Many people have considered buying gold and silver coins, whether it’s for a collection, as a way to diversify an investment portfolio, or simply as an insurance policy in case of an emergency (similar to food storage).
One of the best places to begin is with silver, because it is an affordable yet valuable investment, and the wide circulation of silver coins available makes it easier to get a hold of good coins for all different types of buyers. One of the best kept secrets, experts are also predicting all time highs in the coming future. If you have never been in a position to buy silver coins before, you may not really know where to begin. Here is a guide to help you start your collection.
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ENGELHARD BIG E 10 TROY OUNCE 999 FINE SILVER BAR SERIALC562130
ENGELHARD SMALL E 999+ FINE SILVER BAR SERIALFA92076 AIRTITE
Understand the Silver Market
There are a wide variety of ways you can own silver, but not all of them will be beneficial to you depending on your reasons for collecting silver. For example, some investors purchase silver stocks or futures—if your purpose is to make money through short-term investing, this may be the best option for you. However, if your purpose for buying silver is to have a great coin collection, or to have a valuable commodity for retirement or other purposes, it is better for you to physically have the silver in your possession.
The most common way to own silver is coins, the most popular of which are the American silver eagle and the Canadian silver maple leaf. Both contain 1 troy ounce of silver, and have a face value of $1. You can use them as legal tender for purchases, but their actual value is tied to the spot price of silver, which has been as high as $48 per ounce in recent years, and is currently around $30, according to Kitco.
Know the Different Silver Types
There are a wide variety of different ways you can own silver, including coins, bars, as “junk” silver, or collector’s coins. Before you buy, be sure to get the right kind. For example, if you are trying to save for retirement, you don’t want to spend money on a rare collectors coin that you may not be able to sell when you want to cash out the value later.
Despite its name, “junk” silver can actually be a good investment. This term describes silver that has no collector’s or numismatic value other than the amount of silver it contains. Most junk silver is purchased in the form of regular quarters, dimes, and nickels minted before 1965 (when coins actually contained silver).
If you goal is to amass a vast collection of rare silver coins, you probably don’t want coins like the American silver eagle, since there are over 300 million of those coins in circulation today, according to the U.S. Mint. Rare coins are not typically used for investment portfolios or retirement purposes, though, because their value can only be realized if there is another collector willing to purchase it at the asking price.
Shop Coin Stores First
If you are wondering where to buy silver coins, coin stores are a good place to start. There are a myriad of websites to buy from, but there may be a higher risk of buying fraudulent coins online, and you will often pay high shipping charges, increasing the premium you pay. In addition, you can examine, hold, and weigh the coins before you purchase if you are in a physical store.
Silver has many advantages in today’s marketplace, whether you are a casual investor, looking for retirement portfolio diversity, or want to start a great rare coin collection. The key is to know where to buy to maximize your investment.
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Dorian Travers is a writer and blogger and likes to keep his readers informed on subjects where life meets money.