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Buying Silver Circulated Coins

By Edited Jun 7, 2015 0 0

Many clever investors are now buying silver circulated coins. This has become a popular way to invest in this precious metal.

As huge profits have been made with the recent incredulous rise in metal prices across the board.

There are a whole range of different ways to invest in silver but coins have the advantage of being able to track the value of your investment quickly and efficiently. Daily tickers follow the spot price of silver and the Internet has made it pretty easy to sit down and find out what your silver coins are worth at any given moment. It has also made it a breeze to acquire circulated examples either individually or in bulk bags.

Circulated silver coins are usually bought and sold in hundred dollar bags and thousand dollar bags, by those who are looking for a 'liquid investment' that they can track in detail. 

Silver in this form is easily traded and short-term speculators will jump in and out faster than a kid at the beach. Some prefer the long-term approach and will continue to consistently build their holdings towards retirement or some other monetary goal. 

There is also the numismatic aspect to circulated silver coins. A bag of a thousand dollars face can hold certain years, or varieties containing known errors from the mint. These coins can bring far more than the silver value. Cherry pickers often find these examples and multiply their profits. Examples of circulated error coins can be sold on eBay or other auction sites or sold to local coin dealers an example of a error coin would be the 1887 O Morgan Dollar Error Coin.

When Buying Silver Circulated Coins, Size Matters!

Silver circulated coins are listed on all the sites with commodity prices. This price will vary with the spot price but... when considering the value of circulated silver coins, it is important to take into account how much of the coin has been worn away and the overall condition of the coin. This is because, the coins that are have been worn, means that silver has rubbed away and hence this results in the metal weight decreasing along with its value. 

Silver bags that are sold for face value, are usually at least a (VF), or very fine grade. This means that most of the design will remain showing and should be readable. Any lessor condition will bring the value down from the listed price for bags of circulated silver coins. 

Educating yourself on the types of coins you'll be looking at should always be a priority. Make sure you know what's a VF example and if the coins are worn you shouldn't be paying full list prices.

In the end, when your thinking of buying circulated silver coins please remember that all investments carry risk. Also many counterfeits are known to exist that are being made from base metals. Make sure you know what your buying. 

For extra guidance on purchasing and selling coins be sure to read books such as A Guide Book to United States Coins' and look for further advice on Online silver coin forums also.

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