Investing in precious metals like silver is becoming increasingly popular, and for good reason. Silver has a variety of uses, from jewelry to electronics, and its value tends to increase over time. One of the most popular silver coins for investors and collectors alike is the American Silver Eagle coin.
Here Is Why Silver Eagles Cost More
While its popularity is undeniable, many wonder why these coins cost more than other silver coins on the market. The reasons Silver Eagles cost more:
Silver Eagle Coins have high demand
Silver is more popular since Covid
Us Mint has rationed coins
More popular than Silver Canadian Maple leaf coin
Silver American Eagle Is A Good Investment
In this blog, we’ll explore the reasons why Silver Eagle coins are more expensive, including their high demand, quality standards, and unique design. Whether you’re a seasoned collector or new to the world of silver investing, understanding the factors that contribute to the cost of these coins can help you make more informed decisions about your investments.
What Is A Silver Eagle Coin And When Was It Created?
The Silver Eagle coin is a bullion coin that is minted and issued by the United States government. It is composed of 99.9% pure silver and has a face value of one dollar, although its intrinsic value is much higher due to the silver content. The coin features a design of Lady Liberty on the obverse and an American eagle on the reverse, which is why it is called the “Silver Eagle.”
The American Silver Eagle coin was first introduced by the United States Mint in 1986, following the passage of the Liberty Coin Act of 1985. This legislation authorized the production of a new silver bullion coin that would be issued by the US Mint and backed by the US government.
Since then, the Silver Eagle has become extremely well looked apon as far as bullion coins go in the world, sought after by investors, collectors, and numismatists alike.
Reasons Why Silver Eagles Cost More:
High Demand
One of the main reasons why Silver Eagle coins are more expensive than other silver coins is because of their high demand. The Silver Eagle is a very popular coin, not just in the United States, but also around the world. This high demand is due to several factors, including the coin’s reputation for quality and purity, its status as an official US government minted coin, and its unique design.
As a result of this high demand, the US Mint has to produce a large number of Silver Eagles each year, which requires a significant investment of time, resources, and manpower. Additionally, many investors and collectors are willing to pay a premium price for the coin, which further drives up its cost.
In short, the high demand for Silver Eagles means that there is a limited supply of these coins available, and the market is willing to pay more for them. This is a basic principle of supply and demand: when the demand for a product is high, and the supply is limited, the price will increase. That is why Silver Eagle coins cost more than other silver coins, as their high demand has created a premium price that reflects their popularity and value.
Silver More Popular Since Covid
It is true that the Covid-19 pandemic has increased the popularity of silver as an investment, and this increased demand for silver has also impacted the price of Silver Eagle coins.
Silver has long been considered a safe haven asset that can protect investors’ portfolios against inflation and economic uncertainty. During the pandemic, many investors turned to silver and other precious metals as a way to hedge against the economic volatility and uncertainty caused by the crisis.
This surge in demand for silver has resulted in higher prices for the metal, and this, in turn, has affected the price of Silver Eagle coins. Since the coins are made of pure silver, their value is directly tied to the price of silver in the market. As the price of silver increases, the cost of producing Silver Eagles also goes up, which is reflected in their higher price.
Furthermore, the pandemic has led to disruptions in the global supply chain, which has affected the production and distribution of many products, including Silver Eagle coins. This has created further shortages and increased demand for the coins, which has also contributed to their higher price.
In summary, the increased popularity of silver as an investment during the Covid-19 pandemic has led to higher demand and prices for Silver Eagle coins, as well as other silver products. As silver continues to be viewed as a safe haven asset by investors, the demand for Silver Eagle coins is likely to remain high, which will continue to impact their price.
US Mint Rationed Coins
Another reason why Silver Eagle coins can cost more than other silver coins is that the United States Mint has at times rationed the production and distribution of these coins. This has typically occurred during times of high demand, when the Mint is unable to keep up with the number of orders for the coins.
When the US Mint rations the production of Silver Eagles, it limits the number of coins that authorized dealers can purchase, which can create a shortage of coins in the market. This, in turn, can lead to higher prices for the coins, as investors and collectors are willing to pay more to obtain them.
The rationing of Silver Eagles has occurred several times in recent years, most notably in 2020, when the Covid-19 pandemic disrupted the production and distribution of many products, including Silver Eagles. The US Mint had to shut down production of the coins temporarily, which led to a shortage of coins in the market. As a result, prices for Silver Eagles increased, as investors and collectors competed to obtain the limited supply of coins that were available.
More Popular Than Silver Canadian Maple Leaf Coin
While the Silver Canadian Maple Leaf coin is also a popular silver bullion coin, the American Silver Eagle is widely considered to be more popular and sought after by investors and collectors. There are several reasons why this is the case, and this higher demand for American Silver Eagles can contribute to the higher price of these coins compared to the Silver Canadian Maple Leaf.
One reason why the American Silver Eagle is more popular than the Silver Canadian Maple Leaf is its unique design. The American Silver Eagle features a design of Lady Liberty on the obverse and an American eagle on the reverse, which is widely regarded as a classic and iconic design. This unique design has helped to make the American Silver Eagle a favorite among collectors, and has contributed to its high demand.
Another reason why the American Silver Eagle is more popular is that it is an official US government-issued coin, while the Silver Canadian Maple Leaf is created by the Canadian government. Some investors and collectors may prefer the perceived security of owning a coin that is backed by the US government, which may contribute to the higher demand for American Silver Eagles.
Finally, the American Silver Eagle has a longer history than the Silver Canadian Maple Leaf. The American Silver Eagle was created in 1986, while the Silver Canadian Maple Leaf was not around until 1988. This longer timeframe has given the American Silver Eagle more time to establish itself as a popular and iconic coin, which may also contribute to its higher demand and higher price.
Silver American Eagle Is A Good Investment
There are several reasons why a Silver American Eagle coin can be a good investment for those looking to add precious metals to their portfolio:
Purity: The Silver American Eagle is composed of 99.9% pure silver, which makes it a reliable and trustworthy source of investment. Its purity is guaranteed by the US government, which provides investors with added assurance that they are getting a high-quality product.
Liquidity: The Silver American Eagle is widely recognized and accepted by precious metal dealers and investors worldwide, which makes it a highly liquid asset. This means that it can be easily sold or traded for cash or other assets at any time, making it a flexible investment.
Value: Silver has a long history of maintaining its value and increasing in price over time. As a result, Silver American Eagle coins can serve as a hedge against inflation and economic uncertainty, which makes them a valuable addition to any investment portfolio.
Collectibility: The Silver American Eagle is not only a bullion coin but also a collector’s item. The coin’s unique design and status as an official US government-issued coin make it a sought-after piece for collectors, which can contribute to its long-term value.
Diversification: Investing in Silver American Eagle coins can help diversify an investment portfolio. Adding precious metals like silver to a portfolio that includes stocks, bonds, and other assets can help spread out risk and potentially increase overall returns.
In summary, the Silver American Eagle coin can be a good investment due to its high purity, liquidity, value, collectibility, and potential for diversification. These factors make it a popular choice among investors and collectors alike who are looking for a reliable and valuable investment option.