By Bullion Shark LLC ……
Among numismatists, the American Silver Eagle is certainly popular. In November 2019, the United States Mint released a limited-edition San Francisco mint mark Reverse Proof. Collectors were so enamored, the entire 30,000 minting sold out in 20 minutes.
The Mint tried to prevent hoarding by limiting sales to one per customer. Yet, despite this limitation, the sale of the 2019-S Enhanced Reverse Proof American Silver Eagle crashed the Mint’s website.
So the Silver Eagle’s popularity is undeniable. But is it really worth the hype?
Some numismatists compare buying it to investing in the Morgan dollar. In November 2020, a rare Morgan dollar variant sold for $750,000 USD at auction. Even typical Morgan dollars are reliably valuable.
And, there are so many variants, Morgan dollar collecting has become its own numismatic specialty. Similarly, there are multiple limited-edition American Silver Eagle varieties.
Because of these similarities, the American Silver Eagle is a great bullion coin if you want to hedge against inflation. And, it might be the next Morgan dollar in terms of value.
American Silver Eagle: Ideal Bullion Coin
Bullion coins aren’t used for commerce. Instead, countries mint bullion coins as investment assets. Mints print bullion coins in precious metals and weigh them in troy ounces. In the United States, the Treasury Department might grant the coin a face value but in most cases, the appraised value is higher. Congress declared the face value of the American Silver Eagle to be one dollar. The coin contains at least one troy ounce of 99.9% pure silver.
The U.S. Treasury intends American Silver Eagle coins as investment pieces and collector’s items. The IRS allows investors to contribute these bullion coins to their Individual Retirement Account (IRA) funds.
The American Silver Eagle’s composition and utility as an IRA contribution make it a good bullion coin on its own. But its unique history makes it an even better investment than most.
Background of the American Silver Eagle Coin
Design
U.S. Mint Director Donna Pope chose the Liberty Walking design for the face of the coin. The sculptor Adolph A. Weinman originally created the design for the Walking Liberty half dollar in 1916. She also appointed John Mercanti to design the Eagle itself. Mercanti is an American sculptor who served as the 12th chief engraver of the United States Mint from 1974 to 2010.
Mercanti’s eagle design encompasses a shield, a banner, and 13 stars.
The Liberty Coin Act (1985)
The U.S. Mint created the American Silver Eagle in response to the Liberty Coin Act. Congress passed the Liberty Coin Act in 1985. Before this act, different members of Congress proposed different strategies to sell off government-owned silver, hoping to decrease the budget deficit.
The National Defense Stockpile housed most of the silver. It secures and stores raw materials for future use in combat. It maintains these materials in the stockpile. By 1976, the Defense Department had secured more silver than necessary, which affected the economy.
Previous proposals to sell off the extra silver were defeated in Congress. In 1981, the House Armed Services Committee tried to move forward with the sale, but the price of silver dropped 11% when the sale was announced. The plan was opposed by silver miners and some military leaders and was thus shelved.
Finally, in 1985, Congress came to a workable compromise: The Liberty Coin Act. This act enabled the Department of Defense to sell off extra silver without depressing the price of silver. To do this, sold the silver in the form of coins.
The Treasury purchased the silver directly from the Defense Logistics Agency. Then, it used the raw material to mint American Silver Eagle bullion coins. Sales of these coins buoyed the federal budget.
American Silver Eagle Bullion Program Extended (2002)
The Treasury had successfully depleted the National Defense Stockpile’s silver reserves by 2002 and per the original Liberty Coin Act, the Mint would stop producing the coin. The coin had served its purpose.
But since the American Silver Eagle was so popular, members of Congress pushed to continue production. In 2002, Senator Harry Reid (D-NV) created the Support of American Eagle Silver Bullion Program Act.
This act empowered the Treasury to purchase more silver on the open market. The bill specified the Treasury was to use this new silver to mint more Silver Eagle Bullions. Congress passed the act that year.
Recession Impacts Coin Value (2008-2010)
Demand for the American Silver Eagle coin skyrocketed in 2008. The United States’ economy began to slide into a recession. To keep their portfolios from failing, investors turned to bullion coins.
Between February and March 2008, American Silver Eagle coin sales increased by 900%. In April, the Mint began rationing sales of the coin. By June, the Mint was able to increase production to keep up with demand.
No Proof editions of the coin were struck in 2009, and no Uncirculated Silver Eagles were struck in 2009 and 2010. In December 2010, the Coin Modernization, Oversight, and Continuity Act empowered the Treasury to mint enough American Eagle coins to meet demand.
The act granted the Treasury once again the ability to mint American Eagle bullion coins in silver as well as gold. It also enabled the Treasury to mint more Proof and Uncirculated versions of the coin.
Despite the 2010 act, demand for the American Eagle bullions surpassed supply in 2013. Once again, the Mint rationed the coins.
In July 2015, the Mint produced a new swath of American Silver Eagle coins. These sold out in one week.
COVID-19 Halts Production (2020)
COVID-19 interrupted American Silver Eagle coin production in 2020. At the time, only the West Point Mint minted American Silver Eagle bullions. Federal regulators shut down the West Point Mint when an employee contracted the COVID-19 virus. They reopened the mint on April 1, but on April 15, the U.S. Treasury closed its West Point facility indefinitely over safety concerns.
The Philadelphia Mint attempted to recoup the loss. It produced 240,000 American Silver Eagle coins in April 2020. Evaluators label these coins “Emergency Eagles”. These emergency editions generated controversy, with collectors bought them at four times the price of West Point Mint coins.
The CDC cleared the West Point Mint to resume production at the end of April 2020.
Reverse Side Re-Design (2021)
In 2021, the U.S. Mint retired John Mercanti’s Eagle design. The new American Silver Eagle coins feature an eagle landing on a branch on the reverse side. U.S. Mint Director David J. Ryder chose Emily Damstra to create the design. Damstra’s work is biologically accurate rather than symbolic.
American Silver Eagle Value
The face value of the American Silver Eagle coin is $1.00, but most buyers appraise American Silver Eagle coins by their value in an investment portfolio.
As of 2020, the average American Silver Eagle coin is worth $30. This is slightly more than the melt value of the coin. The silver in the American Eagle is worth approximately $24.
That said, many varieties are prized by collectors. You might sell these versions of the American Silver Eagle for considerably more than $30 at an auction.
Select Silver Eagle Variants and Rarities
Silver Eagle variants and rarities have a higher numismatic value than their melt value. Here are six out of several American Silver Eagle coins that attract special interest from collectors.
1990
In 2018, an auctioneer sold a 1990 American Silver Eagle coin for $13,000. This bullion coin has no mintmark.
The typical numismatic value of these coins ranges from $37 to $12,925. The median range for MS-70 variants hovers between $1,000-$3,000. Collectors generally sell 1990 Silver Eagles in lower grades for less than $200.
1994
In 2013, auctioneers sold a 1994 American Silver Eagle coin for $11,163. This was unusual. Most collectors have sold MS-70 1994 Silver Eagles for $1,000-$6,000.
The value of this 1994 silver bullion shot up in 2000. It hasn’t regressed towards the mean yet. But, so far, auctioneers have only sold lower-rated versions of this coin for less than $200.
2008-W Reverse of 2007 Variety
In 2007, the U.S. Mint abruptly altered the intended design for the 2008 Silver Eagle coin. As a result, the Mint accidentally struck some 2008 coins with the reverse 2007 die.
These reverse-strike error coins are comparably rare. Numismatists estimate only 45,000 of these coin variants exist.
Very few collectors have auctioned these variant coins. In 2013, one collector sold a reverse-2007 Silver Eagle variant for $3,190. Numismatists estimate the typical value of these variants ranges from $475 to $1900.
1993 Philadelphia Set Variant
To celebrate its bicentennial in 1993, the U.S. Mint released a special edition set of Silver Eagles. The Philadelphia sets included an American Silver Eagle Proof, an American Gold Eagle Proof, and a U.S. Mint Bicentennial medal.
In 2013, a collector sold a Silver Eagle Proof from this set for $7,638. Notably, this coin is rare because it is Uncirculated and MS70.
1999
The 1999 American Silver Eagle bullion coin holds the auction record. In 2013, auctioneers sold an MS-70-rated American Silver Eagle for $13,000.
While there isn’t a clear reason numismatists value this 1999 variant so highly, we can make a few guesses. 1999 was the only year the West Point Mint and Philadelphia Mint produced this bullion coin.
The bullion version bears no mintmark. While there are plenty of Uncirculated 1999 Silver Eagles, high-end versions are rarer.
Evaluators estimate over seven million of these coins survive. But few of them are MS70.
You’ll typically find 1999 American Silver Eagle coins selling from $33 to $9,899. The median range hovers between $100-$200.
Will the Silver Eagle Coin Be Worth More Later?
Interest in Silver Eagle coins is growing worldwide. New buyers in Hong Kong, Singapore, and China have only pushed demand upward. As the U.S. Mint continues to produce new mintings, the coin’s popularity seems contagious.
No one can predict the exact value of a coin in the future. But, as a bullion coin with a unique heritage, the American Silver Eagle is shaping up to be a wise investment.
FAQs
Reasons American Silver Eagles are a Good Investment:
American Silver Eagles make great investments because they carry an intrinsic value and won't fall in value like other currencies.
Why do people collect Silver Eagles? ›
Silver Eagles are popular, have liquidity, and hold additional value to collectors. They're always in demand due to their silver content and purity, as well as their value as U.S. legal tender. If you still need more information on investing, check out our Silver Eagle guide.
How do you store American Silver Eagles? ›
Your silver coin storage must be in a cool and dry spot with minimum exposure to air. Avoid damp locations, so your coins don't tarnish. Avoid storing silver alongside gold to keep the soft metal from scratching and oxidizing. You can store coins in coin capsules to reduce the risk of damage.
Why are American Silver Eagles worth more? ›
As the official silver bullion coin of the United States, the 1 oz American Eagle Silver Coin has enjoyed a high level of prestige among precious metals investors at home and abroad. The popularity of the coin derives from its high purity rating, instant liquidity, and inflation-hedge properties.
What is the best Silver Eagle to collect? ›
The 1994 and 1996 silver eagles are the most valuable and popular of the silver eagles, but don't overlook the 1997 and 1995 silver eagles, which have the third- and fourth-lowest production levels, respectively.
Is it better to buy Silver Eagles or rounds? ›
Rounds are the best option if your main objective is to invest. The value of rounds is based on their precious metal content, making them more affordable than silver coins. Another factor to consider is the various designs of the rounds. If you intend to sell your silver quickly, coins are often the better choice.
How much should I pay for Silver Eagle? ›
$47.25
| Quantity | Premium/Oz | Total Price Each |
|---|
| 1 - 39 | $22.89 | $48.25 |
| 40 - 499 | $22.39 | $47.75 |
| 500 - 2500 | $21.89 | $47.25 |
| 2501+ | Call for discount |
1 more rowYes, you can buy American Silver Eagle coins at a bank. The U.S. Mint indicates that it sells Silver Eagles to authorized purchasers. These “authorized purchasers create a two-way market buying and selling to wholesalers, financial institutions, and other secondary retailers.”
Are Silver Eagles tax free? ›
Similarly, there are several bullion products that are exempt from reporting, regardless of the quantities that a customer may sell. Such pieces include, but are not limited to: Fractional Gold Coins. Gold or Silver American Eagle Coins.
Should I keep my silver coins in plastic? ›
Airtight containers work best for at-home storage. However, if you prefer to keep your coins in albums, make sure to avoid using plastic or PVC. Plastic and PVC release acidic gasses which may cause damage to your coins.
Silver should be stored wrapped in dry, acid-free tissue paper and placed inside cotton or Tarnprufe bags. It should not be kept near to or touching smoke, household paints, rubber, newspaper, wool, felt or velvet.
Should I keep my silver bars in plastic? ›
This may be fine for valuable documents, but it's not recommended for precious metals. For example, silver is susceptible to tarnishing from moisture and exposure to humidity. If they have silver bars, Carlsbad collectors who want to keep their bullion looking its best can store their silver in plastic.
Will there be a 2023 Silver Eagle? ›
United States Mint 2023 American Eagle (W) Silver Proof Coin Available on March 2.
Is it better to buy proof Silver Eagles? ›
Bullion Coins. One of the main differences between any bullion and proof coins is who they are intended for. That is, bullion is intended for investors, while proof coins are meant for collectors. Proof coins have a more beautiful finish because of their more meticulous minting process.
Why are Silver Eagles so cheap? ›
The Silver American Eagle is minted by the U.S. Mint and is not sold to the general public. They are sold to a network of wholesale dealers and brokers, who then sell to the general public. So, of course, these dealers have to make a profit to stay in business.
What are the best silver coins to buy for survival? ›
The best forms of silver for survival purposes are pre-1965 U.S. 90% coins and 1-oz silver rounds. The most useful forms of gold would be 1/10-oz Gold Eagles and 1/4-oz Gold Eagles.
Are Silver Eagles 100% silver? ›
Background. American Eagle Silver Bullion Coins are coins whose weight and purity are guaranteed by the United States Government. They're also allowed in an IRA. Each coin contains a minimum of one troy ounce of 99.9% pure silver.
What is the lowest mintage American Silver Eagle? ›
Key Date Silver Eagle Mintages
Important to know, the lowest mintage for a bullion coin is the 1996 Silver Eagle, at 3,603,386. In contrast, the highest mintage bullion year is the 2015 Silver Eagle. Sales reached an astounding 47,000,000 coins and achieving the sixth annual sales record in seven years.
Are silver rounds hard to sell? ›
Be Cautious with Silver Rounds
Silver rounds look very similar to silver coins, but it's easier to sell coins than rounds. Rounds are coin-shaped pieces of silver produced by private mints. There's still a significant amount of precious metal content in rounds, but they aren't usually as widely valued as silver coins.
Can I spend a Silver Eagle? ›
Are Silver Eagle coins legal tender? The American Silver Eagle coin has a tender value of $1. It is possible to use this coin as legal tender, but because the value of the silver greatly exceeds the face value of the coin, this is not recommended.
The U.S. Mint does not sell American Eagle Bullion Coins directly to the public. Locate an authorized dealer.
How much silver should you buy at a time? ›
Some analysts recommend allocating 5–10% of your portfolio toward gold and silver. Others suggest allocating up to 25%. So you may be wondering, “How much gold and silver should I own?” It depends on your situation and needs. The allocation will differ for every individual.
How much is 1 oz silver eagle worth? ›
Pricing:
| QUANTITY | E-CHECK/WIRE | CC/PAYPAL |
|---|
| 1-19 | $46.41 | $48.35 |
| 20 - 99 | $45.91 | $47.82 |
| 100 - 499 | $45.41 | $47.30 |
| 500 - 1499 | $44.91 | $46.78 |
2 more rowsTax Implications of Selling Physical Gold or Silver
Holdings in these metals, regardless of their form—such as bullion coins, bullion bars, rare coinage, or ingots—are subject to capital gains tax. The capital gains tax is only owed after the sale of such holdings and if the holdings were held for more than one year.
What is the cheapest way to buy silver coins? ›
Silver bars offer one of the cheapest ways to buy silver bullion, particularly for large amounts. With lower production costs compared to coins, the same weight of silver in a larger bar will typically be lower than that of multiple smaller coins.
Which silver eagle is rarest? ›
To date, the most valuable silver eagle is the 10th anniversary one from 1995. Barely 30,000 were issued so if you can find an MS 70 of this coin, you'll easily score $100,000 or more. Other good years are 2008 and 2015. But there's one rarer coin from 1998 that had errors.
How much silver can I sell without reporting Canada? ›
As a dealer in precious metals and precious stones, you are subject to PCMLTFA obligations once you engage in the purchase or sale of precious metals, precious stones or jewellery in the amount of $10,000 or more.
Is silver tax free in Canada? ›
Most Precious metal bullion in Canada is exempt from GST/HST provided the precious metals are defined as bars, ingots, coins, or wafers of gold, silver, platinum, which are refined to a minimum purity of 99.50% for gold and platinum, or 99.9% for Silver. Note: Palladium products ARE subject to HST/GST.
Will silver hit $100 an ounce? ›
Considering the factors mentioned above, it is possible that the price of silver could reach $100 per ounce in the future. However, there are no guarantees and it is impossible to predict when this will happen. Investors should always do their own research and make an informed decision before investing in silver.
Is it OK to store coins in ziplock bags? ›
A Ziploc bag or other plastic bag will most certainly contain some PVC, as do most inferior grade plastic products. A few years down the road, readers of this article who have followed Higdon's advice and used a baggie to store their coins may find their coins irrepairably damaged and much less valuable as a result.
It's fine to store your silver in a sealed zip-top plastic bag, but do not wrap it in plastic wrap or secure with rubber bands. Other storage options include flannel bags designed for silver storage or chests or drawers lined with a tarnish-resistant flannel such as Pacific Silvercloth.
Is it smart to save silver? ›
While silver can be volatile, the precious metal is also seen as a safe-haven asset, similar to its sister metal gold. Safe-haven investments can offer protection in times of uncertainty, and with tensions running high, they could be a good choice for those looking to preserve their wealth in difficult times.
What should you not use on silver? ›
Clean Silver with Dish Soap and Water
The key to cleaning silver without damaging it is to avoid abrasion. Cleaning silver with harsh abrasive products like chlorine bleach, or storing it using rubber bands and newspaper, is a no-no.
Is it better to save silver or gold? ›
Silver can be considered a good portfolio diversifier with moderately weak positive correlation to stocks, bonds and commodities. However, gold is considered a more powerful diversifier.
Can you keep silver on all the time? ›
Sterling silver jewelry can absolutely be worn every day! In fact, many people enjoy the look of sterling silver because it's understated and timeless. Plus, it's easy to care for and can be worn with just about anything.
Should you touch your silver coins? ›
Avoid handling your bullion if possible – keep your coins and bars in a safe storage place – this is the place where your coins and bars should be 99.9% of the time. If you need to handle your bullion, wear soft, lint-free cotton gloves or. Wash your hands and use hand sanitizers before touching your bullion.
What is the safest way to store silver? ›
Rather than storing them in water, though, it's recommended to store gold and silver in dry places like a depository, a safe deposit box, or an at-home safe. If you use one of those locations, consider putting your gold and silver in a waterproof container to be on the safe side.
What is the best container to store coins in? ›
Groups of Coins, or Collections are best stored in plastic coin boxes, such as sold by PCGS, NGC and Whitman, and which will hold 20, separated, “slabbed” coins, of any size. Another alternative is a cardboard coin storage box (single and double; red, blue or black), which stack easily on each other.
Will silver Skyrocket 2023? ›
Silver supply is expected to rise by 4 percent in 2023 to a new high of 1.055 billion ounces, which will be a new high, fueled by higher mine output.
What is a 2023 Silver American Eagle worth? ›
2023 1 oz American Silver Eagle Coin BU
| Quantity | Check/Wire | CC/PayPal |
|---|
| 1 - 19 | $47.41 | $49.39 |
| 20 - 99 | $46.91 | $48.86 |
| 100 - 499 | $46.41 | $48.34 |
| 500 - 1499 | $45.91 | $47.82 |
1 more rowSilver price stood at $23.46 per troy ounce
| Year | Mid-Year | Tod/End,% |
|---|
| 2024 | $30.81 | +40% |
| 2025 | $34.65 | +68% |
| 2026 | $43.78 | +89% |
| 2027 | $45.04 | +109% |
8 more rowsIf the Canadian gold maple leaf coin has more purity, why is the American Gold Eagle Coin more expensive? The two coins contain the same amount of gold. Because the Canadian coin is 24K gold, while the USA coin is 22K gold, the gross weight of the coin from the USA is higher.
Should I buy silver bars or coins? ›
Cost-Effectiveness
Silver bars tend to be more cost-effective than coins when purchasing the same amount of metal. This is because they typically come in larger sizes than coins, so you can buy more for your money. For example, a 1 oz silver bar may cost less than ten individual 1/10 oz silver coins combined.
What is the best way to buy silver coins? ›
You can purchase silver through local dealers and pawn shops or online dealers such as APMEX or JM Bullion. More specialized dealers allow you to purchase whole bars rather than just coins.
Why are silver maple leafs cheaper than Silver Eagles? ›
So, why is there a price differential? It all comes down to collectibility and investor demand. There are far more people who collect Silver Eagles over Silver Maple Leafs. This makes the demand for the coin higher, so most dealers charge a slightly higher premium.
How much should I sell my Silver Eagles for? ›
Sell to Us Price: $32.88 each. Sell to Us Price: $32.88 each.
How much are Silver Eagles worth today? ›
What is the price of Silver Eagle coins today? The current ask purchase prices for a one ounce Silver American Eagle is: $34.05. The best reference for today's up to date prices for American Silver Eagle Coins is above. For a comparison of Silver Eagles prices to other silver coins, refer to Monex' Live Prices page.
Are Silver Eagles taxable? ›
Are Silver Eagles taxable? Purchasing silver is not taxed in the United States, unless it is at the state level, nor is the sale if it is sold at a loss. If it is sold for a profit, a federal capital gains tax will apply.
Do banks sell Silver Eagles? ›
Yes, you can buy American Silver Eagle coins at a bank. The U.S. Mint indicates that it sells Silver Eagles to authorized purchasers. These “authorized purchasers create a two-way market buying and selling to wholesalers, financial institutions, and other secondary retailers.”
Are graded Silver Eagles worth more? ›
In general, the MS70 grade retails at about 2 to 3 times the cost of a raw coin while the MS69 grade retails at about 1.5 to 2 times the cost of a raw coin. Unfortunately, these graded coins only have a "one-way-market" from the big national coin dealers to the consumer.
The affordability of silver makes it possible for anyone to buy small quantities regularly to build a sizeable portfolio over time. As a result, many experts recommend a precious metal portfolio that ideally consists of 75% gold and 25% silver.
What is the lowest production Silver Eagle? ›
Important to know, the lowest mintage for a bullion coin is the 1996 Silver Eagle, at 3,603,386.
