Are American Silver Eagles a Good Investment?

Posted - June 13, 2023
Are american silver eagles a good investment

For a generation of investors, the American Silver Eagle has been the gold standard for numismatic bullion coins. With its storied history, high collectable value, and exceptional obverse/reverse designs, the Silver Eagle has become one of the most recognizable silver coins on the market. 

Are American Silver Eagles a good investment? And for that matter, what year Silver Eagle is best to buy? Hero Bullion’s got your back as you consider how the American Silver Eagle might fit into your investment portfolio. Today’s guide will walk readers through everything they need to know about investing in the U.S. Mint’s most famous silver bullion coin, the American Silver Eagle. 

Understanding American Silver Eagles

Most readers already know what the American Silver Eagle looks like. Even people outside of the bullion collecting community are likely to recognize the look and feel of the American Silver Eagle, which borrows its iconography from a long tradition of American coins from the historic U.S. Mint. Let’s take a closer look at the details behind the American Silver Eagle in this section. Are American Silver Eagles a good investment, given their recognizability and reputation? 

Government-Issued Bullion Coins

When we use the term ‘coin,’ we’re almost always referring to a government-backed bullion product. Usually, circular bullion items from private mints are called ‘rounds.’ The benefits of having government backing for a coin should be pretty clear to even the greenest bullion investors. Are American Silver Eagles a good investment because of their government backing? Let’s dive into a couple reasons why this might be the case. 

First, government backing helps to mitigate the risk of counterfeits. With a coin as popular and recognizable as the Silver Eagle, counterfeiters are always looking to make a quick buck from unsuspecting investors. But the support of a government-funded mint means that each coin is carefully minted with security measures to deter would-be counterfeiters from scamming consumers. 

It’s also worth mentioning that the large funding and public support allocated to government mints leads to a higher production value, consistency, and quality. Unlike with hit-or-miss silver rounds, silver bullion coins from the U.S. Mint are always going to deliver when it comes to look and feel.

2023 1 oz American Silver Eagle Coin Reverse
American Silver Eagle

Composition and Specifications

Let’s get the easy stuff out of the way. Are American Silver Eagles a good investment because of their silver content? The American Silver Eagle is minted using .999 fine silver, which is about as pure as it gets. The coin is adorned with American iconography and symbolism on both sides. On the obverse, we note Lady Liberty as depicted by celebrated mint artist Adolph A. Weinman. She’s wrapped in a flowing American flag as the sun rises behind her. Her traditional gown also flows as she walks, and she carries a bundle of olive branches. 

The reverse is where our coin gets its name. The latest version of the American Silver Eagle features a highly detailed image of a bald eagle in flight as it carries an oak branch. 

Historical Significance and Collector Appeal

The American Silver Eagle is likely the most famous of all the U.S. Mint’s silver bullion coins. For decades, the Silver Eagle has been a favorite for investors all over the world. There’s little reason to suggest that this historical popularity will wane in the next few decades, especially as new minting technology allows the U.S. Mint to release even more beautiful renditions of the classic coin. 

The coin also represents a fascinating period in American bullion history. It was first released in 1986 following a congressional objective to make use of the U.S. government’s stockpile of silver. The result? A uniquely American coin that managed to both captivate global bullion coin traders and represent the history and culture of our people. Are American Silver Eagles a good investment for fans of American history? We say yes!

Investment Potential of American Silver Eagles

Because of this unique historical story, as well as the pure silver content and the beauty of the coin’s design, the American Silver Eagle presents itself as an unprecedented addition to almost any investor’s coin collection. Are American Silver Eagles a good investment for future value appreciation? We’ll start with an overview of the historical price performance of this classic coin. 

Historical Performance of Silver

Are American Silver Eagles a good investment historically? The historical performance of silver is one reason why investors might flock to coins like the American Silver Eagle. Since the first release of the American Silver Eagle in 1986, the price of silver has increased by over 50%, climbing from around $14 to nearly $24 per troy ounce. While the price movement of silver is generally more volatile than other precious metals like gold, investors have been bullish on the future price possibilities for one of the world’s cheapest precious metals. 

Minted with .999 pure silver bullion, the American Silver Eagle is an excellent way to invest directly in the value of this precious metal. 

Factors Contributing to Investment Value

It isn’t just the spot price of silver that dictates the market value of a given American Silver Eagle. Investors interested in the Silver Eagle should also consider the numismatic value of the piece. Because of its unique history, unprecedented recognizability, and beautiful designs, the American Silver Eagle is generally sold with a high premium over spot. But are Silver Eagles a good investment for long-term investors? 

Over time, the value of an American Silver Eagle might also rise, especially as demand for older editions of the coin rises and supply falls naturally. All of these components contribute to the investment value of the American Silver Eagle, and potential investors should consider these factors before investing. 

Comparison with Other Silver Bullion Options

The American Silver Eagle is more expensive than some similar silver bullion products. If your question is, “are American silver eagles good investments for low-budget collectors,” you might consider looking at other silver products. Silver bars, for example, offer comparable amounts of silver without the high premiums associated with the Silver Eagle. Still, the Silver Eagle might make up for its high entry cost with an exceptionally impressive numismatic value. Even when the price of silver goes down, American Silver Eagles remain popular among buyers and resellers alike. 

Liquidity and Recognition 

Is it easy to sell an American Silver Eagle? While the full answer may depend on which Silver Eagle you have, the short answer is: yes! American Silver Eagles are highly liquid, meaning that it’s generally not hard to get rid of your stock of Silver Eagles for cash.

2000 American Silver Eagle Coin
American Silver Eagle Obverse

Market Liquidity 

The overall sales prospects of American Silver Eagles depend on multiple factors, including demand for silver and specific investor interest in this particular coin. If you wonder, “are American Silver Eagles a good investment for quick returns,” recent evidence suggests that you might be disappointed if you want a quick profit on an American Silver Eagle. However, the coin has historically performed very well on the secondary market. While you might have trouble finding a buyer familiar enough with a rare, privately minted silver round, there isn’t a silver stacker on the planet who doesn’t understand the historical value of the American Silver Eagle. 

In times of low silver demand, it might be harder to sell the American Silver Eagle than usual. This is something investors should understand and prepare for, even as they remain bullish on the future value of their Silver Eagle investments. 

Recognizability and Acceptance

Like we said above, everyone in the bullion industry knows what an American Silver Eagle looks like. Most investors have probably seen quite a few themselves. The American Silver Eagle is not only legal tender in the United States, but it also functions as an easy item to trade on the secondary bullion market. Like the Britannia or the Silver Maple, the American Silver Eagle is a big player in the world of international bullion trade, and you should have little trouble with recognizability and acceptance. Are American Silver Eagles a good investment if you plan to sell on the secondary market in the future? These are questions that smart investors ask before buying a new silver coin. 

Role in Diversified Portfolios

We always recommend that consumers diversify their bullion portfolios as much as possible. The American Silver Eagle can be a part of this process. Are American Silver Eagles a good investment choice to diversify your portfolio? In addition to having .999 pure silver per troy ounce, the American Silver Eagle adds some much-needed numismatic and collector’s value to your investment portfolio. Stacking coins along with rounds, bars, and other bullion products from various precious metals is always a wise diversification choice. 

Storage and Security 

If you choose to purchase American Silver Eagles as an investment, you should have a clear plan for how to store and secure your coins. It’s never wise to leave your coins in a place where they might get stolen or damaged. Are American Silver Eagles a good investment if you fail to take care of your coins? Probably not – that’s why we’ve put together a list of ways you can protect your silver coin investment for years to come. 

Safe Storage Options 

The last thing that any bullion investor should want is to worry about their coins being stolen or damaged. For small numbers of bullion coins, we recommend purchasing a safe to store them in. Once you’ve accrued a sizable amount of silver bullion, it might be wise to work with a bank or bullion company to have your investment stored in an actual vault. This might seem like overkill, but anything you can do to keep your investment safe and secure is a good choice. Are American Silver Eagles a good investment? Not if you don’t store them properly. 

Coin protectors and other storage items are also a must-have for coin collectors who keep their collections as investments. Hero Bullion is here to help – we sell several items that can help you keep your American Silver Eagles safe from accidental damage.

Insurance and Storage Considerations 

Homeowners insurance usually covers at least some of your bullion investments, but it doesn’t take much to hit the default limit for precious metals coverage. As your collection grows, it might be worth considering an addition to your existing insurance policy. Contacting your homeowners insurance provider is a good way to start the conversation. Remember, the more precautions you take, the less likely it becomes that your American Silver Eagles will be lost in the case of disaster or accident. 

Are American Silver Eagles a Good Investment?
American Silver Eagles

Market Risks and Factors

Regardless of which bullion products you prefer to invest in, there are always risks to investing in physical commodities. In this section, we’ll discuss some of the risks and disadvantages of investing in American Silver Eagles. 

Volatility and Price Fluctuations 

The silver market is historically very volatile. A cursory look at silver’s decades-long price charts should make this clear. The price fluctuations can be scary, especially for new investors. The good news is that the volatile market also allows silver stackers the opportunity to expand their collections for cheap when the price of silver crashes. 

“Buy high, sell low” is a saying uttered frequently on Wall Street, but it applies equally to gold and silver markets. Are American Silver Eagles a good investment? They’re certainly a favorite for collectors, but your investment is even safer if you buy at the right time. Savvy investors use low-points in silver’s spot price to continue stacking up profits. 

Economic Impact on the Silver Market

In times of economic security, the value of precious metals – including silver – generally declines. When times are bad, however, people often turn to silver in the midst of their economic insecurity. In other words, the economy directly affects the value of silver, and investors should be aware of the risks associated with silver before spending their money on American Silver Eagles and similar silver bullion products. 

Market Demand and Supply Dynamics

While demand for American Silver Eagles has always been relatively high, even the niche market of Silver Eagles experiences periods of decreased demand. Are American Silver Eagles a good investment given market demand? Supply and demand are economic laws, and learning to measure demand is something a smart investor can do to mitigate risk and maximize profits. 

The release of a large number of new Silver Eagles, for example, can lead to increased supply of new coins, but it might also increase demand for older coins. New designs have a similar effect but come with increased demand for new coins. These types of trends might be hard to get, but seasoned investors tend to develop a sense for when buying American Silver Eagles is a smart investment move. 

Expert Opinions

Numerous experts have weighed in on whether or not you should invest in silver eagles. According to leading industry experts, are American Silver Eagles a good investment or not? Investors with decades of experience have answered this very question. Read on to hear what financial professionals have to say about investing in American Silver Eagles.

Views from Industry Experts

Investment group Birch Gold explains in one article that American Silver Eagles are an excellent way to add to an existing precious metals IRA. Because the Silver Eagle holds both numismatic (or collectible) and physical metal value, they offer a relatively high potential rate of return on investment. Are American Silver Eagles a good investment for your future? Silver experts like Birch Gold say yes!

Research and Analysis

Before you choose to buy an American Silver Eagle, you have a bit of research to do. For example, do you know what year Silver Eagle is the best to buy? This question depends on your personal investment objectives. Maximal numismatic value usually comes from older versions of the coin, but newer American Silver Eagles might offer a lower buy-in price. Research can help us answer the question of the day: are American Silver Eagles a good investment? 

Carefully work to educate yourself on the ins and outs of investing in American Silver Eagles before making your first purchase. 

Consideration of Varying Perspectives

When asked “are American Silver Eagles a good investment,” Clint Siegner of the Money Metals Exchange cautions investors to be careful about diving head-first into investing in these popular coins. He argues that the high premiums paid on American Silver Eagles – which are at nearly 40% – make it much harder for investors to profit from their purchases in the future. 

While some investors remain bullish on the idea that American Silver Eagles will continue to hold extreme numismatic value in the future, others are not so sure. As a silver investor, you should carefully consider the opinions from both sides of this debate before making up your own mind. 

Final Thoughts: Are American Silver Eagles a Good Investment? 

We tend to consider American Silver Eagles a good investment opportunity for consumers interested in adding pure silver coins to their portfolios. While the coins do come with a high premium over spot, millions of bullion enthusiasts per year are happy to pay a premium in order to enjoy the security and historical value of the American Silver Eagle. Are American Silver Eagles a good investment for your growing portfolio? We tend to think so. 

Do you have questions about how American Silver Eagles might benefit your investment portfolio? We’re happy to help – contact our customer service team at any time to get customized, live feedback on your questions and concerns. 

About The Author

Michael Roets is a writer and journalist for Hero Bullion. His work explores precious metals news, guides, and commentary.