Silver bullion coins

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About silver bullion coins

One of the most attractive ways of investing in precious metals is collecting gold and silver bullion coins. And while gold coin prices is much higher than silver coin prices buying 1-oz silver bullion coins is the most affordable and convenient ways of investing in bullion coins.

A silver bullion coin is a coin that is valued by its weight in a specific precious metal. Silver coins have been used since the time of Alexander the Great. These days the most popular and well known silver coins are 1-oz silver bullion coins like American Silver Eagles, Canadian Silver Maple Leaf coins and Mexican Silver Libertad coins.

For most investors, especially when first starting out, 1-oz silver coins are the fastest way to begin investing and the easiest to find and buy. 1-oz silver bullion coins are the best vehicle for silver bullion investment because they are affordable, attractive, safe, easy to store, and very liquid.

The erosion of paper and actual wealth that is happening to everyone is astounding and investing in physically held silver or gold is the oldest and most proven method of protecting wealth.

People want to move their net worth into more 4stable forms, just to ensure that even if the world economy actually does collapse, they will still have something they can trade with. The best form to hold wealth in under these conditions are silver bullion products like silver bullion coins and rounds.

The reasons for owning physical silver in 1-oz silver bullion coins have completely crossed into the realm of investment safety. With bullion silver coin investing, you personally store a rare and valuable asset that most people haven't an educated clue about.

Silver bullion coins are legal tender if they are government issued and have a face value. This nominal face value allows the silver coins to travel across national borders without the taxation or fees otherwise imposed by many countries on silver bullion itself.

American Eagle Silver Bullion Coins

The American Silver Eagle Coins are the official silver bullion coins of the United States. American Silver Eagles the only silver bullion coins whose weight and purity are guaranteed by the U.S. Government and the only silver bullion coins allowed in an IRA.

Each American Silver Eagle coin contain one ounce of .999 pure silver.

The design of American Eagle Silver Bullion Coins is based on Adolph A. Weinman's 1916 "Walking Liberty" silver half dollar.

Prices of American Silver Eagle Coins are based on the market spot price of silver bullion, plus a small premium to cover minting and distribution costs.

Canadian Silver Maple Leaf coins

Canadian Silver Maple Leaf coin

The Canadian Silver Maple Leaf coins are official bullion silver coins of Canada. Canadian Silver Maple Leaf coins produced by the Royal Canadian Mint (RMC) since 1988. The face value of the 1-oz Canadian Silver Maple is 5 Canadian dollars.

The Canadian Silver Maple Leaf coins always feature a maple leaf and consist of one ounce of .999 fine silver.

On obverse of Canadian Maple Leaf coin is the effigy of Queen Elizabeth II, on reverse is the picture of a maple leaf.

Investing in silver bullion coins

Not all silver coins are ideal for investing. American Eagle Silver bullion coins and 1-oz silver rounds are generally the safest way to go. You'll find that Silver Eagles are in short supply and premiums are higher than for 1-oz silver rounds or silver bullion bars, especially larger 100-oiz silver bars. Canadian silver coins or Mexican silver coins would be an acceptable option for investing in precious metals too.

There is nothing wrong with buying old silver coins, but additional numismatics are not recommended for investment because of premiums and the lower liquidity.

The value of silver bullion coins depend on their rarity and very little has to do with their grade. The coins’ silver content will weigh heavily on its worth. The most silver bullion coins are sold at the spot silver price plus a small markup over spot.

Grades of silver bullion coins

Silver coins are graded based on their physical condition. Generally, silver bullion coins can be classified into two distinct categories: circulated coins and un-circulated coins. The American Numismatics Association (ANA) recognizes 11 different grades for circulated silver bullion coins, ranging from AG-3 at the bottom of the scale to AU-58 at the top.

MS-70 - This is the highest value for any coin - Mint State Perfect un-circulated. You would not find a silver coin like this in circulation.

MS-60 - Un-circulated coins

AU-50 - About Un-circulated

EF-40 - Extremely Fine coins

VF-20 - Very Fine Sometimes you will see a + sign front of it, meaning "greater than" like this, +VF-20

VG-8 - Very Good coins

G-4 - Good

AG-3 - About Good - This is like junk silver coins.

United States Silver Coins History

Before the Revolutionary War, silver coins from many European nations circulated freely in the American colonies, as well as decimal coinage issued by the various colonies.

Chief among these was the Spanish silver dollar coins (also called pieces of eight or eight reales) minted in Mexico and other colonies with silver mined from Central and South American mines. These silver bullion coins, along with other silver coins of similar size and value, were in use throughout the colonies and later the U.S. and were legal tender until 1857.

The Coinage Act of 1792 authorized the production of silver dollar coins.

The 1792 silver half-dime is rumored to have been made from George Washington's own silverware. This was the year before the U.S. Mint actually opened for business.

The U.S. Mint, which makes all U.S. coins, was established by Congress in 1792 and became an operating bureau of the Treasury Department in 1873.

Silver dollars have been minted and issued at various times since 1794. Silver was used for the nation’s coinage until its use was discontinued in 1965.

On November 24, 1986 the United States Mint started The American Silver Eagle program.

Now the American Silver Eagle coins are the official silver bullion coins of the United States. 1-oz American Silver Eagle coin has a nominal face value of one dollar and is guaranteed to contain one ounce of .999 fine silver.


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