While people tend to think of gold and platinum as the most valuable materials out there, the title is actually taken by an unexpected third option: silver. Very few people know that silver is rarer than gold, but it’s true. Silver also has a lot of industrial uses in manufacturing, automotive, consumer electronics, and fashion markets.
That’s why a silver investment is always a good idea for those looking to diversify in the long term. Read on to learn why buying a bag of silver coins is a great choice (and how you can go about purchasing one).
The Basics of Buying a Bag of Silver Coins
When people think of coins, they tend to think of those that have numismatic value. Numismatic value is the value assigned by a government or central banking institution. It’s what makes a dollar coin worth $1 when you use it at the store.
However, not all coins have numismatic value. Even those that once did often lose that value when the coins go out of circulation. Unless they become collector’s coins, they’re relegated to the position of “junk silver.”
Luckily, “junk silver coins” are a misnomer. That’s because silver itself is a tangible asset. The metal itself can’t lose its intrinsic value even if the coin is unusable as fiat currency.
While junk coins don’t have any numismatic value, they’re still made from 90% silver. This silver has intrinsic value that isn’t government-assigned but rather is a product of the actual properties of the precious metal.
So, a bag of silver coins will always be worth money.
How Much Are Silver Junk Coins Worth?
Silver is currently worth about $22 per ounce.
A bag of junk coins worth $1000 will have about 715 ounces of silver in it. If the price of silver goes up by 10¢, the bag of coins will have a value increase of slightly over $70. This is ideal for those looking to turn a long-term profit quickly and easily.
The good news is that you likely will gain quite a bit of money in the long term. While the precious metals market is volatile, its upward trend over years and decades is well-documented. In fact, 2023’s market has silver at a nine-year high, so things are looking up already.
Silver vs Gold: Which Is a Better Investment?
The answer to this question is complex because both silver and gold are great investments. The better option depends on the individual buyer and what their goals are.
Silver is ideal for those who don’t want to pay a lot of money upfront. While you can buy it for only $22 an ounce, gold is a whopping $2000 per ounce. Many beginning investors can afford to purchase silver even if gold is outside of their price range.
However, gold tends to offer slightly higher returns than silver does. Silver has shown an annual return of 3.46% over the past 95 years. The 68¢ that an ounce was worth in 1925 grew to over $17 in 2020 (and $22 in 2023).
That’s a solid investment, but gold’s worth has grown even more. Gold was only worth about $21 per ounce in 1925, but the same amount was worth $1893 in 2020. This was a 4.87% annual return.
Note, though, that silver has more day-to-day uses than gold does. While gold is a beautiful collector’s item that never goes out of style, its primary uses are jewelry, medals, statues, and dentistry. Some electronics will use gold, too, but not as frequently as they utilize silver.
Silver is used for a lot of practical purposes. It makes consumer electronics and jewelry, but it’s also important when manufacturing machinery used in industrial plants and construction sites. Silver is used when making cars, trains, and airplanes as well.
No matter what happens, silver will always have value because of its many uses.
Why Is Silver a Great Investment Choice?
Silver’s status as a tangible asset makes it a great choice for investors. So does its upward market trajectory and increasing value. But why should investors prioritize silver in the first place?
The answer to this lies in its value as an inflation hedge.
Inflation is the natural outcome of changing geopolitical dynamics across the globe. Tariffs and trade restrictions such as those between the US and Russia can greatly impact the value of currency. Conflicts like the current Israel/Palestine situation also naturally change the value of money because of the large number of imports and exports to the Middle East.
When this happens, people want to buy something that will retain its worth even as the value of the dollar decreases. They often turn to precious metals because of their intrinsic value. The government can’t remove that value from silver bullion since people will always be able to use it.
Silver won’t just constantly be in demand. Its value rises when the value of the dollar decreases. This makes it a great investment to hold onto and sell on a rainy day when you truly need some additional funds.
Investors need to diversify their portfolios to make an overall profit. Stocks and bonds are great investments, but these common options can easily become worthless if a company has a bad year. Bankruptcy is also a possibility that can set you back a lot of money.
Precious metals aren’t just an inflation hedge. They’re also a great tangible asset to diversify a portfolio. Even if other investments go bust or decrease in value, you’ll be able to offset the hit a bit by selling precious metals.
You’ll never lose all your money. Silver mitigates risk so that you can stay on your feet no matter what happens.
Control Over Returns
The precious metals market sees a lot of short-term fluctuations. Understanding the market gives you a lot of control over the returns you get. This is because you can track short-term fluctuations and decide when the best time is to sell.
When you buy silver, you have two options. One is to hold onto the investment for as long as possible. This is a great way to get some extra money for your retirement because you can sell it for a profit then.
However, not all long-term investments need to be in holding for that long. You can decide on a price that you want to sell them for before buying and hold onto the silver until an ounce reaches that pre-determined price.
This stops you from continuously holding onto your silver and missing a good price. The moment that the market hits the cost you decide on, you cash out. You won’t need to worry about holding on too long or selling at an inopportune time.
Silver is also an extremely secure asset. While stocks and bonds lose all value if the company goes bankrupt, this isn’t the case for silver. The only way that you can lose the initial face-value price is by actually losing the physical silver.
You can easily keep a physical investment safe. Just rent out a lock box at a banking institution so it’ll constantly be under professional protection. If you want to supervise it closely, an at-home safe will also work as long as you store it in a secure, hard-to-access location.
How Can You Invest in Quality Silver Bullion?
To make the most of your silver investment, it’s important that you track market trends and make your initial purchase when the price is low. You’ll get a higher ROI when you don’t pay a ton of money upfront. Since the market is so volatile, you’re sure to get a great price if you wait a maximum of a couple of weeks.
Assess and analyze projections so you can make an informed choice.
Then, it’s time to choose quality junk coins from a reputable retailer. CMI offers bags of various sizes as well as silver bullion coins and bars. We communicate with buyers regularly, post photos of what we’re offering, and answer any questions honestly and completely.
When you work with reliable experts, you don’t need to worry about scams. Buying from independent eBay sellers or those on private websites may get you a bag of low-worth nickel at silver spot prices. You may also make a purchase and not get anything mailed out to you at all.
Also, make sure that you don’t buy more precious metals than you can afford upfront. While silver is a great investment with a high payoff, you don’t want to get into a bad financial situation because you overspent.
Start Investing in Silver Today
Now that you know why a bag of silver coins is a great investment, it’s time to start browsing and buying precious metals. Our team offers silver bullion and junk silver at a low rate so that you can store it as a long-term investment. Our diverse options mean that there’s something for everyone, and our quality reputation lets you make a confident purchase from reliable professionals.
We’re excited to help both beginning and experienced investors diversify their portfolios. Contact CMI Gold & Silver to learn more about investing in silver the right way.
The post Should You Buy a Bag of Silver Coins? Your Complete Guide first appeared on CMI Gold & Silver.
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