What is the best silver to buy for investment? If you are reading this post today, then you must have an idea of the necessity of the inclusion of precious metals in one’s investment portfolio. The hard-hitting inflation rates have necessitated investors who had previously not thought about owning precious metals to do so, for the purposes of diversification. This post will help you figure out the best silver you can purchase, to minimize the risk of losing your wealth.
Silver is gradually becoming an asset to watch with some investors speculating that its price could more than double in the next two years or so. It is expected that we could see the price of this asset rise to $50 or even more, which could be quite an impressive gain for those who have some of their money tied to this precious metal. Not all types of silver, though, can be held with the hopes of such gains.
Let’s take a look at the best types of silver worth considering if you’re out to make some money instead of losing it by holding nothing but paper assets.
1. Silver American Eagle
This silver coin is popular for being the only coin whose purity and fineness are guaranteed by the U.S government. That alone makes it a coin worth holding since the quality will never be an issue whether you’re buying it or selling it. In the precious metal industry, the one thing you cannot go around when it comes to the ownership of physical assets is purity. The Silver Eagle ticks this box, and is a readily accepted and instantly recognizable coin on a global scope.
New, uncirculated Silver Eagles will typically cost anything between $1.80 and $2.50 above the spot price of silver, while the used Silver American Eagles go for about $1 above the spot price of silver.
Silver American Eagles are limited in supply, which makes their value appreciate with age. If you want to purchase the 1986 Silver Eagles, for instance, you have to be ready to pay $7 or so above the spot price of silver.
2. Canadian Maple Leaf
The Canadian Maple Leaf silver coin is perhaps the second most popular silver coin of its kind, and also one of the most popular precious metal coins in the world. The company behind its production, the Royal Canadian Mint, has been producing it since 1988 and has been sure to maintain the highest purity standards as far as silver content is concerned. A single Canadian Maple Leaf is 99.99% fine, and a 1 oz size has a legal tender value of CAD $5, with analysts holding to the conviction that the true market value is higher.
The design of this coin features radial lines that have their origin at the center of the coin, and that are meticulously machines within the microns, to facilitate the consistent die production as well as coin striking. The width and pitch of the radial lines produce a unique light-diffraction pattern which makes the Canadian Maple Leaf a spectacle to behold, and probably the best in the silver industry.
The newer silver coins are presented in a MintShield, which is a transparent proprietary surface protectant that does a great job at preventing the formation of white spots on the surface of the silver bullion.
3. Austrian Silver Philharmonics
The Austrian Silver Philharmonics are popular perhaps mainly due to their beauty. Interestingly, it is the only silver coin of its caliber that is denominated in Euros, with its legal tender value being €1.5. Here is what you can expect on both sides of the coin:
- Obverse – instruments from the Austrian Philharmonic Orchestra
- Reverse- Golden Hall of Vienna
The presentation of the instruments and the Golden Hall of Vienna on both silvers of the Austrian Silver Philharmonics is done so perfectly, that a significant number of Austrian Economics fans have an undying love for these precious metal coins.
These coins mostly trade for $2 to $3 above the spot price of silver in the market, but the 2008 coins are already fetching a premium of about $2.30 above the spot price for large orders of about 500 coins. If you want to purchase a single 2008 coin, which you may only access from APMEX by the way, you will pay about $3.50 above the spot price of silver. You can expect some price breaks as you purchase these coins in larger quantities of say 20, 100, or 500 coins. The 2009 Philharmonics start out at roughly $2.30 above the spot price, though you can have them for about $1.79 above the spot price if you make a large order.
An interesting read for you >>What Does the Bible Say About Retirement? | Gold & Silver IRAs?
4. Morgan Silver Dollars
Morgan Silver Dollars are legal-tender coins that are also issued by the government, and that are not a new asset to avid silver investors. They were initially minted from 1878 to 1974, and then in 1921, and have since then not been minted. These 0.86-ounce coins comprise 90% silver and 10% copper, hence their silver weight is about 0.773 troy ounces. Generally, when it comes to silver, investors are only usually willing to purchase coins that have a 0.999 silver purity, but this coin is still highly recognizable and stands out as a rare exception to this rule.
5. 1kg Silver Bar
1kg silver bars are popular amongst small and large silver investors who are out to strike a suitable balance of value for money and flexibility with their investments. Most of the first-time and smaller investors purchase the kilobars in singles and doubles, while the larger investors often purchase them amongst other types of silver. The 1kg bars manufactured by Metalor based in Switzerland, PAMP based in Switzerland, and Umicore based in Belgium are 99.99% pure.
Large investors who believe that the future for this precious metal is promising are purchasing large quantities of 1kg silver bars worth $10,000 – $50,000+. Those who also own gold e.g through gold IRAs are using these bars to hedge and diversify their portfolios. They have also become increasingly popular amongst long-term investors who are willing to hold on to assets whose value grows over a long-term investment horizon.
Frequently Asked Questions on “Best Silver to buy for investment?”
1. How can I invest in silver for retirement?
There are many ways in which you can invest in silver for your retirement years, but a more structured approach is to use a silver IRA. Silver IRAs are unique Self-directed IRAs (SDIRA) that allow investors to hold silver as their main asset. With an SDIRA, you can typically hold any type of asset in addition to the main asset allowed/supported by the custodian, but you need to confirm with the custodian which assets you can invest alongside silver.
2. How much silver should I buy for my portfolio?
The question of how much silver one should purchase is one that is open to debate. There is actually no single answer that applies to every investor. This is because every investor has unique goals and different risk tolerance. The one thing I can however say is that it is not a good idea to put all your eggs in one basket. Anything between 5% and 20% would be a suitable allocation to precious metals, but that is again, all up to you to establish your investments goals and needs and to decide how much of your money will be held in silver.
3. Is investing in silver a good idea?
Again, this depends on what you are out to achieve by investing in silver. If you intend to purchase silver coins or bars for the purchase of long-term growth and portfolio diversification, then you stand a chance to do that with silver. Analysts speculate that the price of silver will gradually rise in the near future, as well as in the long-term horizon, hence those who will have allocated their funds to this asset can expect reasonable gains. As is the case with any type of asset, nothing is guaranteed, and you have to be willing to take your chance, after having done some background research of course.
4. Can I buy different types of silver through my silver IRA or am I limited to only one type of silver?
You are allowed to purchase different types of silver for your precious metal portfolio. The only thing you have to ensure is that the silver you purchase meets the IRS standards for IRA silver. You should also not exceed your annual contribution limits. You can make it a point to liaise with your custodian and precious metal dealer as to which silver assets are allowed for use in a silver IRA, but you should also do your research to ensure that you are well-versed with investing in this industry.
That will be all for today’s post on what the best silver to buy for investment is. I hope that you found the article informative. If you have any questions with regards to today’s post, you can drop it in the comments section and I will get back to you ASAP. You can also share this post with anyone who you know would benefit from this type of content.
I wish you well,
Eric, Investor and Team Member at Gold Retired!