Silver has been used as a form of currency for thousands of years, dating all the way back to the ancient Greeks. It was even used in currency in the United States up until 1965, when the value of this precious metal surpassed the face values of the coins in which it was used. Silver was replaced with cheaper alloys in those coins.
Today, a silver coin dealer may recommend buying “junk” coins in the form of 90% U.S. silver coin bags. These bags are made up of those dimes, quarters, and half dollars that were minted prior to 1965 and contain 90% silver. Let’s say you have bought a bag that has a face value total of $1,000 worth of coins. This means there should be about 715 ounces of silver inside this bag. If the price of silver right now is $18.33, then the actual value of the silver inside that bag is worth much more then $1,000. Though they are worth a lot more right now, you can rest assured that the total value of the bag will never fall below that $1,000 face value.
You can also buy silver bullion coins from your silver coin dealer. These are coins that are pure weights of silver. Most of them contain one troy ounce of silver, but there are also smaller coins that are fractions of that weight. Some examples of silver bullion coins are the silver American Eagle, the silver Vienna Philharmonic, and the silver Canadian Maple Leaf.
What makes silver so valuable? Let’s start with the fact that about 95% of the silver that has ever been mined has been completely used up. This means that stockpiles have been depleted over the years. While there used to be a worldwide surplus, governments have had to release their stockpiles onto the market in order to keep prices from spiking incredibly high.
Silver is not just for currency or investment. It is used in jewelry, medicine, industry, and technology. The demand for silver has surpassed the annual production every year since 1990. If you take a look at how much technology and electronics have increased over the last twenty years, you can see a small example of why silver has become so valuable. The demand for silver is only growing, and the supply is dwindling.
If you think you would like to begin investing in silver coins, talk to your financial planner. He or she will help you find a reputable silver coin dealer who will help you get your coin collection started out right.