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 Coins, Numismatic
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.
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 Education, Vault 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.
