Silver Bullion Coins
A silver bullion coin is a coin made of precious metal. The coin is minted from silver and the price depends on the value of the ore and its weight. This means that the current value of the coin is linked to the current price of silver.
Sometimes these coins have a declared value and instead of the denomination, the percentage of silver in the bullion is given, which determines its value.
Bullion coins are minted for investment purposes and have no limited mintage. The weight of bullion coins is given in troy ounces. The exception is the Chinese panda, which has been given grams since 2016.
The coins have government guarantees as to the legality, purity of the bullion and can sometimes be considered legal tender in the issuer’s country. Although silver coins are produced by many mints around the world, not all of their products are easy to resell at a fair price.
Which bullion coins to invest in?
The best choice and most famous, recognizable bullion coins are:
- Krugerrand – minted by Rand Refinery;
- American Eagle – minted by the United States Mint;
- Canadian Maple Leaf – minted by the Royal Canadian Mint.
- Vienna Philharmonic – minted by the Austrian Mint;
- Britannia – minted by The Royal Mint;
- China Panda – minted by China Mint
- Australian Kangaroo – minted by the Royal Australian Mint
Coins may have surface imperfections, such as tiny scratches or marks (milk spots). Milk spots are not a concern for silver as a bullion investment. Maybe it is not good for presentation purposes but as a physical asset, it won’t affect sale value. This is usually something avoided by collectors.
Regardless of which of these coins the investor chooses, he can count on high investment liquidity, as well as ease in verifying the authenticity of the product.