When it comes to investments, coin collecting can be a fun and lucrative choice with a little research and knowledge. Recently, American Eagle silver dollars have become a popular choice for investors and collectors alike. Wondering if the coin might be worth a look? Here’s some facts to keep in mind and help you decide.
American Eagle silver bullion coin comes under Title II of the Liberty Coin Act of 1985, which gives it a face value of $1. These coins are made from one Troy ounce of 99.9% pure silver and they’re the only coins to have their weight, purity and content guaranteed by the US Government.
These coins have very strict regulations around their printing, so if you’re buying your American Silver Eagles from Golden Eagle Coins, they’ll be easy to identify. They have been minted every year since 1986, weigh 31.10g (1 Troy ounce), have a diameter of 1.60 inches and a thickness of 0.12 inches.
Their front design is Lady Liberty facing the sun, and the rear face features a silver eagle, behind a shield, holding arrows and an olive branch in its talons. There are 13 stars above the eagle – one for each of the original colonies.
This $1 value is symbolic
Even though these coins are legal tender, they’re not used as such. They are traded according to silver’s market value and a small premium, which is quite a bit more than $1.
There are 3 versions of the Silver Eagles
There’s a proof version, an uncirculated collector version and the bullion version. The bullion coins are distributed to the public through an Authorized Purchasers network which features brokerage firms, wholesalers, some banks and precious metal and coin dealers. The US Mint sells proof and collector coins directly to the public.
Silver Eagles are the only silver coins allowed in an IRA
As they’re considered investment-grade bullion – and the United States’ only officially investment-grade silver coins – they can be used in Individual Retirement Accounts. All major investment markets around the world accept them and the US’ Internal Revenue Service (IRS) see the Silver Eagles as exempt from IRS 1099 reporting.
They’re easy to trade
A good investment is always liquid and as Silver Eagles are readily available from – and sellable to – any Authorized Purchaser, traders and investors will have no problems with moving them.
Investors do need to factor in storage costs
Other investments, like stocks, don’t need physical storage space, but coin collections and investments do. If a buyer has quite a lot of coins, then they’ll need a secure storage space or facility. This could be a safe located within the buyer’s property or a safety deposit box in a bank. Dealers who offer to store the coins on their own premises should be avoided.
Silver Eagles are more expensive than standard bullion rounds
For this reason, investors and buyers should take more care and do more research when deciding which coins suit them and their investment plans best. It’s also good to remember that Silver Eagles sell in rolls of 20 or in 500-roll boxes, a.k.a. Monster Boxes.
Bullion coins aren’t the same as collectibles
They’re different in a few ways. The resale value of collectibles rests largely on the numismatic value of the coin at that particular time, whereas the value of a bullion coin rests on the silver content and the market price of silver. These values are further dependent on what dealers and buyers are willing to pay for them, so they price can fluctuate a lot. Bullion’s resale value is based on the physical price of silver and its small premium, so look to this when working out a value.
Whether you’re already a coin collector, looking to start collecting or want to make a long-term investment in coins, the American Eagle silver dollar may be the right buy for you. Check current prices online, look into the three different versions of the coin and see if you want to invest in this popular silver dollar.