Coins And Bullion: Investing In Silver

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Precious metals have had a bumpy ride in 2015. Silver, in particular, has suffered a steady decline in the past 12 months but is has looked a little bullish recently–which makes it a terrific time to buy.

Last week metals recovered somewhat as the dollar took a Thursday nosedive, and silver ended the week at $14.51/oz. That’s still down $2.23 for the year, but analysts say that silver is currently oversold and expect the rally to continue, possibly hitting $15.90 in 2016. The experts at the Silver Summit last week are extremely bullish on metals going forward for 2016, and based on the solid increase in silver mining prices last week (between six and 12%) they’re right. Keep in mind that not quite five years ago silver hit a record $49.51/oz (April 2011) high, so there’s a lot of room for growth now.

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Take a look at investing in silver coins–both graded and bullion–as a tangible hedge against the ups and downs of the equities markets.

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The graded American Silver Eagle coin, the quintessential “silver dollar”, is one troy ounce of .999% silver and is the official US bullion coin. These coins are struck in a limited supply each year, and recent low silver prices have meant they sell out quickly. These coins are solid investment choices as you can use them to fund your IRA. American Silver Eagles are also circulated currency, although not many of them are actually out in retail markets.

Silver bullion, on the other hand, has no currency value and is simply a piece of silver, the same purity of silver as the graded coins, .999 silver/troy oz. Individual bullion pieces are referred to as “rounds” rather than coins as they have no face value and aren’t in circulation. The Silver Buffalo round is a nod to the iconic Indian Head nickel with the American Bison on the reverse side that was initially struck in 1913. Buffalo coins are traded by novices in numismatics as well as experienced investors, so there’s always a lively market.

If you’d like to learn more about investing in coins, please contact us. Prices are going up and now’s a great time to get into the market.