What You Need to Know Before You Buy Silver Coins

Today’s topic of “What You Need to Know Before You Buy Silver Coins” is in response to a question posed by one of our subscribers.  If you’re new to buying silver coins, we recommend that you need this post before you move forward with your first purchase, as there are a number of factors that should be taken into consideration.

First and foremost, it’s important to determine why you’re buying silver coins and what your ultimate exit strategy will be.  Are you acquiring silver coins with the intent of holding the coins indefinitely as a long term investment, do you plan on speculating in the silver market, with the intent of buying low and selling high, are you attempting to acquire silver coins at the lowest price possible without concern of an exit plan, do you intend to purchase silver coins with the intent of possibly having to barter in the event of an economic collapse?

Most people fit into one of the above categories.  Let’s start with the lowest priced coins and work up from there so that we cover our bases. If you fall into the camp of wanting to acquire silver bullion at the lowest possible price without regard to your ability to resell the coins in the future, your best option are foreign silver coins and low purity U.S. coins.  This primarily includes foreign silver coins minted in Great Britain, Mexico, and Canada, as these are the most common foreign silver coins available in the U.S.  The purity of these coins ranges from 10% – 92.5%, and as you would expect, the higher the purity, the higher the price for the coins.  Low purity U.S. silver coins that can be had for a relative bargain are 35% silver war nickels, which were minted from 1942  1945 and 40% Kennedy half dollars minted from 1965 – 1970.  All of the above noted coins can be purchased for the melt value of the coins or lower.

If you’re more concerned with the ability to sell your silver coins in the future, and are interested in purchasing silver coins that are highly marketable, we recommend that you consider 90% U.S. silver dimes, quarters and half dollars minted in 1964 or earlier.  There’s not only a liquid market for these coins, but they can also be purchased at reasonable prices.  You can expect to pay a premium of 3% – 5% over the melt value for 90% silver coins.  These coins are also referred to as “junk silver coins,” as they’re primarily bought and sold for the silver content of the coins.  These are also the coins of choice for survivalists or individuals that are preparing for a potential economic collapse, as the thought is that these coins will trade for essentials that you might need in a post collapse environment.

The next coins that we’ll highlight are U.S. silver dollars minted in 1935 or earlier.  Silver dollars minted from 1878 – 1921 are referred to as “Morgan” silver dollars and silver dollars produced from 1921 – 1935 are referred to as “Peace” silver dollars.  These coins are typically sold at a bit higher of a premium than “junk silver coins,” as they have some collectible value in addition to the silver content.  Some of the lower mintage Morgan and Peace silver dollars can sell for hundreds, if not thousands of dollars.  These coins are purchased by investors and collectors alike, are highly liquid, and are considered solid silver coin investments.  As with the “junk silver coins” highlighted above, these coins contain 90% silver content.

Lastly, American silver eagles are considered investment grade coins.  In fact, many retirement or pension funds permit American silver eagles to be held in the funds as an investment option.  These coins were first minted in 1986, contain one troy ounce of pure .999 fine silver, and are some of the most recognized and liquid silver coins in existence.  For individuals that are interested in purchasing .999 fine silver bullion, there are no better options available than American silver eagles.  Because of their high demand and liquidity, American silver eagles tend to be bought and sold at premiums above the other silver coin options highlighted above.  These coins are recognized the world over, so regardless of your long term plans, there’s an available and liquid market for these coins.

In summary, there are a number of silver coins available to the investor and collector alike.  Depending on your needs and long term goals, options range from lower priced foreign silver coins and low purity U.S. silver coins to .999 fine American silver eagles.  Before you proceed with your first purchase, keep in mind the reason for purchasing coins, your expected hold period and your exit plan.  We hope that you found this article helpful, and welcome you to contact Atlanta Gold & Coin Buyers with any questions that you might have.

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Tony Davis
Tony Davis