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Buy American Silver Eagles in Houston and San Antonio
The American Silver Eagle is one of the most desired bullion coins in the world. During it first year of minting in 1986, nearly seven million coins were sold, but by 2010 over thirty five million coins were purchased with nearly 260 million coins being sold since its inception.
American Silver Eagle Description
The American Silver Eagle is a 1 troy ounce coin, .999 pure silver coin, that was first minted on November 24th, 1986. It is the only silver coin whose weight and purity are guaranteed by the United States government. Additionally it is one of the few coins that can be held in retirement accounts such as IRA’s. This is also the only coin that dealers are not required to issue 1099s for when they buy them back from the public. The Silver Eagle has been produced at three mints: the San Francisco Mint, the West Point Mint, and the Philadelphia Mint. Although today they are only minted at the West Point and San Francisco Mint. Today they are the most sought after bullion investment coin in the world.
The front side of the coin was designed by John Mercanti. This side displays a heraldic eagle behind a shield. The eagle grips in his right talon an olive branch and in its left talon arrows, echoing the beautiful seal of the United States. Above the Eagles is thirteen five-pointed star representing the thirteen original colonies. On this side of the coin are inscribed the phrases: UNITED STATES OF AMERICA, 1 OZ. FINE SILVER~ONE DOLLAR, and E PLURIBUS UNUM.
On the flip side, the coin has always featured a rendition of sculptor, Adolph A. Weinman’s magnificent Walking Liberty Design, originally commissioned and executed for the Nation’s first circulating half-dollar in 1916. Inscribed on this side of the coin are the phrases: IN GOD WE TRUST, LIBERTY, and the year in which the coin was minted.
American Silver Eagle History
What originally pushed the American Silver Eagle coin into production were executive plans in the 1970s and 1980’s to sell of the Defense National Stockpile of silver. Most mining companies were afraid of what would happen if the government dumped such a large stockpile of silver all at once on the market. So in the end the United States government agreed to slowly sell of a portion of the silver in the form of the American Silver Eagle as authorized by the Liberty Coin Act of 1985. The American Silver Eagle bullion program stipulated that the silver use to mint the coins must be acquired from the Defense National Stockpile with the intent to deplete the holdings slowly over the next decade. By 2002 nearly all government stockpiles had been depleted and so Senator Harry Reid introduced bill S. 2594, which authorized the Secretary of Treasury to purchase silver on the open market once the silver stockpile was depleted. To this day, the American Silver Eagle coin is still minted and the investment demand for it grows every year.
American Silver Eagle Investment Purposes
The Silver Eagle coin can be a great coin to add to your investment portfolio, but it is important to note that it is not necessarily the best option for all investment goals. Lone Star Bullion is one of the most competitive silver eagle distributors in Houston, San Antonio, and across the nation. At Lone Star Bullion, we take a goals based approach to helping our Houston, San Antonio, and National clients determine whether or not silver eagles best fit their investment needs.
A great example of a time when it would not be a good idea to invest in silver eagles versus another form of silver bullion was back in the spring of 2010. Silver was at nearly $50 an ounce. Silver Eagle premiums were between $4-$5 with competitive dealers like ourselves and $6-$7 with local coins shops and dealers. Additionally silver bars and coins were only seeing premiums of $1.29-$2.00 over the spot price of silver. For an individual whose goal is to invest in physical silver for the short-term,(6 months-2 years) we were not recommending they buy silver eagles because of the massive premium difference between the two. At Lone Star Bullion we operate by a principle call the “Real Cost Principle.” We believe that investors should not only examine the cost of buying the physical silver, but also the buy back price they could potentially receive. At this particular time, our company was buying silver Eagles back at $2-$2.50 over spot and were buying back rounds and bars at spot to $.50 over spot. When we examine the real cost of the silver eagles versus the round or bars, we find that the bars or rounds were $1.50 cheaper, or nearly 3%.
On the other hand, there are other times like now when there is only a $.20-$.30 difference in the real cost of silver eagles and silver bars and rounds. In this case, our recommendation is to purchase the silver eagle. First, we recommend it because of the 1099 reporting exemption. Second, as the price of silver increases, the silver eagle has a historical track record of trading at a relatively consistent premium of 9-10% of the silver spot price. This means you potentially have an opportunity to make money on both the silver price appreciation and the premium increase on the silver coin. The final reason we would recommend going with the silver eagle in this case is the potential of the US Silver to Eagle to become a numismatic coin. Since it inception in 1986, there have been several times in which the silver eagle was nearly not minted. If the mint ever decided to stop producing the coins, investor would also have a numismatic coin on their hands.
How to Invest in Silver Eagles in Houston and San Antonio
Silver Eagles come in 20oz tubes or 500oz boxes called a “monster box.” At Lone Star Bullion we have a $1,000 minimum on silver so its important that your purchase at least be 50oz or more at a time. The reason for this minimum is that in the state of Texas if an individual purchases more than $1,000 of silver they do not have to pay sales tax so it is important to stay above that number. In effect you as an investor save $82.50 every time you buy over $1,000. Purchasing larger quantities enable you as the investor to get the largest discount on your investment. So if possible purchase 500oz or more at a time.
