Silver coins are one of the most popular ways to collect and invest in silver. Though coins are most popular among collectors, they are an exceptional tool for investing as well. There are different types of coins available from a number of countries all around the world. The United States is most well known for their American Eagle, while Canada is best recognized through the Maple Leaf. These are hardly the only choices when it comes to coins, though. Coins have many very definitive characteristics and they are perfect additions to your portfolio no matter what level of investment you are planning to make.
What is a Coin?
A coin is very easy to identify. A coin, first and foremost, must be produced by a national government mint. For example, the Mexican Libertad is produced by the government of Mexico. Every single coin is recognized as the product of a particular country or territory. Though coins are also round, there are plenty of rounds in silver bullion that are not considered coins. A generic piece of silver that is shaped like a coin is what is known as a round. Rounds are different than coins because they are produced by private mints for a variety of reasons. In fact, anyone could produce a round if they had the proper machinery. All that you need to remember is that coins are national products. If they are not directly from a country, they are not coins.
Value of Coins
One of the reasons that investors elect not to purchase coins is because they carry an added premium. The majority of basic coins will carry a premium that is around a few dollars per item. If you are paying any more than five or so dollars over the spot price, you are probably buying what is much more of a collectors item than a piece of investment. You are going to be draining the value from your investment if you continually make purchases of coins that carry high added premiums.
The added price for coins is derived from their collectibility. The newer the version of the coin you are buying, the more expensive it will generally tend to be. While condition is not always all that relevant for bulk purchases of silver coins, there are a couple different types floating around. If you have regular tubes or even uncirculated coins, there is value in that the coins are in good condition. The truly expensive coins come into play when you are buying items that are in perfect or near perfect condition. Often times these come in graded form and are encased. In most situations, graded coins are best for collectors, while regular tubes or coins are ideal for anyone making an investment.
Coins are very easy to buy. There are a number of different options available to you. First, you could select loose coins. This is the best way to buy coins if you are looking to just order a handful of items at a time. For those looking to make bulk purchases, tubes and even boxes are the best option available. A tube of coins almost always comes with 20 individual coins. These are good if you would like to make a larger purchase, but not an absolutely monstrous order.
If you would like to make an even larger order than 20 ounces, the next upgrade is to buy a handful of tubes. After that, boxes of coins will be your top place to put your money. Boxes of coins are for those looking to obtain hundreds of coins at once. If you want to get heavily involved in metals and stock up on a ton of coins, boxes are the way to go.