The best silver coins for long term investment

[MJ5050]

I'm totally new to this and am considering buying some silver coins as a long term investment. I'd hold them for many years in an attempt to give me a small amount of financial security should the worst happen to the economy in the future. As far as I can tell from my initial research, Canadian Maples, American Eagles and Britannias are considered to be the best choice of silver coins. Which one would be the best investment for the future or should I buy a selection of all three coins?

Many thanks

[5huggy]

Since you appear to be "UK" located!

Britannia's are IMHO the way forward for you as a Newbie, the reason being -

a) recognised well, for and at point of selling

b) capital gains free (at least at the moment)

c) If you are buying a "few" - it will have little to No consequence on your Capital gains allowance (again - at the moment ie current tax regime)

downside is we have to pay VAT on silver 😣

 

 

[Pete]

Welcome to the silver addicts club.

"Investment" can mean slightly 2 different things according to your plans.
Buying regular mass produced bullion coins like the ones you mentioned are investing in silver.
Buying more "collectible" coins with much lower mintages and higher quality like many Perth Mint coins supplied in capsules e.g. the Lunars are investing in the coin itself.
Unfortunately the latter usually means paying a higher price per coin but you are then speculating that in time it will appreciate more than just the value of the silver.
Some people collect limited edition proof coins and commemorative coins but in many instances these loose value rather than gain value in my experience.

The popular stacker's coins are ( not in any order of importance )

UK Britannia
Canadian Maple
American Eagle
Mexican Libertad
Austrian Philharmonic
Australian Lunar Series
China Panda
Perth Mint Kangaroo
UK Queens Beasts ( 2 oz coins )

That's a start and what you buy will be personal choice and of course down to price.
When eyeing up dealer prices check that you know whether the headline price excludes 20% VAT before leaping in to buy.

If you are interested in acquiring a starter pack of some or all of the above PM me.

[Winchester]

I'm certainly no expert, but..........this has worked for me.

I buy rolls of 90% silver dimes, quarters and half dollars on e-Bay.

I don't have to worry about fakes.

I've been on e-Bay for many years, so I know how to evaluate sellers, research prices and bid right to get good deals.

The little plastic tubes stack nicely........and this is about stacking, right?

 

[Robda1986]

Silver krugs have been around since 2017 as well always seem to be over looked but carry a sizable premium 

[silvernewbie]

I buy bullion 10oz bars for investment purposes and coins are limited editions or special series, i find krugs/brits a bit boring

[Pete]

3 hours ago, silvernewbie said:

I buy bullion 10oz bars for investment purposes and coins are limited editions or special series, i find krugs/brits a bit boring

Surely you cannot say Brits are boring - many nice designs especially pre - 2013
Maples, Eagles, Phils, Libertads etc definitely boring with decades of the same design.
The latest coins with radial patterns and incuse etc are improved but even boring coins are nicer than boring plain bars.

[MJ5050]

Many thanks for all the advice, much appreciated as I am totally new to this so apologies if I'm asking very obvious questions. 

I'm very interested in buying Britannias, Eagles and Maples - I've just had a look at them online and I was wondering if there are any years of each coin that I should target or is the year not important? Am I right in thinking that buying a recent 2020 / 2021 coin would be a good idea as it should be in better condition? I'm a bit reluctant to buy coins that are many years old in case they aren't in great condition but should I be buying a variety of different years or should I be buying the same year so my collection is consistent? For example, if I buy 10 Britannias, should I buy 10 from the same year or 10 from all different years?

Many thanks

[Spark268]

Britannias are best for CGT purposes as already mentioned.

I'm no expert in this, but for some coins/years/mints the production quality can differ. I understand that some of the earlier Maples are prone to 'Milk spotting' until the mint was able to improve its processes for example.

[GoldStatue]

When it comes to coin design I wouldn't put Maples in the same category as the ASEs/philharmonics/libertads, the Royal Canadian mint love a good privy mark.

I remember seeing one with a tank as the privy, I thought that was quite unusual!

Have to agree with the other posts, your best bet is to go with your own government minted bullion coins, silver Britannia's in the UK.

I haven't found any of my PM purchases to be boring but I guess if you have 1000's of ounces of them and had been doing it for years maybe it would become a bit samey.

[SilverJacks]

I say to start off, buy bullion at the best price per oz. shop around, take your time and price up what’s the best value. The coins you have mentioned would be the go-to for bullion. I don’t think new/old matters for bullion investment as long as you buy from a reliable source ( the older coins mentioned may be a bit easier to fake as they are a bit more plain in design, but that isn’t an issue if you buy from legit source)

buying all of the same coin will save you some money. Mixing it up will cost a fraction more but could be worthwhile if you personally prefer some different items.

once you get comfortable and learn what’s what, look into semi-numismatics or full numismatics (the more collectible stuff). It’s best to buy them when you have a reasonable understanding of what you should be paying and what you particularly like.

I would stress not to rush into things but also, I think personally, silver is silver and as much as it’s nice to get it as cheap as possible, sometimes the price goes up ( like right now) and that’s the way the cookie crumbles. If you really wanna buy now, go ahead. It’s a fun game. But dip your toe in to start off.

I’m new also ( as in last 12 months) and that’s the advice I can offer. More experienced punters may agree/disagree but that’s my honest advice.

[SilverJacks]

As for different years, it’s just personal preference if you wish to collect different years. But some dealers may possibly ask higher price if you ask for specific years. I think all the coins you mentioned are cool and say you bought “best value” option from a dealer, you’d get the years you’re given and they would still be really cool to start off.

Could email them and ask if they could spread the years if possible. No harm in asking.

also, if you did buy specific years at a higher price, you should be receiving “minty” coins in good condition. Whereas “best value” could be scratched/circulated. Although most dealers will still stick to a decent standard and not offer you battered old stuff.

[sixgun]

There are a number of points to consider:

1 British silver coins do not need to be declared for CGT.  If by chance you made a killing on your coins you would not have to declare a capital gain.

2. Coins have 2 values - the value of the silver and the value of the coin (collector value). Some coins are prone to developing milk spot. Their collector value disappears when this happens. Some coins have more eye appeal. If you have a good instinct for what will do well then use this. You may well make more on the collector element than any appreciation of the silver value. If you resell these coins and reinvest you could end up getting more silver for the same initial outlay. 

3 Bars seem to have become more popular. You do not need to worry about tarnish or spotting or a few knocks unless you are investing in proof like Art bars.

4 Always keep on the look out for good deals.

5 Do not go with fads. i have seen what i will call fad coins appear here. i do not get involved.

6 Nearly all new commemoration coins are overpriced and a waste of money.

7 The Perth coins are a good long term [i do not count in the bullion kangaroo - which personally i don't like the look of]. These coins are high quality and in capsules from the mint. They are a bit more money but if you are holding them for a longer time they should stay in good condition and over time fetch a decent price at resale. You might have to wait a few years but it sounds like you are doing that anyway.

[GoldStatue]

24 minutes ago, sixgun said:

7 The Perth coins are a good long term [i do not count in the bullion kangaroo - which personally i don't like the look of]. These coins are high quality and in capsules from the mint. They are a bit more money but if you are holding them for a longer time they should stay in good condition and over time fetch a decent price at resale. You might have to wait a few years but it sounds like you are doing that anyway.

That's a debateable point, the Perth produce a heck of a lot of new coin designs.

If I were looking for a coin to hold its value in the long term and was limited to buying Perth mint products I think I would need a lot of luck.

[Metalisreal]

If you can swing it 100z bars seem to be quite popular (well, from my experience here in the States, anyway). Years ago I visited a coin shop near me and they had several beautiful shiny APMEX bars. An important-looking guy wearing a tie was handling one of them at the time. Two days later when I came back they were all sold.

[Pete]

3 hours ago, MJ5050 said:

Many thanks for all the advice, much appreciated as I am totally new to this so apologies if I'm asking very obvious questions. 

I'm very interested in buying Britannias, Eagles and Maples - I've just had a look at them online and I was wondering if there are any years of each coin that I should target or is the year not important? Am I right in thinking that buying a recent 2020 / 2021 coin would be a good idea as it should be in better condition? I'm a bit reluctant to buy coins that are many years old in case they aren't in great condition but should I be buying a variety of different years or should I be buying the same year so my collection is consistent? For example, if I buy 10 Britannias, should I buy 10 from the same year or 10 from all different years?

Many thanks

1. You can set yourself a challenge in building the full date run of silver Britannias.
Many years have a different reverse and because they were minted in .958 alloy ( slightly over an ounce in weight to contain a full Troy ounce of silver ) up until 2012 the harder alloy means they don't mark as easily as .999 silver and tend to be in great condition. Buying privately means you can always ask for photographs. Some years are becoming more expensive than others but it's all down to the market and who is selling.

2. Collecting a date run of Libertads would be frustrating because some years e.g. 1998 are getting expensive - maybe 5 times the cost of the average.
The price reflects the mintage i.e. rarity of the coin.

3. An attractive set to collect is the Australian Perth Mint Kookaburra as each year has a totally different reverse design.
Same goes for the Royal Australian Mint Kangaroo ( not to be confused with the cheaper bullion Kangaroo from the Perth Mint )

4. Most sellers will state the condition of their coins, on this forum and on eBay.
Buying best value from a dealer is taking a chance and many dealers do not inspect their inventory.
Coin shops and dealers that do check coin condition however will be seeking higher prices.

As you are new to this hobby just dip your toe into the pond and grab yourself a few of the popular bullion coins.
Take time to read many of the posts on the forum and check the pictures etc to see what you like.
Do some research to see if any particular bullion coin has a higher than normal premium and ask yourself as to why.
A nice coin to start with is the American Eagle because of its satin finish and the fact that they tend to be in great condition ( mostly ).
If you buy a few shiny, polished coins you might end up worrying about the scuffs and fine scratches that you see and wondering if you have been duped.
Expecting perfection in bullion, regardless of the date, is something you will soon learn is near impossible.
I can crack open a tube of 25 Canadian Wildlife coins that has never been opened and I can almost guarantee that 80% will have some visible defects or small spots.
Yet these are uncirculated mint condition, never handled etc.
The Mints churn these bullion coins like metal washers and the only thing they guarantee is weight and purity so cosmetic condition is of no concern to them.
However Mints like the Australian Mints who ship their coins in capsules tend to be near perfect, if not perfect as they have higher quality control but you guessed it - will cost a bit more but often not that much more. So if you are wanting great coins then consider adding a few for comparison.

 

[sixgun]

9 minutes ago, GoldStatue said:

That's a debateable point, the Perth produce a heck of a lot of new coin designs.

If I were looking for a coin to hold its value in the long term and was limited to buying Perth mint products I think I would need a lot of luck.

i pick out the Perth silver coins because they are a higher quality coin, in a capsule and i haven't come across milk spot with these. 
The Royal Mint also pushes out a lot of coins - some of them are tat and others are worth collecting. 
Those amassing a stack need to be discerning and pick out the decent coins. if you blindly buy you deserve what could be coming to you - some old tat and gimmick coins.

[SilverJacks]

Perhaps the biggest problem for starting off right now is sourcing it? I wouldn't recommend buying private starting off unless you really trust the source or feel confident in what you are buying. If you do look for private purchase, perhaps this forum is best place.

I'd say keep it simple starting off. Aside from private sale, "Best value" vat-free silver would be the most cost effective bullion investment. If they're scratched then it doesn't matter, you've bought them as bullion. If they're toned or milked they will likely be cleaned by the dealer which again, makes no difference to its value. Plus, you can always hit lucky with "best value" and get a decent semi-numismatic. The big dealers have reasonable standards. Any tat would be sold as such and called "low grade" or "grade c". Bullion keeps it simple until you're more confident with collectible coins.

I've checked the usual places, Chards, Atkinsons. There's not a lot of vat-free about. Gold.co.uk are always worth checking as they do not list their vat-free inventory. You have to call them and ask what they have and they have larger inventory than many others. They could have lots one minute, none the next.

Definitely dip your toe in. Spend a small fraction of your budget starting off, and keep it simple. That's my take on a first time purchase.

[AppleZippoandMetronome]

For specific dates the 1997 maple has the lowest mintage of all the standard bullion 1oz maple coins so that one has the highest premium. Be aware with maples minted before 2018 - milkspots were a big probelm for the Royal Canadian Mint. Saying that from what I've seen milkspots are now a big problem for the Royal Mint so be aware when buying Britannias. etc from the last couple of years. 

I think its a real tough time to be a buyer in the UK for this stuff. Ensure you are shopping around to get the best deal and perhaps consider premium membership here so you can be amongst the first to see trade topics when they come up. There are good deals to be had here but the best go very quick.

[sixgun]

37 minutes ago, SilverJacks said:

Perhaps the biggest problem for starting off right now is sourcing it? I wouldn't recommend buying private starting off unless you really trust the source or feel confident in what you are buying. If you do look for private purchase, perhaps this forum is best place.

i would absolutely recommend buying privately. Wash your mouth out - the Silver Forum isn't perhaps the best place - it is the best place. But seriously, these days i buy nearly all my bits of silver from TSF. We know who are proper sellers and we generally get better prices. 

i would say to the OP - be mindful of postage costs - so don't go buying single coins unless it is something you have set your heart on. i get some sellers to hang onto coins/bars for me and then send them when i have enough stuff - @arshimo2012 @ilovesilverireallydo @watchesandwhisky are all holding stuff for me - it saves a bit on postage and i can do this because i know they are sound.

[SilverJacks]

3 minutes ago, sixgun said:

i would absolutely recommend buying privately. Wash your mouth out - the Silver Forum isn't perhaps the best place - it is the best place. But seriously, these days i buy nearly all my bits of silver from TSF. We know who are proper sellers and we generally get better prices. 

i would say to the OP - be mindful of postage costs - so don't go buying single coins unless it is something you have set your heart on. i get some sellers to hang onto coins/bars for me and then send them when i have enough stuff - @arshimo2012 @ilovesilverireallydo @watchesandwhisky are all holding stuff for me - it saves a bit on postage and i can do this because i know they are sound.

Lol. And there you have it...

My comments are based on the simplest, most cost effective purchase for the first time buyer and I stand by them based on my admittedly limited experience. 

But saying that, sure, sign up to full membership an buy from TSF. It's recommended by all

[silenceissilver]

When I made the decision to buy some monster boxes I opted for 99.99% instead of 99.9 pure silver (usually written as 9999 or 999 or 4 9s and 3 9s), thus I bought the bullion Kangaroo because of the better price plus the unicorn QBs because at the time it was the cheapest QB as it was the latest one out there. Because I live in the UK, I also wanted a considerable part in British legal tender coins for reasons already mentioned by others.

Many will not consider it important if it's 3 or 4 9 silver however, for many industrial applications you need a 4-purity and in case some speculations that minable silver might get scarce within a foreseeable timeframe and in case I should therefore get into a position to sell it to refiners who would want to sell it for industrial applications - it wouldn't need to be refined to a higher purity which would save costs and therefore should get me a higher price. Of course these speculations might well be wrong. But in case they are not, I'm prepared. I like this bit of extra flexibility for different selling scenarios, even though I don't think it's very likely.

The Maple also has a 4 9 purity as the only coin of the ones you suggested.

 

[ilovesilverireallydo]

1 hour ago, silenceissilver said:

When I made the decision to buy some monster boxes I opted for 99.99% instead of 99.9 pure silver (usually written as 9999 or 999 or 4 9s and 3 9s), thus I bought the bullion Kangaroo because of the better price plus the unicorn QBs because at the time it was the cheapest QB as it was the latest one out there. Because I live in the UK, I also wanted a considerable part in British legal tender coins for reasons already mentioned by others.

Many will not consider it important if it's 3 or 4 9 silver however, for many industrial applications you need a 4-purity and in case some speculations that minable silver might get scarce within a foreseeable timeframe and in case I should therefore get into a position to sell it to refiners who would want to sell it for industrial applications - it wouldn't need to be refined to a higher purity which would save costs and therefore should get me a higher price. Of course these speculations might well be wrong. But in case they are not, I'm prepared. I like this bit of extra flexibility for different selling scenarios, even though I don't think it's very likely.

The Maple also has a 4 9 purity as the only coin of the ones you suggested.

 

The 999 vs 999.9 is a red herring. As someone that works with industrial refiners, it all goes into the melting pot for re-refining. 

[silenceissilver]

2 hours ago, ilovesilverireallydo said:

The 999 vs 999.9 is a red herring. As someone that works with industrial refiners, it all goes into the melting pot for re-refining. 

Damn, so I have bought 9999 for nothing? Well, at least it's still silver. 

Does it not go into different melting pots, depending on the purity? I mean obviously it's all melted down but some pieces need more purification than others.

[SilverJacks]

I hear this point referring to colloidal silver for medicinal purposes?

Even if it's nothing more than a gimmick, there are still some that prefer 4 9s, and that's fair enough.