Are you ready to begin investing in silver coins? You may think buying silver is cut and dry but nothing could be further from the truth. There are a number of different ways to invest in these coins that I’d like to tell you about today. I’d also like to share valuable info about my favorite style of silver coin investing in a silver IRA.
This guide will tell you a great deal about the things you need to know regarding silver coin investments. I will tell you why it’s advantageous to own these investments. I’ll share some of the top silver IRA coin investments. And I’ll even go into greater detail about my favorite way to buy them.
Sound good? Stick around a while longer to discover the truth about investing in silver coins for beginners.
Why Should I Buy Silver Coins?
Investors look at silver coins because they recognize the value of price appreciation. But these investments are so much more than the increased price that they’ll gain as they accrue value over time. In fact, there are a number of other excellent advantages to making this investment.
You’ll certainly appreciate buying silver coins as part of a precious metals IRA because this investment is a:
- Physical asset – the beauty of investing in silver coins is you can actually own it and physically possess it. Although, if you invest in a precious metals IRA you’ll need to keep your investments stored safely in a dedicated vault. But having the ability to take possession of this physical asset at any time is an added bonus. Paper money is mostly digital at this point. And the banks prefer it that way. How many of your investments actually possess a physical form? Not many I’d guess and it’s time to change this situation for the better.
- Liquid investment – the great thing about owning silver is it’s quite liquid and highly sought after. So, if you ever needed to sell your silver coins for any reason, you’d find many buyers. In fact, they’ll gladly take your silver investments off your hands very quickly. Even better, the highly reputable precious metals brokers have buyback programs in place. They will purchase silver coins from their customer’s silver IRA accounts and typically provide payment within 24 hours. This is a fast and effective way to sell your investments in a pinch if you ever need money quickly.
- Confidential – there aren’t too many confidential or private assets in the world today. But you get to remain as anonymous as possible as a precious metals IRA investor. Obviously, you’ll have to make tax payments on the gains that you accumulate over time. But only if you set up a tax-deferred IRA account. You can also open a tax-free IRA account and keep all of the gains for yourself.
- Un-hackable – unlike mutual funds and stock market accounts, it’s impossible to hack silver coins. Since it’s a physical asset, a crook would have to break into a secured vault to steal your money. This is nearly impossible when you store your money in a depository owned by Brinks or another security expert. Hackers abound all around the world and they’re looking to steal people’s digital currency. Protect your wealth even further by investing in silver coins in a silver IRA.
As you can see, silver coins are an excellent investment. Read this top 10 list of precious metals companies to learn more about my favorite recommendations.
Silver Coin Options
Believe it or not, there are a few different options to choose from when buying silver coins. Some of these silver coins aren’t going to be acceptable in a precious metals IRA. But don’t worry because I’ll name a few of my favorite IRA approved silver coins in the next section. This list will help you get started choosing the correct silver investments with Internal Revenue Service approval.
But before I get to my list of favorites, I’ll share different silver coin options with you below. They consist of the following choices:
- Rounds – these specific silver coins undergo production with a private mint. In most cases, the premiums are lower and the quality of the coins are very high. But at the same time, these coins aren’t backed by governments so they do not have a face value. And 99 times out of 100 these coins aren’t going to be acceptable within a precious metals IRA. Unless they have a purity level of 0.9999%. But private mints produce them all around the world and many people appreciate them as a personal investment.
- Numismatics – they are rare coins typically purchased from collectors. The difference between these coins and bullion coins is in the way they’re valued. These coins possess value because they’re rare and this doesn’t necessarily have anything to do with the silver content itself. Bullion coins, as you are about to learn, are an entirely different investment style.
- Bullions – a bullion coin is a coin that contains nearly 100% silver. This is investment-grade silver at its finest. And this type of coin predominately consists of this rare and highly refined metal. More often than not, the popular bullion coins are produced by a government mint. These sovereign coins have a face value on it and a specific government typically manufactures and guarantees them. More often than not, silver bullion sovereign coins possess flawless purity and are acceptable within a precious metals IRA account.
- Semi numismatics – these coins were designed as collectibles but haven’t achieved true numismatic stature. Why? They do not possess the historical significance that would make them more valuable. Someday these coins certainly might be worth a lot of money to other collectors. But as of now, these silver pieces were created in limited quantity by mints. They minted these coins hoping that they’d gain historical significance at some point in the future.
The Most Popular IRA Approved Silver Coins
As you may or may not know, sovereign silver coins are the most popular in the world. In fact, there are six coins that are nearly 100% pure silver and acceptable within a precious metals IRA. Even better, these popular coins are backed by governments, considered legal tender, and are guaranteed.
The most popular choices when investing in silver coins include:
- Silver American Eagle – this valuable precious metal has a purity grade of .999. It has one dollar at its face value and it’s backed by the government of the United States of America. Out of all of the silver coins in existence today, the Silver American Eagle is the most popular choice worldwide.
- Silver Canadian Maple Leaf – the purity grade of the Silver Canadian Maple Leaf coin is .9999. It has five dollars Canadian face value and the Commonwealth of Canada fully backs this coin. Another distinction is this coin is one of the most secure around the world. The Royal Canadian Mint takes advanced security measures to keep this coin safe.
- Silver Australian Kangaroo – like the Canadian coin, the Australian Silver Kangaroo has a purity grade of .9999. It’s an official coin with a face value of one Australian dollar. And the Australian Currency Act of 1965 guarantees that this coin is considered legal tender. Newer versions of this coin possess a high relief design.
- Silver Mexican Libertad – this coin is interesting because it doesn’t actually possess a face value like the other coins on this list. But it’s incredibly pure nonetheless with a purity grade of .999. The Bank of Mexico also backs up this coin. And its produced in one of the oldest mints in North America.
- Silver Britannia – the Britannia from the UK has a purity level of .999. Its face value is £2 and it’s backed by the British government.
- Silver Austrian Philharmonic – the Republic of Austria backs this coin and it contains a face value of €1.50. It’s very pure with a purity grade of .999. Another interesting fact is it’s produced more than any other silver coin in the world at this time.
Learn more about the top 10 precious metals companies by clicking here.
Investing in a Precious Metals IRA
There are many ways to begin investing in silver coins but only one way makes the most sense. And that’s buying silver coins within a silver IRA.
The major benefits and advantages of this investing style include:
- Portfolio diversification – most people invest in traditional stocks, bonds, mutual funds, and treasury bills. But they fail to diversify even further and when the markets take a hit all of their investments lose value. Opening a silver IRA means gaining value over time in a diversified investment. While certain markets lose value, silver investments tend to gain during tough financial times.
- Hedge against inflation – the economy is extremely volatile right now as you can see. And no one knows when we’ll recover from the coronavirus recession. From a historical standpoint, silver thrives in these chaotic inflationary environments. Over the past year alone the value of silver has risen by nearly 37%. And the year before the value of silver rose by over 15%. That’s more than 50% in less than two years.
- Receive tax benefits like a traditional IRA – self-directed IRA accounts receive excellent tax benefits. You can fund your account with pretax dollars or open an IRA using money that was already taxed. You’ll get to accrue value until you reach retirement age. And depending on the account setup, you’ll begin paying taxes when you start taking distributions. Or you’ll get to keep your gains completely tax-free.
Clearly, the tax benefits alone are reason enough to begin investing in silver coins through a precious metals IRA. Discover the truth about the top 10 precious metals brokers in business right now by reading my thorough review.
Wow. This is a great article you have here that is rich in information for investing in Silver Coin. I barely have any knowledge on how to invest in Silver Coin. But haven read this article, I have gotten to know a lot and with this can be certain that taking this is a secondary means of income is not a bad idea.
Hello Nelson! I am glad my article was informative and you have learned much about investing in silver coins. Thank you for the feedback and hope you enjoy a Merry Christmas!
Wow this is such a great idea! Investing in Silver Coins sounds like a future! My dad used to collect them and I am pretty sure he had the same idea, although I have never thought about that this way. I wish I can find our coins and share them with you. They are related to my country and they are very worthy.
Hello Sunny! Your father had the right idea to invest in silver coins and I’m glad this article reminded you of that. I would be glad to see your coins because there are many IRA approved coins from many different countries. Thank you for the feedback and I hope you enjoy a Merry Christmas!
I have been deciding between gold or silver coins as an investment. One of my advisers is suggesting me to invest in American Buffalo Gold Coins (1oz Bullion). And another is suggesting to purchase Silver Canadian Maple Leaf. After reading your post, I think I’ll go with Maple Leaf! Thanks for helping me make up my mind.
Hello Ann! Thank you for using my article to make your decision but we are proponents of investing in both gold and silver. Gold is also a good investment and diversification is a good way to protect your portfolio so having both gold and silver is a good idea. Thank you for sharing your experience and hope you enjoy a Merry Christmas!
Thank you for the detailed and eye opening article. There is a lot for me to learn as a newbie investor and your site just gave me a good foundation. I have always heard contradicting and confusing opinions about investing in silver. I will be diving deep on the subject. This was a timely and helpful read.
Hello Bogadi! I am glad that my article was helpful to your research as an investor. Investing in silver is indeed a wise decision for your portfolio. Thank you for the feedback and I hope you enjoy a Merry Christmas!
I have heard of the silver coin investment but always think of it like Crypto. You got my attention when you made me know I can take physical posseion of my investment although best kep in a vault. Top of it is the liquidity of the investment, one can easily convert it to cash. I have bookmarked your page
Hello Owoeye! We are proponents of investing in both precious metals like silver and cryptocurrency like Bitcoin. Yes, it is best kept in a vault but by professionals like gold IRA companies and the vaults in their depositories. The best companies have buyback programs so you can sell your silver for cash as well. Thank you for bookmarking my page and the feedback. I hope you enjoy a Merry Christmas!
It’s great to hear that silver coins are an easily liquidatable investment and I can find sellers without much hassle. My husband is planning on investing in some coins but I’m worried that we may run into an emergency or something similar and we won’t be able to convert those coins to cash quickly. I’m glad to hear I’m wrong and that that isn’t the case. In that case, I don’t have any more problems with it so I’ll be supportive of his decision when he goes to a coin dealer to buy some coins.
Hello Tammie. Although buying silver coins and storing them yourself is one way of investing in silver, the best and most recommended way is by rolling over your retirement plan to a silver IRA that consists of silver coins and bullion. It’s good to know that you are investing in the right place! Thank you for the feedback, Tammie!