Silver rounds are a very popular way to invest in silver, as they offer a highly divisible, easily stored, low premium form of physical silver investment. Rounds appear similar to silver coins, with the primary difference being that rounds are produced by private mints and hold no face value as currency, whereas coins are produced by government mints and typically hold a face value as currency in their native country.
Most silver rounds are .999 silver and 1 troy ounce weight, although fractional rounds and 5 oz rounds are sometimes produced by certain mints. Although appearing most like coins, rounds are actually more like bars, as both offer a low premium form of investment and are valued primarily for their silver content.
Given that silver rounds are produced by hundreds of private mints, you will find them fairly abundant in the market. Dealers, coin shops and the Internet are packed full of opportunities to buy silver rounds at low over spot prices.
Rounds are Cheaper than Coins
It is a common debate about the relative merits of Silver Eagles and other bullion coins versus generic silver rounds.
Silver bullion coins are considered legal tender, with face value. The legal tender face value is normally far below the silver content value, but they can actually be used according to government law to buy things. Silver rounds are not circulated coins and do not have any legal currency value… only their silver content value.
Popular bullion coins tend to sell for 8-10%+ above the spot price of their silver content, while silver rounds can have a 5% or even smaller premium. This leads the value investor to purchase rounds instead of coins, as they can get more silver for their buck.
Some people choose to hoard rounds as a means to hedge against a severe world financial crisis. Rounds provide an excellent bartering tool at a time when legal tender is not viable. Rounds are highly liquid and are able to suit the purpose of survivor coins very well.
It may seem surprising but many people actually buy silver to prepare for the worst-case scenario. Many of us think, “the economy will stabilize”. However, the world economy has been teetering on the brink of collapse for several years now. The system is broken and it is not an easy fix. There is peace of mind and security in knowing that you are sitting on a stash of silver rounds “just in case” currency loses value.
One of the beauties of silver rounds is their liquidity. Investors can gain access to them pretty easily, but in times of high demand dealers will often buy them back with no commission. They are probably the easiest form of silver to move when you need to do so.
Popular Silver Rounds
Some of the popular silver rounds include Buffalo silver rounds, Sunshine minted silver rounds and Engelhard silver rounds. Alongside these reasonably well-known silver rounds there are generic silver rounds. These are produced by smaller firms and have all sorts of designs on them. Generic silver rounds normally have very low premiums and this makes them popular and cheap.
Buying in Volume
The best way to buy silver rounds is in volume purchases. Buying larger quantities makes it possible to benefit from the best pricing, as the closer to spot price you buy the better your investment profit when the spot price rises.