Commemorative silver coins are produced by a government mint to commemorate a specific event or person in history. In addition, they are minted to be coins, so hypothetically they can be used as currency. Of course, they never are, but are simply purchased as an investment. Although commemorative silver coins can be a great investment, there are a few things you need to keep in mind when buying them. The following is only a quick look at some of the most important factors involved these coins as an investment.
What makes them different from silver bullion
Many investors who buy silver will simply buy bullion. This can come in many forms, but the most common is that of coins. However, this type of bullion is purchased simply for its silver content and is bought as a type of insurance against the devaluation of currency. In this way, it is the same as gold, but with commemorative coins, there is a premium built into the coins because of their collectible value. Fundamentally, they are still a hedge against inflation and a store of value. These coins will rise in value as the price of silver does, but they can also rise in value as demand among collectors goes up.
Make sure the coins are 99.9 percent silver
Commemorative silver coins can vary in their silver content. When you purchase these coins, you need to make sure that the silver content is as high as any top grade silver bullion coins would be. The idea is to buy the coins just as you would bullion, but also get the premium investment element due to its collectible value. If you start with a coin that is not equivalent to high grade silver bullion, you will not be getting the full potential of this type of investment. These collectible coins should be 99.9 percent silver. Most mints around the world are willing to do this. The London Mint Office is an example of one with a good reputation. Keep your eye on coins issued by the Chinese and American mints as both have reputations for minting coins with a lower grade of silver content.
What factors make these coins valuable
Like anything that is collectible, it is a combination of supply and demand. On the supply side, obviously the more scarce a coin is, the more likely it will have a high value. The tricky part is the demand side. What will collectors value the most in the future? For insight into this, you need only look at the past. What collectors value in coins in the past, they will likely value in the future. Among these factors are the details that are designed into the coin. Complex designs on the front and the back of the coins are often highly prized by collectors. In addition, coins that commemorate little known people or events that were produced in small runs can become extremely collectible. Although unpopular at the time of their minting, this type of coin can grow in demand over time.
Like any collectible item, the more research you do, the better your chances of success will be. Always start your analysis with coins that are 99.9 percent silver, and choose your coins carefully.