How to Buy Silver Coins

Precious metals like silver are popular among investors due to their intrinsic value and relative stability. While the price of any commodity, including silver, can fluctuate, the metal could be a good investment option for a range of portfolios. 

Silver coins are particularly popular because of their collectibility, which may make them worth more than the market price of the metal they are minted from. No matter where you are in your investment journey, knowing how to buy silver coins is important. 

Collectible coins offer several benefits over silver bars if you know which items to purchase and where to safely buy them. Below, you’ll learn everything you need to know about how to buy silver coins, including the benefits of investing in coins and the pros and cons of purchasing coins versus silver bars. 

Why Should You Buy Silver Coins? 

There are plenty of potential reasons to buy silver coins. Here are a few factors to consider:

Affordability

Precious metals have intrinsic value, and many investors use them to help stabilize their portfolios. While gold, palladium and platinum can be somewhat cost-prohibitive, silver can be more accessible if you are new to investing in precious metals. 

Hedge Against Inflation

Silver has historically been seen as a safe-haven asset during economic instability. Its value tends to increase when inflation rises, offering a cushion against currency’s diminishing value. 

Industrial Demand

Many industries use solar energy to produce consumer and industrial products. Silver is found in everything from electronics to solar energy production equipment. The consistent demand for silver as a manufacturing input contributes to its long-term value appreciation. 

Ease of Liquidity

You can easily sell silver coins. If you need to convert your assets into cash, you can get money in hand fast. You should always maintain a healthy amount of liquidity in your portfolio to adjust your investment strategy as your needs change. 

Portfolio Diversification

Silver coins can be a less risky way to branch out into new investments. By spreading your money into different asset classes, you can increase the likelihood of stable returns. 

How to Buy Silver Coins

Here’s how to buy silver coins: 

• Find a reputable precious metals dealer: Look for well-established dealers with positive reviews and transparent pricing. 
• Sign up for an account: Create an account on the dealer’s website to track purchases and monitor your order status. 
• Browse and select your preferred silver coins: Carefully read the descriptions of available items and find the coins that align with your investment goals. 
• Place your order: Double-check the price of silver at the time of purchase, as prices can fluctuate throughout the day. 
• Confirm and track your order: You’ll receive a confirmation email that allows you to track your order. 

Buying silver can truly be that easy. You’ve just got to know where to start.

Valuable Silver Coins to Buy

Certain types of silver coins are more popular and collectible than others. Rare coins are exceedingly valuable. However, if you are new to silver coin investing, it’s best to focus on options known worldwide and readily available for purchase. 

Two coins stand out: the American Silver Eagle and the Canadian Silver Maple Leaf. American Eagle Silver Bullion Coins contain one troy ounce of .999 fine silver, and the U.S. government backs them for purity and weight. The Maple Leaf contains one troy ounce of .9999 fine silver. 

Where to Buy Silver Coins

You can purchase precious metal coins from a myriad of sources. Some investors prefer to buy silver coins from local dealers with solid track records. You can inspect the coins before purchasing them and possibly build rapport with the seller. A positive relationship could lead to more investment opportunities in the future.

Occasionally, people pawn silver coins to make a quick buck or address an immediate financial need. However, purchasing precious metals from a pawnshop can be a bit risky. 

Use caution to ensure the coins are genuine and not overpriced. Periodically exploring what your local pawnbroker offers may not be a bad idea, but it’s probably best to make most of your purchases from a more reputable dealer. 

Online platforms are some of the most popular options for buying silver coins. Reputable dealers often have huge selections of coins at competitive prices. They allow you to read customer reviews and choose the shipping option that suits your needs. You’ll also be able to shop from the comfort of your home. 

Another place to get coins is the United States Mint, which regularly releases silver coins and silver proof sets throughout the year. You can purchase these newly minted silver coins and hold onto them hoping they will become collectible later. The U.S. Mint also has coins from other precious metals, including gold and platinum. 

Is It Better to Buy Silver Coins or Bars?

Both coins and bars offer some advantages. Silver coin prices can exceed the market value of the metal they are made from if they become sought-after among collectors. They can also be easy to sell in smaller quantities and are recognized worldwide. 

Bars offer a lower premium over the spot price of silver. They are more cost-effective if you plan to purchase silver in large quantities. They can be more difficult to store and sell in smaller amounts.

Ultimately, the decision comes down to your investment goals. Coins may be the better option if you want liquidity, ease of sale and the chance to purchase collectible items. Bars might be more appealing if you want to accumulate a large quantity of silver that you can quickly sell off in bulk. 

Should You Make Physical Silver Part of Your Portfolio? 

Investing in silver bullion can be a good move for your portfolio, but that doesn’t necessarily mean it’s right for everyone. If you want to add precious metals to your portfolio at a relatively low price point, purchasing silver coins may help you hedge against inflation and mitigate the risk of more volatile investments. 

However, you must choose a reputable dealer and identify the type of physical silver that best aligns with your investment goals. Coins can provide added value thanks to their collectibility, but bars are the easiest to liquidate. Do your research and consider your long-term investment strategy when adding silver to your portfolio.

Frequently Asked Questions