Silver Linings: Exploring The Best Cheap Silver Coins For Savvy Investors

Silver has been used as currency since around 600 BCE and has been a store of value for thousands of years. It is a good investment because it is a tangible asset that is highly liquid and has a low premium over the spot price. Silver is also cheaper and more versatile than gold, making it a good entry point for new investors.

When investing in silver coins, you have three options: bullion, proof, and junk silver. Bullion coins are minted and stored for investment purposes and their value is based on the weight of the precious metal used. Proof coins are created with specially treated metals and come in protective packaging with certificates of authenticity, making them valuable for collectors. Junk silver is made up of silver coins minted before 1965 when US currency was minted with 90% silver.

- Austrian Silver Philharmonic

- Silver Krugerrand

- British Silver Britannia

- Silver American Eagle

- Silver Canadian Maple Leaf

- Morgan Silver Dollars

- Mexican Silver Libertads

Silver coins vs. bars

Silver bars and coins are two of the most popular precious metal investment options. Both have their own unique advantages and drawbacks that must be considered when making an investment decision.

Silver Bars

Silver bars are produced by private mints or refineries worldwide and come in various sizes, ranging from one gram to several kilograms. Silver bars can also vary in purity, but .999 silver is considered the purest. The purity is usually stamped onto each bar along with its weight, serial number, and manufacturing place.

Advantages of Investing in Silver Bars

• Silver bars tend to be more cost-effective than coins when purchasing the same amount of metal as they typically come in larger sizes.
• Silver bars are easier to store and transport due to their uniform shape and size.
• Silver bars generally have higher liquidity values than other investment forms, such as stocks or bonds, as they can easily be converted into cash on short notice without any significant loss in value.

Disadvantages of Investing in Silver Bars

• One of the main disadvantages of investing in silver bars is the risk of counterfeiting or fraudulent products.
• It can be challenging to sell smaller quantities of silver bars at once due to their higher premiums over spot price.
• Silver bars tend to have lower resale values than coins due to wear and tear over time.

Silver Coins

Silver coins are round pieces of silver produced by government mints worldwide. They are usually issued as legal tender and have a face value significantly lower than their intrinsic value. Silver coins come in different sizes, ranging from 1/10 ounce to 1 kilogram.

Advantages of Investing in Silver Coins

• Silver coins are easy to buy and sell because they are widely recognized and traded worldwide.
• Silver coins are backed by governments, which gives them trust and credibility not present in other forms of silver.
• Some silver coins have collectible value, which can increase their worth over time.

Disadvantages of Investing in Silver Coins

• Silver coins are usually more expensive than silver bars because they are minted by governments and have a face value.
• The collectible value of some silver coins can be highly speculative and unpredictable.
• Some silver coins can be difficult to authenticate, which increases the risk of buying fake or counterfeit coins.

Silver Coins vs. Silver Bars: Final Thoughts

Silver coins are much easier to store and have high liquidity, but silver bars are cheaper and lack the numismatic value that drives up the price of rare coins. Before investing, weigh your options carefully and consider your long-term investment goals to help you make the best decision for your finances.

Bullion coins

The main advantage of bullion coins is that they are pure silver and widely recognised, making them easy to sell. They are also relatively affordable and accessible to first-time investors.

Examples of popular bullion coins include:

• American Silver Eagle
• Canadian Silver Maple Leaf
• Austrian Silver Philharmonic
• British Silver Britannia
• Mexican Silver Libertad

Numismatic coins

However, there is the potential for a high upside. Silver has significant growth potential due to its increasing use as an industrial metal in the energy transition. As demand for silver in industries like electronics and solar energy continues to grow, so too could the value of silver.

If you are looking for numismatic coins to invest in, here are some options:

• Silver Krugerrands: Minted by the Rand Refinery in South Africa, one of the world's largest and most respected refineries, the Krugerrand is available in both gold and silver. The design features the iconic image of Paul Kruger and the Springbok antelope, symbols of South African heritage.
• Silver Maple Leafs: Struck to 999.9 purity, each coin contains exactly 1oz of pure silver. Minted by the Royal Canadian Mint, known for its high-quality bullion products, the Silver Maple Leaf is a part of the Maple Leaf series and maintains a strong liquidity, especially in the strong North American market.
• Silver Britannia: Silver Britannia coins are commonly traded in the UK, where they capture a major portion of the market, and less commonly elsewhere. They are legal tender and have a face value of £2 sterling. Britannia, a woman of strength, serenity, and beauty, stands on the face of this coin, holding a trident, shield, and olive branch, while Queen Elizabeth II graces the back.

Junk silver

• Low upfront investment: Junk silver coins offer low premiums over the spot price, making them an affordable investment.
• Long-term viability: Junk silver is rare, US coinage containing pure silver content, and it is likely that it will never lose investment demand.
• Easy identifiability: Most junk silver coins are easily recognisable and do not need an evaluation to check if they are genuine.

If you are looking to sell junk silver, it is best to find a buyer or dealer who specialises in junk silver. Since junk silver is not as popular as other types of silver, your best bet is to find someone who holds expertise in this area and who can give you the price you deserve.

Silver futures

Risks of Silver Futures

The leverage in silver futures works both ways, so it can magnify your gains and losses. If the market moves against you, you may need to put up more money to hold your position. If you can't do this, your broker will close out your position and you will be left with a loss. Silver futures are therefore more suitable for advanced, sophisticated traders. You will usually need a large account balance to get started.

Frequently asked questions