If you are considering ways of offsetting riskier investments, or you just hope to protect wealth from any further upheaval in the markets, you may want to look past the “typical” or standard investment vehicles. Such as? Well, there are many investors who have made a point of building a rare silver coin collection that offers a lot more than just the market price of silver.

Understanding How to Use a Rare Silver Coin Investment

When you invest in the precious metals it is usually done through the purchase of bullion. Some investors also elect to invest in funds backed by precious metals or even in mining ventures, but for the most part it is done using the actual metals.

Now, this does extend protection to wealth because the precious metals rarely lose value over time. However, there is a more efficient way of benefiting from an investment in the metals, and that is through the purchase of rare coins made from these metals.

Independent from the Market

As a fine example of this, we can turn to the rare silver coin known as the Morgan dollar. These were made during the 1800s and for a single year in the 1900s. They were used as a clever way of controlling the market price for silver because the United States had experienced a tremendous surge in silver production and discovery.

So, the coins did not always make it into circulation in great numbers. While some years did get released by the millions, some went directly into vaults and remained there to be destroyed and used for other coin making.

This makes some years of the Morgan silver dollar very rare. It is also why some of them, though they are a rare silver coin, are worth little more than their precious metal contents. It is also why some of them are worth tremendous sums.

Their rarity and scarcity increases their value substantially, and this means that even a single, well-chosen, rare silver coin can easily offset risk in the portfolio. Consider that their value comes from scarcity, and this makes them independent from the typical market. They hold value because there cannot be any more of them available at any time in the future. They become valuable only when collectors or investors sell them.

Thus, a rare silver coin has this primary value. It also has the protection of the value of the metal contents. This is the intrinsic value that is based purely on the silver in the coins. There is a third value – the extrinsic value – and this is the arbitrary value that comes from the amount the government assigned to the coin.

For example, the Morgan silver dollar is always worth a single dollar regardless of the value of silver or the value of the coin in terms of scarcity.

There are no other investment vehicles that offer this much value, and which guarantee the protection of wealth.

Choosing Your Coins

Now, you don’t have to build a large or complete collection of rare coins for them to have their highest values either. Though it is fun and exciting to attempt to purchase complete sets, many rare coins have values independent of the rest of their fellow coins.

So, whether your goal is to find a hobby that helps you to build wealth or to find an asset that offers nearly infallible protection against risk and loss, the rare silver coins are something to consider. They are widely available in many different types and formats and they can help you to balance your portfolio in a way that optimizes returns.