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3 Reasons Why it Might Matter Which Silver Coins & Bullion You Buy

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3 Reasons Why it Might Matter Which Silver Coins & Bullion You Buy

 

We recently had a somewhat lengthy conversation with a regular customer of ours discussing some of the silver coin and bullion options that are available in the marketplace. Toward the end of our discussion, he asked if it really matters which silver coins and bullion he ultimately buys.

This is a valid question, as on the surface, it appears as though silver is silver, but when you contemplate the question a bit further, you’ll realize that what you buy may ultimately matter. In many cases, there are slight nuances with the various options, but your decision could ultimately have an impact on your ability to use, trade and liquidate your silver coins or bullion in the future.

In this brief article, we’ll discuss three reasons why we believe it matters which silver coins and bullion options you select.

 

The Market is Different for Various Silver Coins & Bullion

Just like automobiles, clothing, electronics, etc., there is a different market for silver coins and bullion. Foryugo vs 4runner example, your Toyota 4Runner is going to be more popular than an old beat up Yugo, Levi’s jeans are going to be more stylish than Target brand jeans and a Samsung TV is going to be in higher demand than a no-name Chinese producer.

The silver market also has a broad range of options from generic to name brand and from foreign to U.S. issued coins. In a standard market, you should be able to sell nearly any silver bullion or coins that you might have in your possession, but pricing will be based on the popularity, or lack thereof of the item.

In an extreme case where coin dealers are flush with inventory, you may find it difficult to sell certain types of silver coins. For example, when cash flow is tight and inventory levels are above normal, you may find it difficult to sell foreign coins with a purity below 80% or sterling silver ingots, which at best are of marginal interest during regular times.

While not always the case, generally speaking, the more liquid the coin, bars or round, the higher the price.

 

The Resale Value of Your Coins & Bullion May Differ

While we touched on this point above, it bears repeating. The resale value of coins and bullion differs and is based on market demand. If you happen to purchase the cheapest silver you can find, it may be difficult to resell the items if and/or when the time comes to liquidate a portion or all of your position.

For example, there’s a limited market for 50% silver British, Canadian and Mexican coins. If you load up on these coins thinking you may have received a great deal, you may find it difficult to sell your coins in the future. This is because most investors are in the market for coins with a purity of 90% or higher. They may not recognize the50 percent silver coins .500 silver british canadian mexico_ lower purity silver coins or know how to price them due to their limited experience with them.

Some people will make the case that they can always melt down the coins. There are a couple of problems with this line of thinking. For one, no one is going to be interested in an odd-shaped melted piece of silver that they’re not able to identify. Secondly, most refineries are only available to individuals in the coin and bullion industry. Even if you’re able to find a refinery that will work with you, there will be substantial expenses to refine silver with a relatively low purity.

 

 

Peer to Peer Trading May be Limited Based Which Silver Coins & Bullion You Have

Silver is among the most popular investments for those individuals who are concerned about a currency collapse and are contemplating the need to use silver for bartering purposes. This makes sense, as silver has been used as money for thousands of years, is recognized by the general public asbeing a precious metal, and at least at the time of this writing, may be one of the cheapest investments one can make.

silver coin barter table

In thinking through a worst-case scenario where we (meaning society at large) could potentially resort to bartering – at least for a time. If it comes to this, there will be a learning curve among the general public. What this means is that the public will likely gravitate toward coins and bullion that they recognize and feel most comfortable with.

 

Being that we’re now in our 14th year of business, we feel qualified to share with you the most popular or commonly traded silver coin and bullion options in the industry. Being that we’re located in the U.S. most folks are going to gravitate toward U.S. coins. In no particular order, the most widely traded U.S. coins are 90% silver dimes, quarters and half dollars, Morgan and Peace silver dollars and 1 oz American silver eagles.

Foreign silver coins are also very popular items, but you’ll want to stick with coins that are 1 oz, composed of .999 fine silver and are from aforeign Silver Bullion Coins recognized mint. That being said, in no particular order, the most widely traded foreign silver coins are Canadian silver maple leaf coins, Austrian silver philharmonics, British silver britannias and Australian silver kangaroos.

Privately minted silver bars and rounds are also popular options and are a more cost-effective way to invest in silver. There are no limits to the number of designs available, but in our experience, the most requested silver rounds are Buffalo, Walking Liberty and Morgan rounds. Plenty of other good options, including sizes exist, but we’re limiting our discussion to 1 oz rounds, as they are most comparable to the coins we highlighted above.

 

Summary

In conclusion, consider the market, resale and usage of silver coins and bullion before investing in precious metals. While you may be getting a great deal on a low purity obscure foreign coin, the market may be limited when the time comes to sell.

If you have any questions as to the market of a particular silver coin or round, call a couple of coin dealers in advance of your purchase to make sure that you’ll have the ability to sell the item in the future if and/or when the time comes.

Lastly, if buying with the idea of potentially using your silver coins or rounds for bartering purposes, we recommend going with one of the options we highlighted above. From a price perspective, silver eagles sell at the highest premiums followed by foreign silver coins and silver rounds.

Contact Atlanta Gold & Coin Buyers today if you’re interested in securing your financial future with an investment in silver coins or bullion. We look forward to hearing from you and earning your business.

atlanta gold and coin hq

 

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Tony Davis
Tony Davis is the owner of Atlanta Gold & Coin Buyers, a full service Atlanta based coin and bullion dealer specializing in buying, selling and appraising coins and coin collections of all types and sizes. Tony frequently writes on various economic and numismatic related topics affecting the coin and bullion markets and has been published on some of the industry’s leading websites, including Coin Week, the American Numismatic Association, Coin Collector, Coinflation, and Coin Auctions Help, just to name a few. Visit Atlanta Gold & Coin’s website at atlantagoldandcoin.com to obtain additional information on the products, services and educational resources offered by his company. Tony can be reached at sales@atlantagoldandcoin.com or at 404-236-9744

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