American Silver Eagle Coins - Why Bother Collecting or Investing?

Why bother with American Eagle Silver Coins?another.
They are not that old -- they were only mintedThis is where the greatest measure of
starting in 1987. So what is it that makes themnumismatic value lies for the American Eagle
valuable?Silver coin.
Before we go too much further, however, weThe rarest and most valuable would be the
need to make a distinction in valuation between'1995-W Proof Silver Eagle' (West Point Mint), part
what is important to a numismatist or coinof the '10th Anniversary American Eagle Five Coin
collector from that which is regarded by aSet' -- only 32,125 sets were minted. The
commodity investor. The numismatist wouldAmerican Silver Eagle dollar coin in this set is
undoubtedly be more interested in the historicalvalued at over $4,000.00 today.
significance of a coin, when and how it wasFollowing that is the exceptional '2008 Burnished
created and for what purpose or in whose honorUncirculated American Silver Eagle', minted
(the story). He or she would be particularly keenerroneously in a small quantity with the 2007
on the rarity of the coin. On the other hand, theReverse die -- changing the font of the 'U' in
commodity investor would be more intent on'United States of America' to the sans serif font
turning a profit from a change in value of thein the older die from what should have been the
coin(s) from strictly a 'bullion' or 'rare metal'new serif font in the 2008 Reverse die. Public
viewpoint. In the latter case, condition isawareness of this error and its limited mintage
important, but less so.has increased its value considerably.
Let us first look at things from the perspective ofThe '20th anniversary of the American Silver
a Numismatist.Eagle program' produced a limited mintage 2006
AgeCommemorative Set of 3 coins -- regular Proof,
Any numismatist will tell you that age is notReverse Proof Silver Eagle and Burnished
necessarily the deciding factor in determining theUncirculated, which are sought after for their
value of a coin. In fact, it can be a detriment ifcollector's rare value.
the coin has not been taken care of properly andFinally, to further make this point about
it has ended up being defaced, scratched, ornumismatic value based on rarity, American Silver
chemically eroded in some manner. In any case,Eagle coins produced in low mintage years (1994,
we do not have age on our side as a value1993, 1996 and 1995 in that order) are not only
determinant for the American Silver Eagle.still affordable, but very much in demand by
Conditioncollectors.
How about condition? Whatever the age, theAmerican Silver Eagles are not minted for
condition is indeed important. The closer to mintcirculation, but more for their bullion value in the
condition the better. I guess that makes theform of Proofs for collectors and predominately
younger American Eagles more likely to be inas Proofs and Burnished Uncirculated coins for
better condition and thus more valuable thaninvestors. We have seen above that the value of
other older coins in not so good condition.these coins for collectors lies in their rarity due to
Coins are often minted for different purposes --limited mintage, mintage errors and low mintage
Circulated, Uncirculated, Proof, etc. Those that arecommemorative issues. Now let us briefly address
not in circulation stand to be much more pristinetheir value for commodity investors.
or close to mint condition than others. ThisAmerican Silver Eagle bullion coins are distinguished
especially holds true for American Silver Eaglefrom other silver bullion by their certification and
coins which are not in circulation at all.guarantee by the United States government to
Raritycontain one troy ounce of 99.9% pure silver. This
A coin is not necessarily rare because it is old. Itscertainly enhances their secure value for
rarity depends more on how many are stillinvestment purposes.
'available' after mint production has ceased. ByAs an investor's rather than a collector's coin, the
extension, its value is related to its rarity (and onAmerican Silver Eagle's value is driven by a bullish
its condition, of course) and on the marketphysical precious metal retail demand in the
demand for the particular coin. Sometimes though,market place. This is particularly true today with
the popularity of a coin brings a higher price thanthe US Mint's overcoming past difficulties with
its rarity.production bottlenecks and putting a highly
Rarity is not only a reflection of availability, but issustained supply of American Silver Eagle coins
sometimes determined by a quirk in theinto the strong American retail investment
production process. An error in minting for somemarket.
part of the total production makes for aSo there you have it. The not so old American
remarkably higher value -- like a defective orSilver Eagle is worth the bother after all, to both
worn die or a change in font from one die lot tocollectors and investors.