Anyone buying silver coins isn’t doing so purely for the silver content. This is because there is always a premium applied over the cost of the silver that the coin contains. And while silver content is certainly a huge factor in the value of a bullion coin, it is not the only factor.
The higher the silver content of a coin the more it is worth. But the age, condition, uniqueness and demand for that coin will all affect the price of the coin. Many coins that are advertised as being collectable and investable will never be worth more than you pay for them. In fact there are many silver coins targeted at would-be investors that are worth considerably less than their asking price.
What’s really important when considering silver coins is the amount of silver they contain and the premium you are paying over the value of the silver content. Bullion coins will usually consist of mainly pure silver at 99% or higher silver content. But other non bullion coins may actually contain only around 90% silver or even less.
So, is it even worth investing in silver coins? Well as with most things it is possible to make money with silver coins. Knowledgeable collectors who buy and sell coins can make a tidy profit. But most people who deal in coins are doing so because they have a passion for coins and not simply because they see a profit to be made. Coins are like fine art or antiques; they are worth more than the sum of their parts only as long as someone is willing to pay for the privilege of owning them.
If you’ve read this far and decided that perhaps investing in silver coins isn’t for you then you’ll probably want to look at other way to invest in silver. Perhaps silver bullion bars is your thing or silver ETFs are more up your street.
But if I have done nothing to diminish your interest in silver coins and you still want to invest in these precious metal coins then you need to know a few of the more reputable silver coins.
Perhaps the most well known silver bullion coin is the American Eagle coin. This coin is also available in Gold and Platinum and released by the United State Mint. The silver eagle coin is the official silver bullion coin of the United States and has a nominal face value of one dollar and weighs one troy ounce.
However, the term “Silver Dollar” can be used to refer to any white metal coin issued in the United States with a face value of one dollar. It confuses some people because not all coins referred to as silver dollars are considered bullion coins.
A silver dollar will usually contain some silver but only silver bullion coins like the American Eagle contain 99.9% pure silver.
The advantage of the American Eagle is that it has high liquidity. This makes buying and selling them relatively easy as demand is always high. The bad point is that there is a premium to pay over the silver value alone. This is to be expected with most silver coins however.
Silver American Eagle production began in 1986 and demand was high as it still is today. Due to the global recession demand has exploded in recent years as investors look to bullion coins as a safe bet against inflation. This increased demand began to affect availability in March 2008 and the United States Mint temporarily suspended sales to authorized coin dealers.
It’s important to realize that as a collectable item, the American Silver Eagle has had special issues and varieties. This means that there is more to the value of a American Eagle coin that first meets the eye. For example the 2000-W Silver Eagle had alterations made to the reverse design and this makes them more collectable.
There is also the “America the Beautiful” coin available in the United States with a .999 fineness and 5 troy ounce denomination making it the largest denomination silver bullion coin ever issued by the United States Mint.
“One-Ounce Rounds” are .999 pure silver but have a lower premium than the American Eagle. They are not created by the United States Mint but rather by private mints in the United States. For this reason they seem to be less popular than the Silver American Eagle and carry a lower premium. This means that you get more silver content for your money.
The Canadian “Maple Leaf” silver bullion coin is .9999 fineness and comes in 1/2 oz and 1oz denominations. The Maple Leaf is also available in Gold and Platinum like the American Eagle bullion coins.
In Australia the “Silver Kookaburra” is available in 1oz, 2oz, 10oz and 1kg denominations. There is also an Australian “Lunar” bullion coin available in the same denominations.
There are many other silver bullion coins across the world…
- Austria has the “Philharmoniker” which is only available in a 1oz denomination.
- China has the “Silver Panda”.
- Kazakhstan the “Silver Irbis”.
- Mexico has the “Libertad”.
- Russia has the “Saint George the Victorious”.
- The United Kingdom has the “Britannia” which is .958 silver and comes in 1/10oz 1/4oz, 1/2oz and 1oz denominations.
Of course there are many other silver coins, but you should only buy after carefully researching the value and demand and considering your purchase. Always purchase from a reputable dealer and check out their reviews online to see if they are legitimate.
