Q:

Can you make money out of buying and selling silver coins?

A:

Quick Answer

Silver coins are an investment, so while it's possible to make money buying and selling them, it also carries risk. To make money with silver coins, the investor needs a trustworthy silver dealer and knowledge of silver trading. Unless the investor has knowledge of collectible coins, it's usually better to invest in bullion coins.

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Full Answer

The value of precious metals is volatile with silver being more volatile than gold, so investing in silver coins isn't a reliable way to make money. The U.S. government and other governments mint bullion coins, which contain a certain amount of silver. These get their value from their silver content. Collectible coins, on the other hand, typically don't get value from their silver content. Since these coins are collectible items, their value can rise or drop quickly.

The U.S. Mint sells bullion coins and also has an authorized dealer locator on its website. When investing in bullion coins, a reliable dealer with a fair price is important because an investor who spends too much on the coins isn't able to make a profit. Collectible coins are available through coin collectors and private sellers. While an investor can make money by buying low on a collectible coin and then selling it for a profit, this requires knowledge of collectible coins and is unreliable.

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