What a nice gift, you think as you open a box filled with 2020 silver dollars. It’s the first time you’ve seen a 2020 silver dollar—it’s not like you come across them in your daily routine. So it’s natural to have questions—are silver dollars really only worth a dollar, or, because they’re made of real silver, are they worth more? And if they’re worth more, could they make for a legitimate investment?
Here’s what you need to know before you start buying them in bulk.
Check with an expert
If you head to online gold and silver dealers, like SD Bullion, you can quickly determine the answer to your first question—No, silver dollars are not only worth a dollar. In fact, as of August 2020, a 2020 American Silver Eagle Dollar was being sold on SD Bullion for $38.60.
Here’s the thing—assets like gold and silver are considered “hard assets.” Their value is based on weight, and will always hold some value, even if it fluctuates moderately. This is different from investments in the stock market, which can soar or crash depending on everything from the outbreak of a global Pandemic to a wayward tweet from a political leader. When times seem uncertain, silver and gold can be viewed as “safe havens,” as they’re physical items you won’t just “lose” if all hell breaks loose in the wider world.
As such, the value of the silver dollar varies depending on its weight and current values of silver. That’s why it’s so important to get information from an expert on the most current silver prices. Experts, like SD Bullion, can also provide you with information on trends in silver pricing, and what you can expect from your investment over time.
Consider when you buy
Of course, the real value of your silver dollars may well depend on when you buy, and when you sell. “Investing in silver dollars is a good medium for entry-level investment options. It is affordable in comparison to other investments and helps you get a good return value,” says a Max G Publishing article.
Buying a couple of silver dollars isn’t going to make you a millionaire anytime soon. In order to see a steady, reasonable return, you’ll need to invest a reasonable amount. But if you do, you can count yourself among the many people who decide to invest in silver as a way to prevent their wealth from suffering from economic disruptions.
According to SD Bullion, “The last ten years of silver industry data prove that more individual investors across the world want to buy and hold silver bullion directly, own it firsthand entirely unencumbered to help ensure the fact that they indeed own it moving forward.” This “in your hands” investment ensures that if banks suddenly fail, you’ll still have an asset that you can buy, sell, or trade. And because more people want these hard investments, the value is continuing to rise, although it’s a slow-burn.
Many people hold onto investments in bullion for decades. If you’re looking for a quick return on investment, silver dollars might not be the right choice.
And how you sell
When you have an investment in-hand, the value is simply in holding it. You know what you spent for the item, and you’re hoping its value increases with time. As such, the true value of your silver dollars can only be determined based on when and how you sell them. This means you have to be smart about your sales.
Just as with any other investment, if you buy when the price is high, and you sell when the price is low, you’re not going to receive a return (or not much of one). And when you do find you need to offload a few dollars, it’s important to find a trader whose reputation is solid and whose prices are the best on the market.
SD Bullion is certainly an online vendor worth checking out as you price your sales. “We value your investment as much as you do, and our industry expertise allows us to provide you the best price when selling your metals to us, guaranteed. Our process is fast, simple, and efficient, allowing you to receive quick payment at industry-leading rates,” says the SD Bullion website.
So while it never hurts to head down to your local gold and silver store to see what your silver is worth, don’t sell your bullion without more research. Online companies cut out the middle-man, and may just be able to get you the best deal.