to accumulate and maintain substantial gold reserves to support their currencies, which have become increasingly devalued over time. Far from offering a viable replacement, the shortcomings of paper currency systems have only underscored gold’s enduring value as a cornerstone of economic stability.

Since the 1930s, the US dollar has lost 99% of its value against gold. The economic consequences of an untethered currency and limitless government spending have driven central banks to buy up record amounts of gold over the past few years. The gold standard and the Bretton Woods Agreement played a pivotal role in solidifying gold’s significance, acceptance, and utility on the global economic stage. The momentum created by these frameworks has carried on long after their demise.

Limited industrial demand

Ironically, gold’s low industrial demand when compared to silver or palladium contributes to its strong price action. While high industrial demand consumes a significant portion of other precious metals’ availability, the gold supply is protected by its limited application. The overwhelming majority of gold ever mined remains in an accessible form and can always be recycled into different forms. This results in greater price stability and steady demand. In contrast, more industrially dependent metals experience greater demand inconsistencies and price volatility, harming their reputation as reliable stores of value.

Natural supply constraints

The relatively inelastic global gold supply is one of the primary reasons it’s so expensive. If gold resources were abundant, the saturated market would lead to significantly lower prices. Not only is the natural supply of gold limited, but the process of exploring, mining, and manufacturing gold is costly and time-consuming. This results in a fixed supply of gold which contributes to stable price movement.

On the flip side, gold demand has been steadily increasing for years as central banks and retail investors diversify with precious metals in the face of waning economic conditions. The combination of a static supply and a growing demand results in higher gold prices as the market adjusts to these dynamics, further reinforcing gold’s value as a hedge against inflation and economic uncertainty.

View as a safe haven asset

Gold’s premium value isn’t only driven by demand at the global or national level. For centuries, everyday investors have viewed gold as a safe-haven asset, providing a backstop against the volatility of paper currency and paper-backed assets such as stocks, bonds, and ETFs. Historically, gold prices maintain their strength and even increase in value as the rest of the economy slides. The widespread view of gold as a hedge against economic pressures results in steady demand which strengthens prices and reinforces its status as a stable asset. This positive feedback loop strengthens gold’s well-earned reputation

Why gold is never too expensive.

Seeing the impressive spot price of gold can lead some budget-conscious investors to assume this asset is out of their reach. However, gold’s divisibility ensures it’s never too expensive for any investor to own. This metal’s malleability allows it to be broken down into various fractional sizes which is anything smaller than the traditional one troy ounce size. The resulting spectrum of gold coins, bars, and other physical products provides various entry points for investors below the current spot price of gold.

If you’re eager to make the most out of your gold investment, claim a FREE copy of our Precious Metals Investment Guide. It covers everything you need to know about diversifying your portfolio with gold, silver, and other precious metals.

While the talking heads try to convince the American public that the economy is firing on all cylinders, smart investors are taking their financial fate into their own hands. Instead of tossing their hard-earned dollars on top of an inflated stock market, they’re diversifying with gold and silver.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr. Precious Metals Advisor Damian White and Precious Metals Advisor Todd Graf explain why investors are strategically reallocating some of their portfolio and why NOW is an opportune time to buy physical gold and silver.

Approach the Stock Market with Caution

The stock market has never been a reliable indicator of the health of the broader economy, especially for everyday Americans. That’s why the recent highs across stock indices aren’t shaking any concerns investors have about the economy. Recent Gallup surveys reveal that 74% of people don’t have a positive view of the economy. With a historically low approval rating of 38%, the Biden administration’s incompetence isn’t generating much hope for a turnaround.

The US economy still faces a series of obstacles such as stubborn inflation, record levels of personal debt, and a looming US debt crisis. As the wealth gap expands, the middle class is getting crushed. The rich keep getting richer, and the poor keep getting poorer. For perspective, the average American is currently spending 11% of their disposable income on food which is at its highest point in decades.

Time to Reallocate Investments?

In light of the underlying economic risks, many investors are taking profits while the stock market is surging. They’re preemptively reallocating their wealth to more stable assets such as precious metals in anticipation of an economic downturn or full-blown recession.

Get More Out of Your Gold & Silver Investments

Learn How

Things look good on the surface right now, but…things can go south very quickly.

–Precious Metals Advisor Todd Graf

Gold Demand vs Gold Prices

Over the past four to five years, there’s been a widespread shift away from paper assets and into gold bars and coins. This considerable surge in precious metals demand was sparked by the pandemic and maintained by a gauntlet of economic and geological challenges including bank collapses, hot wars, ongoing inflation, and the southern border crisis.

Every time there’s a boom in gold buying, gold prices and premiums reach relative highs. The friction between heightened demand and dwindling supplies forces precious metals and coin dealers to increase their premiums as it costs more to locate and source physical metal assets. As a result, buying into surging demand isn’t ideal.

A Short-Term Buying Opportunity

Interestingly, while central banks continue to buy up gold bullion at record rates, there’s been a lull in retail investor gold demand as investors are distracted by a booming stock market and the siren calls of politicians promising a full economic recovery. This is a welcomed opportunity for investors looking to accumulate more physical gold at relatively low prices before the next rush into precious metals.

“Right now…is the opportune time to be buying precious metals. Prices are relatively stable…and…premiums have compressed to levels we haven’t seen in years.”

Of course, this buying window is going to close soon as more investors wake up to the growing risk of traditional assets. Time is of the essence.

Don’t Wait to Buy Gold, Buy Gold and Wait

Gold has remained the most effective and proven insurance policy for your wealth. Everyone can see and feel the economic turmoil. Forward-thinking investors are taking advantage of the surging stock market to take profits and shift into precious metals to hedge against the incoming flood of economic pressures.

Waiting around until the economy turns south will result in higher costs and higher premiums as gold and silver prices inevitably rise. Right now, we’re in the calm before the economic storm. It’s an ideal time to start accumulating or adding to your stockpiles.

While the talking heads try to convince the American public that the economy is firing on all cylinders, smart investors are taking their financial fate into their own hands. Instead of tossing their hard-earned dollars on top of an inflated stock market, they’re diversifying with gold and silver.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr. Precious Metals Advisor Damian White and Precious Metals Advisor Todd Graf explain why investors are strategically reallocating some of their portfolio and why NOW is an opportune time to buy physical gold and silver.

Approach the Stock Market with Caution

The stock market has never been a reliable indicator of the health of the broader economy, especially for everyday Americans. That’s why the recent highs across stock indices aren’t shaking any concerns investors have about the economy. Recent Gallup surveys reveal that 74% of people don’t have a positive view of the economy. With a historically low approval rating of 38%, the Biden administration’s incompetence isn’t generating much hope for a turnaround.

The US economy still faces a series of obstacles such as stubborn inflation, record levels of personal debt, and a looming US debt crisis. As the wealth gap expands, the middle class is getting crushed. The rich keep getting richer, and the poor keep getting poorer. For perspective, the average American is currently spending 11% of their disposable income on food which is at its highest point in decades.

Time to Reallocate Investments?

In light of the underlying economic risks, many investors are taking profits while the stock market is surging. They’re preemptively reallocating their wealth to more stable assets such as precious metals in anticipation of an economic downturn or full-blown recession.

Get More Out of Your Gold & Silver Investments

Learn How

Things look good on the surface right now, but…things can go south very quickly.

–Precious Metals Advisor Todd Graf

Gold Demand vs Gold Prices

Over the past four to five years, there’s been a widespread shift away from paper assets and into gold bars and coins. This considerable surge in precious metals demand was sparked by the pandemic and maintained by a gauntlet of economic and geological challenges including bank collapses, hot wars, ongoing inflation, and the southern border crisis.

Every time there’s a boom in gold buying, gold prices and premiums reach relative highs. The friction between heightened demand and dwindling supplies forces precious metals and coin dealers to increase their premiums as it costs more to locate and source physical metal assets. As a result, buying into surging demand isn’t ideal.

A Short-Term Buying Opportunity

Interestingly, while central banks continue to buy up gold bullion at record rates, there’s been a lull in retail investor gold demand as investors are distracted by a booming stock market and the siren calls of politicians promising a full economic recovery. This is a welcomed opportunity for investors looking to accumulate more physical gold at relatively low prices before the next rush into precious metals.

“Right now…is the opportune time to be buying precious metals. Prices are relatively stable…and…premiums have compressed to levels we haven’t seen in years.”

Of course, this buying window is going to close soon as more investors wake up to the growing risk of traditional assets. Time is of the essence.

Don’t Wait to Buy Gold, Buy Gold and Wait

Gold has remained the most effective and proven insurance policy for your wealth. Everyone can see and feel the economic turmoil. Forward-thinking investors are taking advantage of the surging stock market to take profits and shift into precious metals to hedge against the incoming flood of economic pressures.

Waiting around until the economy turns south will result in higher costs and higher premiums as gold and silver prices inevitably rise. Right now, we’re in the calm before the economic storm. It’s an ideal time to start accumulating or adding to your stockpiles.

Gold eyes second weekly gain in Friday morning trading after hitting a one-month high earlier in the market day as the latest U.S. data pointed to signs of slowing inflation, bolstering investor expectations of an interest rate cut by the Federal Reserve in June.

The yellow metal rose Thursday and the dollar slipped following the release of the latest U.S. inflation data, the personal consumption expenditures price index (PCE), which showed that the cost of goods rose in line with expectations in January. Excluding volatile food and energy costs, so-called core-PCE increased 0.4% month on month in January and 2.8% from a year earlier, in line with economists’ expectations. Top-line PCE, including food and energy costs, increased 0.3% for the month and 2.4% on a 12-month basis, also in line with the consensus. 

A weaker dollar is bullish for gold because it makes the yellow metal more affordable for holders of other currencies. But high interest rates are considered bearish because they make gold a less attractive asset for investors. The key ISM manufacturing report is due out Friday with February data and may provide further direction.

Front-month gold futures rose 0.6% Thursday to settle at $2,054.70 an ounce on Comex, and the most-active April contract gained 0.3% in the first four days of the week. Bullion dropped 0.6% in February after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently up $7.10 (+0.35%) an ounce to $2061.80 and the DG spot price is $2053.50.

U.S. GDP has topped 2% for six consecutive quarters, according to data out Wednesday, a signal that the economy is tolerating the high interest rates. 

Atlanta Fed President Raphael Bostic reiterated Thursday that the central bank can probably begin cutting interest rates this summer, as inflation nears the Fed’s 2% target. 

“The slope of the line is still going down,” he said, according to Bloomberg. “I’m of the view that it will probably be appropriate if things go the way that I expect to see us start to reduce rates in the summertime.” 

Cleveland Fed President Loretta Mester said Thursday that she still anticipates three rate cuts in 2024, but “there is a little more work for the Fed to do here in terms of making sure that we can get all the way back to that 2% goal,” she told Yahoo News in an interview. 

Bostic and San Francisco Fed President Mary Daly are scheduled to speak Friday. 

About 97% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 3% expect a 25 basis point cut. Most investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May. 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, rose 1.1% Thursday to settle at $22.89 an ounce on Comex, though the May contract is down 1.3% so far this week. Silver lost 1.2% in February 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 $0.005 (-0.02%) an ounce to $22.880 and the DG spot price is $22.71.

Spot palladium increased 1.8% Thursday to $954.00 an ounce but is down 4.6% so far this week. Palladium fell 4.6% in February after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. The current DG spot price is down $2.80 an ounce to $950.00.

Spot platinum slipped 70 cents Thursday to $885.50 an ounce, though it’s down 2.7% so far this week. Platinum decreased 4.9% in February after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently down $8.40 an ounce to $878.60.

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 eyes second weekly gain in Friday morning trading after hitting a one-month high earlier in the market day as the latest U.S. data pointed to signs of slowing inflation, bolstering investor expectations of an interest rate cut by the Federal Reserve in June.

The yellow metal rose Thursday and the dollar slipped following the release of the latest U.S. inflation data, the personal consumption expenditures price index (PCE), which showed that the cost of goods rose in line with expectations in January. Excluding volatile food and energy costs, so-called core-PCE increased 0.4% month on month in January and 2.8% from a year earlier, in line with economists’ expectations. Top-line PCE, including food and energy costs, increased 0.3% for the month and 2.4% on a 12-month basis, also in line with the consensus. 

A weaker dollar is bullish for gold because it makes the yellow metal more affordable for holders of other currencies. But high interest rates are considered bearish because they make gold a less attractive asset for investors. The key ISM manufacturing report is due out Friday with February data and may provide further direction.

Front-month gold futures rose 0.6% Thursday to settle at $2,054.70 an ounce on Comex, and the most-active April contract gained 0.3% in the first four days of the week. Bullion dropped 0.6% in February after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently up $7.10 (+0.35%) an ounce to $2061.80 and the DG spot price is $2053.50.

U.S. GDP has topped 2% for six consecutive quarters, according to data out Wednesday, a signal that the economy is tolerating the high interest rates. 

Atlanta Fed President Raphael Bostic reiterated Thursday that the central bank can probably begin cutting interest rates this summer, as inflation nears the Fed’s 2% target. 

“The slope of the line is still going down,” he said, according to Bloomberg. “I’m of the view that it will probably be appropriate if things go the way that I expect to see us start to reduce rates in the summertime.” 

Cleveland Fed President Loretta Mester said Thursday that she still anticipates three rate cuts in 2024, but “there is a little more work for the Fed to do here in terms of making sure that we can get all the way back to that 2% goal,” she told Yahoo News in an interview. 

Bostic and San Francisco Fed President Mary Daly are scheduled to speak Friday. 

About 97% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 3% expect a 25 basis point cut. Most investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May. 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, rose 1.1% Thursday to settle at $22.89 an ounce on Comex, though the May contract is down 1.3% so far this week. Silver lost 1.2% in February 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 $0.005 (-0.02%) an ounce to $22.880 and the DG spot price is $22.71.

Spot palladium increased 1.8% Thursday to $954.00 an ounce but is down 4.6% so far this week. Palladium fell 4.6% in February after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. The current DG spot price is down $2.80 an ounce to $950.00.

Spot platinum slipped 70 cents Thursday to $885.50 an ounce, though it’s down 2.7% so far this week. Platinum decreased 4.9% in February after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently down $8.40 an ounce to $878.60.

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.

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.

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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.