The American Silver Eagle: A Classic American Silver Investment Coin

The American Silver Eagle is a classic American silver investment coin. The American Silver Eagle began minting in 1986 with the passing of the Liberty Coin Act of 1985 (formally Public Law 99-61).

Although this United States Mint silver dollar has a face value of one dollar (1 USD), its melt value and high demand make it worth significantly more.

The design originated in 1916 and was the obverse head side design on the silver Walking Liberty half-dollar from 1916 to 1947. The artist behind the half-dollar design which is now shared on the American Silver Eagle was Adolph A. Weinman.

The American Silver Eagle has been minted in various versions such as Bullion, Burnished, Uncirculated, Proof, and Reverse Proof at the West Point Mint, San Francisco Mint, and the Philadelphia Mint. Since 2001, most versions have been minted at the West Point Mint.

The United States Mint produces versions of this coin in silver, gold, and platinum. The gold version is commonly called an American Gold Eagle, while the platinum version is called the American Platinum Eagle. 

Throughout the years of production, these American Eagle coins have only experienced one significant design change on the reverse tails side and a slight change on the obverse side. The reverse side changes are often referred to as type-1 and type-2.

The type-1 reverse design is the John Mercanti heraldic eagle and it was minted from 1986 to mid-2021. Mercanti’s design was his take on the U.S. coat of arms known as the Great Seal of the United States.

The type-2 reverse design is the Emily S. Damstra and Michael Gaudioso flying eagle minted from mid-2021 through today.

The American Silver Eagle has remained one of the leading silver coins sought after and traded worldwide. It is truly an American treasure and a silver investment item.

Are American Silver Eagle coins a good investment?

Until recently, American Silver Eagle coins have been a bad investment. The United States Mint was charging upward of $10 to $18 over the silver spot price for each coin.

This meant retailers also had to add a higher premium to each coin to sustain a profitable business.

The average silver spot price has not changed much over the past 10 years, remaining relatively around $20 per troy ounce with a +/- of $4.

So, considering that some people were paying close to $40 per American Eagle silver bullion coin, it would take quite some time before they could ever see a profit.

That made the American Silver Eagle a bad investment for quite some time.

However, the U.S. Mint has finally turned things around and reduced their premiums on American Silver Eagles.

Today, the premium for each of these silver bullion coins is closer to $5 per coin. With this pricing, it is more likely that a silver investor can make a profit within a few years.  

With the recent silver spot price hovering at $23 to $24 per troy ounce, a quality American Silver Eagle coin can be purchased for around $30.

This makes the American Silver Eagle a good investment - at least for now.

 

How Much is an American Silver Eagle Worth?

If you want a good rough estimate of how much your American Silver Eagle is worth, take a look at the current silver spot price and add $2 to $5. To find out how much return on your investment you made, then minus the amount you paid for the Silver Eagle.

By the end of 2024, your American Silver Eagle could be worth significantly more than it is today.

When you sell your American Silver Eagle bullion coins on the secondary market, you can typically expect a return higher than the current silver spot price at the time of the transaction.

This additional premium return for each of these Silver Eagles is usually $2 to $5 over the spot.

As long as your silver American Eagle coin is not a Proof version or a collectable numismatic coin with some special characteristics or rare value, you can expect these average additional premiums over the spot price.     

Many precious metal enthusiasts, economists, silver stackers, and market analysts are predicting a sharp rise in silver in 2024. Some speculate that it could reach a range of $27 to $35 per troy ounce.

This increase in the silver spot price is because there has been both a natural and artificial increase in the demand for silver.

On one hand, the natural demand for silver has been due in part to the decreased purchasing power of the US dollar (USD) and the increased demand for more technological and industrial uses of silver.

On the other hand, the artificial increase in the demand for silver has been credited to the government’s push for more technologies that utilize silver such as solar energy, bombs, weapons of war, semiconductors, LED chips, and electric vehicles.

All of this plays a role in the value of silver and an American Silver Eagle.

So, if the price of silver increases as anticipated, those who own American Silver Eagles could see significant returns on investment relatively quickly.

If the price of silver gets up to a minimum of $27 per ounce while the premiums of American Silver Eagles remain around $2 to $5, each silver coin would likely provide a payment of $29 to $32.

And if the silver price reaches even higher, you can be confident that you’ve likely made a profit if you bought an American Silver Eagle in 2024.

With spot prices expected to rise and while the premiums remain low, now is a good time to buy American Silver Eagles.      

What Are Some Alternative Silver Investments to American Silver Eagles?

When it comes to investing in silver, there are plenty of better investment options than the American Silver Eagle.

If you want to maximize your potential returns on a silver investment, it is best to buy as large of silver bullion bars as possible.

Bullion means the precious metal is pure like 99.9% purity or often written as .999 fine, and that the silver item is primarily valued for its melt value.

The larger the silver bullion bar is, the lower the premium tends to be. With larger bars and lower premiums, this maximizes your ROI potential. 

If you do not want to buy silver bars, and your heart is set on buying a silver coin but you want lower premiums than the American Silver Eagle, consider purchasing a 1 oz Walking Liberty Silver Round. Instead of being produced by the government, they are minted by a private mint.

These iconic Adolph Weinman design silver bullion rounds look almost exactly like the US Mint American Silver Eagle, but they have no legal tender currency face value and are priced closer to their spot melt value.

These one troy-ounce silver rounds are valued primarily for their silver melt value, and the premium on a 1 oz Walking Liberty silver round is currently around $2 to $3.

With the option of investing in either silver bullion bars or silver bullion rounds, you can expect lower prices, lower premiums, and higher returns than buying the American Silver Eagle.

No matter how classic or in demand the American Silver Eagle may be, for some investors their returns are more important. 

Disclaimer : Above mentioned article is a Consumer connect initiative. This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever.