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Are silver coins a good investment in 2023?

Silver Coins We Buy

 

What is Silver?

Pure silver is a chemical element with metallic properties. It can be found on the periodic table under the symbol “Ag”, which is short for argentum, the Latin word for “silver”.  Silver is a soft, white, lustrous or “shiny” metal which makes it very desirable for uses in high quality jewelry.

Silver has been valued as a precious metal since antiquity. It can be found buried under the surface of the earth in it’s pure form, without the need for complex refinement processes prior to smelting, making it valuable to humans since prehistoric times.

Silver has been used a form of currency, finding application in numerous bullion coins, alongside gold and copper.

Silver is a versatile metal that finds its application in various art forms, including busts, sculptures, and figurines. It is also used to create ornamental household items like serving trays, vases, coffeepots, eating utensils, and cutlery. Additionally, silver is utilized in the production of handheld mirrors and musical instruments such as flutes.

Silver also possesses natural antibacterial properties and thus has applied medical uses such as surgical tools and bandages used to treat infections.

Silver is an excellent conductor of electricity making it very important in the manufacture of electronics.

What are Silver Coins?

Silver coins are considered the first form of minted currency ever to be mass-produced by a national government. High purity silver coins are still produced today by several countries including the United States, Canada, UK, Australia, South Africa, China, and many other nations. For centuries, silver coins were a primary form of currency until other alloys were adapted in the 20th century. Up until 1964, all U.S. dimes, quarters, half dollars and dollar coins were made primarily of silver (90%).

The main reason for their popularity is because all such coins are standardized in weight and purity, being guaranteed by their minting agency (or government) to be of the same high purity (usually .999) and the exact same weight. The metal coins are very durable, waterproof, and can be stamped with recognizable images, giving them liquidity (they are easy to trade) and fungibility (they are equivalent in value to all other coins of the same denomination) and longstanding value protection. If I have two American Eagle coins, I can be reasonably satisfied that they are both worth the same amount.

Are silver coins a good investment in 2023?

While it is impossible to predict what will happen to the price of silver coins in the future,  there are several known factors that influence the price, and understanding these factors will help you determine where the price is headed in the near term. Silver, like gold, can be a strategic hedge against the volatility of other investments. Silver coins possess a unique allure as their worth can appreciate due to the value of the silver metal, meanwhile their aesthetic appeal can further increase its value among collectors who appreciate a particular coin style. Plus, coin values increase based on scarcity (how rare the silver coins are). If a coin has a limited mintage, it can be more valuable than a coin that is more widely available. This plurality makes silver coins more desirable than other silver bullions such as bars or ingots.

When governments print an excess of paper currency, the value of silver currencies increase. Silver coins are often considered a safe refuge in times of heavy inflation. And when demand  for silver increases from other uses such as electronics and medicine, the investment potential also increases. Consider the fact that silver is used in the production of Solar Panels. Due to the government mandates in states like California, where every new house that is built must have solar panels, by law, the value of silver can reasonably be expected to increase as demand rises.

If the global supply of silver increases due to mining exploration, however, the price can go down which will impact the values of silver coins as well. Buying silver coins is therefore not without an element of risk to investors. Careful caution and consideration must be taken when making any investment decision.

What are some of the most popular investment strategies that silver coin investors employ?

1. Buy and Sell

Many people who buy silver coins enjoy the fact that they can later sell the silver coins for cash if they ever need to. Other people try to buy and sell silver coins strategically in an effort to maximize their investment returns. A popular, but impossibly difficult strategy to perfect, is to attempt to “time the market”, which means you try to buy silver coins at a low price and wait patiently for the market price to rise. Then, at the exact moment of peak value, you sell the silver coins to extract the best possible return on your investment.

2. Buy and Hold.

Many disciplined and experienced investors claim the best strategy is to “buy and hold”: You buy the silver coins, and never sell them. This, of course, only works if the market has more increases in value than decreases over time, which, for silver coins, seems to be almost certainly the case.

3. Retirement Accounts.

Many investors are using an investment vehicle known as a Precious Metals IRA to store silver coins and other precious metals and bullions in their retirement accounts. Combining both gold and silver in your IRA can act as a powerful hedge against other assets and securities taking the form of stocks, bonds, cash, and real estate that are being saved for retirement.

What is a hedge?

A hedge is an investment strategy that acts as a failsafe by spreading the risk between primary and opposing positions. Think of the old adage “Don’t put all your eggs in one basket”. If all of your eggs are in one basket, and you accidentally drop it, all of your eggs might break. But if you put your eggs into two baskets, and one of the baskets is dropped, your other basket of eggs will be unharmed.  You’ve spread your risk around, therefore decreasing the risk of losing all your eggs. This basket of eggs principle can be applied to investments and is known as “diversification”. A hedge takes the diversification strategy one step further by choosing a second investment (the “second basket”) that will likely increase if your primary investment decreases.   If one of your investments goes down in value, your hedge is likely to go up, protecting you from a scenario where your investment portfolio as a whole becomes worthless.

How much do silver coins cost?

The price you pay for silver coins will vary widely based on who is selling them. Most coin dealers will charge you a modest premium on top of the spot price. California Gold & Silver Exchange is widely known for offering some of the fairest premiums in the region, while other national companies will reportedly upcharge coin buyers more than 30%.

Some dealers and collectors will also try to charge more if the coin has a significant historical value. A one-ounce silver coin that is hundreds of years old is likely to be far more valuable than a once-ounce silver coin that was minted just this year.

At the time of publication, the spot price of silver was $22.67 (USD). Compare that to 30 years ago, when an ounce of silver was trading at just $5, and held at that price steadily for more than a decade.

30 Year silver Price History in US Dollars per Ounce

Following the economic collapse of 2008, the price of silver increased in value nearly 10 fold, not stabilizing until years later at around $15 per ounce. Similarly, the economic collapse following the COVID-19 pandemic drove the price up to double that amount.

Call us at (909) 985-4653 to check on pricing and the current inventory of silver coins we have in stock today.

As mentioned in the “Are silver coins a good investment in 2023?” section, it seems likely that the demand for silver will continue to increase, driving up the price per ounce, making silver coins a very sensible addition to your investment portfolio.

What are the Top Selling Silver Coins?

    1. American EagleThe American Silver Eagle is a unique silver bullion coin that is backed by the U.S. government, ensuring its weight, content, and purity. It is the official investment-grade silver coin of the United States Mint, with a face value of $1 and made of 1 oz of .999 pure silver. Investing in Silver Eagles offers unparalleled recognition and liquidity for investors.
    2. Canadian Silver Maple LeafsThe Canadian Silver Maple Leaf is easily identifiable due to its iconic single maple leaf, which is the quintessential symbol of Canada. Since its introduction in 1988, the Silver Maple Leaf has consistently contained 1 oz of pure Silver with a purity of .9999, making it one of the highest quality Silver dollar-sized coins globally. Not only does the Canadian Silver Maple Leaf hold significant value, but it also offers excellent liquidity.
    3. Morgan Silver DollarsMorgan Silver Dollars were minted from 1878 to 1904 and again in 1921. They are composed of 90% silver and 10% copper and weigh 26.73 grams. They feature a portrait of Lady Liberty on the obverse side and an eagle on the reverse side. The coins were named after their designer, George T. Morgan.
    4. Austrian Silver PhilharmonicsThe Austrian Silver Philharmonic, a stunning annual-release coin that made its debut in 2008. Renowned for its low mintage, many consider the Philharmonic Silver coin to be even more exquisite than the Canadian Silver Maple Leaf. What sets this coin apart is its unique euro denomination, with a face value of €1.5. Crafted from.999 pure Silver, the Austrian Silver Philharmonic is a perfect choice for both investors and music enthusiasts alike.
    5. Chinese Silver PandasThe Silver Panda coins stand out among other bullion coins due to their limited mintages and unique features. Made of.999 pure silver and recognized as legal tender in China, these coins are highly sought after by silver coin buyers. With their distinctive size and low mintage, they make a valuable addition to any bullion collection, adding intrigue and rarity.
    6. Australian Silver KangaroosThe Australian Silver Kangaroo is an exceptional coin, weighing 1 oz and made of pure Silver with a fineness of .9999. It is minted with a face value of AUD 1. With its remarkable mintage history and captivating artwork, this coin is highly sought after and easily tradable.
    7. British Silver BritanniasThe inception of these esteemed British Silver coins dates back to 1987, and since then, their purity has consistently risen. Presently, the coins being released have a Silver content of .999 purity. Featuring a depiction of a more mature Queen Elizabeth II on the obverse and the iconic Standing Britannia in a horse-drawn chariot on the reverse, this Silver coin serves as a perfect embodiment of British history.

    What is the Long-Term Investment Outlook for Silver Coins?

    We can’t know for sure, but many investors are bullish on the long range speculation about the value of silver coins. They point out historical prices of silver and the overall supply and demand as indicators that influence their decisions.

    Which Factors Influence the Price of Silver?

    The price of silver is always fluctuating. In fact, every single second the price of silver updates based on several factors. Trading on the silver futures markets has the largest effect on the current price of silver. Other factors include:

    • Newsworthy headlines in the financial and commodity markets
    • Discoveries of new silver deposits (usually by mining companies) which increase the total supply of silver in the market.
    • Fashion trends where silver jewelry becomes either more or less desirable.
    • Geopolitical events
    • Economic events

    Which Silver Coins Do You Have In Stock?

    Call us to check on the current inventory of silver coins available today (909) 985-4653.

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