How to Buy Authentic Silver Coins

The Morgan silver dollar is one of the most common semi-rare silver coins available.

Investing in precious metal coins can be both educational and rewarding. However, many coins made of gold or platinum are expensive. Silver coins, on the other hand, provide an inexpensive entry point into coin collecting. Yet as when purchasing any precious metal coin, the buyer needs to understand what to look for to confirm he is getting an authentic coin.

Things You'll Need

• Magnifying glass
• Coin reference book
• Computer
• Internet connection
• Phone

Instructions

Buying over the Internet

1. Use your computer and an Internet connection to access an auction website. Search for silver dollar coins. Peruse the listing results for silver coins with the title of "silver eagle" or "Morgan dollar."

2. Click on the link of a listing that meets the title of Step 1. Review the dollar amount asked for and look for a photo of the coin being sold. Move to another listing if there is no photo. Either open a second window in your browser software and look up a silver dollar reference website or open a coin reference book that covers silver dollars.

3. Compare on the Internet the market spot price value for an ounce of silver, the price range stated in your reference sources, and the auction price. Also take into account the shipping costs asked for. Review the seller's transaction history if possible. Confirm a bid and purchase if you are comfortable the seller is reliable and the price is fair. Use a major credit card for purchase protection if the coin shipped turns out to be inaccurate or not silver.

Buying in Person

1. Use a phone book or the Internet to identify shops that sell coins in your area. Obtain the address and call the store by phone to confirm their visiting hours (some are by appointment only).

2. Bring your coin reference book with you, along with a paper printout of the daily spot price of an ounce of silver from the Internet. Visit the shop and examine the wares after asking to see the silver coins in stock. Ask to see only government-issued silver coins such as silver eagles, Morgan dollars and silver quarters.

3. Compare the prices offered by the dealer to both your coin reference book data and the daily spot price for an ounce of silver (most U.S. dollar coins are one troy ounce of silver). Purchase the coin if you are comfortable with the price offered.

Tips & Warnings

• Some older silver coins have a sheen on them that may seem to be a bit yellow. This does not mean the coin is dirty. Silver coins tone over time, developing a yellowish color due to oxidation. This actually makes the coin more valuable. Never clean such a coin, as it will reduce the worth.

• Do not entertain any purchases of silver coins that are not government-issued. Many coins exist that were made by private organizations, and dealers will say they are pure silver. There is no way to confirm this as a buyer aside from melting the coin. Government-issued coins, however, have government precious metal values stamped on them.

References

• CMI: Buying Silver Bullion for Survival Purposes
• The Money Changer: The Ten Commandments of Gold & Silver Buying
• Christianet: Buy Silver Coins
• The U.S. Mint: American Eagle Silver Bullion Coins

Resources

• Coinflation: Silver Coin Melt Values