A Beginner’s Guide to Investing in Silver Coins

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Silver CoinsIf investing in precious metals were a wedding ceremony, silver would be bridesmaids, gold the bride. For so long the former has played second fiddle to the latter, and for obvious reasons.

In rare instances though, silver outdoes gold. Take for example what happened during the most recent financial crisis when silver prices doubled, while gold lagged behind with a mere 70pc rise in value.

If you want to give investing in silver a chance, here are tips to get the ball rolling.

Know your silver

You may want to consider investing in one of the four major types of silver sold in the market:

Coins

These come in two sub-categories: (a) generic coins, also known as rounds, are privately produced and boast of no rare value except for their silver content (One Troy Ounce, .999 Fine Silver, etc.); and, (b) collectible coins or “numismatic,” which are often hoarded by hobbyist for their premium value, such as the Canadian Maple Leaf and the American Eagle.

Bars

These come in weight-dependent varieties (1000, 400, 100, 10, 5 ounces).

90%

These refer to the US minted coins circa 1964 and earlier, except pennies and nickels, which contain 10% copper and 90% silver.

Loose

Exactly what their name suggests; this silver variant comes in different forms except the ones already mentioned.

Know your investment options

There are two ways to invest in silver. There are the physical variants you buy like silver coins UK or USA or Canada, depending on your preference, or buy non-physical silver in the form of silver mining company stock or Exchange-Traded Fund (ETF).

One of the cheapest ways to invest in silver coins is to purchase “junk silver coin.” These government-issued coins contain a specific amount of silver and could appreciate in value as collectables.

Silver may not be the most precious of precious metals. It is nonetheless an investment opportunity worth exhausting. After all, bridesmaids sometimes steal the spotlight from the bride.