What Silver Coins to Buy for Investment?

What silver coins to buy for investment

If you want to invest in silver coins, and don´t know what silver coins to buy for investment, then you’ve come to the right place! Silver is one of the best investments available, with its value increasing yearly. Whether you’re an experienced investor or just starting, understanding which silver coins to buy can be daunting. In this blog post, we’ll look at the factors that go into making a good investment decision when buying silver coins and identify which ones offer the greatest returns for your money.

Why Invest in Silver Coins?

First, we will discuss why investing in silver coins is great.

Silver is a Safe-Haven Asset

When markets spiral out of control, investors tend to flock to the safety of precious metals. In this case, silver has a distinct advantage over gold. While both metals tend to perform well in times of crisis, silver is also a key player in the manufacturing industry. This means that when the value of paper assets like stocks and bonds declines, silver prices can remain stable, which makes it a great option for long-term investors.

Silver is a Great Hedge Against Inflation

Inflation is a major concern for any investor. As the value of currency declines, your portfolio can suffer. However, silver has historically been an excellent hedge against inflation. In fact, between 1971 and 1980, silver prices increased by over 2,400% due to inflationary pressures. This means that investing in silver coins can give you peace of mind during times of uncertainty.

Silver Coins are Affordable

While gold coins can be expensive, silver coins are relatively affordable, making them a great option for investors needing more capital to devote to precious metals. Additionally, the price of silver tends to be less volatile than that of gold, which means that smaller fluctuations in the market will have less of an impact on your investment. 

Silver is in High Demand

Silver has a wide range of uses, from jewelry to electronics. This means there is always a demand for this precious metal, which can contribute to long-term price stability. As demand for renewable energy sources continues to increase, there is likely to be even more demand for silver, which could lead to price growth in the future.

Silver Coins Offer Portability & Liquidity

Silver coins are an excellent way to store wealth in a compact, tangible form. Unlike other investments, silver coins can be easily transported and stored anywhere in the world, which makes them an ideal option for investors who want to diversify their holdings beyond traditional assets like stocks and bonds. 

The Value of Silver as a Precious Metal

As you may already know, the value of silver as a precious metal is determined by its purity and weight. Most coins are made from pure silver, containing .999 fine or 99.9% pure silver. This makes them the ideal choice for collectors and investors alike, as it ensures that their value is unlikely to be impacted by fluctuations in the market.

If the silver is not pure, it will likely be labeled as “gold and silver plated” or “silver clad.” These coins are made from a mixture of metals such as copper or nickel, which means they are unsuitable for investment purposes. Some coins are also made from “sterling silver,” a blend of silver and other metals. While these coins may look attractive, they are not as pure as those made from .999 fine silver, so they tend to have less value in the eyes of investors. It is always important to check the purity level of a coin before making an investment decision.

Understanding Silver Purity and Weight in Coins

The Importance of Silver Purity in Coins

Silver purity refers to the amount of silver used in the coin. Most coins contain a mixture of silver and other metals, such as copper or nickel, to improve their durability and make them harder. The purity of silver in a coin is measured in fineness, the percentage of silver in the coin. For example, a coin with 99.99% silver content is considered to be of higher purity than a coin with 90% silver content.

The higher the purity of silver in a coin, the higher its value. For instance, a silver coin with 99.9% purity is more valuable than a silver coin with 90% purity. High-purity silver coins also have a higher resale value as they are considered more valuable.

The Weight of Silver in Coins

The weight of silver in a coin is also a crucial factor in determining its value. Silver coins are often sold by weight, and the weight of silver in a coin is measured in Troy ounces. A Troy ounce equals 31.1 grams, slightly heavier than a regular ounce.

The weight of silver in a coin can affect its value, as heavier coins are often more valuable than lighter ones. For example, a one-ounce silver coin is generally more valuable than a half-ounce silver coin. The weight of silver in a coin can also affect its legal tender status, as some countries limit the amount of silver that can be used in coins.

Coin Certification

When investing in silver coins, it’s important to ensure they are certified by a reputable grading agency. Coin certification ensures that the coin is authentic and of the correct purity and weight. It also guarantees that the coin has not been altered or damaged in any way.

Certification agencies use a grading system to rate the condition of a coin, which can further affect its value. Coins that are in better condition are often more valuable than those that are worn or damaged. Therefore, purchasing silver coins certified by a reputable grading agency is essential.

Types of Silver Coins for Investment

American Silver Eagle Coins

American Silver Eagle coins are one of the most popular and iconic silver coins for investment. The US government mints them with a one-ounce weight and 99.9% purity. While their value fluctuates due to supply and demand, they are a stable investment. Additionally, their popularity and widespread circulation make them easy to buy and sell.

Canadian Silver Maple Leaf Coins

Canadian Silver Maple Leaf coins are another popular choice for investment. The Royal Canadian Mint mints them with a one-ounce weight and 99.99% purity. These coins have high-security features like micro-engraving and anti-counterfeit technology, making them a trusted and secure investment option.

Austrian Silver Vienna Philharmonic Coins

Another top pick for investment is the Austrian Silver Vienna Philharmonic coin. They are minted in Vienna and have a one-ounce weight and 99.9% purity. These coins have a beautiful design featuring classical instruments, making them an appealing choice for collectors and investors alike.

Chinese Silver Panda Coins

Chinese Silver Panda coins are a unique and highly sought-after investment option. Minted by the People’s Bank of China, these coins have a one-ounce weight and varying levels of purity, depending on the year of minting. Their design features a cute and cuddly giant panda, making them a popular collector’s item.

Mexican Silver Libertad Coins

Lastly, the Mexican Silver Libertad coin is a popular investment choice due to its rarity and beauty. Banco de Mexico mints these coins with a one-ounce weight and 99.9% purity. The design features the Winged Victory statue, making them a unique and eye-catching addition to any collection.

Silver Bullion Coins vs. Silver Numismatic Coins: Which is Best for Investment?

Silver Bullion Coins:

Silver bullion coins are arguably the most popular form of investment-grade silver coins. Government mints produce them and usually contain .999 or .9999 fine silver. These coins have a uniform weight and purity, making them easy to trade and stack. Some popular silver bullion coins include American Silver Eagles, Canadian Silver Maples, and Australian Silver Kangaroos.

The benefits of silver bullion coins include their affordability, liquidity, and simplicity. Because they have a low premium over the spot price, you can easily buy and sell these coins at a reasonable price. Government-issued bullion coins are recognized worldwide, making them highly liquid assets. Finally, silver bullion coins are easy to store and transport, making them ideal for investors looking to diversify their portfolios.

However, silver bullion coins also have their disadvantages. They do not appreciate value as quickly as silver numismatic coins and are not particularly rare or unique. Additionally, because they are mass-produced, they need more artistic detail and historical significance than numismatic coins possess.

Silver Numismatic Coins:

Silver numismatic coins are valued for their rarity, historical significance, or artistic beauty rather than their silver content. They can be fractional ounces of silver and often have lower silver content. Some popular numismatic silver coins include the Morgan Silver Dollar, the Saint Gaudens Gold Double Eagle, and the Walking Liberty Half Dollar.

The benefits of silver numismatic coins include their potential for higher appreciation and their unique artistic and historical significance. Because these coins are rare and unique, they can appreciate more than bullion coins, making them a good option for long-term investment. Numismatic coins also have a rich history and artistic beauty, which can add to their value and appeal.

However, silver numismatic coins also have their disadvantages. They can be relatively expensive and difficult to trade, making them less liquid assets. Additionally, because the value of these coins is subjective, determining their exact worth can be challenging, and they may only sometimes retain their value as well as bullion coins.

Factors to Consider When Buying Silver Coins for Investment

There are several factors to consider when investing in silver coins. Some of these are as follows:

Mintage

When purchasing silver coins for investment, the mintage is one of the first factors to consider. Mintage refers to the number of coins the issuing mint produces in a given year. The lower the mintage, the rarer the coin, and its value is likely to be higher. Be sure to research the mintage of the coins you’re interested in before making a purchase, as it can significantly impact their future resale value.

Condition

Another critical factor to consider when buying silver coins for investment is their condition. Coins in excellent condition, often referred to as “mint condition,” can command a higher price than those worn or damaged. If you want to make the most of your investment, consider purchasing silver coins that are in exceptional condition and have been graded and certified by a reputable third-party grading service.

Rarity

Rarity is another key factor to consider when buying silver coins for investment. Some coins are significantly rarer than others and can command a premium price due to scarcity. For example, older coins produced in limited quantities or unique coins that were only issued for a short period are typically more valuable than those produced in large quantities. Be sure to research the rarity of the coins you’re interested in before purchasing to ensure you get the most value for your investment.

Demand in the Market

Lastly, it’s essential to consider the demand for the coins you’re considering purchasing. The higher the demand for a specific coin, the more valuable it will likely be. Keep an eye on market trends and consult with industry experts to identify coins that are in high demand. Doing so can help you maximize your investment returns and minimize your risk of choosing coins that underperform in the market.

How and Where to Buy Silver Coins Safely

The best place to purchase silver coins is from a reputable and trusted precious metals dealer. Reputable dealers will provide quality products, fair prices, and excellent customer service. Furthermore, many precious metals dealers offer secure storage solutions to ensure your investment is safe and protected.

When selecting a dealer to work with, be sure to do your research. Ask for recommendations and read reviews online to understand what other investors have experienced when dealing with the company. Once you’ve identified a few potential dealers, contact them directly to ask questions about their services and determine if they fit you.

Finally, only make assumptions about the safety of any transaction after doing your due diligence first. Always verify any information given by a potential dealer and only transact with legitimate companies. Taking the time to do your research can help ensure that your investments are both safe and profitable.

Frequently Asked Questions

Q: How much does a silver coin cost?

A: The cost of a silver coin will depend on several factors, including its mintage, condition, rarity, and market demand. Silver bullion coins typically have lower premiums over spot price than numismatic coins and are more affordable for most investors.

Q: What is the best way to store my silver coins?

A: The best way to store your silver coins is in a safe or secure storage facility. Alternatively, you can keep them in a home safe that’s properly secured against fire and theft. It’s also important to consult with an experienced precious metals dealer who can provide secure storage options and advise you on protecting your investment from damage or loss.

Q: Are silver coins a good investment?

A: Silver coins can be an excellent investment choice, depending on your goals and risk tolerance. Bullion coins typically have lower premiums over spot price than numismatic coins and may be the better option for investors looking to build their wealth over time. Numismatic coins, meanwhile, are valued for their rarity and may offer greater potential appreciation, making them desirable investments for those who prefer to take more risks with their money.

Q: What are the best silver coins to invest in?

A: The best silver coins depend on your investment goals and risk tolerance. Bullion coins are generally a good choice for investors looking for an affordable way to diversify their portfolio or build wealth over time, while numismatic coins may be better suited for those who prefer to take more risks with their money. Ultimately, it’s important to research and consult with experienced industry professionals before making decisions. This will help ensure that you make the best possible investment choices and get the most out of your investments.

Q: What are the advantages of investing in silver coins?

A: Investing in silver coins has several distinct advantages. Firstly, they are tangible assets that can provide greater insulation from market volatility than stocks or bonds. Silver is also a finite resource and can generate greater appreciation over time as demand increases. Finally, silver coins offer investors the opportunity to own physical assets that have both numismatic value and potential future resale value based on changes in spot prices. For these reasons, many investors consider silver coins to be an excellent option for building wealth over the long term.

Q: Are silver coins a better investment than gold coins?

A: Whether silver coins are a better investment than gold coins will depend on the individual investor’s goals and risk tolerance. Silver typically has lower premiums over spot price than gold, making it more affordable for most investors. Silver is often seen as more accessible to entry-level investors and can be easier to store at home or in an appropriate storage facility. As with any other investment, it’s important to research and consult with industry professionals before making decisions. This will help you make informed investments and get the best returns possible.

Conclusion

When investing in silver coins, it’s important to understand the factors that go into making a sound investment decision. Research and weigh all options before choosing which coins to buy for investment. Consider any premiums associated with different types of coins and look out for counterfeit or poor-quality pieces. Finally, remember that buying silver as an investment should always be done to make a profit. With the right information and approach, you can get great returns on your investment in silver coins.

Discover our #1 Recommended Silver Company to Purchase from in the U.S.


I hope you found this short article about what silver coins to buy for investment to be helpful and that you now have a greater understanding on the subject. Please share your own views and experinces in the comment section below as it can help others!

I wish you success!

Mark, founder of Gold IRA King

Leave a Comment