Silver Coins – A Guide To Buying Silver Coins

A Guide To Buying Silver Coins

Buying silver coins is one of the best ways to invest in silver. However, there are many things you should know before trying to invest in silver coins as they are not all the same kind of silver, and there are many different pitfalls you must watch out for. This guide will explain the benefits, and pitfalls of buying coins.

There are many different types of silver coins issued from many different governments all around the world. If possible, you should always try to invest in coins that are issued by a government because that way they come with inherent credibility. If there were to be a lot of people selling silver at once, most people would prefer a government backed commodity like a government issued coin versus a piece of silverware.

Formats

There are many different ways that you can buy silver coins. The first is individually. This is good if you have very little money to invest in silver, and are just looking to make sure you have some on hand, or start your collection. Since most silver coins are 1oz, you can start investing in silver for between $30USD and $40USD. There are many different silver coins to choose from like the American Silver Eagle, Canadian Maple Leaf, or the Mexican Libertads. Each of these coins is endorsed by the issuing government, and each is 1 troy ounce of .999 silver.

If you have more money to invest, you might find that coin tubes are the right investment for you. These tubes of 20 coins are issued by the United States Mint, and contain uncirculated currency. Since they are sealed, this makes them easier to sell, and for a starting price around $900, this is a great way to start investing in silver.

If you have significantly more money to invest you should consider the monster box. The monster box is a giant green box, shipped to your door via registered mail, full of 500 American Eagle Silver coins. These are the boxes that the mint uses to move currency around the country with, and will come sealed with straps by the issuing mint. These start right around $20,000 for the box.

Silver Bullion Coins

Silver bullion coins are coins often but not always issued by governments that have a purity of 99.9% or greater. Instead of being put in general circulation, they are specially made for investors. Most governments create their bullion offerings in troy ounces .999 Fine. .999 Fine is just another way to say 99.9% purity.

Many investors like Bullion coins for their purity compared to 90% silver coins and because they feel that the issuing authority, a government mint, provides additional credibility to their investments. There have been reports of Chinese-made counterfeit silver coins, and purchasing from a mint provides another layer of security. Not to mention when it comes time to sell, many buyers prefer familiar form factors and products.

Some of the most popular Silver Bullion Coins include the:

  • American Silver Eagle
  • Canadian Maple Leaf
  • Austrian Philharmonics
  • Mexican Libertads
  • Chinese Silver Pandas
  • Australian Koalas
  • British Royal Mint Silver Coins

If you’re going to be investing in silver coins, be aware that there is higher level of speculation involved in coins. Because coins are small units of a precious metal compared to bars, they carry a premium on top of buying a similar amount of Silver in bulk. However, coins are more liquid and easier to sell since they come from a credible issuing authority Their portability and convenience makes them easy to transport and there form factor and design contribute to their ubiquity.

Other Silver Coins

Be careful about buying coins that are “silver” but not endorsed by a mint as such. For example, whenever you’re buying coins from a garage sale, or a thrift store, make sure you’re calculating the value based on the actual silver content of the coin. For example Nickels from 1942-1945 are made from Silver and have a metal value of about $1.75, but Nickels not from those years have a metal value of about $0.04. This is why it’s always best to buy silver coins from known origins, or mints. You’ll find a lot of coins on eBay, not all are suitable for investing in Silver. They might be a nice addition to your regular coin collection however.