If you’re new to precious metals, you may find silver coins and rounds confusing. Apart from their different designs, they look similar.
A logical question is why silver coins are usually more expensive than silver rounds of the same size. In fact, silver rounds sometimes have a higher silver content than coins, and it’s not immediately clear why you’d pay more for what may seem like an “inferior” product.
The short answer is that silver content isn’t the only factor in valuing coins, whereas it plays a primary role in valuing rounds. Let’s explore the differences, considerations, and examples to help you decide between buying a silver coin and buying a silver round.
Silver Rounds vs. Coins: Key Considerations
Both rounds and coins are thin discs of silver, classified by weight and silver content. Where they diverge, however, is in their production and, more importantly, who produces them.
Here’s a look at some attributes where these investments differ:
| Feature | Silver Round | Silver Coin |
|---|---|---|
| Minting Authority | Private mints/companies | Government mints |
| Legal Tender Status | No legal tender value | Has face value and legal tender status |
| Premium Over Spot | Lower premiums | Higher premiums due to government backing and collectability |
| Design | No restrictions on design flexibility | Restricted to government regulations and specifications |
| Collectibility | Typically, lower collector value | Higher collector value. The value increases with rare issues |
| Guarantee | Backed by dealer | Authenticity guaranteed by the government |
| IRA Eligibility | Must meet purity standards | Must meet purity standards |
| Security Features | Basic features | Advanced security features |
| Liquidity | Typically less liquid | Easier to sell |
| Value | Silver content only | Silver content and numismatic value |
While coins are technically legal tender with face values, their silver value far exceeds the face value. An example of this is the value of an American Silver Eagle.
Even some modern cupronickel coins are worth more than their nominal values. In short, you could use silver coins to pay for goods, but it’s not advisable given their intrinsic worth.
Types of Silver Coins
Not all silver coins are created equal; they vary by metal content, weight, and historical significance. Here are four types of silver coins you may encounter:
1. Numismatic Coins
Numismatic coins are silver coins minted in the past and no longer produced by their sovereign governments. Due to their finite supply and natural wear, they become rarer over time.
In the U.S., numismatic coins are generally those produced before 1971, when the Mint mostly stopped using silver due to rising metal costs, transitioning to a copper-nickel alloy (cupronickel) for most coins.
American numismatics typically contain one of three silver levels: 90%, 40%, or 35%.
Examples of U.S. numismatic coins include:
- Barber half dollars
- Walking Liberty half dollars
- Washington quarters (1932-1964)
- Mercury dimes
- Roosevelt dimes
2. Semi-Numismatic Coins
Semi-numismatic coins are hybrids between numismatic and bullion coins, often including uncirculated, proof, and commemorative coins. They usually lack inherent historical value but hold collectible appeal.
Unlike numismatics, semi-numismatic coins often contain 99.99% pure silver. Proof coins, for instance, undergo a specialized minting process that involves multiple strikes on polished planchets, creating frosted designs and mirror-like backgrounds. Uncirculated coins look like regular coins but have minimal imperfections, while commemoratives are often minted to honor events or figures.
Examples of semi-numismatic coins include:
- Proof: 2023-S Proof Morgan Silver Dollar Coin (Box & CoA)
- Uncirculated: Morgan Silver Dollar Coin (1878-1904, BU)
- Commemorative: 5 oz ATB Silver Coin (Random Year, Varied Condition, Varied Design)
3. Silver Bullion Coins
Silver bullion coins are official products from sovereign mints. Although they have face values, they’re primarily intended for collectors, investors, and gift-givers rather than currency use.
The U.S. Mint’s American Silver Eagle, minted since 1986, remains one of the most popular collector coins worldwide. With 99.9% fine silver content, each Silver Eagle weighs one troy ounce and comes in three versions: proof, uncirculated, and burnished, each with a distinct finish.
Examples include:
- 2024 (P) 1 oz Star Privy American Silver Eagle Coin NGC MS69 (First 50,000 Issued)
- 1997-P 1 oz Proof American Silver Eagle Coin NGC PF70 UCAM
- 2000-P 1 oz Proof American Silver Eagle Coin PCGS PR70 DCAM
4. Silver Dollar Coins
Silver dollars were once common currency in the U.S., but the rising price of silver in the mid-20th century led to their phase-out from circulation. Today, pre-1935 silver dollars like Morgan and Peace dollars remain popular among collectors.
With only a few exceptions, silver dollars contain 90% silver and 10% copper. Notably, Eisenhower dollars from the 1970s contain 40% silver, while newer Morgan and Peace dollars minted since 2021 contain 99.9% silver and are more like bullion coins.
Common examples include:
- Morgan Silver Dollar Coin (1921, Fine)
- 1923 Peace Silver Dollar Coin NGC MS63
- 40% Silver Eisenhower Dollar (Circulated)
What is a Silver Round?
A silver round is a coin-like disc valued for its silver content and variety of designs, produced by private mints and refiners rather than government mints. Silver rounds are not legal tender and may not be used as currency anywhere in the world. Instead, they are primarily showpieces, with values tied to their silver content and current market price.
Defining characteristics of silver rounds include:
- Private Mint Production: Unlike coins, rounds are made by private refiners and aren’t intended as currency.
- Lower Premiums: Silver rounds often come with lower premiums than silver coins.
- Flexible Design: Rounds can feature a vast array of designs, from tributes to famous coins to unique themes.
Popular Silver Rounds
Silver rounds offer silver investors a blend of value and variety, with designs that can add personal flair. Some of the most popular silver rounds include:
- Asahi Rounds: Known for clean, sharp designs from Asahi Refining.
- Sunshine Rounds: Often dubbed the “other silver eagle” with an eagle and sunrise motif.
- Morgan Silver Rounds: An homage to the iconic Morgan dollar.
- Buffalo Silver Rounds : Inspired by the classic Indian Head nickel.
- Aztec Calendar Rounds: A detailed reproduction of the Aztec calendar stone.
Considerations Before Purchasing a Silver Coin or Round
Now that you know the differences between silver coins and rounds, the next question is: should you buy a silver round, or a silver coin?
- Budget: Coins are generally more expensive than rounds, but some buyers find the premium worthwhile for guaranteed authenticity.
- Type of Investment: Coins come with history, while rounds offer an efficient way to grow your silver holdings.
- Collectible vs. Sustainable: Coins may appeal more to collectors, while rounds offer more options for ethically sourced silver.
- Resale Ease: Coins generally offer greater liquidity due to their recognized authenticity, while rounds attract investors focused on increasing their silver holdings.
Conclusion
To the untrained eye, silver coins and rounds may look similar, but they hold key differences. Thankfully, we offer nearly one thousand silver coins and more than three hundred silver rounds for you to choose from.
