When it comes to investing, silver coins have never gotten quite the attention they deserve. Other precious metals seem flashier or more extravagant. And, for many people, it’s easier to imagine building wealth with a lucky investment in stocks than from buying silver. However, smart investors know that these coins have many advantages. Here are the top ten reasons for adding silver coins to your portfolio.
1. A Tangible Investment
Physical precious metals offer a form of investment you can hold in your hand. Silver has intrinsic value so that it retains its worth much better than other forms of investment.
Consider a stock certificate. Certainly, stocks can have value. But if the company you bought stock in folds, the certificate is worthless, and your investment is gone.
Silver, on the other hand, retains its intrinsic value in any economic climate. Even in the direst situations, silver coins will always have the melt value of the precious metal they contain.
2. A Medium of Exchange
One benefit of coins is that you can use them in trade to buy what you need. They are legal tender money. If you need to, the coins are there to use. You might not want to let go of the coins you bought as an investment. However, suppose a national or global crisis caused the national paper currency to become worthless. In that case, you would already have a store of coins you could use to survive the catastrophe.
3. Can’t Be Deleted
Physical coins can’t be deleted. What does that mean? It’s simple. Precious metals like silver have a physical presence in the world that can’t be erased by an electronic error. While some types of investment only exist in electronic records, you never have to worry that a natural disaster, hackers, or system failures will cause you to lose your silver coins.
4. Numismatic Value
Silver coins may have value beyond the value of the precious metal they contain. Their numismatic value depends on their designs, inscriptions, year of issue, mintmarks, condition, supply and demand, rarity, and any mint errors. Aside from the added monetary value, these numismatic silver pieces provide a fascinating pastime that you can enjoy year after year.
5. Tax Advantages
There may be a tax advantage to investing in silver coins, but it’s always best to speak with a tax professional to find out exactly how it works. Many people erroneously believe that there are no taxes on physical precious metals. However, the truth is that the IRS considers silver and other precious metals to be capital assets and requires you to report them and possibly pay capital gains taxes when you sell them.
So, what’s the advantage? The capital gains tax on physical silver is based on your marginal tax rate, and it goes up to a maximum percentage. If you are in a higher tax bracket than that percentage, then selling your silver costs you less in long-term capital gains taxes than the sale of other types of investments.
6. Liquid Asset
Coins are liquid assets because you can use them for cash, of course. However, even collectible coins that have worth beyond their face value are relatively easy to turn into cash if you choose to sell them.
Consider what would happen if you invested everything in real estate. If you needed cash, it would take considerable time, effort, and possibly additional investments in improvements before you could access the value of that property.
Not so with silver coins. They are ready to sell, and there are always buyers waiting to purchase them. You can either sell them privately to an individual or sell them to a coin dealer. Either way, you can trade your coins for cash without a long delay.
7. Discreet Investment
Privacy is a hot topic in the digital age. People don’t want everyone to know their business, but electronic records are all too easy to access. Fortunately for those who prefer to invest discreetly, they can privately hold silver and other physical precious metals. Except for the IRS, no one ever needs to know that you have substantial holdings of silver.
8. Beautiful Possession
Besides the financial aspects, the joy of possessing a beautiful silver coin has a value all its own. Silver coins often have stunning designs that were created by master artists throughout history. And, if the coin is in excellent condition, the luster is extremely pleasing to the eye.
If you choose to display your coins or show them to trusted friends, you can share the beauty with them. Or you can view them privately, always marveling at the craftsmanship that went into creating the designs.
9. Exciting Discoveries
Are you a person who always gets excited when you discover something new to you? If so, buying coins might be your next happy adventure. With so many distinct varieties of coins available to choose from, you need never get bored with them. No matter how long you keep purchasing silver coins, there will always be new ones that you have never seen before.
Every silver coin has a place in history. Think of a cash deposit in your bank account. It’s just a number. Two deposits of equal value are identical. Precious metal coins are different. Their date marks, stories, and often their designs reflect the times in which they were minted. Looking through coins of different years offers a peek inside unique points in history. What’s more, learning the history of your coins provides another interesting hobby.
What are your goals for purchasing silver coins? For you, the enticement might be purely financial. For someone else, it might be a more aesthetic choice. The best way to choose the right silver coin investment for you is to talk with an expert precious metals advisor. After discussing your hopes and plans, they can suggest the ideal coins to meet your needs and wants. From there, you can build your portfolio or collection in the way that pleases you most.