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- by APMEX
Can Silver Coins be Used as a Form of Payment Today?
Silver has been valued and used as a currency for much of human history. Most people use debit or credit cards and, to a lesser degree, paper currency to make payments.
In recent years, 23 states have introduced or passed legislation to recognize gold and silver as currency. If Missouri’s SB100 passes, residents will have the option of paying their taxes in gold or silver.
Silver is still traded and sold for its value as a precious metal. While silver fell out of use as an ordinary form of payment after the U.S. Mint changed the composition of coins in 1965, silver coins can still be used today.
How Can I Use Silver as a Form of Payment Today?
Not all silver can be used as a legal form of tender, and only a select few silver coins can be used as legal currency today. You would get greater value from selling silver first, as the face value of coins is often less than the value of the silver.
Silver Bullion Can be Used as Currency
Silver bullion coins like American Silver Eagles can be used as currency but can be spent for their face value. This would cap the value of Silver Eagles at $1, which is far lower than the spot price of silver with a premium included.
A better use of silver coins would be selling it for melt or numismatic value, which would earn more than the face value.
Using Silver Bars and Rounds as Currency
If you own silver bars or rounds, using them to make purchases would be difficult since they are not considered legal tender and do not have an assigned face value. Would a small business owner entertain the idea of accepting silver rounds as a form of payment?
It depends on finding common ground regarding the value of silver and whether they are looking to collect silver or immediately sell it.
Whether you want to use silver bullion or bars to make a purchase, you may earn a higher profit selling the silver to a trustworthy coin buyer like APMEX.
Quick Guides to Investing
Step 1:
Why Buy Physical Gold and Silver?
If you are concerned about the volatility of the stock market, you’re not alone. The extreme highs and lows of the stock market often lead investors towards safe-haven assets, like bullion. Historically, the Precious Metals market has an inverse relationship with the stock market, meaning that when stocks are up, bullion is down and vice versa.
Step 2:
How Much Gold and Silver Should You Have?
This question is one of the most important for investors to answer. After all, experts suggest limits on how much of any types of investments should go into a portfolio. After deciding to purchase and own Precious Metals and considering how much money to allocate, one can then think about how much and what to buy at any point in time.
Step 3:
Which Precious Metals Should I Buy?
With the frequent changes in the market and countless Precious Metal products available, choosing investments can be difficult. Some want Gold or Silver coins, rounds or bars while others want products that are valuable because of their design, mintage or other collectible qualities. Also, collectors may shop for unique sets and individual pieces for their collections.
Step 4:
When to Buy Gold & Silver
After considering why, how much, and what Precious Metals products to buy, an investor’s next step is when to buy them. This decision requires an understanding of market trends and the impact of economic factors on precious metal prices.
