Guide to Investing in Silver – Chapter 6: Silver Coinage as an Investment

By:

Updated: Mar 5, 2019, 13:14 GMT+00:00

This is chapter number 6 out of 15. Read the rest: Read Guide to Investing in Silver – Chapter 1: IntroductionRead Guide to Investing in Silver – Chapter

Guide to Investing in Silver – Chapter 6: Silver Coinage as an Investment

This is chapter number 6 out of 15. Read the rest:

Read Guide to Investing in Silver – Chapter 1: Introduction
Read Guide to Investing in Silver – Chapter 2: Starting out as a Silver Investor
Read Guide to Investing in Silver – Chapter 3: Silver as an Investment Vehicle
Read Guide to Investing in Silver – Chapter 4: Methods of investing in Silver
Read Guide to Investing in Silver – Chapter 5: Investing in Silver Bars

Silver coins are also a popular means of investing in silver. The various types of coins which one can invest in are as listed below:

U.S. minted Silver Eagle coins are 0.999 in purity. They weigh one ounce and are sold for around $2 above spot price. Comparatively, they are expensive and are not recommended as an investment.

One Ounce” Rounds” coins are also 0.999 in purity. They also weigh one ounce each and look very much like the Silver Eagle coin. However, these coins are less expensive as they are sold around 40 to 50 cents above spot price. Because of this, they are quite popular and represent a good investment.

90% US Silver Coin Bags, $1000 Face are silver coins of 50 cents, 25 cents or 10 cents denomination that were frequently circulated in theUS. They are also known as “Junk Silver” and are sold by the “bag”. Each bag will contain one thousand dollars face value of the coins, for example, 2000 pieces of half dollar coins, 4000 pieces of quarter dollar coins and so forth. They are not rare or special coins. The “bag” weighs around 55lbs each and is the cheapest kind of silver that you can buy. This is due to the fact that there is a cost involved in melting them down to extract the purity required for industrial usage. Having said that, these types of silver can also become highly demanded. For example, prior to the turn of the new millennium, many people wanted “tradable silver” and each bag could fetch a 25% premium above silver bullions.

Commemorative Coins are silver coins sold to the public to commemorate certain events or famous personalities. Examples of these kinds of coins are Elvis” coins, and “Princess Diana” coins. These types of coins are poor choices of purchase as they are only worth the melt value and have no numismatic or aged value at all. If you wish to buy these kinds of coins, then the best way to acquire them is to buy them at the coin shops where they are sold slightly above spot price.

The ideal kind of silver to purchase will depend very much on your situation. If you are buying a large amount than the 1000 troy ounces bars are the best as they are easier to transport and to store. Most people prefer the 100 troy ounces or coins as there is a nice feeling to be had from holding such a bar or silver coins in one’s hand. The bigger 1000 troy ounces bar is extremely heavy to carry.

About the Author

FX Empire Editorial Boardauthor

Table of Contents

Intro

Intro