The first signs became obvious last year. Regardless of the bad sequence of events that lead silver to great losses, demand for silver bullion coins was astonishing. Investors took advantage of low prices and entered the market purchasing most popular silver bullion coins at quantities that proclaimed that the trend was here to stay.
International Mints were taken by surprise: the US Mint which issues the top-selling silver bullion coin in the world, the American silver Eagle had to stop distribution twice last year. Production and sales were over 40 million pieces, more than the total production of years 2004-2007, and more than double of what was produced in 2008. This means over 1,245 tonnes of metal, and that’s a lot of silver. Silver prices are higher this year, but the same goes for demand for these beautiful coins that carry a very low premium over spot price.
At the same time, several issues of bullion coins fetch amazing prices at the secondary market. This idea would sound totally absurd 2-3 years ago, as bullion coins by definition are not collectible coins, as they are minted in large quantities. Bullion coins are the ultimate, but also the most expensive form of silver you can collect or invest in, and normally you should consider yourself totally content, if you were able to sell your coins at spot price. This is no longer the case, as without exception, all silver bullion coins have a buyback price more or less above spot price.
The best silver coins
Although they bear exactly the same design each year, pre-1990 silver Eagle coins are sold at least 100% over the current spot price. These first coins had very small mintages, compared to current issues, so you can say that they carry a certain amount of rarity. And if you take into account that these coins were bought for less than $5 each, you can imagine the return of the investment.
There are a number of considerations to keep in mind when investing in silver bullion coins, such as the actual weight of the coins (1 oz. coins are the most popular), purity, alternate design, premium and mintage figures, as well as the question of circulation.
Silver Pandas and silver Britannia coins sell at rather high premiums, though often government produced bullion coins are offered by the major precious metals dealers at prices well below the original issue price. But amazing as this might sound, these coins’ alternate designs seem to add numismatic quality even on recent issues which, by the way, are sometimes hard to find.
Commemorative silver bullion coins, such as the one ounce 25th Anniversary of the Silver Maple Leaf coin issued in 2013, or special series such as the Canadian Wildlife silver bullion coins issued by the Royal Canadian Mint, and containing reverse imagery dedicated to the abundant wildlife of Canada are also examples of coins showing strong added value potential.
Silver prices cannot go lower so your good taste in aesthetic design, reasonable premiums and the irresistible offers of coininvest.com should be your safe guide to follow the new trend.