If you want to invest in precious metals, but you don't have much money to buy gold coins, platinum coins or other types of items in more expensive ingots, then it's worth buying junk silver coins. Buying junk silver coins has many advantages. In addition to its relatively low nominal cost, an old junk silver coin is just that money. It can be spent like any other currency.
An experienced and reputable coin dealer will be able to differentiate between silver coins that are only worth their intrinsic metallic content and those that are worth a significant numismatic premium. There is also a chance that an insightful collector (or silver stacker) will detect a valuable error or variety in one of these junk silver coins. That's much heavier than the amount of pure silver in a one-cent, one-quarter, half-dollar, or even a standard silver dollar prior to 1971.These sellers can be trusted to provide quality coins at a fair price, even in transactions that are not visible to the naked eye, such as when it comes to a sealed silver bag. If you don't want to analyze much about silver mining companies, but you still want to take advantage of owning a mining company, you can use an ETF that owns silver miners.
If the price of silver goes up, you can make a profit with silver coins and ingots, but that's the only way to make money here, since physical raw materials don't produce cash flow, unlike a quality business. Therefore, one way to answer this question is to provide a graph of what a typical silver quarter is worth in terms of its silver content. Traders can also bet on the silver market through an ETF that holds futures contracts through ProShares Ultra Silver (AGQ), although it is better as a short-term bet than as a long-term hold, due to the structure of the fund. Likewise, if you need money quickly, you may not be able to get the full value of your physical silver, especially if you need to go to a dealer.
While adding silver to your portfolio may be a useful strategy for more advanced investors, beginners would be better off creating a complete portfolio comprised of the best investments. Investors like silver for many reasons, but many see it as a store of value in times of uncertainty, while others view silver and other precious metals, such as gold, as protection against inflation. In other words, you're likely to pay a lower price for each gram of silver in a silver ingot coin compared to what you would pay for each gram of silver in many junk silver coins. This is whether you prefer to buy silver at the lowest possible premium or pay a little more, but also enjoy greater liquidity.
For the latter group, investing in silver is a way of making sure that they have a currency that cannot be inflated by the printing of money or with a potentially destructive policy of the Federal Reserve.