Disclaimer: I will preface this discussion as I do with all of my discussions on this topic in saying that this is just my personal opinion. I make no attempt to convince you that my opinion is correct, nor that someone else’s wrong. I am just telling whoever is reading this what works for me personally. It is important to “do your own due diligence” in any investing endeavor, including rare coins.
I am going to assume that you know what a Morgan silver dollar, 90% (A.K.A. “Junk ”) silver, and what .999 fine silver bullion is. If you don’t know what any of those things are, then this article is not for you. I would suggest inquiring with Dr. Google and Professor Wikipedia.
The Morgan silver dollar (which I will be referring to as simply “Morgan” henceforth) has exploded in popularity as silver’s popularity has risen as a means of investment. Naturally, because of this, I ask the question: Is the Morgan a good investment?
In order to answer this question, we have to look at all two possibilities (or categories, if you will) for silver investing: Bullion and numismatic.
Bullion investing, as the name suggests, involves buying .999 fine silver. This is great for getting the most silver for your money. The problem is that you are going to live and die with the rise and fall of the silver price. Add in the fact that silver is an incredibly manipulated market and you are setting yourself up for a lot of sleepless nights staring at SLV.
Numismatic investing is the purchasing of rare coins for much more than face value as a means of investment. You are betting on the fact that when you go to sell your coins, that there will be a strong demand for your rare coins from investors. The great thing about numismatics is that the value of your coins are not going to fluctuate based on the spot price of silver. You can sleep tight at night knowing the value of your 1916-d dime is still going to be in the thousands. There are downsides to this as well. The first, and most obvious, is that you will most likely not be able to cash in if the silver market explodes. The second is that if you are going to invest your hard earned dollars into numismatics, you need to know the market. Numismatics may seem simple to invest in on the surface, but when you start exploring, you will quickly realize that you really need to know what you are doing for your investment to pay off. In numismatics, KNOWLEDGE IS POWER…..and also money.
Is it possible to get the best of both worlds? I mean, can I invest in something that will take advantage of the explosion of the silver market, but still have the safety net of numismatics?
Yes you can. The Morgan Silver Dollar.
The Morgan is comprised of 90% silver and 10% copper (by weight), which means that it could be considered bullion. There are a ton of people that buy Morgan strictly for their silver content (see ebay, for example). It also has a numismatic value associated with it (all Morgans, with one exception, are over 100 years old). There are certified Morgans that have sold for thousands and in some cases tens of thousands and beyond.
The Morgan is as close to the best of both worlds as you are going to get. They are a great starting point for the beginner silver investor.
That’s just my two wheat cents. Take care, everybody.
– Trader Kevin