The Appeal of Silver Coins



Millions of people remember the thrill of receiving their first coins. For a vast majority, that usually meant one of the more substantial silver coins, like a half-dollar or a quarter. That early experience may have initiated a fixation with coins and coin collecting, and today’s hobbyists are actually going to be considered almost equally investors as they are collectors. Why is that? With the disruption in most of the global markets, investors are turning their attention to reliable hard assets such as the precious metals, and this includes a huge amount of interest in silver coins.

What is so interesting about this development is that it isn’t just a single variety of silver coins being acquired. For example, some investors are buying large numbers of the newly minted “bullion quality” coins like the silver American Eagles. These give them an ounce of nearly pure silver (99.9% fineness) and the assurance of the government backed currency.

There are also many investors who are collectors, and who frequently acquire their silver coins for their rarity or scarcity, in addition to their value as a silver asset. For instance, one of the most popular of all the collected coins is the Morgan dollar. These coins were minted from 1878 to 1921, and have a huge array of values. Some might be worth only a bit more than the silver that they contain, and others might be so rare or in such excellent condition as to be extremely valuable too.

Many investors will work with a certified coin dealer to develop a very valuable collection of the Morgan Dollars and will consider this as a major hard asset in their investment portfolio. Because no more of the coins will ever be made, the actual value of such an asset is likely to climb, and never faces any risks for a declining value as well.

Finally, there are investors who purchase the coins known as “junk coins” which are far from junk at all. These are coins from very specific periods of time which were also made from nearly pure silver. For example, the junk coins include American dimes and quarters with dates prior to 1965. They offer the investor 90% pure silver in each coin, and though they are certainly considered old coins, they are not rare enough to increase their costs substantially. These are usually purchased in bulk bags of specific “face values” and offer the investor the intrinsic value of the silver and the extrinsic guarantee of the currency.