Purchasing silver coins may seem like a simple process. However, you could find yourself making unintentional missteps or failing to consider some important things if you’re not fully familiar with this type of coin purchase and the possibilities associated with investments of this nature. The precious metals experts from First National Bullion, the silver and gold dealers Scottsdale collectors rely on for outstanding quality and service, invite you to take a moment to consider five things you should know before buying silver coins.

1. The Difference between Silver Rounds & Silver Coins

You’ll want to know the difference between these common terms for silver before you make any buying decisions. Silver coins are issued by sovereign governments as legal tender. Silver rounds, on the other hand, are privately minted. Government-issued silver bullion coins typically provide added security and peace of mind because they’re certified. Also, the value of rounds can vary based on factors such as metal content, condition, and any sentimental value that may be associated with them.

2. The Purity of the Silver

Reputable coin dealers and precious metals firms should be able to clearly document the purity of the coins they carry. If you buy your coins from a private seller, you may not get this type of documentation, although you’re certainly entitled to ask for it. With government-minted coins, the purity of the silver is generally well documented. Before you make a purchase, make sure you’ll receive proof of the coin’s purity.

Bonus tip: Brush up on purity standards for silver. For instance, silver considered “good delivery” quality is .999 pure.

3. The Retirement Savings Possibilities

One of the often-overlooked perks of buying silver coins is the ability to boost your retirement savings with your investment. One way to do this is with what’s called a silver individual retirement account (IRA), which is a special type of account that allows you to add silver and other precious metals to your retirement investments. What’s more, a silver IRA offers all the advantages associated with a traditional IRA.

4. The Advantages of Owning Silver Coins

Feel more confident about your purchasing decision by knowing why investing in silver coins can be a smart move. For one thing, such coins are easy to buy and sell, since their value at any given moment is clear. Plus, they tend to hold their value or even go up if you have older investment-quality coins prized by collectors. Silver coins are also appealing for the following reasons:

• They typically retain their purchasing power
• They can be combined with other assets to diversify your portfolio
• Purchases can be made privately
• There’s no default risk, since you don’t have to worry about another party holding up his or her end of the bargain to get the full value of your investment

5. Your Coin Source Makes a Difference

Silver coins can be purchased from individuals directly through online auction platforms and similar sources. Still, it’s generally best to make your purchases through a reputable precious metals company or similar seller. It’s typically advised to buy silver coins this way because of the added benefits reputable sellers offer, some of which include:

• A clear buyback policy should you decide to sell your coins back in the future
• Valid and clear documentation
• Guarantees of quality and other buyer protections

Whether you’re a veteran coin collector or you’re simply looking to sell your old silver coins, reach out to the experts at First National Bullion. In addition to buying and selling coins, we also offer a huge selection of gold, platinum, and silver bars. Scottsdale collectors who are looking for the finest-quality coins, bars, and bullion should give us a call at 480-546-8928 to speak with one of our precious metals experts. 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.