Coins minted in the 1950's and 1960's are commonly referred to as “junk silver,” but there’s nothing junky about them. They have that designation because they’ve been in circulation so long, they have very little or no value to collectors, but they have a high silver content. Numismatists might not collect them. We love them. We think they are the single most practical way to own precious metals today.

Here’s why you need to own silver coins:

#1. They’re the real thing. The dimes, quarters, and half-dollars made by the U.S. Mint prior to 1965 are instantly recognized as real silver.” They don’t need to be assayed to determine their precious metals’ content; they don’t need to be appraised by an expert to tell you what grade they are. Virtually anywhere you go, you can find a buyer who knows that  $10 face-value of these coins contains 7.12 ounces of pure silver and buyers will certainly buy these coins from you.

#2. They have liquidity and are readily divisible. A bag of these coins is easily and instantly converted to their equivalent silver melt value. A few silver dimes will pay for some food or other small items since each silver dime contains approximately $2 worth of silver. These 90% pure silver coins really can work as “pocket change.” Try doing that with a one-ounce gold coin or 100-ounce bar of silver.

#3. They’ve never been confiscated. For everyone who worries that the U.S. government may once again try to confiscate all of the gold in the United States – as Franklin Roosevelt did to gold back in 1933 – here’s a reassuring fact: silver coins have never been subject to confiscation. You don’t need to lie about owning them. Of course, you should never brag to anyone – a neighbor or a government bureaucrat – about any precious metals you own.

#4. They are extra convenient. Most dealers sell these coins in $1,000 face-value bags. We do, too, of course. But at today’s prices, those 712 ounces of silver will cost you around $21,800. Bags at $100 amounts are also available.

#5. The premiums are low. Because there is a very active market for these pre-1965 silver coins, premiums tend to be low compared to other hard asset forms of the precious metal. You shouldn’t have to pay more than 5-8% above the spot price of silver. Of course, if there’s another “run” on junk silver bags, as there was a few years ago, the premiums can skyrocket overnight. When you buy, insist that your silver coins are shipped to you by U.S. Post Office insured registered mail, with a return receipt requested. And make certain that the price you’re quoted includes everything, including shipping and insurance. Never, ever, fall for a “buy below spot and we’ll store it free” pitch. If you ever hear that, run, don’t walk, to the nearest exit. You definitely want to take physical possession of your silver.

The US Federal Reserve keeps printing money. The dollar continues to get weaker. The bond market will continue to fall. Prices for just about everything are going up. Interest rates will rise dramatically. Inflation has arrived in the United States.

Americans just can’t think from a perspective of "Great Depression." Most Americans alive today never experienced a serious economic downturn or a bond default; the good citizens of the United States will be caught unaware and offguard by the events of the near future-- A SHIFT OF POWER AND WEALTH. But average Americans really shouldn’t be caught unaware andf off-guard because governments historically never pay off their debts! They always default in one form or another.

Listen Up Americans: Prepare for a return to a gold and silver standard by purchasing physical precious metals right now.

Silver has a demand side that will be accounted for. Since silver has many industrial applications and since every time silver is used to make a computer or cell phone or take an X-ray, it’s gone. It can’t easily be recovered. Of all the silver mined over the history of humankind, over 5,000 years, more than 90% of it has been used up. It’s gone forever.

For many years, the U.S. government maintained a stockpile of silver. It had millions of ounces of the stuff hidden away in caves somewhere. The original reason was to back up our paper dollar. Today, “silver certificates” are collectors items, but who remembers were they were the legal tender of this country and the meaning of the certificate was that it was backed up by actual, physical silver bullion. Every ounce of that silver is gone not, too.

Meanwhile, the demand for silver increases every year. Industrial uses have been exploding, from new technology to “infection control” in hospitals. Investors are snapping up “Walking Liberty” silver dollars faster than the U.S. Mint can produce them. The 3,407,000 silver eagles reported 'sold' in January 2011 is way above the mint's capacity to produce them during the short time period of one month.

Higher demand and lower supplies add up to only one thing: Higher prices! It is happening now.

1980 was a year in which the price of just about everything more than doubled. That was the year US interest rates soared demanded by buyers of Treasury debt. The sudden surge of Treasury yields on December 7 and 8, 2010, is primary indicator and first sign of a potential repeat performance of surging interest rates comparable to what happened in 1980.

The Federal Reserve’s upcoming QE2, a second round of emergency monetary easing, will lead to higher inflation in the near future. Many central banks around the world may devalue their currencies to further domestic growth, sparking a global “currency war.” The US Federal Reserve is printing massive amounts of paper money.

Every fiat currency in the history of the world has ended in ruins. To quote Howard Buffet, US Congressman and Father of multi-billionaire Warren Buffett, "paper money systems generally collapse and result in economic chaos."

The various European crises remain an intermittent foil for the U.S. dollar, pulling market attention away from the unfolding solvency crisis in the United States and a likely move to massive selling against the U.S. currency. Consequently, a very high risk of the early stages of runaway inflation are beginning to unfold at the end of this year, 2010, and rising inflation will become a serious problem in the first-half of 2011.

What should you do? Again, to take a quote from an intelligent economist, Howard Buffett: "...human freedom rests on gold redeemable money."

You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings.- Professor Wilhelm Hankel, Frankfurt University, The Telegraph... November 25, 2010

With German's frenzied buying of gold and silver based upon their past experiences, it's a smart idea that we do the same. There are only two types of paper currencies: those that are already worthless, and those that are about to become worthless. The German people know this and soon as Americans get a taste of price inflation, we will see what a real gold rush looks like.