| When starting a silver investment, there are 4 | | | | charged for the actual weight of the bars you |
| major forms of silver to consider investing in: | | | | buy. |
| 1) Coins | | | | Certain companies manufacture bars specifically |
| 2) Bars | | | | for investing such as Johnson Matthey, or |
| 3) 90% | | | | Engelhard, and these bars are beautifully designed |
| 4) Loose | | | | and polished for viewing. The other type of bars |
| Coins | | | | you will find will be a plain looking block with the |
| Coins can be generic or collectible. Generic coins | | | | weight of the bar, ".999," and perhaps the minting |
| are often known as "rounds." Collectible coins are | | | | company's logo roughly stamped on it. These bars |
| often called "numismatic" coins, a hobbyist term | | | | are meant more for industrial uses instead of the |
| based on the Latin word "numisma" for coin. | | | | investor, but have basically the same value to the |
| Generic coins, or rounds, are generally produced | | | | investor as the nicely designed and polished bars. |
| by private mints who create coins with interesting | | | | On the open market, the "investor" bars might |
| designs, but have no rarity or special value | | | | carry a slight premium, but for the most part, |
| associated with them. They are commonly printed | | | | bars of equal weight carry the same value. |
| with the words ".999 Fine Silver" and "One Troy | | | | Bars are more rare to find in coin shops than |
| Ounce" to make the contents of the coin clear. | | | | rounds, but they are available from time to time. |
| The value of a round is based on the content of | | | | More likely, you will purchase bars from a large |
| the precious metal, not for the condition or rarity | | | | dealer over the phone or online. Popular retailers |
| of the coin. | | | | include APMEX, Bullion Direct, and The Tulving |
| Numismatic coins are almost always more | | | | Company. |
| expensive to buy than generic rounds and usually | | | | 90% |
| receive a premium price when you go to sell | | | | U.S. coins minted before 1965 (except nickels and |
| them. Like generic rounds, they often indicate the | | | | pennies) contained 90% silver and about 10% |
| purity and weight of the metal on the coin, but | | | | copper. Back in the old days, our money |
| unlike generic rounds, they have a perceived value | | | | represented something we could melt down and |
| to the public beyond their precious metal content. | | | | would actually be a valuable metal. From 1965 to |
| These coins are often sealed in air-tight packages | | | | 1971, the United States cut back on silver use to |
| and have a professional numismatic association | | | | a 40% formula for coins, and after 1971 the |
| rating associated with it. | | | | precious metal content was gone. |
| Examples of numismatic coins include the | | | | Bags of 90% silver coins may also be found in |
| American Eagle, and the Canadian Maple Leaf | | | | coin shops or at auction on eBay. Again, there are |
| coins. Each of these coins typically demand a price | | | | some coins valued purely for their metal content, |
| 10%-20% higher than a generic coin of the same | | | | and some are valued because their date of issue |
| weight and quality. Some items are very rare, and | | | | has become rare and fall into the numismatic |
| demand a price that makes their precious metal | | | | category. Again, investors mostly stay clear of |
| content insignificant as far as their value is | | | | numismatics because generic coins are easier to |
| concerned, such as the 1804 Childs silver dollar | | | | sell at their full potential value. |
| that sold at auction for over $4 million. | | | | Loose |
| In general, investors prefer generic rounds over | | | | The final category of investment silver is metal |
| numismatic coins. While coin dealers sell American | | | | that is loose. Many investors obtain items that |
| Eagles at a premium, for example, they will often | | | | were perhaps meant for industry, or have been |
| not pay the same premium when you sell the | | | | packaged in unique ways. For example, recently |
| coin back to them. | | | | one of the major online dealers ran out of rounds |
| Coins may be bought in bulk from large dealers, | | | | and bars, but was willing to sell silver "shot." This |
| or may be purchased by the ounce in coin shops | | | | was simply small ball-shaped pieces tossed into a |
| across the country. Nearly every county in the | | | | bag. Other possibilities include wire, or sheets that |
| U.S. has at least one coin shop, and their | | | | were clearly meant for some industrial use. Or |
| inventory may contain dozens of items, or may | | | | perhaps you have inherited some sterling |
| be completely sold out in times of high investor | | | | dinnerware that has no collector's value. |
| demand. | | | | No matter what market it was created for, when |
| Bars | | | | it reaches your hands it is still valuable as an |
| Many investors prefer bars for their investment. | | | | investment. Sterling contains only 92.5% of the |
| They are easier to stack and store than coins, | | | | precious metal, so it is not as valuable as the |
| and are available in much larger weights than the | | | | "fine" 99.9% variety, but don't sell it in your |
| typical one ounce coin. Bars are found in one | | | | garage sale. These items will be more difficult to |
| ounce, five ounce, ten ounce, 100 ounce, 400 | | | | sell than coins or bars, but coin shops, scrap |
| ounce, and 1000 ounce varieties in the U.S.. Bars | | | | yards, and eBay are all dependable options to |
| may also be found in odd weights such as 105 | | | | receive 80%-95% of the precious metal's market |
| troy ounces, but this would still be considered a | | | | value you hold. |
| "hundred ounce" bar. When you buy bars, you are | | | | |