Silver Coins - What Is the Difference Between Silver Coins, Rounds, and Numismatic Pieces?

Silver Coins

While quite popular in the common market, owning coins and rounds is a costly way to invest in silver. Through VaultChain Silver, OneGold provides an alternative method of trading and owning silver through digital means via simple and intuitive investments.

Rounds vs. Coins and Numismatic Pieces

At a glance, silver rounds resemble silver coins, but you need to consider several differences. Silver rounds are usually produced by private companies and some government mints. They are discs of silver bullion that have been pressed with a logo, often with their weight and fineness labeled for simple identification. They are not recognized as legal tender. Because of their availability and unofficial status, rounds often cost somewhat closer to wholesale price than do coins.

Silver coins carry official markings, including their mint year and face value, which is normally lower than their bullion or melted value. Bullion coins will normally command a premium spot price over weighted rounds, reflecting their year of production and designs. They are also normally recognized as legal tender.

Numismatic coins are collectibles, and due to their rarity, allure, or noteworthiness, they are usually priced well above their bullion value. Due to these subjective measures of value, they are not recommended as a way of investing in bullion.

Silver Round and Coin Weights

One troy ounce is the most common way to measure coins and rounds, but some smaller weights are produced (such as tenth, quarter, or half ounce). One of the largest produced silver coins came from Australia's Perth Mint, a 22-pound silver coin with a $300 face value.

Popular Silver Coins

For comparison purposes, 1 troy ounce equals 31.104 grams.

Silver Spreads and Commissions

Since silver coins carry production and supply-chain costs, their retail price is over and above wholesale prices. Market prices for silver can be volatile, which means retail traders often charge wide spreads, reducing their risk and guaranteeing them a profit. Traders also raise their prices because silver is less expensive than gold. Buyers usually invest less money in silver, so traders mark up their prices to 5 or 10 percent above bullion value.

You can check on silver pricing and markups using the OneGold live price table, provided on the OneGold website. This table allows users to check the current silver market price and compare it with the price offered by traders.

Silver Sales Tax

Depending on location, individuals may pay sales tax on their silver coins and rounds. With VaultChain Silver, you pay no additional sales tax or VAT on silver bullion. The silver is stored at the Royal Canadian Mint (RCM), which is backed by the Government of Canada.

No minimum storage period and no penalty for cashing out funds exist. OneGold charges below the industry average for silver bullion storage, at only 0.12 percent of the bullion value. Investing in silver through OneGold is one of the safest and most secure ways to trade in silver bullion. You don't need to arrange security or insurance for silver investments.