Silver bullion coins
From Silver Bullion
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About silver 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.
For most investors, especially when first starting out, silver coins are the fastest way to begin and the easiest to find. Silver coins are the best vehicle for silver investment because they are safe, easy to store, and 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, most proven method of protecting wealth.
People want to move their net worth into more stable 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 coins.
The reasons for owning physical silver in bullion coins have completely crossed into the realm of investment safety. With 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 coins to travel across national borders without the taxation or fees otherwise imposed by many countries on silver bullion itself.
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 bullion coins, along with others of similar size and value, were in use throughout the colonies and later the United States 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 1 oz of 99.9% pure silver.
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 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 coins are struck in .999 fine silver and are 1-oz silver coins.
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 price of silver bullion, plus a small premium to cover minting and distribution costs.
Canadian Silver Maple Leaf coins
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 silver coin is 5 Canadian dollars.
The Canadian Silver Maple Leaf coins generally always feature a maple leaf and consist of 1 oz of 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. Eagle .999 pure silver coins and silver bullion rounds are generally the safest way to go. You'll find that silver eagles are in short supply and premiums are higher. Canadian silver coins or Mexican silver coins would be a acceptable option too.
Nothing wrong with holding old silver coins, but additional numismatics are not recommended for investment because of premiums and the lack of 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.
Grades of silver bullion coins
Silver coins are graded based on their physical condition. Generally, bullion coins can be classified into two distinct categories: circulated and un-circulated. The American Numismatics Association (ANA) recognizes 11 different grades for circulated 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
AU-50 - About Un-circulated
EF-40 - Extremely Fine
VF-20 - Very Fine Sometimes you will see a + sign front of it, meaning "greater than" like this, +VF-20
VG-8 - Very Good
G-4 - Good
AG-3 - About Good - This is like junk silver coins.
