Apr 2012


Apr 2012

Silver Coins

By StoneX Bullion

Invest in Silver Coins

The two main categories in which silver coins are available are: commemorative coins and bullion coins. Therefore, when people want to sell silver which was minted in the form of coins they will either sell it to collectors in the case of commemorative coins or to investors if they are in the possession of bullion coins.

Silver coins have been around since the first beginning of coinage, since its invention. They were the first form of money and can today be used today as legal tender. However, no one expects these coins to circulate; people regard them as means of investment. When people think at this precious metal silver and at its uses they mostly think as at a safe asset to invest in, to guard their funds against economic disruptions like inflation and currency devaluation, like it is the case with the US dollar.

Silver bullion coins are very practical when it comes to investing into them because they are so affordable that they can be bought in larger quantities than, for example, gold coins. Also, being affordable people could invest into a larger variety of silver coins, minted by different nations around the globe. These bullion coins are manufactured from silver with a high purity, the majority of them having a content of 99.90% pure silver. Therefore, this type of investment is highly qualitative.

Popular Types of Silver Coins

The Silver American Eagle, firstly introduced in 1986, is maybe the most popular amongst silver coins minted all over the world. It weighs exactly one troy ounce of silver of purity 99.90% and it has a face value of $1.

Another popular coin among silver coins is the Silver Canadian Maple Leaf coin. It was first minted by the Royal Canadian Mint in 1988. The attraction of this coin, besides the reputation of the mint that produced it, is its purity. The Canadian coin is made of 99.99% pure silver, being one of the purest silver coins. It has a face value of CAD $5 and is worldwide famous for a beautifully simple design.

Other famous minted silver coins are: the 2008 Vienna Philharmonic with 99.90% purity, the 1982 Silver Mexican Libertad with 99.90% purity, the Silver Chinese Panda minted in 1983 and the same purity of 99.90% silver, the 99.90% pure Silver Australian Kangaroo, and the silver coins minted by the United Kingdom with a smaller purity 95.80% named the British Silver Britannia.

Value of Silver Coins

The price of silver is influenced by supply and demand and also by large traders that are involved in transactions on the spot silver market. Demand for silver, as a precious metal in general not only under the bullion form, is in a continuous increase which, naturally, makes the price of silver to increase.

I told you about the price of silver because silver coins are valued in accordance with the evolution of this price. Therefore, if the silver spot price is found on an ascending path, the price for the bullion coins will also increase.

The price of commemorative coins does not directly depend on the evolution of the silver price. Collectors value them taking into consideration their rarity, their age, and the condition in which have been preserved.

The best moment to invest into silver coins is when silver price is not at a high peak because that is the moment when you have to sell them if you want to make a quick profit.