Tuesday, January 15, 2008

Silver Coins

To buy silver coins is easy these days. There are hundreds of mints, dealers auctions around the world eager for you to buy their silver coins. Coins can be purchased anywhere from your local coin shop up to the big international dealers and mints. In addition the internet has made it much easier to buy silver coins from virtually anywhere in the world.

the question then becomes, not where to buy silver coins but which are the best silver coins to buy. There are many different types of silver coins. Each have their own unique benefits which are favorites with various coin collectors.

Some of the most popular coins for collectors have been the American Silver Eagle, the Morgan, The Canadian Maple and the British Silver Sovereign.

Other collectors like to specialize in rare silver coins, Proof silver coins as well as Brilliant Uncirculated, Silver Rounds, Commemorative and the increasingly popular Piedfort range of silver coins.

But silver coins are not just for the collectors and enthusiasts. They are an excellent value for people in all walks of life as a way of building and preserving assets

Silver coins are easy to collect, relatively inexpensive and expected to increase in value over the coming years as the world silver shortage continues.

Interestingly silver coins, such as the American Silver Eagle, may be used as funding in an IRA (Individual Retirement Account).

The traditional silver coins, such as those mentioned above, are also legal tender in the country they are struck for. The face value of such coins is invariably less than the value of the silver content. But by being legal tender, they are sold as coins rather than as pieces of silver. This means that there is usually no tax. One does not get taxed on coins of the realm. But of course there are exceptions and if it is possible for a government to find a way of taxing something, then sure as large pieces of green cheese are large pieces of green cheese a way will be found.

For example, although you can buy silver coins that are legal tender from the Perth Australian Mint, Residents of Australia pay a Goods and Services Tax (GST) on these coins. In the UK, the purchase of any silver coins, such as the Britannia’s for example, is subject to a Value Added Tax (similar to the GST in Australia only more). Other countries may now have similar taxes. This can apply even when buying collections of the standard coins used in general commerce.

Such taxes do not apply in the USA as yet, (Some state taxes may apply on certain types of coins).

Generally such coins are not collected from an investment point of view, but more for the enjoyment of a collector and the price of the silver coin or coins is not so critical.

From an investment point of view silver rounds and silver bags make more sense as the emphasis is on the silver rather than on the coins and the premium is less so your costs are much lower. Such coins are not considered collectors items. The silver rounds are specifically struck coins for those people who are interested in collecting silver. Silver Bags are collections of U.S. 90% silver coins minted prior to 1965.

So what silver coins you buy will depend largely on your reason and purpose for buying silver coins.

When you have established that, you will know which silver coins to buy.

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