Silver Bullion Coins

Standard features:

• Bought and sold at prices that are not fixed but based on the Silver market price. This enables the coins to be traded by dealers and investors as Silver investment products at prices that reflects the international Silver price.
• Mass-produced in large quantities. This normally ensures that the premiums at which they are traded above the value of their fine Silver content are relatively stable.
• Legal tender coins in their country of issue. Like all coins, their technical specifications are guaranteed by national Acts and regulations.
• Nominal or no face values. Whether issued with or without monetary face values, their market value is directly related to the value of their fine Silver content. Most Silver bullion coins, issued around the world, are denominated in troy ounces, or parts of an ounce.

The most popular coins for our clients are the 1oz Canadian Maple, 1oz Australian Kangaroo and the 1oz Austrian Philharmonic.

The purity of these coins can be either .999 Silver (US Eagle, Philharmonic) or .9999 (Canadian Maple, Kangaroo)

A quick summary of the factors that affect the premium and spread on bullion coins.

1. Premium Components:
   • Refining and Manufacturing: The cost of converting raw Silver into coins, including minting and quality control.
   • Delivery: Transporting the coins to the dealer, which may include shipping, insurance, and handling costs.
   • Dealer Overheads: Operating expenses such as storage, security, Labor, and marketing.
2. Market Availability:
   • A scarce coin or one in high demand may carry a higher premium due to limited availability or rarity, even if the Silver content is standard.
3. Volatility and Spread:
   • During periods of high price volatility, dealers may widen their spreads (the difference between buy and sell prices) to compensate for the increased risk in fluctuating Silver prices.
4. Taxes and Duties:
   • Local duties, sales taxes, or VAT (where applicable) can be factored into the price. Some dealers absorb this into their pricing, while others itemise it separately.
5. International Transfers:
   • If transferring bullion across borders, customs restrictions, import taxes, or other regulations may come into play, potentially complicating the transfer or increasing the cost.