The European debt crisis has given investors the jitters, with good reason. Greece is a mess, and will be a big drag on the Euro Zone for many years in the future. Spain, Portugal, and Italy have big debt problems too. As a result the world’s stock markets have become very volatile. This is because the stock markets do not react well to bad economic news, and there has certainly been more than a fair amount lately.

Many investors have been busy selling their high risk stocks and running for the safe haven offered by gold and silver. Bullion coins are a favorite hedge of investors. They offer a convenient method of investing in precious metals and can be bought or sold worldwide.

Yet, prudent investors are starting to buy and sell rare coins like the Morgan silver dollar for quick profits. While bullion coins worth is determined by metal content and the spot price of the coins’ metal, rare coins offer value to coin collectors. For example, if you are selling Carson City minted Morgan Dollar in mint condition, many collectors would be willing to pay you a tidy sum for the coin.

The Euro debt problem is not going away anytime soon. This means the stock market is likely to stay on its current rocky course. This however bodes well for precious metals. In other words, gold and silver bullion prices should continue to rise well into 2012. Diversifying your portfolio into precious metals is a sound move. You can diversify further by buying rare coins, such as the Morgan silver dollar for big profits.

It is important to compare gold and silver to other investments in order to gain a clear understanding of how valuable these precious metals really are. Stocks, bonds, and paper money are not tangible assets. The world’s money supply is backed by Flat Currency. In other words, the money supply is backed by only paper money. Yet, gold and silver coins always have worth, and this applies to both bullion and rare coins. Paper investments can lose their value incredibly fast. Diversifying into silver and gold coins protects you from a tanked stock market.

In the end, the Euro Zone debt crisis has caused the stock market to become quite unstable. Europe’s problems are not going to be fixed anytime soon. This means stocks will continue their rocky ride. You can protect yourself by investing in gold and silver coins.