Silver Coins
Silver coins are what many people think of when it comes to silver bullion. There is no doubt that coins have the edge in visual appeal, collector interest, and added value. There are so many different types of coins around the world, and from so many different years that you will inevitably end up adding a few to your own collection. Even silver buyers who are only looking to make an investment will have a tough time disputing the inherent value that is found in silver coins.
So what is a silver coin anyway? Most people think that a coin is classified as any old round piece of metal, generally accompanying a design. While every coin will be round and feature a design, not every round piece of metal is a coin! A coin is always, 100% of the time produced and distributed by a government body. One of the best examples of a coin comes from the United States in the form of the Silver Eagle. These items are produced exclusively by the government’s federal mints and will never be re-created by a private company. This is part of the reason why so many coins have a lot of value, are desirable, and scarce.
There are many different options in silver coins. If you are only going after the most generic releases and issues, you aren’t normally going to pay an excessive premium over spot price on your purchase. Now, if you are looking to obtain some very rare coins that have a strong following in the numismatic world, expect to pull out your wallet. One of the only problems with buying coins for investment purposes is that you run the risk of losing more money than what is reflected in the spot price if the collector demand falls. Of course, by that same token, coins will also offer added value and return when they increase in value. It is definitely a two sided coin when comparing whether or not to use coins as an investment vehicle, pun intended.
Coins can be found all over the globe and in a number of different sizes. Because of the value of silver, especially in relation to gold, the most common size of coins is 1 oz. In gold, buyers and collectors can choose from a handful of different varieties, including 1/10 and 1/4 ounces, but this is not the case in silver. Now, if silver becomes much more expensive, it is likely that these smaller sizes would be more readily available. Though silver coins larger than 1 oz. are available, they are rare and will not be as accessible as their 1 ounce siblings.
One thing that separates coins from rounds and bars is that they are most valuable when they are kept in the best condition possible. While a silver bar will be worth its relative spot price whether it is shiny or beaten up, a coin tends to be worth more in tip top shape than if it is worn and rusted away. As a result, you should always take good care of any coins that you obtain. They aren’t going to drop below spot price if you let them deteriorate, but they certainly aren’t going to go up in value either. As a general rule of thumb, if you keep your coins in the same condition that you got them in when they were new, you will be in a position to sell them at a premium down the line.
