Silver Coins, History, Investment and Gift Idea

Bill Hitchcock November 19, 2012 0
Silver Coins, History, Investment and Gift Idea

Silver. Remember when silver was that stuff that filled the insides of dimes, quarters and half dollars? The Coinage act of 1965 eliminated silver from the first two and reduced the silver content of half dollars down from 90% to just 40%.

As a result the government issued silver certificates. This was paper money issued in $1, $2 and $5 dollar denominations. Originally redeemable for equal value in silver coins but later only in Federal Reserve Notes.

There have been and still are a variety of gold dollar coins, silver dollar coins and other dollar coins. But The American Eagle Silver coin is the official silver bullion coin of the US. The mint first released it back in 1986. It is guaranteed to be 99.9 percent pure silver.

Silver Coins as a Christmas Gift Idea

So what’s all the fuss about silver coins? Easy, it’s Christmas! What a great Christmas gift idea that could also equal as an investment with some US history mixed in! Besides, I don’t know about you but I’m a bit tired of all of those “Buy gold’ television commercials and “How to buy gold” magazine articles. But it wouldn’t hurt my feelings if a “Buy gold online” ad appeared on this web site and you happened to move your mouse over and clicked it!

Silver Prices

A little historical silver price check reveals something very interesting. The past 10 years have seen a dramatic rise in silver prices, particularly over the past 5 years. It peaked last year then fell but still silver prices are at a historic high level. But if you really want to see a silver peak then you got to go back a little over 30 years ago.

10 Year Silver Price History Graph

Silver 10 year History

Back in 1979 two brothers, Nelson and William Hunt attempted to corner the silver market. They bought up a third of the world’s supply of silver. They drove the price up from $6 an ounce to almost $49 an ounce.  Due to leveraging rule changes, credit restrictions and promissory notes becoming due the Hunt Brother takeover was thwarted.

Silver 34 year history

Investing in silver has pluses and minuses like anything considered an investment. The price can up and the price can go down. Money can be lost. But usually investments are a “hands off” proposition. Stocks and bonds are a good example

Buying silver coins has the advantage of being a tangible investment. You can hold it, touch it, and give it as a gift. Coins area physical product you have in your possession. They also have history associated with them.

Earlier the American Eagle Silver coin was mentioned. Here’s what the US Mint has to say about it:

“The design is based on Adolph A. Weinman’s 1916 “Walking Liberty” half dollar, widely considered one of the most beautiful American coins ever minted.”

“American Eagle Silver Bullion Coins are affordable investments, beautiful collectibles, thoughtful gifts and memorable incentives or rewards.  Above all, as legal tender, they’re the only silver bullion coins whose weight and purity are guaranteed by the United States Government.  They’re also the only silver coins allowed in an IRA. Silver has historically been the most affordable precious metal.” United States Mint.

Please remember-Silver dollar coin values will fluctuate like the two graphs above demonstrate.Any investment could result in a loss.

The US Mint reports, “When the United States Mint was created in 1792, one of the first coins it made the following year was the one-cent coin”.

The first silver coin was a dollar coin and was first released in 1794. The half dollar coin came out the same year with the first issuance of quarters two years later.

Buying a precious metal that has history associated with it and being a tangible asset makes silver coins a fun prospect! Look at the history associated with some of coins!

George Washington exercised the first presidential veto the year the first silver dollar was minted.

The first year of the American eagle coin Mike Tyson won his first heavy weight crown, the Space Shuttle Challenger explodes seconds after takeoff and The first federal Martin Luther King, Jr. Day is observed.

See what a coin can represent? It’s quite possible that a silver coin, gold coin or any precious metal coin’s true value of history and circumstance could exceed any monetary gain it may achieve.

A disclaimer about this article on silver and silver coins. It is not intended to instruct on how to invest in silver. Please seek the advice of a qualified investment professional if you are thinking about investing in silver, gold, precious metals or anything where loss is a potential. None of this article should be construed as investment advice.

What do you think about silver and silver coins? Post your thoughts and comments below.

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