How to Buy Silver Coins as an Investment
Silver coins are beautiful, practical and another great option for diversification!
Practically speaking, silver actually has more industrial applications than gold. Besides being purchased for investment purposes in the form of coins and bullion, silver is used 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 coins. 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! Since the 70's, silver coins have remained a popular choice for those choosing to invest in precious metal coins and bars.
How to Diversify with Silver Coins
Silver tends to move in concert with gold. In fact, there’s a recognized historic price ratio with gold.
And, like gold coins, 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 premium coins).
Still, there's enough of a divergence with the movement of gold that investors can benefit by the possession of both gold and silver coins.
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 and the Silver Snow Falcon 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 your coins 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 the price of silver coins 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.
Lear Capital can educate you on how to successfully invest in coins while protecting valuable assets. Contact us today!
The statements made on this website are opinions only. Past results are no guarantee 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. Lear is a retail seller of precious metals and its buyback (or bid) prices are lower than its sell (or ask) prices. Metals must appreciate enough to account for this difference in order for customer to make a profit when liquidating the metals. Lear does not provide financial advice or retirement planning services. 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.