Which silver coin is best for investment?

Question

I would like to get out of US Dollars and invest my cash into some "real money" like silver. However I do not know what is best for investment purposes.

1) Silver American Eagles .999

2) Morgan Dollar

3) Peace Dollar

Also, I hear that in times of an economic crisis, there is the possibility of bullion to be confiscated. With that in mind do you prefer the Morgan or Peace dollar?

Answer 1

Silver is a roller-coaster ride on steroids.  The price can soar and plummet - 10% in a day, 40% in less than a month (as in its drop from near $15 to around $9.50 per Troy ounce in May-June 2006).  Be aware of this and make sure that you understand that the silver price has frequently moved in parabolic waves, both up and down.  See the "Real Silver and Silver 1970-2008" chart in this article for the breathtaking recent history of this metal:

http://www.321gold.com/editorials/hamilt...

If you're still sure you want to plunge in, and understand the volatility you're taking on, there are pros and coins to all sorts of silver investments.  A few quick highlights of the options:

Physical silver options

* 90% US silver coins, dimes, quarters, and half dollars minted in 1964 and earlier.

* US Morgan and Peace silver dollars.

* Foreign bulk silver coins, such as Canadian 80% silver dimes, quarters, halves, and dollars from 1966 and earlier.

* Bullion coins from the US and foreign countries, such as US Silver Eagles, Canadian Maple Leafs, Mexican Onzas, and others.  These are generally .999 fine (and some older coins .925 fine) coins containing 1 Troy ounce of silver.

* Silver rounds and bars, containing 1 Troy ounce (or multiples or fractions thereof), usually of .999 fine silver.

"Paper" silver options

* Exchange Traded Funds, like that traded under ticker symbol SLV, which trade like stocks and give you a share of silver held on deposit.

* Certificates or electronic holdings in silver held on deposit with companies based outside the US, like Goldmoney.com or the Perth Mint.

* Shares in companies that explore for, build resources of, and/or mine silver.

To be blunt, if you're starting out, you might simply want to start with the most highly recognizable: American Silver Eagles, even though the premium over spot you'll pay is likely higher than many of the other physical silver options.  Over time, as you research this area, you may discover that some of the other options (such as circulated 90% US or 80% Canadian silver coins, or silver bars/rounds) occasionally offer more silver for your money, at the cost of somewhat more variability around demand and pricing.  Further on, you might wish to later diversify your holdings with one or more of the categories of 'paper' silver listed above, which may give you some protection against confiscation, however theoretical that possibility might be.  

Also, before buying any silver coins, educate yourself as to their silver content and values.  Learn the silver content and silver metal value of older US silver coins; one starting place is:

http://www.coinflation.com

When buying coins, try to pay below spot silver price (possible via some eBay auctions of US 90% and Canadian 80% silver coins, for instance), or if above spot, as little as possible above that price.  (Silver Eagles generally sell at a premium over spot.)  You might start with reputable Internet dealers like Monex or Kitco, or find a local dealer you trust, then branch out into other dealers or eBay, from sellers with high feedback.

Finally, with respect to the first answer here, when buying coins strictly for bullion purposes, rather than for coin collecting (numismatic) purposes, condition doesn't matter - much, at any rate.  If you're buying worn (circulated) silver coins, it's best to buy more recent and/or less worn coins, since wear can have a material impact on silver weight.  Well-worn 90% "junk" US silver coins - often found in the case of coins from the 1930s and 1940s – for instance, can weigh several percent less than they did in as-minted, uncirculated conditinon.

Answer 2

It depends on what you have to pay for them in relationship to bullion value.  Assuming that there is an equal markup, I would buy pre-1905 Morgan dollars or Peace dollars dated 1925-1935, that are in nice condition.

Answer 3

You should learn about the grading of coins.  Talk to a couple of reputable coin dealers in your area.  If you don't educate yourself first you will be taken advantage