How to Invest in Silver Coins

Investing in silver has turned out to be quite profitable in the recent years. Silver has always been viewed to be an important precious metal with high intrinsic value. In the recent past however, the rate of return over silver investments, in the bullion, coin and silver markets have been connoted to be a successful one. The reason that silver is said to be a 'precious' metal is due to the fact that it's rare and the demand in proportion is relatively high. If you take a look at the graph of silver prices then it shines out like a steep mountain. There are minor, ups and down, but from the point of view of investing, they are almost insignificant. Point is the prices of silver are always on the rise, and hence if you purchase silver coins, bullion and bars as of today, you can stay put for some time, wait till the silver prices hit a rising point and then sell. So if you are planning to invest in silver coins or any other objects, this is the summary.

Investing in Sliver Coins

The price of silver is quite favorable if you want to invest in it, but the point is, there are several bullion which have been created by the government that you can invest in. An investment channel which can be recommended is the American Silver Eagle. With a face value of $1, you can get this coin in some mints and also in several financial institutes who act as brokers. With a composition of 99% silver, this bullion can yield a great return if sold after a period of years (5-7, preferably a decade). Similarly, you can also consider the America the Beautiful, bullion which is yet to be launched. The value of the silver coin is $0.25, with a 99% silver content. The Canadian, Silver Maple Leaf, is another good option, which has a 99% silver and a $5 (CAN) face value. Silver Kookaburra and Lunar Australia and Philharmoniker from Austria, are three good options, all having .999 fineness. United Kingdom's Britannia with 95% silver composition is also great option, with a 5 pound face value. Your investment's mechanism would thus be simple, all you will have to do is purchase the bullion and sit tight for a few years and then sell off the coins. In some cases, one can also resort to what is popularly known as junk silver. Junk silver is principally coins that have a pretty high content of silver in them. This should include, the Morgan dollar or the Peace dollar, both of which have 90% silver contents. Similarly, quarters, dimes, nickels and half dollars can be hoarded and then sold off as the silver price goes high. Here, the silver coin's melt value, that is the amount silver that is in the coin is considered for the sale price. To get the best possible price all you will have to do is keep a keen eye on the price graphs of silver.

Why to Invest in Silver Dollar?

Today, in the modern world, not all economies make use of the system of representative money (also known as commodity backed money). In such a system, when a mint or a printing press prints, say $100 worth of money, an equal amount of gold, silver or such other assets are retained by the central bank. This measure ensures that notes are not over printed and the intrinsic value of those $100 remains the same. However, in today's world, a majority economies are not following this logic and are thus suffering from melt down cycles such as recession, depression and inflation. Overall, if one retains a bank-note of $100 in a safe or a bank, the value of the $100 would have substantially dropped down in the next couple of years. It means that today, if I am able to purchase a good 100 candy bars with those $100, then in a couple of years the number of candy bars that I would be able to purchase will be less than 100. Overall, the conclusion to this brain storming is that putting in money into the bank accounts, funds and some other investment options is not going to give you a huge yield, apart from that there is also some amount of risk in some of these investment destinations. There are however, three investment destinations, where you can easily put in your money, namely, gold, silver and real estate. Of the three. silver has depicted quite a different and successful graph. Silver coins, bars and bullion are some excellent destinations which can be used to make an investment.

Now, why not real estate and gold. Well, there are a few drawbacks of both these investments. Gold though, is always rising, in the long run, suffers sharp ups and downs in several situations, especially during a festive season. Apart from that processing loss, in case of gold jewelry, is quite high and proves to be costly. Hence, there is a probability of facing one or all the three investment risks: low yield, low rate of return and short term rise and falls. Real estate, of course, has a major drawback that it costs a small fortune.

Author: Scholasticus K