I advise sticking to .999 fine bullion coins, preferably government minted one ounce coins like the American silver eagles and the Canadian maple leafs . Numismatics are rare collectible coins with values tied not only to their metal content but their age, condition, and scarcity. When you buy bullion coins, you are investing only in the physical metal. The fact that it is government minted to exacting purity and weight and is spendable as legal tender is just the icing on the cake. You are buying the silver, not the rarity or condition of the coin. Silver bullion bars and coins trade close to the spot price of the metal content, which makes it simpler to invest in.

Numismatic coins in ungraded condition have a wide price range depending on scarcity and grade. It can take years of experience to be able to accurately grade coins, and you should not pay book value for a coin that is graded only by the dealer’s opinion, as it is in his best interest for the coin to grade as high as possible. If you are buying numismatics, I would suggest only buying graded coins in slabs from PCGS or NGC, and paying under book value if you can.

However, adding a few graded numismatic coins from PCGS or NGC can have some beneficial upside, as some years may become more rare and valuable in the future. They are also more fun and hobby-like than bullion coins, and help keep a stacker’s interest in silver. Also, the demand for numismatic coins is low right now, as we are in economic recession and luxuries like expensive collectible coins are not in the budgets of most families these days. You can use this to your advantage, however, as the prices for some numismatic coins like early Morgan silver dollars are around the same as they were a few years ago when silver was only $8 per ounce. Picking up a few of these coins may prove profitable when the collectors market premiums starts catching up to the rising price of the metal.

However there are many costly mistakes to be made by novice collectors, so I suggest reading up and learning as much as you can before diving in to this hobby. Fortunately, in the mean time you can feel comfortable stacking common bullion silver coins and knowing that you are making a good investment.

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