Silver rounds are one of the most popular and widespread forms of silver. A silver round is nothing more than a piece of silver that is in the shape of a coin. These coins can be anything from random commemorative pieces to a blank sheet of metal. The value of silver rounds is almost always equivalent to the spot price. There is no premium on the price of a regular silver round. The difference between an ordinary silver round and a coin like the American Silver Eagle is that the Eagle was government issued and is very collectible. If you notice that a coin is priced higher than the spot price, it is almost always because the coin in question is desired by collectors.
Rounds are Worth the Spot Price
Silver rounds often lose what was once an added value. Any organization, group, team, or individual could have silver rounds made. A sports team might sell commemorative silver coins for $20 when the spot price was $15, earning them a net gain of $5 per coin. Down the line, though, when these coins lose their value, the value reverts back to the weight of the coin. The typical weight of an average silver round is exactly 1 oz. There are some coins that will weigh 1/4 of an oz., 1/2 of an oz, and even more than an ounce, but these variations are not that popular with silver bullion.
Condition is Irrelevant
The condition of a silver round does not play any role in deciding the value of the coin. The only thing that really matters when determining the value of a silver round is the weight. if your coin weighs two ounces, it is then worth the spot price x2, it is as simple as that. The only time that condition play a role is when a collector is looking to purchase a coin that carries a premium. An example of a coin that costs extra would be the American Eagle. An American Eagle is worth more in uncirculated condition than a circulated coin, but this is not something that comes into play with regular silver rounds.
Silver Rounds Come in Many Designs
There are many, many different types of silver rounds and it would be impossible to list them all. You could even go out and have your own silver rounds made, this is how generic they are. There is nothing special about a regular silver round other than that the design will be out of the ordinary. If you buy enough silver, you will inevitably come across some very odd rounds. You could find anything from an Indian head (common), to a coin celebrating a random sports team 30 years ago. The most important key to keep in the back of your head is that regular silver rounds are worth nothing more than their weight in silver. The exception to this rule would be if they were commemorative items that still commanded a premium in the market, but the odds are that you won’t run into this situation unless you bought the coin right when it was produced. Silver rounds are a great way to buy silver coins without having to worry about the added costs with American Eagles or other similar collectible coins.
It is difficult to say what the single most common type of silver round buyer is, but the most accurate answer would say that it is a solid mix of collectors, investors, and everything in between. Considering all of the commemorative and collectible silver rounds that have been created over the years, there is no doubt that there are many silver rounds sitting in random homes around the world. Back when silver was cheaper, and even today, silver rounds were one of the most popular ways to remember special events, people, and just about any occasion you can think of. You might even be able to find some of these random rounds for sale well below spot, as they were mainly novelty items at the time that they were originally produced and sold, whereas now they have real value based on their silver content alone.
For someone who is looking solely to invest, rounds can serve as a practical medium. They are essentially the same thing as bars when it comes to buying power and investment capabilities, with the main differences being their shape and the sizes that are available. With round, you are not likely to run into all that many that weigh more than 1 oz. Bars, on the other hand, are quite the opposite.
Silver rounds can be found in 2 oz., 5 oz., and even larger weights, but it is definitely 1 oz. that is the most prevalent. If you are looking to start off with smaller sizes of silver, rounds are the perfect place to go. In recent years there has been a trend in bullion found in fractional items. Silver used to only be available in 1 oz. or larger sizes with some rare exceptions, but the recent jumps in price have created a demand for lower priced alternatives. Though bars too are available in less than 1 oz., the rounds certainly seem to be more in demand. The catch to buying these types of rounds vs. the one ounce or larger varieties is that you will end up paying more per oz. overall. For example, if the spot price is 5 (using made up numbers) and a half ounce round is being sold for 3, it means that you are going to end up pay 6 total, which is a 20% total increase in the price per ounce. Again, however, this does not mean that they are not a very practical option for someone who is looking to simply spend less money.
When you are in the market for silver rounds, the important thing to remember is that brand and design are not that crucial. The only thing that truly comes into play with almost all silver rounds is its purity and weight. The event that it is commemorating really won’t mean anything unless there is a secondary market demand that still exists for it. Rounds are just another way to buy silver, and they are a good choice at that.