Top 10 Factors Affecting Silver Coins Value Today
Compared to gold market, silver investing is a much smaller in volume marketplace that could be easily affected by multiple factors. Silver coins value is considered very much more volatile than the value of gold coins. Despite the fact that silver is a much rarer metal than gold, certain unique factors might significantly affect its current value.
It’s important to understand that silver bullion coins and numismatic coins might have different factors driving these silver coins value. Whether you own popular bullion coins, less common Mexican silver coins or junk silver dimes, these should be evaluated on a case by case basis. The value for bullion silver coins value is more dependent on the actual price of silver they follow; however, numismatic coins value calculation is much more complex.
If you are wondering how your American Eagle silver bullion coins or Chinese silver coins are holding up, read below to find out which top 10 factors are the driving mechanisms for silver coins value.
1. Effect of large investors. This is a crucial factor that many investors tend to overlook when it comes to assessing silver coins value. Large investing funds or groups can inadvertently affect silver coins value in the upstream or downstream deciding to purchase significant silver assets or, on the contrary, trying to sell them off. Many smaller investors do not have control over this but this should be taken into consideration when purchasing silver bullion coins.
2. Industrial applications of silver are limitless. Silver is a rare metal that is used in various industrial areas beyond jewelry making. Silver is necessary to produce solar panel cells, automotive, medical equipment and electronics.
3. Commercial demand for silver follows market trends. Silver is used widely in dental and medical field with more and more emphasis made on products that are silver based like clothing, computers, cell phones and many more.
4. Consumer demand is an important factor that needs to be taken seriously. If the consumer demand for certain silver coins is high, so is silver coins value. Consumer demand can change unexpectedly and is considered a very volatile factor.
5. Protection against devaluing currency is another essential factor that affects the silver coins value. When investors fears are in their highs, more and more investors are entering silver market and buying various silver coins, silver rounds and even junk silver coins to hedge against inflation.
6. Grade of coins is a factor that has more to do with assessing numismatic silver coins value other than bullion ones. Grade of the coins is basically the condition they are in. The coin grades range from gem mint to basal and could only be assessed by professional coin grading agencies or skilled numismatists. The higher the grade the higher is the silver coins value.
7. Rarity is a very tricky factor that goes into play when evaluating numismatic coins. The fewer the coins of this kind are on the market, the higher the value of a coin. Again, rarity could only be determined by professionals.
8. Collectors’ demand should also be taken into the equation when determining silver coins value. Even if your coin is rare and is in the mint grade, if there are no collectors wishing to buy it at the time for various reasons, your are not going to get a lot of money for it. Collectors’ demand is very unpredictable and can easily change over a course of weeks.
9. Aesthetic value and quality also need to be mentioned when speaking of silver coins values. For example, some love the design of Canadian Maple leaf coins or Mexican silver coins, while others find them distasteful and prefer only American Silver Eagle coins due to their unsurpassed beauty and quality. Tastes differ!
10. Unforeseen events of catastrophic proportions. These events could be anything that sends economy in a state of collapse and causes paper currencies to devalue like wars or natural catastrophes. If you look back into the history, you will be able to find instances of people trading even rare silver coins for a mere loaf of bread or a gallon of milk to survive.