Buying Silver Numismatic Coins
Silver Numismatic Coins have the potential to hedge against rapid changes in the silver market. When the price of silver rapidly rises or falls the market value for a coins collectibily often remains stable. Pre 1965 United States Silver Coins may be just what you are looking for.
On Feburary 1st 2021 the price per oz of silver jumped roughly $4 in a day, only to drop by almost as much on Feburary 2nd 2021. While this is a rare occurance, it underlines a principle long known by silver numismatic coin investors. On this day Reddit users rallied in mass to manipulate the silver market. The purpose of which was to squeeze the large investment firms shorting silver.
There was such a rush into the silver market that APMEX, the world's largest online retailer of precious metals, had no silver to sell. In fact it's 1 kilo bars arent weren't available until Feb 19th more than a 2 week wait. Nearly every silver item in their inventory was not available.
Should You Buy Silver Bars or Silver Coins?
Pros & Cons Buying Bars Silver
- lower premium per ounce on silver
- less room in storage
- means to facilitate large transactions
- more liquidity
- more succeptable to market fluctuations
- limited market access
Pros & Cons Buying Silver Numismatic Coins
- easier to purchase just walk into a coin shop
- less succeptable to market fluctuations
- access to both the precious metal and numismatic markets
- when silver spikes you can often buy silver coins for less than current market prices if you move fast enough
- higher premiums for silver investors
- takes up more room in storage
- less liquidity (if selling for numismatic value)
How to Capitilize on Numismatic and Precious Metals Market Conversions
It's simple really. Find the melt value of a silver coin, and buy a collectors grade coin selling for that price. What do we mean by "collectors grade"? We mean something that isn't junk grade. Something that looks nice enough that someone would want to buy it and add to their collection.
Having spent a few decades in the numismatic market we can tell you it's pretty stable, with general appreciation in most instances.
There are some strange things going on in the silver market at the moment. Investing can be made less risky by purchasing Silver Numismatic Coins, not bars. United States pre 65 Quarters, Half Dollars, and Dimes to be precise.