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Silver has become an extremely popular investment vehicle for obvious reasons. The price of silver is expected to rise heavily in the coming years. Thanks to huge industrial demand and short supplies, the price of silver is predicted to rise inevitably. Currently, the gold-silver price ratio also makes silver investments desirable. Silver is currently 85 times cheaper than gold and offers easy access to the precious metals market for investors who are starting out.
Coins are preferred by investors due to their liquidity and divisibility. But which coins should one invest in The best coins to collect will depend on your objectives. If you wish to collect for investment gains, then any coins of a limited issue which you’re able to purchase at a relatively low premium will work out best. Examples may be The Royal Mint’s Queen’s Beast and Lunar series of coins. If you simply wish to collect for variety and rarity sake, then some older coins will have a great deal of history and numismatic value. Expertise is required to buy at the right price, but the upside potential can be great.
A starting point for many investors is frequently the UK silver Britannia. It is considered to be the backbone of any good silver portfolio. The Britannia enjoys a distinct advantage when compared to other silver coins. It is a mass-produced, bullion coin with low premiums and manufacturing costs. The coin is easily available and also enjoys an extremely vibrant secondary market. Since all issues are recent, the coin does not command any numismatic premium. Therefore, in terms of value, it is a great investment.
The Krugerrand is well-known across the world and is a very liquid coin. Infact, it is one of the most available 1-ounce silver coins. It is an excellent choice for adding to your portfolio. In terms of both value and liquidity. Most reputed UK brokers have these coins and they are available at low premiums and bulk discounts, just like the Britannia. However, in terms of tax efficiency, one must remember that these coins are not considered to be UK legal tender and CGT could be payable on any profits made on sales.
The Royal Mint has issued certain collectable silver coins are available as the Queen’s Beast series and the Lunar series. Variety is an important consideration when building your portfolio and both these coins offer this attribute to your collection. The Queen’s beast series of coins can be purchased in different sizes. There is a 2-ounce version, and a large 10-ounce version, as well. Buying the larger coin can ensure that you avail a lower price per gram, due to reduced manufacturing costs.
The Lunar coins, produced by the Royal Mint is a set of 12 coins. Each coin features a different animal from the Chinese calendar. The coins are issued annually and enjoys great demand from collectors due to the variety it brings to the portfolio. Collectors are keen to collect every coin in the series. Therefore, it is worth purchasing for your portfolio. These coins are also in great demand in the Asian markets, and their price can rise quickly due to this.
The investment team at Physical Gold is always ready to offer you advice on the best silver coins to add to your collection. Call us today on (020) 7060 9992 or get in touch via email. We can help you take the right silver coins in line with your investment objectives (as well as silver bars) and make your portfolio stronger.
Image credit: Wikimedia Commons
Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.