With economic uncertainty looming in 2023, many investors are looking to diversify their portfolios with alternative assets like precious metals. Silver coins in particular are gaining popularity due to silver’s potential to hedge against inflation and market volatility. However, not all silver coins make sound investments. When selecting the best silver coins to invest in 2023, investors should consider factors like mintage, condition, liquidity, and premiums over the melt value of the silver content. This article will provide tips on choosing silver coin options that balance scarcity, demand, and upside potential.
Focus on Low Mintage Coins for collectibility and scarcity
One of the key factors that drives up the value of silver coins is mintage – the number of coins produced in a given year. Coins with lower mintages tend to be more scarce, increasing their collectibility and investment value over time. For collectors and investors, key date silver coins with low mintages are some of the best options. These include coins like the 1921 Morgan silver dollar, with a mintage under 1 million, and the 1996 American Silver Eagle, with a mintage under 4 million. Low mintage commemoratives and limited edition special issues from major mints also make smart buys. The scarcity of these low mintage silver coins ensures steady demand from collectors and increased rarity over time.
Focus on top condition coins to maximize value
Condition is critical when investing in silver coins. Top grade coins certified MS-70 or PR-70 can carry heavy premiums over damaged or worn circulated coins. This premium expands over time. While MS-60 or AU silver coins can be suitable for bullion investing, collectors and investors seeking maximum upside will want to select coins graded MS-65 and higher. Details like eye appeal also impact the value of certified coins. Well-struck coins with vibrant luster command the highest premiums. With moderns like American Silver Eagles, only about 1% reach the perfect MS-70 grade, making these top condition coins highly desirable to own.
Opt for recognizable major mint coins
Sticking with coins from recognized major mints like the U.S. Mint, Royal Canadian Mint, and Perth Mint ensures liquidity. Mainstream coins are easily bought and sold versus rare coins from smaller private mints. The American Silver Eagle is one of the most widely traded silver coins, with over 600 million struck since 1986. Other popular options include Canadian Silver Maple Leafs, Mexican Libertads, Australian Kookaburras, and Chinese Silver Pandas. These major mint bullion coins trade in a two-way market, allowing investors to easily sell their holdings. This gives these mainstream coins an advantage over smaller production coins when investing in silver.
Research reasonable premiums over melt value
Before purchasing silver coins, research what premium over the melt value of silver content is reasonable for the coin. Premiums fluctuate with market conditions. Avoid coins with premiums of 70-80% or more over the silver value, as the upside potential is limited. More ideal silver coin options have premiums in the 20-40% range over the intrinsic silver value. Limited edition and rare coins justifying higher premiums should be examined carefully. Consider the mintage and how other similar coins have performed over time. Being an informed buyer is key to determining silver coin value and premiums.
Finding the best silver coins to invest in requires careful selection. Focusing on low mintage coins in top grade, opting for major mint products with strong liquidity, and targeting reasonable premiums will lead investors to quality silver coins with strong upside potential in 2023.