Some of the best strategies for buying silver coins include knowing the profitable price for silver, buying from reputable dealers and knowing the difference between investment and retail coins. Another effective strategy for those people looking to invest in silver coins is to take some time learning how buying silver coins works. The more you know about silver, the more likely it is you will make good investments.
In past precious metal bull markets, silver has outperformed gold by tripling in price when gold only doubled, and in some instances silver quadrupled in price while gold only doubled. One of the biggest factors for these occurrences is silver's numerous industrial applications which far outnumber gold's industrial uses. Since 1990, silver production of up has fallen well short of industrial demand. In fact, in 2001 silver production fell 117.5 million ounces short of industrial demand, and the demand for silver needed to produce currency raise the shortage to 142.5 million ounces. It is believed that more gold is currently stored in vaults than the total amount of the world's above ground silver supply. This is most likely the reason why in 1998 Warren Buffett purchased 129.7 million ounces of silver.
Purchasing silver coins from reputable dealers is very important for anyone who is just starting in this kind of venture. Those people who have been purchasing for a while and know more about coin value may be able to take risks and purchase from other sources, but the novice shouldn't to this. Not having enough knowledge about weight and purity ratings or the actual worth of the coin can give a beginner some serious difficulty. This is especially imperative for those buyers who are looking for online sources to remember.
If you want to be a coin collector, the first thing you need to equip yourself is to be able to ascertain the value of your coins. You can of course hire the services of an expert, but it would be more convenient and practical on your part if you at least possess the basic means to make an educated inference on the worth of the coins every time you come across one of them. You can speculate on the value of the coin yourself by following some simple steps.
U.S. coins minted before 1964 contain 90% silver content, and because they were circulated as a legal tender they're no longer in mint condition and are referred to as junk coins. Although they may be worthless to collectors, investors see only profit. A Roosevelt dime that was originally worth 10 would today have a melt value of $2.20 because it contains approximately 0.07234 ounces of silver. A collector will pay $18.00 or $19.00 for a Morgan silver dollar, but they contain 0.77343 ounces of silver. If melted down, they would be worth $24.00 to $25.00 to an investor at today's prices. Typical dealers sell $1000 bags face-value of junk silver coins which will cost the investor $12 to $13,000 at today's prices. But at online auction sites and investor can find dealers selling smaller quantities, and some dealers even offer free shipping. Putting in a bid just above spot value on several lots will often land an investor a few winning bids. Some strategists predict that silver could climb as high as $150 an ounce, and for an investor buying silver coins at today's spot-prices this could mean as much as a 328% return on their investment.
In past precious metal bull markets, silver has outperformed gold by tripling in price when gold only doubled, and in some instances silver quadrupled in price while gold only doubled. One of the biggest factors for these occurrences is silver's numerous industrial applications which far outnumber gold's industrial uses. Since 1990, silver production of up has fallen well short of industrial demand. In fact, in 2001 silver production fell 117.5 million ounces short of industrial demand, and the demand for silver needed to produce currency raise the shortage to 142.5 million ounces. It is believed that more gold is currently stored in vaults than the total amount of the world's above ground silver supply. This is most likely the reason why in 1998 Warren Buffett purchased 129.7 million ounces of silver.
Purchasing silver coins from reputable dealers is very important for anyone who is just starting in this kind of venture. Those people who have been purchasing for a while and know more about coin value may be able to take risks and purchase from other sources, but the novice shouldn't to this. Not having enough knowledge about weight and purity ratings or the actual worth of the coin can give a beginner some serious difficulty. This is especially imperative for those buyers who are looking for online sources to remember.
If you want to be a coin collector, the first thing you need to equip yourself is to be able to ascertain the value of your coins. You can of course hire the services of an expert, but it would be more convenient and practical on your part if you at least possess the basic means to make an educated inference on the worth of the coins every time you come across one of them. You can speculate on the value of the coin yourself by following some simple steps.
U.S. coins minted before 1964 contain 90% silver content, and because they were circulated as a legal tender they're no longer in mint condition and are referred to as junk coins. Although they may be worthless to collectors, investors see only profit. A Roosevelt dime that was originally worth 10 would today have a melt value of $2.20 because it contains approximately 0.07234 ounces of silver. A collector will pay $18.00 or $19.00 for a Morgan silver dollar, but they contain 0.77343 ounces of silver. If melted down, they would be worth $24.00 to $25.00 to an investor at today's prices. Typical dealers sell $1000 bags face-value of junk silver coins which will cost the investor $12 to $13,000 at today's prices. But at online auction sites and investor can find dealers selling smaller quantities, and some dealers even offer free shipping. Putting in a bid just above spot value on several lots will often land an investor a few winning bids. Some strategists predict that silver could climb as high as $150 an ounce, and for an investor buying silver coins at today's spot-prices this could mean as much as a 328% return on their investment.
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Learn more about Silver Coins. Stop by Michael Shelley's site where you can find out all about Silver Investment and what it can do for you.
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