Precious metals are having a moment, with safe-haven assets looking a lot more attractive lately thanks to growing macroeconomic uncertainty and inflation fears. But if the soaring price of gold — at nearly $3,000 per ounce, an all-time high — is too rich for your blood, there’s always silver.
What are silver bullion coins?
Silver coins are available in many forms, including these.
- Bullion coins: Struck by sovereign mints, “official” coins are legal tender with the weight and purity guaranteed by law. Bullion coins derive their value from the metal content as well as design, rarity, condition, mintage and demand. Their appeal among collectors means you’ll pay a higher premium over the spot price of silver to buy silver bullion coins. Popular silver bullion coins include ones minted in the U.S., Great Britain, Austria, Mexico and more.
- Silver rounds: Although many resemble official bullion coins, silver rounds or medallions are struck mainly by private, not government, mints and often pitched as “commemorative” coins. These coins are not legal tender — though your mileage may vary in, say, a zombie apocalypse scenario — and the purity of silver and weight are not government-backed. Premiums on silver rounds tend to be lower than on bullion coins.
- Numismatic coins: When it comes to valuing numismatic coins, the weight and purity of silver is almost beside the point. Provenance or historical significance, rarity and collector demand drives the premiums you’ll pay. A proof coin is a type of numismatic coin.
Silver bullion straddles the collectible-investment line, sitting firmly in the sweet spot for those interested in coins as an art form and a physical store of wealth.
Relative to gold, silver seems like an absolute bargain at around $32 per troy ounce. The silver-gold ratio — a key measure investors use to determine when to buy or sell a certain metal — is currently around 90:1, meaning you can purchase 90 ounces of silver for what it costs for a single ounce of gold. A typical range is between 50 and 70, but it is prone to dramatic fluctuations. Here are other factors to consider in the gold vs. silver debate.
5 popular silver bullion coins
The most popular silver bullion coins are essentially the influencers of the precious metals investing world: They’re prized for their looks, coveted for their intrinsic monetary value and have a worldwide fan base that makes them in high demand. Official government backing as currency gives these coins additional street cred.
The flip side of these bullion coins, though, is the hassle factor of buying, storing and insuring them, especially if your primary interest is investing. There are easier ways to invest in silver if you care more about exposure than owning coins or a physical asset. Options include investing in silver-focused ETFs or mutual funds, investing in commodities or buying stock in silver mining companies through an online broker. There are also self-directed IRAs designed to hold precious metals on your behalf with a tax break.
But if bullion coins might be for you, these five coins are mainstays among collectors of investment-grade sovereign mint coins, thanks to their international recognition, high liquidity, pleasing esthetics, and guaranteed weight and purity.
Be an informed consumer. Before treading into the world of silver coins, heed the advice of regulatory pros. The Commodity Futures Trading Commission provides guidance on possible signs of fraud.
1. American Silver Eagle
Manufactured by the U.S. Mint beginning in 1986, the American Silver Eagle is the U.S.’s only silver bullion coin. A strolling Lady Liberty — designed by Adolph Weinman for the Walking Liberty half dollar issued in 1916 — is featured on the front side of the coin and an heraldic eagle on the reverse. In 2021, the splayed-wing, shield-carrying eagle design by John Mercanti was replaced with Emily Damstra’s rendering of an in-flight eagle carrying an oak branch.
These investment-grade silver bullion coins are guaranteed for weight content and purity — 1 ounce of 99.9 percent fine silver — by Uncle Sam.
2. Canadian Silver Maple Leaf
Made of 99.99 percent silver, the Canadian Silver Maple Leaf was rolled out in 1988. As the name suggests, the coin features a strikingly detailed leaf on one side and either Queen Elizabeth II (pre-2024 coins) or King Charles III on the reverse.
There’s more to this coin than meets the eye. Added security features — radial lines on the edges and the micro-engraved leaf — help thwart counterfeiters, and use of the Royal Canadian Mint’s “MintShield” preserves its luster by protecting it from developing white spots.
3. British Silver Britannia
Silver Britannias were launched by the Royal Mint in 1997, a decade after the gold Britannia entered the scene. Up until 2012, the coins were struck in “Britannia silver,” which is 95.8 percent silver, but since 2013 they’ve been minted in 99.9 percent fine silver.
A more obvious update is visible on more modern Britannia silver bullion coins. In 2023, after a final limited run, the profile of Queen Elizabeth II was replaced with one of King Charles III. The flip side image, however, continues to feature the personification of Britain — a graceful and slightly intimidating helmeted female warrior brandishing a trident.
4. Austrian Silver Philharmonic
In 2008, the Austrian Mint introduced the 99.9 percent pure Austrian Silver Philharmonic which, like its gold counterpart, pays homage to the country’s world-renowned Vienna Philharmonic Orchestra. The design features the great organ in the philharmonic’s home concert hall, Vienna’s Wiener Musikverein, and an array of instruments on the reverse.
5. Mexican Silver Libertad
The draw of the Mexican Silver Libertad goes beyond its silver content, 99.9 percent pure, and a design that features the winged Angel of Independence with the Mexican coat of arms on the reverse. The coins, introduced in 1982, are struck at the oldest mint in the Americas — the Casa de Moneda de México (national mint of Mexico), which has been operating since the 16th century. Plus, they’re available in different sizes and weights.
Despite bearing no face value, Libertads are legal tender guaranteed by the Banco de Mexico. Expect to pay a higher premium on coins from lower-mintage years
Bottom line
As an asset, precious metals in many forms have long been a go-to for investors looking for a hedge against market uncertainty and inflation. But if your main goal is portfolio diversification, there are simpler ways to add the commodity to your portfolio than buying silver bullion coins.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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