With gold or silver bullion that does not come in protective packaging, you risk the metal being corroded and affected by the outside environment. Decay, however, is something that many people think about regarding precious metals. The ultimate question is whether silver and gold decay. In a manner of speaking, no. Gold and silver also do not decompose in the sense that it rots or withers away.
Some coin collectors seek out damaged bullion due to its unique appearance and typically reduced price. Others focus on a specific type of coin, such as a Buffalo or Maple Leaf, to build a complete collection of every condition in which the coins are available.
Gold and silver are conductors of heat and energy, which is why they are used in various industries. One feature that makes these two precious metals widely collected is their high tolerance to air exposure. If left exposed, silver and gold will slowly tarnish, fade, or break down in the environment over time. By their scientific and chemical nature, these elements are not immune to corrosion but are immune to decay.
Potential Issues on Bullion
Even though gold and silver do not decay, they are susceptible to other issues, both environmental and non-environmental:
Oxidation
What may appear to be the cover of the coin peeling or spots on the coin is oxidation on the coin.
Milk Spots
Planchets, the round disks struck into coins, are usually washed after they are made. This helps to remove contaminants and give the planchet a brighter appearance. If the planchets are not thoroughly rinsed, the remnants of the solution used to wash them will cause white spots to develop over time
Green Spots
Green spots, often confused with mold, are commonly found on U.S. cents, but they have also been known to show up on gold and silver bullion. Verdigris, as some call it, can be cleaned quickly and easily
Pitting
A result of corrosion. It happens when you see tiny holes on the surface of your coin.
Finger Spots
Fingerprints are dangerous on coins because bacteria and oils on our fingers can accelerate the corrosion process.
Taking Care of Your Gold or Silver Bullion
When handling your precious metals, you should proceed with caution and care. If handled properly, you will keep its condition and grow its value. If not, you risk damaging your investments and decreasing their value. Here are a few tips on taking care of your metals:
- Use cotton gloves to help protect the coin from fingerprints.
- Never handle tarnished metals with other metals.
- Store them in an air-tight container designed explicitly for coins or bars.
- Dry your coin when possible. If the bullion is exposed to moisture or humidity, dry it completely. Moisture can cause rust and water spots.
- Don’t clean your bullion. For superficial cleaning, gently wash it with mild soap and water and dry it with a soft cloth.
Gold is a soft metal typically resistant to scuffs and scratches, but if you want to keep your bullion in mint condition, you should still take care not to drop it or let it get jostled around with other unprotected coins.
Silver oxidizes under normal conditions and is best kept in tamper-evident packaging (TEP) or sealed packaging to prevent it from interacting with the oxygen in the air.
Plastic sleeves are not ideal for storing precious metals because they are not airtight and can potentially trap moisture inside, which will damage and corrode your coins. Your storage container should be made of natural materials such as wood, glass, or Mylar. Protective coin slabs are also acceptable. PVC may be lighter and cheaper, but it’s not suitable for storing precious metals because it decomposes when it reacts to light or heat and creates a chemical reaction that will eat away at the metal. If you have a large amount of precious metals to store, consider including a dehumidifier inside to prevent moisture buildup.
