Investors of silver often solely buy silver rounds and bars. This is undoubtedly the best way to get the most silver for your dollar. But one may ask “Is there another way to invest in silver?” or “How can I better hedge my position in the precious metals?” These are questions that a precious metal investor faces on a daily basis. One possibility of achieving both of these goals is to buy Morgan Silver Dollars and Peace Dollars instead of silver rounds and bars. The argument to support this idea is quite strong.
Morgan Silver Dollars and Peace Dollars were once used as currency in the U.S. and were minted from 1878-1921 and 1921-1935 respectively. These coins consist of 90% silver and 10% copper. Each coin contains 0.7734 ounces of silver, which is obviously very close to the amount of silver in an one ounce round. Now one would undoubtedly wonder, why they should pay more then their typical low premium over the spot price of silver. This answer lies in the numismatic value of each coin. Each Silver Dollar not only is worth the silver that it contains but also the tremendous collectable value that comes with a coin that is around 100 years old. Morgan and Peace Dollars have reputations for being some of the most popular and collected coins on the market today. Although there are many of these silver dollars that go for astronomical prices due to extreme rarity, there are plenty of dates that are much more affordable. A silver bullion investor or rare coin collector can buy a common date ungraded Morgan Silver Dollar in BU (Brilliant Uncirculated quality) for around $50 and a circulated one for the low $30 range (As of 12/16/15). An ungraded BU Peace Dollar goes for around the low $30 range and a circulated example around $25 (As of 12/16/15). Although a person who likes to buy silver may not want to pay such a high premium, he or she must consider the advantages of diversification and the hedging possibilities that come with silver dollars.
Although silver dollars do fluctuate with the price of silver, their value is not as harshly affected as typical bullion. Their numismatic value make these coins a multi-faceted investment that can potentially give protection against a huge fluctuation in the precious metals market. Besides their advantages and potentials, their is something to be said about the aesthetic appeal of these coins. Each silver dollar was designed by master engravers who put a piece of American pride and history into each coin. Between the investment, numismatic and aesthetic value, these silver dollars seem to be a great alternative to buy silver.
*These are solely the opinions of Bullion Shark, LLC and are not intended to be used as investment advice. Please consult an investment advisor before making any investment decisions. *