As with all other products on the market, investing in gold is both an advantage and a disadvantage, and what appeals to one investor may not be a good choice for another. Are silver balls a good investment?
As an investor in precious metals, it’s important to understand the difference between bullion coins and rounds. Not all precious metal investment products are created equally. Although the spot price of bars is constantly changing, the price of a gold bar for 1 ounce may differ from the price of a gold coin or round that weighs exactly the same amount.
Coins and bullion rounds are a great way to invest in gold, because they can be easily liquidated (to varying degrees, as we will see), they are very divisible and have an intrinsic value that cannot be reduced. Understanding the difference between gold coins and rounds can help you make a more informed decision when investing in precious metals.
Silver coins are usually legal
Governments determine what legal tender is, and only governments can print the denomination on their coins. Any citizen who tests this fact usually ends up in jail.
Coins usually have clear legal values and bear the stamped nominal value of the legal tender on the coin itself.
You should not be wrong because most silver bullion coins have low legal denominations that have little or almost nothing to do with their actual market price for silver content.
Take for example 5 oz America The Beautiful. It contains the legal face value of the means of payment of a quarter dollar or 25 cents.
However, nobody in their right mind sells 5 ounces of high collector’s silver issued by the American Mint for the smaller legal cupronickel quarter (legally also 25 cents). Yes, the ones you find in your pocket change in relation to 5 ounces of broth silver have the same value … in this case legally.
You can learn more about why governments almost always give bullion coins low face values, due to Gresham’s law.
Silver rounds for more ounces total
Private silver rounds are by industry defined by private silver mints.
Popular silver mints usually have much lower prices than competing government silver coins (usually more expensive per ounce).
For example, Sunshine Metals Inc. they will sell their silver bullets in bulk for probably less than ½ of the premium that most government mints sell their government-guaranteed silver coins.
If you want to get the most weight for your fiat currency, silver rounds will be a good option.
Silver or gold?
Finally, the question arises whether to buy silver or gold. Probably both, but if you’re investing $ 10,000 or less, choose only one ounce silver or 90% silver coins from before 1965. Silver coins from before 1965. They are commonly called junk silver coins because they have no collector’s value and exchange the value of their silver content. If you invest larger amounts, say $ 30,000 up, you may want silver and gold.
If the conditions worsened so much that silver and gold again become the preferred forms of money, you would need many small silver coins. If you buy canned food, you need silver coins, because gold coins, even those 1/10 oz. Would be of great value. If you only have silver coins and want to buy something of high value, you simply trade more silver coins.