The price of a bullion coin will, therefore, be close to the spot price of silver. Silver bullion coins derive their value purely from the weight and purity of silver they contain. The weight and purity of silver in bullion coins is also guaranteed by law, which makes them a smart option for new investors. Bullion silver coins usually have a date and face value which confers legal tender status in their country of origin. Silver Bullion Coins: These are flat, disc-shaped coins containing 99.99% pure silver which are struck by sovereign mints such as the US Mint, The British Royal Mint, and Canadian Royal Mint among many others. Silver coins are available in four main formats: Silver bullion coins such as American Silver Eagles, Austrian Silver Philharmonics, and Canadian Silver Maples offer real portfolio diversification and potentially lucrative returns on investment.įor an investor looking to enter the silver market, what exactly are investment grade silver coins and which type of coins offer the best investment choices? This chapter explores the various types of silver coins to help you choose the most ideal format for investment. Today, governments, banks and institutional funds invest in silver as a hedge against currency devaluation and general uncertainty. The Spanish Empire, British Empire, and subsequent governments minted silver coins to give traders a portable, finite, and universally accepted form of currency to drive commerce in far-flung corners of the earth. In recent history, mass-circulated coins were made from silver alloys as a guarantee of value and to ensure acceptance.
These coins are still highly sought after today as valuable collectables due to their rarity and historical significance. The highly popular Drachma in ancient Greece or the Roman Denarii were treasured as prestigious coins and measures of wealth. This was for the simple reason that traders trusted the intrinsic value of silver in exchange for their hard-earned property. So, a bag of pre-1965 90 percent silver coins might be purchased by a dealer for $15,000 while that same dealer may sell it to a collector or investor for $16,000.Silver coins were the earliest form of mass circulation coinage in the world. For example, with silver at $20 an ounce, a dealer may pay 15 times the face value and sell at 16 times the face value. These bags most often contain $1,000 in face value of common-date Winged Liberty Head (Mercury) and Roosevelt dimes, Washington quarter dollars, along with Walking Liberty, Franklin and 1964 Kennedy half dollars.ĭealers generally buy and sell these for a multiple of face value.
This relative stability has made some people more comfortable investing in gold and silver, but where’s a good place to start?įor silver, many find bags of pre-1965 bags of 90 percent silver coins a good way to combine bullion and numismatics. Silver has been equally sleepy, hovering at the $19 to $22 level in February and March. The past few months have been rather quiet for precious metals with gold prices hovering comfortably at the $1,250 to $1,350 an ounce level for most of the past two months.
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