Buy The Best Value Silver Bullion Coins in 2023

Austrian Philharmonic and American Eagle

Premiums on Silver Bullion Coins

The price of silver bullion coins, silver proof coins, or silver bullion bars will include a markup above the spot price, this is called a premium. The premium consists of the expenses associated with manufacturing, shipping, and storage. Premiums may also escalate substantially depending on a coin’s rarity. It’s not uncommon to see higher premiums on numismatic or particularly sought-after coins. Two coins that contain identical amounts of silver might have considerably different prices if one of them is rare. In times of great demand silver premiums rise significantly, such as when their is distrust in banks and times of high inflation.

The Effect of Premiums on Silver Bullion Coin Investing

Silver coin premiums are constantly changing depending on the market conditions and can even change several times per day in times of extreme demand. However certain coins have predictably higher premiums increasing the cost per ounce, meaning fewer ounces of bullion can be purchased with the same amount of currency when compared to other low premium coins. The one ounce Silver Austrian Philharmonic is known for having reliably low premiums giving investors more ounces of silver for in exchange for their currency. Other coins with higher demand like the Silver American Eagles have much higher premiums. This makes them more costly despite also being only one ounce of silver.

Investing in Silver and Legal Tender Coins

Silver Legal Tender Coins

Face Value of Legal Tender Coins

The most popular way of investing in silver is through legal tender silver bullion coins which are highly recognizable and trusted. Most people are familiar with using coins of different currencies and so it makes it an easy place to start for new bullion investors. Silver coins are more aesthetically pleasing than bars with their intricate designs, precise dimensions and clean finishes. Many silver bullion coins such as the South African Krugerrand, American Eagle, Austrian Philharmonic and Canadian Maple hold legal tender status. This means the coin can be used in transactions for goods and services at the face value of the coin. However it would be foolish to trade in silver coins at face value as the value of the silver would far exceed that of the face value.

Silver legal tender coins are also often safer choices in comparison to bars as the purity, weight, image and size of the coin is assured by the governments respective mints. Legal tender bullion coins are easily verifiable by measuring diameter, height, weight and density of the coin. Each of these recognizable legal tender bullion coins can also be verified through their unique sound frequencies they give off when struck.

Silver Bullion Investing Strategy

When the time comes to sell your bullion it is much easier to sell coins over bars. Coins are more divisible than bars which cannot be broken down into smaller units. A prudent strategy to offload your investment is to dollar cost average out of the market getting an average selling price over a select period of time. This can help maximize profits and is more easily achievable with coins. Not only are silver coins more easily divisible than large silver bars, they are also more recognizable, locally and even internationally. Silver bullion coins, especially legal tender bullion coins have very specific dimensions, weight and even have a distinct sound which is used  to verify their authenticity. The premium paid on coins is higher than that of bars but this premium will probably be recovered later when selling with a similar premium.

There has been an increase in  geopolitical conflict and uncertainty over the past few years. Holding a physical asset like silver coins puts your mind at ease knowing that if there were to be collapse of the banking system or if all trust was lost in government backed currencies, you would have something of value and a means for trading. In such a situation coins would be preferable to bars as you would be able trade 1 ounce coins for items you need of similar value. Bars, which are usually larger, would be more difficult to transact with. Visit our Shop and see the legal tender coins we have to offer.