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Does anyone buy gold or silver coins or bullion as investment?

silver coin

Yes, people do buy gold coins and silver coins as an investment. I can say this with certainty as I am one of them.

One of my senior colleagues suggests me that I should buy gold.

Since the end of 2015, Silver bullion has gone up 29%. Gold and silver have the real advantage. They never go to zero. It has the advantage of actually belonging to you.

Gold has averaged about 11% a year since 2001, bet your broker won’t tell you that. Today there’re many investors, paying more attention in this market.

What’re the advantages of silver coins over silver bullion?

They give the assurance of silver content. There are no tax advantages to buying either one.

Today, investors prefer to buy these coinages because of their sovereign affiliation. For e.g. American eagle coins are minted by the US treasury. Sovereign affiliations matter for two reasons.

  1. A coin minted by a sovereign nation should have a legal tender value of the coin
  2. At times, sovereign coins can be put into retirement accounts without tax consequences

Hence it costs more.

How rare is silver?

Silver is an industrial metal. They have begun to replace lithium batteries. Investors still believe that this metal is real money.

Why they are taxed with VAT in most EU countries?

They have been used as money. Today people buy it mostly as an investment. It doesn’t make sense to tax money or an investment with a consumption tax.

These are not money from a legal point of view. They have not been used at all as ordinary coins since 1960’s. Even though there are silver and gold coins that are still legally tender.

You are likely to find them in someone’s collection than in a wallet.

All 1, 2 and 5 kr coinages that are legally tender today will be phased out on July 1st 2017. It becomes collectibles or scrap metal rather than money in every situation.

Which country produces the most confusing coinages?

In US, they are very confusing. Their value is not clearly indicated. One should inspect them to find its value.

The value is written in English rather than presented as a number. In common use, they are labelled as 1 Cent, 5 Cents, 1 Dime, and Quarter Dollar.

So, if one doesn’t know what dime means, they’ve no way of determining its value relative to the other denominations.

Quarter Dollar may also be confusing. Some people might not be aware that a Quarter Dollar is same as twenty five cents.

Danish coins are more confusing. The 1, 2, and 5 kroner coins all share the same design. So the value is not clear from a quick glance.

Can you melt silver coins?

Yes, you can melt them. However it is not recommended for a variety of reasons. Silver is easier to sell or exchange.

If melted down into an unrecognizable bar, it would be difficult to sell. Also potential buyers would have to test it to determine fineness.

Second, destroying coins are illegal in your country. Melting is illegal in Canada.

What’re the top five silver coins to own?

The most famous silver coins are:

  1. Silver Britannia
  2. Vienna Philharmonic
  3. Maple-Leaf
  4. Kookaburra
  5. Mexican Libertad
  6. American Eagle

Why not buy silver or gold coins without a dealer?

You can certainly purchase them from the owner. However, you should have complete knowledge in numismatics. So you do not end up purchasing fake coins.

You can take the help of various catalogs available online. It gives you precise knowledge about these coins.

What would happen if the whole world uses only minted gold and silver coins as currency?

Two major things would happen:

1) Inflation and currency manipulation by central banks would get harder.

2) Non-currency uses of gold would become more costly in real terms.

About Author:

Aashirwad jewellers is a most trusted best silver coin supplier in Gurgaon. You can easily purchase online jewellery, corporate gifts, and gemstones. It is available at a very reasonable price.

We’ve our dedicated Jewellery experts. We have become trustworthy. We are the largest online jewellery seller in India.




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