Tuesday, December 2, 2008

Silver Coins to Buy

It is important to know which silver coins to buy.

But which silver coins should one buy? There are many different types of silver coins and depending on why you buy silver coins will determine the type of silver coins you buy.

If you are a collector or a hobbyist then the regular output of 'theme' coins or silver proof coins might be to your liking. They are very picturesque and with a limited mintage of each could be worth something in a few years. But the premium on them really makes for a poor investment in terms of retaining asset value and potential saleability later down the track.

Canadian Silver Maple Leafs, American Silver Eagles and Australian Kookaburras and the like are a better option but again, the premium is high, and these days you have to search around and pay well over the spot price due to the current shortage. These sorts of coins are expensive due to the amount of work and attention to detail that has gone into them. They are usually proof and will have been struck a few times to get that particular look which proof coins are known for. They also come in an expensive presentation case (the cost of which is also incorporated in the price) and which you pay for.

In fact the US and some other mints have stopped or limited the selling of their traditional silver coins. These coins may accumulate more value as a result but there could be a long wait before one recoups the premium one has paid for such coins.

By far the best silver coins to buy are silver rounds. These are coins or rounds (coin shaped) manufactured by private mints such as North West Territorial Mint, Engelhard or Sunshine Mint for example. The premium for the coins is a lot less as there is no expensive striking and no fancy presentation case to pay for. These are not so pretty perhaps and are not legal tender but they do contain the most important part of a silver coin from the viewpoint of an investor. One ounce of pure silver. Ideal if one wants to buy silver coins.

As such they can be easily stored to accumulate more value over time yet traded on a one by one basis and used in times of economic stress.

So if you want to buy silver coins as a safe haven or for investment purposes the silver coins to buy would be silver rounds.

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