Silver Coin Investments

With a sinking dollar, fears of rising inflation, and risk of recession on investor’s minds, silver remains a scarce resource waiting for the right time to break-out. Silver generally regarded as a safe haven in times of uncertainty. But not all investors can buy thousands of ounces of silver. So, silver coins are a very popular not only, with coin collecting enthusiasts, but also with silver investors.

While there are many different types of silver coins one can collect, the coins you chose will depend on your personal tastes in addition to investment goals. As with all investments, it’s a good idea to study the various silver coins available and their specifications before you buy. Knowledge is power, (or money in this example).

From the various silver coins, the popular silver coins include: The American Silver Eagle, The Australian Silver Kookaburra, Australian Silver Kangaroos, Australian Chinese Lunar Calendar Series, British Silver Britannia’s, Canadian Silver Maple Leaves, and the Chinese Silver Pandas.

Indeed, all these coins are pure silver refined to 99 percent–sometimes even better. With a high amount of silver, and as silver is a “soft metal,” it’s a good idea to purchase proof coins rather than un-circulated, since proof coins retain their mint condition whereas un-circulated can possibility have scuff and other marks on the coins. These scuff marks can devalue the coin.

The proof sets usually come packaged in a special plastic case to protect the surface of the coins. This protection should not be removed as the case ensures the quality of the coin remains unchanged A proof set benefits as the case also serves as an authentication should the time ever comes to sell the coin. Simply put, a proof set proves the value of the coins.

As a collector, steer clear of the early nickels and dimes that contain silver, also called junk silver. The silver content is usually never more than 40-90 percent silver. Junk silver, usually, isn’t considered collectors coins.

However, for investors, junk silver can be an excellent option. Junk silver generally follows the spot price of silver, instead of deriving value from relative rarity. Junk silver has value because of the silver content, where rare coins have value because the coin is rare.

When weighing the options of investing in silver, the issue of liquidly continues as a main concern for many. This liquidly problem continues as the investor can’t turn around and sell her portfolio of silver instantly. However, with the avenue of the Internet, there are hundreds of services to sell your silver over the net. In addition to the Internet, there are dealers who will buy your silver coins. And all it requires is calling that dealer� to strike a deal.

But before using a dealer, you must read their terms and conditions. For example, some dealers will purchase coins unseen, some won’t. For the dealers whom will buy unseen coins you will either have to send the coin in, or, you will have to provide a decent photo of both sides of the coin including any original packaging if you have it.

If you do decide to sell your coins through a dealer, have a quote from two or more dealers. You might be surprised how each offer differs. By having two or more quotes insures you’ll have the best sale-price.

Either the Internet or the dealers provide an avenue to sell your silver portfolio relatively easy.

Indeed, coins for investors or coins for collectors can be a fascinating as well as a profitable provided you follow sensible guidelines.

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3 Comments to Silver Coin Investments

1. 

   Hi, I have a 1971 Eisenhower Liberty dollar in its original package, beside which is a uncirculated silver dollar, which looks to be made of a blue plastic with some type of silver overlay. I also have the original envelope from the department of the treasury, which the coins came in. Can anyone tell me more about the coin?
connie on December 25th, 2007
2. 

   connie, the 1971 Eisenhower dollar, based on the silver content has little value, but as a collectors item, it looks like the coin is worth $1.99 (based on eBay auctions).

   If you have any coins minted before 1964, the coin most likely has value because of the silver content. (use http://meltvalue.silvermonthly.com
Rowley on January 12th, 2008
3. 

   Hi:

   I would like to know how to tell if a coin claimed to be silver is indeed a silver coin? Is there any way to verify this? Thanks.
Bob Koeper on March 2nd, 2008