This is one of the most frequently asked questions among new Canadian precious metal investors and rightfully so. It’s not always easy to understand what a good deal is and how to find them.
Take into consideration these five points to help you determine if the price of a silver bar or coin is low, high or right where it should be.
Consider Silver’s Spot Price
The spot price of silver is the current rate for one ounce of silver. As a commodity, the price of silver changes constantly. Finding silver available to purchase at the spot price is almost impossible since there are many costs incurred by silver dealers that still need to be factored in. The premium for a silver bar is usually 5–10% while a silver coin is usually 10–20%.
How to get a good deal: Buying silver products with low premiums as close to the spot price as possible is frequently a wise investment decision.
Consider the Silver Bar and Coin Production Location
Is the silver bar or coin produced here in Canada or at an unknown mint in a foreign country? Often, the precious metal products made by world-renowned mints command a slightly higher price as they have the history, reputation and production know-how to deliver consistently high-quality products.
How to get a good deal: If you can find silver products at low prices made by one of the world’s top 10 mints, you will likely fare well.
Consider the Design
You can buy a one-ounce silver coin made by the Royal Canadian Mint at a very fair price, considering the coin’s beauty and production precision.
Some silver coins and bars use registered trademarks to increase their popularity and sellability. This in turn raises the price of the product as the mint needs to recoup this cost.
Take for example this Star Wars-themed Mandolorian silver bar, which has a per-ounce price that is higher than many others. That does not necessarily mean it would be a poor purchase decision; it just means that its design and popularity will equate to a higher price today and likely in the future.
How to get a good deal: if you only care for the silver content and not the design, you can likely scoop up bars and less-popular coins to increase your investment profit potential. If you care for the design, choose designs that are timeless and very popular, while at low prices. These are likely going to increase as the popularity of the brands grow in the future.
Consider the Silver Product’s Rarity
Not all one-ounce silver coins can be purchased at the same price per ounce. Some have production at 50,000 annually, while others have low mintages or will not be made again, raising their retail price.
One of the most valuable silver coins in the world is the 1794 “Flowing Hair” silver dollar. Less than 1,800 were minted and only 100 or so exist today. The value of this one coin has been pegged at over ten million dollars. Not bad for a silver coin that weighs less than one ounce.
How to get a good deal: keep an eye out for older silver coins in great condition or silver coins with low mintages. Some coins have mintages as low as a few thousand, and could greatly spike in price with even moderate popularity.
Consider the Silver Bar or Coin Condition
A silver coin in a protective casing right from the mint often remains in brilliant uncirculated condition and depending on the quality of the production process can help to increase its value.
How to get a good deal: buy the recently minted coins and bars in near-perfect condition and do not remove them from their assay or plastic case.
For fair prices on a wide range of silver bars and coins available right now in Canada, visit Royal Bull’s shopping page. For exclusive deals on top bullion products visit our deals page.
