How to Buy Silver Coins as an Investment

Silver: beautiful, practical and another great option for diversification!

American Silver Eagle - available from Like gold, silver has served both as a means of exchange and as a crucial industrial element throughout man’s long history.

Practically speaking, silver has more industrial applications than gold, including use in photography, medicine, electronics, chemistry, telecommunication, computers, and aerospace.

Silver’s Run in the 70’s

During Lyndon Johnson's presidency, inflationary policies led to increases in the value of real money, including gold and silver. Consequently silver was removed from most U.S. coinage (the term is “demonitized.”). It soon began a run that would culminate into $52 silver (up from $2 an ounce) by 1979. That would prove to be an historic 2,500% gain!

How to Diversify with it

Silver tends to move in concert with gold. In fact, there’s a recognized historic price ratio with gold.

And, like gold, it too reacts favorably when rates of inflation, precipitous world events, and interest rates are stimulated...but it can also act independently of these economic factors in certain forms (such as numismatic coins).

Still, there’s enough of a divergence with the movement of gold that investors can benefit by the possession of both.

Consider diversifying your paper and gold holdings with silver. The most liquid and tradable silver comes in bar and coin form. The most popular coins are the American Eagle and the Canadian Maple Leaf one ounce coins. These silver coins can be viewed, priced and purchased by clicking here.

Buy Silver Coins as an Investment

There was a time when traders and investors would use silver prices to track gold prices with a ratio of 1:15 where 1 ounce of gold would allow you to buy 15 ounces of silver. At one point this ratio reaches 1:94, somewhere in the late 20th century. The ratios are irrelevant as you need to look only at the return on investment. Silver is very dependent on industry and consumer spending. This is why during a financial crisis most of the silver markets will decline. The best time to invest in silver coins is during a recession or during the initial stages of growth. When gold prices fall, you will notice that silver prices may begin to increase. The most major factor that determines the value of silver is industrial demand as silver has become a priority in various electrical and medical products.

Learn how to protect valuable assets with the right guidance from Lear Capital.

The statements made on this website are opinions and past performance is no indication of future performance or returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same depending on a variety of factors. Lear Capital, Inc. cannot guarantee, and makes no representation, that any metals purchased will appreciate at all or appreciate sufficiently to make customers a profit. The decision to purchase or sell precious metals, and which precious metals to purchase or sell, are the customer’s decision alone, and purchases and sales should be made subject to the customer’s own research, prudence and judgment.