Ever since the recession, investors have been looking to different assets to place their hard earned money. Precious metals has gained in popularity over the past decade and for good reason. I personally have 10% of my assets invested in metals, a majority of that in silver coins. Silver coins are known to hold their value and tend to move in the opposite direction of the US dollar. Investing in silver is a great hedge against inflation, and it can also be a great hobby. When researching silver coins to invest in, there are two coins that are a must have.
One reason many investors have turned to buying silver coins is because of the extremely low fed rates. Rates have never been this low, which is good for people borrowing money, but it beats down the US Dollar. The Federal Reserve should start raising rates in the fourth quarter of 2016, but many believe it is too late. As you have seen so far in 2016, the price of silver is up a good bit, although it has taken a big dive the past two months. I would say it is the time to buy!
What is the best silver coin to invest in?
When looking into what silver coins to buy, my first choice is the American Silver Eagle Coin. This coin is the standard in investing in silver coins. The coin is produced by the US Mint and has a $1 face value. These coins usually cost more that other silver coins and bullion, but for good reason. This coin is recognized by many and is the most sought after silver coin produced.
My second choice of silver coins is the Canadian Silver Maple Leaf. This is one of the nicest coins from around the world. The coin comes straight from the Canadian Mint and is one Troy ounce of silver. These coins carry a smaller premium that the silver American Eagles, but are still much higher than the spot price of silver.
The Cheapest Way to Invest in Silver
The above coins are very nice, but are best suited for more of a silver collector rather than someone looking to invest in silver and other precious metals. I have found the cheapest way to invest in silver is to purchase silver bullion bars. Many different private mints produce silver bars in many different sizes, with the most common size being the troy ounce. I have a seen a silver bar as big as 100 oz. Naturally the bigger the bar, the lower the price is per ounce of silver.
Although investing in silver is all about making money, personally, I just love to buy rare silver coins. Although I do invest in silver, it is also a hobby of mine. China and New Zealand have some of the most beautiful silver coins available, and thanks to the internet, they could be at your doorstep in a week. When buying international coins, I would be very cautious of the seller. There are tons of fake silver or silver plated coins available. Just remember, when you are buying silver coins, the coin will not be cheaper than the amount of silver it is made of.
I hope this article has directed you in the right direction when trying to determine what is the cheapest way to buy silver. I try to buy different silver coins, and have found it is now more of a hobby rather than investment. Happy investing!