Wednesday, October 8, 2008

Buy Silver Coins

If you want to buy silver coins, some silver coins are a better buy than others.

Some mints produce "theme" coins and these have additions in them. The Perth mint, for example has a range of silver "theme" coins covering anything from the FIFA World Cup, to various flora and fauna, Cities, fire engines, you name it. These coins are usually one ounce 99.9 percent silver with a limited mintage and depict a particular aspect of a country of historical event or activity. As mentioned there is even a Fire Engine Theme of silver coins the Perth Mint produce for the Cook Islands and you can buy a silver coin with a 1934 Commer Fire Engine imprinted on it in red. They are offered in presentation case (red of course in this instance) and come with ornate and expensive packaging. They tend to cost about twice to three times the value of the silver in the coin.

These types of silver coins could be classed as numismatic coins and are primarily for collectors. They are expensive in that the Many mints produce these coins primarily as a revenue producer for the mints. They are too expensive, you are not just buying silver, you are buying the packaging also. When you buy silver coins in this fashion the silver price becomes very expensive.

You can buy silver coins a lot cheaper than that. The idea is to buy silver coins as close to the spot price as possible. You do not want expensive packaging and nicely printed bits of paper unless you are a collector.

The silver coins to buy would more likely be silver Eagles or silver Morgan’s or silver Maples which offer a better investment.

Examples of silver rounds include the Australian Kookaburra, the Canadian Maple Leaf, the Chinese Panda, the UK Britannia and the USA Eagle.

All come in one ounce silver weight but you can get some in larger sizes such as two ounce and even ten ounce coins. Of course the larger the coin the less the premium (amount charged over spot for the coin by the mint or dealer) and the better the investment. If you are buying silver for investment purposes, you have to take into account the total cost of that purchase including the premium, shipping, storage cost of buying and later, perhaps, the cost of selling in order to determine the viability of the purchase.

One can buy silver coins therefore which are a good investment for the future if one takes some time to do due diligence and study what is available in silver coins.

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