While the vast majority of precious metal enthusiasts, investors, and collectors eagerly await the annual release of popular sovereign bullion coin programs, silver rounds are increasingly catching the eye of Average Joes in the precious metals world. What is it that makes silver rounds so popular, and why are so many investors and collectors turning to these popular options from private mints?
Market Factors
Viewed as a snapshot of the current economic climate, silver rounds are surging in popularity for the exact same reason as bullion coins such as the American Silver Eagle, Canadian Silver Maple Leaf, and Chinese Silver Panda: silver prices. While gold and platinum have shot to record highs at various points in recent years, silver prices are shrinking.
Lower silver prices push more investors into the marketplace. These individuals look to invest their hard-earned cash in silver now while prices are low, allowing them to purchase greater quantities of silver and hold onto those with the long-term goal of seeing silver prices rise.
Specific Factors
The greatest benefit that silver rounds have compared to popular bullion coins such as those mentioned above is the producer. Yes, coins from the United States Mint, Royal Canadian Mint, and Perth Mint (among others) are in high demand, and they are among the highest quality coins available today. However, there are two hurdles preventing average investors and new investors from getting into the market.
First, many of the sovereign coins released by these mints are restricted in production on one level or another. For example, Perth Mint coins such as the Australian Silver Kookaburra and Australian Silver Koala have limited mintages (usually maxed at 1 million) that restrict the amount available on an annual basis. In the case of the American Silver Eagle, the United States Mint strikes the coins to meet demand. However, the Mint has been forced to institute an allocation program restricting the volume at times to meet the immense demand for silver coins.
More importantly, the coins struck by these mints have higher premiums over the spot price of silver. The demand for these coins and the limited mintage of each leads to higher prices, making it difficult for collectors to regularly purchase the designs they covet and tougher for new investors to break into the market.
Benefit of Silver Rounds
Silver rounds are struck by numerous private mints across the United States, as well as a handful of refineries around the globe. The greater variety of mints involved in the production of silver rounds provides greater quantity in the marketplace. This means that silver rounds are easier to get ahold of, and the unlimited production of the rounds keeps the spot price of silver rounds lower compared to those of bullion coins.
More importantly to collectors, silver rounds deliver the designs you prefer without the cost of silver coins or the potential to miss out on annual releases. For example, some of the most popular US coin designs from history are available on silver rounds.
Examples of Silver Round Designs
JM Bullion offers silver rounds from private facilities such as the Great American Mint, Sunshine Minting, and SilverTowne with the iconic designs you want in your collection. Which designs are available right now? The following are just a few examples:
- Buffalo Nickel: James Earle Fraser’s 1913 design for the Buffalo Nickel is considered among the greatest designs on American coins. Though it was discontinued in 1938, it was revived on the American Gold Buffalo bullion coin in 2006. It is also available on silver rounds from countless private mints in the US.
- Walking Liberty: Adolph A. Weinman’s popular design was created in 1916. Weinman was a student of Augustus Saint-Gaudens, and his Walking Liberty design depicts the nation’s march toward a brighter future. It appeared on the Walking Liberty Half Dollar until 1947. It now appears on the American Silver Eagle bullion coin, and is also available on a variety of silver rounds.
- Saint-Gaudens’ Liberty: Augustus Saint-Gaudens is credited with starting the revolution in American coin design, starting with the Liberty image that shows Lady Liberty striding forth from the nation’s capital with a guiding light in her hand. Saint-Gaudens’ design appeared on the $20 Gold Double Eagle from 1907 to 1933, and currently appears on the American Gold Eagle bullion coin from the US Mint.
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JM Bullion not only carries all of the most popular silver and gold bullion coins in the world, but also the silver rounds you are looking for from private mints. Check out our online catalogs now, or contact a JM Bullion associate on the phone at 800-276-6508, on the web using our live chat, or via email.