How to Buy Silver Coins

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How to Buy Silver Coins

Deciding to research and perhaps move forward with buying silver coins is a big deal!  

Before you start buying silver coins, you will need to know a few important things like:

1) The different types of silver coins there are.

2) What is the best type of silver coin to buy to suit your investment objectives.

3) How to safely buy the correct silver coin(s).

 

I.  Types of Silver Coins

There are four basic types of silver coins: Silver Bullion CoinsNumismatic Silver Coins (also known as collector coins), Semi-Numismatic Silver Coins, and Pre 1964 Junk Silver Coins. 

Silver Bullion Coins normally have a silver fineness of .999 or higher and are considered pure silver.  With silver bullion coins, there are only two layers of cost: precious silver metal content and dealer premium.  

Silver investors most often acquire silver bullion coins.  Silver bullion coins have very transparent two-way buy and sell prices based on the market price of physical investment grade silver. 

Numismatic silver coins are generally purchased by coin collectors.  Rare coin values are subject to many factors outside of the silver spot price. There are typically three layers of cost built into the price of silver numismatic coins: metal content, numismatic premium, and dealer profit.

Much like fine art, true numismatists (collector coin experts), are generally lifetime coin collector enthusiasts who have acquired years of specialized knowledge sharpening their trade.  There are a few successful players in these arenas; they typically have decades of experience and expertise. 

Semi-numismatic silver coin values are based partially on their semi-collector coin value and primarily on the purity of their silver bullion content.  

Finally, there are pre-1964 junk silver coins such as old quarters, dimes, Morgan dollars, Franklin half dollars, etc. 

Junk silver coins range from 35% to 90% silver and are not .999 fine silver, which is what both silver investment markets and the silver industry demands.

In the last major silver bull market in 1980, silver investors who didn't have exchange ready silver received a 30% discount to the silver spot price given that most silver refineries were often backlogged for two to three months or longer. 

In other words, the silver spot may have been trading at $ 50.00, but silver investors with the wrong form of silver were only paid some $ 35.00 for their junk silver.  

 

II.  Best Silver Coin for Your Investment Objectives

Choosing the best silver coin for your investing objectives will depend upon multiple factors like the importance of your silver investment's privacy, premiums both on the buy and the sell side of the market, and your geographic delivery or storage location.

If you are considering converting an IRA into silver coins, silver bullion coins are a great choice for silver investors. 

The most popular silver bullion coins are the American Silver Eagle Coins followed by the Canadian Silver Maple Leaf Coins.  When purchased in bulk, these silver bullion coins come in stackable-sealed government mint cases.  Each sealed mint case contains five hundred, 1 troy ounce-silver coins packaged in tubes. 

 American Silver Eagle Coins      Canadian Silver Maple Leaf Coins

 

III.  How to Safely Buy Silver Coins

Silver coins can be bought in numerous ways, including but not limited to buying online  such as at our website, GoldSilver.com.  Some investors buy silver coins locally at coin shops, while even in some countries investors can buy silver coins directly from banks.  

Always make certain the silver coin dealer you buy from publishes, and offers a competitive buy back price for the silver coins they sell to you.  In other words, will they offer you a fair price if you return to sell to them?

Certainly consider any differentiators that some silver coin dealers may have over others. The silver dealer with the lowest price doesn’t necessarily mean it is the best choice. 

Mike Maloney, author of the # 1 best selling precious metals book Guide To Investing In Gold And Silver, says that investors must take into account the value, not merely the price, of any investment decision.  For example, GoldSilver.com’s value differentiators are the EducationVault Storage Options, and Exit Strategy that we provide our clients.

Finally, when it comes to buying silver coins, you need to think about the future.  How you may ultimately sell your silver at a profit and what your exit strategy might look like.  

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The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
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