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Silver Coins: Why Buy Them?

 

Silver coins are one of the oldest mediums of exchange in the world today, and they still carry with them a consistent value. Although they are often overshadowed by gold and other forms of investment, many investors and speculators are now starting to see the value in buying silver coins. Why should you consider purchasing silver coins?

Consistent Store of Value

One of the main reasons that you should consider buying silver coins is that they provide you with a consistent store of value. With fiat money, the value is constantly being eroded. Governments continue to print more paper money, which leads to inflation and declining wealth. When you put your money into silver coins, they will be able to maintain a value no matter how much money is printed. Over time, silver’s value continues to go up.

Medium of Exchange

Another advantage of putting your money into silver is that it can actually act as a medium of exchange instead of just an investment. When you put your money into theoretical investments like stocks or bonds, it would be difficult to trade those assets for goods if you had to. With silver coins, you can use them as currency if you are in a jam. If the economy were to collapse at some point in the future, you would have plenty of coins on hand to barter with.

Control

When you buy coins, you also get to take control of them. This means that you will not be trusting your investment to someone else as is the case with other types of securities. For example, if you buy silver ETF shares or silver stocks, you won’t really have control over your investment. If the company offering the shares goes out of business, you might lose your money. With coins, you will have them at your disposal.

Silver Coins: Preserve Your Wealth

In today’s uncertain economy, many people are looking for safe investments that can earn steady returns. Silver coins represent one of the surest bets you can make in the investment world today. Why exactly would you want to invest in silver coins?

Hedge Against Inflation

One of the main reasons that you should consider investing in silver coins is so that you can create a hedge against inflation. If you have paid any attention recently, you may have noticed that the prices of almost everything have increased. When you put money into a tangible asset like silver, you can get something that will continue to go up in value as the value of the dollar decreases. As the Federal Reserve keeps adding money into circulation, this will only boost the value of your silver over the long-term.

Still Affordable

Another great reason to invest and silver coins is because it is still affordable. If you are interested in precious metals, you might notice that the prices of gold are up to almost $2,000 per ounce. For the average person, this makes it difficult to invest in very much gold bullion. With silver, you can still get in at a good price point that is affordable to almost everyone.

Medium of Exchange

When you own real silver coins, you have something in your possession that you can trade if necessary. With the way things are going, no one really knows what will happen with the financial system in the future. If it were to crash, you would have something that you can barter with. If nothing bad happens, you’ll still have silver that is growing in value all the time. Buying silver coins is an investment that makes sense for almost everyone.

silver coins

Silver Coins: Invest in Silver for a Secure Future

Investing in silver coins is one of the best ways to protect your hard earned money from the potential ravages of inflation. The spot price of silver has been on a continual climb when charted over the past decade. Silver coins are the perfect investment vehicle for investors who find that gold is out of reach for their current finances. In addition, there are many in the market who predict that the price of silver will skyrocket in the near future.

When selecting silver coins, it is best to choose those that are minted by a reputable source. The most recognized coins are those that have been minted by different governments as actual currency. Silver American Eagles are one of the more recognizable coins on the market today. In addition to Eagles, another popular coin is the Canadian Maple Leaf. The Maple Leaf has the advantage of being .9999 pure silver while most other coins only reach .999 in purity.

Other popular coins include Austrian Philharmonics and Chinese Pandas. Many of these coins have numismatic value as well as their inherent precious metal value. The numismatic value comes when a coin is in high demand. This can be caused by many factors, including a limited run or a special design on the face of the coin.

Some silver coins can be placed in an IRA account. Check with your retirement professional in order to determine which coins will work in your account. Usually, an IRA will accept coins that have been minted by governments and reputable mints. Many financial advisors recommend placing silver coins in an IRA as a way of diversifying your investment portfolio.

There are many reasons for the recent run up in the price of silver. One is that the metal has inherent industrial value. It is used in computers and cellphones as well as clothing and medical products. In addition, Chinese and Indian investors have entered the market over the past decade. All of these small investors entering the market has driven the high demand for silver coins.

Silver Coins: Collecting for True Wealth Building

Silver is a precious metal and its value has been rising in recent years. But there was once a time that silver was inexpensive enough that governments used silver to mint regular coinage that was used in everyday circulation. These coins now are high collectible, both as a precious metal investment and for numismatic value.

In the United States, the U.S. Mint produced coins that were composed partially of silver for circulation until 1970. The making of most silver coins was ceased in 1965, but the mint continued to produced half dollar coins that contained 40 percent silver through 1969. The pre-1965 dimes, quarters, and half dollars were composed of 90 percent silver. The mint also produced silver dollars throughout the 1800s and as late as 1934. These dollar coins are also composed of 90 percent silver and are very popular to collect.

Many other countries also minted silver coins as late as the 1950s and 1960s. Canadian dimes, quarters, half dollars, and dollar coins through 1967 are composed of 80 percent silver. In the United Kingdom, silver coins produced before 1920 are considered sterling silver, as they are composed of 92.5 percent silver. The British coins that contain silver from 1920 to 1946 are 50 percent composed of silver.

Those who want to collect these coins for silver investment will often refer to the coins as “junk silver.” That is not an insult to the coin. It simply means that the person purchases the coins only for the metal value and not because they look nice.

Others who collect coins made of silver may do so for numismatic value. This means they seek out coins that are in very good condition and have certain dates or other distinguishing features. These people will often pay a premium over the silver value to collect a silver coin that has eye appeal.

Silver Coins: A Savvy Investment in Turbulent Times

Precious metals have been a medium of exchange for centuries. For the most part, precious metals are no longer considered legal tender for industrialized nations. However, precious metals can still have a role in a well-diversified investment portfolio. There are a number of investment options in this asset class, including silver coins.

Market Ups & Downs

In a recessionary market, investors scramble to look for safe havens from volatility. For example, the Standard & Poor’s 500 Index has lost and rebounded almost a quarter of its value in the last year.

Recessionary markets are often characterized by inflation. Inflation is defined as an excess supply of currency leading to a rise in prices for goods and services. Sustained inflation inevitably leads to an erosion of purchasing power. Silver coins and other precious metals have traditionally done well in inflationary economies. The Bureau of Labor Statistics publishes the Consumer Price Index (CPI) on a monthly basis. The rate of inflation is compiled from that information. The rate of inflation for 2011 was roughly 3.4%.

The value of silver is primarily determined by supply and demand. The central purposes of silver are industrial (40%), exchange-traded products, jewelry and silver bullion coins. Comparatively speaking, the price of silver fluctuates more frequently than gold. Price volatility is attributed to less market liquidity and significant changes in industrial demand. Despite these sobering realities, the price of silver has been on a steady upward trend since September 2005. In fact, from 2005 until present, the price of silver has increased over 82%. This is in stark contrast to the anemic returns of the S&P 500 which posted a net decrease of -8.06% over the last five years.

In summary, the best way to protect your investment portfolio from sustaining sizeable losses is diversification. A proven way to diversify is to invest in different asset classes, namely silver coins.

Why Invest In Silver

Have you been thinking about investing in silver and silver coins? If you’re like most people, you’ve watched your investment values plummet, and interest rates on bank deposits and CDs have dropped to nearly nothing. With these types of failed investments, people are turning to alternative investments to find future growth and asset protection.

Investing in silver is one of the alternatives that most people don’t think about or understand, but those who have discovered this investment in precious metals have been pleasantly surprised at the return it can bring. It can start as easily as collecting pre-1965 issued quarters, dimes, half-dollar and dollar coins that you find in family collections and occasionally in a bank transaction. Another way to invest in silver coins is by purchasing more recently minted coins such as the American Eagle and others. Silver investors can even directly buy silver bars.

You may be wondering what benefits you can get from investing in silver, and probably the biggest one is the demand for silver by industrial applications. There is more demand in various manufacturing processes and industries than the supply can typically cover. Because of this production deficit, silver prices should continue to rise, meaning that your investment will continue to grow.

Silver is also used in more countries than gold as a form of currency, which keeps it in good demand. Silver coins can be used as an investment in an IRA account so they become an excellent product to fund retirement. If you are considering funding a retirement account with a silver investment it is good to consult with your investment advisor or accountant to understand all the important taxation considerations.

Finally, the best reason to invest in silver is to hedge against inflation, deflation or devaluation. Regardless of the economic conditions, silver continues to hold value. Even in the event of devaluation of currency, it can be used as a bartering tool.

The Value of Silver Coins

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