Are Peace Silver Dollars a Good Investment?

When new investors think about the most valuable coins to put their money in, images of the American Silver Eagle, the Britannia, and the Silver Maple Leaf invariably come to mind. While all of these coins have proven records of excellent stores of wealth, they certainly aren’t the only options available to people who value a diversified precious metals portfolio. Today, we’re taking a look at a different option – the Peace Silver Dollar. 

Older coins with numismatic value might also be a good way to expand your portfolio. These coins often have impressive collectible value, and they also function as little time capsules into exciting periods of coinage history. 

The Peace Silver Dollar is one such coin. With its unique place in history and beautiful antique designs, it has established itself as a favorite for collectors of old silver coins. Today, we’re going to take a close look at how valuable Peace Silver Dollars are for the average silver portfolio. Are Peace Silver Dollars a good investment? Read on to find out the Bullion Academy’s take on this popular question. 

Understanding Peace Silver Dollars

The Peace Silver Dollar, also known as the Peace Dollar, is a circulated coin minted by the United States Mint from 1921-1935. In 2021, the mint revealed that they’ll be releasing new bullion versions of the famous coin. This section will break down the historical significance and core characteristics of the Peace Dollar. Why are Peace Silver Dollars a good investment? Our answer begins with a discussion of the coin’s fascinating history. 

Historical Background and Significance

To respond to the peaceful conclusion of World War One and to make use of their massive stockpile of government silver, the United States Mint commissioned the design of the Peace Dollar in 1921 at the request of the U.S. Congress. You can clearly see why this coin hits the spot for investors with a taste for American history and classic coinage. Are Peace Silver Dollars a good investment because of their historical significance alone? Probably not. Investors should take a closer look at the characteristics and specifications of the Peace Silver Dollar to know if the coin is right for them. 

Characteristics and Specifications 

The obverse of this historical coin depicts Lady Liberty as reimagined by artist Anthony de Francisci. She’s shown wearing a large crown as her hair flows behind her. Flip the coin over to reveal a classic American symbol, the bald eagle, as it perches and watches a rising sun in the distance. Both sides of the coin represent the best the U.S. has to offer, and the timing of its release invokes both the drama of World War One and the optimistic peace that followed.

The coins were struck with .900 pure silver bullion for their fourteen-year run. In 2021, the U.S. Mint unveiled plans to release new .999 pure silver bullion editions of the classic coin, to the excitement of millions of bullion investors. Are peace silver dollars a good investment because of their pure silver content? When we combine silver melt value with the numismatic value of the Peace Dollar, a bigger picture of its investment value begins to emerge. 

Factors Influencing Value

Value for a Peace Dollar depends on a number of important factors. This isn’t just about the silver content of the coin, although the melt value of a Silver Dollar does pin its base price to the spot price of silver and provides intrinsic value to the coin. The rarity of a Peace Dollar influences its total value over spot, as does the condition of the coin. If you’re trying to figure out the answer to, “are Peace Silver Dollars a good investment,” an understanding of the pros and cons of this coin might help. 

Pros of Investing in Peace Silver Dollars

It’s no secret that Peace Silver Dollars draw investors to them every year. Why do experts consistently answer ‘yes’ when asked, “are Peace Silver Dollars a good investment? Their historical value and collectability allows investors to diversify their portfolios with a certified piece of American history. This section will focus on some of the main advantages of investing in Peace Dollars. 

Rarity and Collectability 

Are Peace Silver Dollars a good investment for numismatic appreciation? Their rarity and collectability is a major contributor to the coin’s continued success, even a hundred years after the U.S. Mint released the first Peace Dollar into circulation. Not all Peace Dollars are rare. The more common coins were minted millions of times and have been circulated extensively, making them only slightly more valuable than the silver they contain. 

But some Peace Silver Dollars were minted in extremely limited quantities, making them potentially worth thousands of dollars to the right collectors. 

Potential for Price Appreciation 

Potential price appreciation is the name of the game for investors who view silver as a path to their financial futures. In this respect, Peace Dollars have a lot to offer. Are Peace Silver Dollars a good investment for long-term time horizons? To start with, the coin is struck with a sizable amount of pure silver. When silver’s price rises, the base price of a Peace Dollar also increases.

But in addition to its intrinsic silver value appreciation, Peace Dollars might appreciate in numismatic, or collectable, value. The extent to which a coin appreciates depends on the specific year and rarity of the piece, but some of the rarest Peace Dollars have doubled or tripled in value in just a couple of decades. 

Diversification Benefits

Silver Dollars are also a good way to diversify your portfolio. When savvy investors ask, “are Peace Silver Dollars a good investment,” they really want to know what role these coins play in a diverse, healthy investment portfolio. We like to recommend classic numismatic coins for investors who are currently too reliant on common bullion coins like the Silver Eagle or the Britannia. In addition to benefiting from short and long term appreciation in the cost of silver, buyers who integrate the Peace Silver Dollar into their collections might also gain net worth as the collectable value of their coins increases. 

Potential Tax Advantages

Numismatic coins are considered tax-deferred until you actually sell the coin. While this means a tax bill at the end of your investment journey, coins like the Peace Dollar allow investors to avoid paying the taxes they’d pay on other investments, such as the yearly dividend taxes applied to traditional paper stocks. Are Peace Silver Dollars a good investment for tax purposes? Depending on the specific coins you buy, you might pay fewer taxes for a Peace Dollar upon sale than you would for a bullion coin like the Canadian Silver Maple. 

Cons of Investing in Peace Silver Dollars

No investment strategy is completely sound. Take a look below at some of the commonly cited downsides of investing in Peace Dollars. Why are Peace Silver Dollars a good investment for some investors but not others? This has a lot to do with the downsides of this investment option. 

Market Volatility 

Volatility is an unavoidable part of the silver market. Silver prices are less stable than gold price trends; the value of silver can dive (or climb) sharply and without much warning. Smart investors balance and diversify their precious metal holdings to account for the risks of volatility provided by silver coins. Are Peace Silver Dollars a good investment to mitigate market volatility? Ultimately, buying Peace Silver Dollars means investing in silver, which is an inherently volatile market. 

Challenge in Authentication and Grading 

Peace Silver Dollars aren’t quite as recognizable as newer U.S. silver coins. Because of this, it might sometimes be difficult to guarantee the authenticity of a coin you buy or sell. Grading presents an additional challenge. With the age of Peace Dollars, many of them are extremely damaged or sold in poor condition. Hiring a professional grading service may be one way to guarantee that your coin’s condition is accurately detailed before selling. 

High Transaction Costs

Peace Silver Dollars sell for over the spot price of silver. Some of these coins can actually come with hefty premiums over spot, which eats into your silver-exclusive profits. If your primary investment interest is in silver itself, consider staying clear of expensive numismatic circulation coins like the Peace Dollar.  For investors with this mindset, silver bars may be a better choice. 

Limited Liquidity 

Selling a Silver Britannia or a silver bar is an easy process because of how many investors are looking for these coins and the relatively high condition of most modern silver products. For Peace Dollars with varying grades, conditions, and rarities, finding a buyer is a much more hands-on process. While taking certain steps, like researching fair prices and properly maintaining your investment, can speed the process up, the fact is that Peace Silver Dollars are not as consistently liquid as other bullion silver investments.

Factors to Consider When Investing 

Investing in silver is a serious decision that can impact your precious metals portfolio significantly. Below, you’ll find four main considerations that a savvy investor will keep in mind before buying a Peace Dollar. 

Condition and Grading Standards

The condition of your coin should be one of your first concerns. A Peace Silver Dollar in fantastic condition is much likelier to appreciate in value over time than a poorly graded one. While condition and grading isn’t the only factor in the value of a coin, collectors like to be discerning when they pick which coin to buy. Common coins in bad condition might be worth almost only their silver content value. Why are Peace Silver Dollars a good investment, according to leading bullion experts? The answer has a lot to do with market demand and price trends, which we’ll cover below. 

Market Demand and Trends

Measuring the market of silver is a good way to answer the question: are Peace Silver Dollars a good investment? If the spot price of silver is low, you might score a great deal on this historically and numismatically valuable silver coin. In times of high market demand, it could be harder to get your hands on a Peace Dollar in reasonably good condition. 

Research and Due Diligence 

Research is your best friend when buying a new type of silver product. Take some time to familiarize yourself with the common coins being bought and sold within the Silver Dollar market, and then start tracking demand over time. There are online marketplaces and silver investment tools to help you as you start researching. Don’t stop your search at the coins themselves; spend time researching different coin dealers to find which ones are the most reputable and provide the best deals on Peace Dollars. 

Long-Term Investment Horizon 

Which is the best Peace Dollar to buy? Part of the answer to this question depends on your investment horizon. Are you looking to profit in the short-term from the volatile silver market? If so, then the cheaper the Peace Dollar, the better. After all, every Peace Dollar except for the 2021 version will contain .900 pure silver that can be melted down or sold at/near spot price. But if you’re in it for the long haul, investing in valuable, numismatically expensive coins may be a better bet. 

Risks and Challenges

Every silver investment option comes with considerable risks and challenges. What challenges might investors face when investing in a Peace Dollar? 

Counterfeiting and Fraud Risks

There is an untold number of counterfeit Peace Dollars out there. Because this coin was originally minted before the U.S. Mint developed some of its modern anti-counterfeiting security technologies, fraudsters have successfully flooded the market with fake versions of the beautiful silver coin. You run the risk of falling victim to counterfeiting each time you buy a new silver coin, and the Peace Dollar is no exception. 

To mitigate this risk, study up on the features included on genuine, authentic Peace Silver Dollars. If anything seems strange or wrong, don’t be afraid to request a certificate of authenticity from your licensed bullion dealer.

Fluctuations in Precious Metal Prices

Are Peace Silver Dollars a good investment during volatile market periods? These coins are intrinsically valuable partly because of their silver content. While this fortunately means that Peace Dollar investors profit when silver becomes more valuable, it also makes them susceptible to the unpredictable tides of the market. Mitigating the volatility of the silver market requires investors to take steps to diversify their portfolio – preferably with different precious metals. 

Lack of Guarantees or Insurance Coverage

Unlike pure bullion coins, it can be difficult to find insurers for numismatic circulated coins. You also won’t be buying your Peace Silver Dollar directly from the United States Mint, which means you don’t have the guarantee of the federal government to back your investment. Are Peace Silver Dollars a good investment, despite the lack of a backing of the U.S. Mint? We recommend purchasing additional insurance coverage if you plan on buying a large number of valuable silver coins, including Peace Dollars. 

Tips for Investing

Investors should be familiar with strategies for smart investment before purchasing Peace Silver Dollars. 

Diversify your Numismatic Portfolio

Even among numismatic coin portfolios, diversification is key. While we recommend investing in a mixture of numismatic and pure bullion coins/bars, investors should make sure they aren’t putting all of their eggs in the Peace Dollar basket. If the price of silver tanks, the only thing holding up your investment is the collective collectable value of the coins in your portfolio. Consider investing in multiple numismatic circulation coins to maximize your odds of value appreciation over time. 

Establish Relationships with Reputable Dealers

Silver distributors are just like any other company. Dealers enjoy establishing consistent relationships with their customers. Working directly with a dealer like Hero Bullion for multiple purchases tends to build mutual respect, trust, and cooperation. When it comes time to sell your investment and cash-out, this can be enormously beneficial to your pocketbook. Establishing relationships with reputable bullion dealers can also help you save on bulk deals and repeat sales over time. 

Store and Protect Coins Properly 

Always store your coins in a way that will protect them from any sort of unnatural damage. Purchasing additional homeowners insurance on your coins can help to recoup losses in the case of a natural disaster or burglary, but you should also be wise and invest in coin storage devices specially made for a coin of this size. Doing so will save you potentially thousands when it comes selling time. Are Peace Silver Dollars a good investment if they aren’t properly stored? Probably not. Storing your coins safely is an important part of protecting your investment. 

Regularly Monitor Coin Value

Follow the market, even after you already have a decent stock of coins. When the price of silver plummets, take advantage of investor panic to expand your own portfolio. And when prices are high, it might be time to cash out and wait for another crash. Following the market is the main thing that separates a novice, unprofitable silver investor from a wealthy seasoned bullion veteran. Are Peace Silver Dollars a good investment right now? Following the market closely can help you figure out if Peace Silver Dollars fit into your growing silver portfolio. 

Final Thoughts: Are Peace Silver Dollars a Good Investment? 

Which silver dollars are best to buy? And are Peace Silver Dollars a good investment? We hope you’ve found a couple tools in our guide to help you answer questions like these. The best investment is the one that fits into your portfolio and long-term investment plan. Peace Dollars are a favorite for investors all over the world, and their historical value and silver content makes them excellent additions to a growing precious metals portfolio. 

Any questions you may have about purchasing or investing in Peace Dollars can be directed to our customer service team. Hero Bullion wants to make investment easy for you!