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Numismatic coins and silver investing

by Silver Coin Guy on January 25, 2015

Morgan Silver Dollar for Silver InvestingNumismatic coins are defined as coins with a higher value than their face value.  Arguably a junk silver dime composed of 90% silver, which is worth far more than $0.10 (worth $1.30 as I write today, 24 Jan 2105) is a numismatic coin, but this isn’t want we’re talking about.  For investment purposes however the term usually applies to those coin considered rare and collectable.

Right now a “Junk” Morgan Silver Dollar, based on the metals it is composed of, has a value of $14.17.  Millions of Morgan’s were minted and the vast majority of them are considered junk coins for which you’ll pay the “value” of the coin plus the broker’s commission, which right now means you’ll pay between $20 – $30 for a coin.  Then there are “numismatic” Morgan Silver Dollars which fetch prices up into the several $100’s.  Do not invest in these coins.

You should never invest in numismatic coins.  Let me say it again, you should never invest in nummismatic coins.

They are crappy investments and the average Joe, whihc means you and me, will lose money investing in numismatic coins.

You can of course collect these coins…I DO collect Morgan’s cause I think they are pretty cool. In this case the value has a whole different meaning. It’s like holding history in your hand.

Treat Precious Metals like an investment

It does make sense to invest in gold and silver coins however, playing close attention to the spot value when you do.

Invest in gold first, starting out with a small amount. I recommend 1/10 Oz Gold Eagles.  there relatively cheap, affordable and heck, you’ll own be owning gold.

Next pick up a few junk silver coins.  I prefer a roll of silver quarters or silver dimes.

Start paying attention to the precious metals and currency markets. Invest a little more over time when you see the prices are low and scale back when they get crazy.

And never invest in numismatic coins.

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