Silver Rounds

A round is often times confused with a silver coin. The difference between a round and a coin is that coins are produced exclusively by government run mints whereas rounds are made by private mints. To elaborate and further simplify the difference, you could make a round in your basement, but you could not make a coin. This is the fundamental difference between rounds and coins, though there are some other primary elements that help in identifying rounds.

The majority of rounds were produced for re-sale at a price that is a fair amount higher than the current spot price. Silver mints make their money by melting silver and then reproducing it and selling it to the public at a higher rate than it is worth at its core. A typical round will either be a commemorative item or a slight replication of actual coins. For example, a lot of rounds will feature eagles on them, much like the American Eagle, even though they are not at all the same. Rounds could be anything from generic releases emblazoned with a mint’s name, to holiday themed, or in memory of an event, sports team, or other occasion.

Though almost every round is initially priced at a clip well above the actual market, or spot value, of silver, almost all of them will eventually be traded at the fair market value. This is because rounds do not hold collector interest like coins do. Because their scarcity and general appeal is artificially created by private companies, unlike coins produced in limited runs on an annual basis, the value in a round generally diminishes over time. This allows buyers to pick up rounds right at spot price, sometimes even cheaper than the same amount of silver in bar form. Rounds will have carried an added value at some point in their life time, but it would be a mistake to over pay for them years later. There are some exceptions to this rule, but the best plan is to pass up on any round that is being sold at a significant premium.

Rounds are definitely a sound way to buy silver, but you should not be paying over spot price for them. Instead, pick up your rounds at the lowest price possible, a figure which should almost always be right in line with the weight equivalent of a bar. Since rounds do not carry any extra value in the eyes of collectors, it does not make any sense to pay extra for them when it comes to your collection or investment. There is no shortage of different types of rounds available, and you may even find that they tend to offer the best overall bang for your buck. You may end up owning a number of odd or out of the ordinary commemorative items, but in the end, silver is silver…no matter what it looks like on the outside.