About 2 weeks ago I made an odd spontaneous purchase.  Littleton coins had a special deal on American Silver Eagle coins – just $15.95 per coin, limit 5.  I went ahead and placed an order for 3 coins.  Luckily for me the website timed out during my order, and it resulted in a double order.  I paid for, and received, a total of six coins.

What is an American Silver Eagle?

An American Silver Eagle is a 1 troy ounce .999 pure silver bullion coin.  It’s the only silver coin that has it’s silver content guaranteed by the United States Government.  Face value for a Silver Eagle is a cool $1, and it is legal tender.  I wouldn’t recommend spending it on a soda though, as it’s worth far more than one measly dollar.  The current spot price of silver is $17.85 per ounce as I write this.  Silver Eagle coins generally sell for a small premium over the spot price, since it’s in the form an attractive coin instead of a lump of silver.  Currently, the US Mint sells uncirculated Silver Eagles for $21.95 apiece.  When you look at it that way, I got a heck of a deal – 27% off retail!

Silver Eagle Proof

That gorgeous coin you see in this post is the more expensive proof version, which I didn’t get.  I purchased uncirculated coins – still beautiful, just not quite so shiny. 

Silver Eagles as an Investment

I did give one to my son ( in lieu of his $10 weekly allowance ).  That was after educating him on it’s value, so he doesn’t spend it on candy   He actually chose the coin over the $10, with this remark – “The coin will be worth more money later, and the $10 bill will still be worth $10 right?”  Eight years old and he already understands the concept of investment.  Of course there’s no guarantee that silver will go up in value, but I think there’s some upward movement left before prices drop again.

I still have 5 ounces of pure silver in my possession, and I have to say it’s pretty neat.  Though I do current have some money invested in precious metal mutual funds, nothing beats having a little stash of the shiny stuff at home in the safe.