Fine silver proof coins are produced by the United States Mint. These coins are created for investment and collection, in addition to their primary usage for trade through the US money supply. Such coins can be obtained by direct purchase from the US Mint. Identification of coins as “fine silver” and “proof” confer a particular guarantee of quality and authenticity on the characteristics of these coins.
The term “fine silver” refers to the purity of metal contained in the coins which is 99.9% silver, with only one-tenth of a percent of their alloy containing some other metal. Proof is a guarantee of the coin’s finish. Values of fine silver proof coins are determined by their rarity, age and condition. Proof coins are designated as the finest the US Mint has to offer, and are hand-polished and specially treated to retain collectible value.
The problem with these types of coins is the investment value is determined solely by how much someone is willing to pay for the coin when sold. Since they are sold at a premium to the value of the silver contained, they are merely “collectibles”, and are harder to sell.
By contrast, silver bullion rounds are sold by authorized precious metals dealers. The value of a bullion round relies only on its weight and the current market price of the metal contained in it. A bullion round’s value reflects only the amount of metal it contains, while a fine silver proof coin may be more or less valuable than its precious metal content. Silver bullion rounds, like the widely collected Buffalo Round or the Incuse Indian, although containing 99.9% silver are not treated like those designated as proof coins.
As an investment vehicle, bullion rounds are more liquid and can be turned into cash at a moment’s notice. This is why silver bullion rounds are best for an easily cashed store of value.
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