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Silver Coin Value Changing Faster Than Expected

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There’s nothing like a sharp decline in a portfolio’s value to make an investor shift focus and diversify. Precious metals are still performing well but gold and platinum are much more expensive than most average folks can muster in today’s fragile and fearful economic condition.

The cost of silver has risen but not to the same extent that its counterparts have. It is still fairly reasonably priced and available as an investment in several forms. Silver coin value is, perhaps, the best bet in the lot.

Coins are accessible, affordable, and liquid. These factors are helping keep silver coin value points stable and on the rise.

BULLION VALUE

Bullion coins are those minted with a face value as legal tender, but not really intended to be used as currency. They are much more valuable for the weight and purity of their metal. These coins are selling well now as an easily purchased hedge against inflation.

Many beautiful coins have been created, like the American Silver Eagle, which collectors have been seeking out with relish.

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Collectable coins are usually bought with discretionary income, which is flagging quite a bit in today’s market. Silver coin value is more readily apparent in another type of coin, called “junk” despite its significant worth.

THE VALUE OF "JUNK"

The value of so-called junk silver coinage is rising fast and trading well. Minted of 90% pure silver, junk coins were struck prior to 1965 before the value of the precious metal outpaced the face value of the currency.

Buying junk silver coins is one of the cheapest ways to capitalize on current silver coin value. There are no fees for refining and very few premiums for condition. They are easy to find both locally and online, most often in bags of $250, $500, or $1,000 in face value.

The worth of these coins is fairly easy to estimate, with some basic math and research. A bag of $1,000 in face value, regardless of the denomination of coin, weighs in at 795 ounces. Each coin in comprised of 10% copper and 90% silver so that translates to 723 ounces of pure silver, if the coins were all new and untouched.

Once wear and tear is factored in, a bag is valued at 715 ounces of pure silver. Multiply that by the current “spot price,” or current market price, of silver for the value of the bag. Keep in mind, in order to make some profit and remain in business, a dealer will charge a small mark-up called a premium on each bag.

WHY IS SILVER COIN VALUE RISING?

Silver is usually derived as a byproduct of mining copper or zinc. It has simply not been necessary to mine silver on its own to meet demand, until now. The demand for silver is rising due to new applications and industrial uses that are being discovered seemingly on a daily basis.

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Technology fields like superconductivity are using more and more silver and some experts predict that demand will soon exceed supply.

When demand exceeds supply, the market responds with higher prices. Silver prices have been slowly inching up but have not hit a period of explosive growth – yet.

Buying Silver

A dizzying array of options exists for purchasing silver coins. Auctions, private and online, local coin dealers and hobby shops, coin shows and brokerages: the list seems endless and confusing but it doesn’t have to be.

Many people get caught up with the various bullish factors and the options for investing in silver. For a great way to get started now understanding silver coin value, download our Free Guide To Investing In Silver Coins

The recent slip in the economy doesn’t have to be a death sentence for a portfolio. It may just mean that the more astute investors will begin to look towards the investment that fits in the palm of their hand – silver coins.

To get started understanding silver coin value, click here

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