What’s the Difference Between Silver Coins and Silver Bullion?
There are several factors that make silver a wise investment. It can serve as a reliable hedge against both inflation and economic downturns. Once you’ve decided to invest in silver, the next step is choosing between silver coins and silver bullion. Our guide can help you understand which option is better suited to your goals and investment strategy.
What Is Silver Bullion?
Generally speaking, silver bullion is privately produced silver fabricated in the form of silver rounds or bars.
Silver bullion can typically be acquired at lower premiums than silver coins and has a value that closely tracks the spot price of silver. This means that as long as you properly store silver bullion, you can reliably track changes in its value by checking the current price of silver.
Silver coins differ from silver bullion in that they’re government-issued, have a face value, are legal tender, and are guaranteed by the country of issuance. Silver coins that trade at lower premiums are occasionally referred to as silver bullion coins. In other words, most of the value of these coins is derived from their silver content. Some examples of silver bullion coins are American Silver Eagles, Canadian Silver Maple Leaf Coins, Austrian Silver Philharmonics, Australian Silver Kangaroos, and junk silver coins.
Numismatic Silver Coins
Another category of silver coins is numismatic silver coins. These are coins that sell at a premium above the underlying silver content. Some coins sell at a significant premium over the underlying silver content, and others are at a lower premium. For example, the value of a 1795 Flowing Hair Silver Dollar has little to do with the spot price of silver, as most of its value is derived from its collectible or numismatic value. On the other hand, coins such as Morgan and Peace Silver Dollars and Proof Silver American Eagles are considered light or semi-numismatic coins in that their value is based in part on their silver content.
What Makes a Better Investment: Silver Coins or Silver Bullion?
Because the value of silver bullion is based almost entirely on its weight and silver content, you can typically sell it to a range of buyers for a reliable price. The value of silver coins can vary depending on the condition of the coin, its mintage, and other factors. When you sell silver coins, you’ll probably get different offers from various coin dealers. However, the additional numismatic value of silver coins means they can be sold at a premium to the right collector or coin dealer. The “right” investment will be different for everyone—whatever your investment decision is, you should always work with a reputable, reliable coin and bullion dealer.
At Atlanta Gold & Coin Buyers, we can help you buy or sell silver coins and bullion. We post our buying rates online to take the guesswork out of selling your silver coins and bullion. We have two secure locations in the Atlanta area, and if you’re out of state, we can accept coins with our online and mail-in appraisal services. Schedule an appointment with our staff today by Give us a call today at 404-236-9744or filling out our online form.