What is the difference between silver coins and silver rounds?

What is the difference between silver coins and silver rounds?

We get this question all the time.  Silver coins can only be issued by a National Government, which carries the name of the government that issued them.  Coins are considered legal tender and do have a face value/denomination on them.  Rounds are manufactured by private mints and are not legal tender and does not have any monetary value.  The weight and purity of bullion coins are backed by the government whereas the weight and purity of rounds is backed by the reputation of the company.  Bullion coins are priced more than rounds.

With all that said, silver rounds are considered a good investment because they provide you with more bang for your buck.  As our world continues down a path of uncertainty, more and more people are turning to gold and silver instead of relying on leaving their money in banks.   If their primary motive is to increase their portfolio with silver and not interested in paying higher prices of silver bullion coins, then rounds are the way to go.  The premium on silver bullion coins has fluctuated significantly in the past year.   At one point silver American Eagles were priced $10-$12 over what you can get a silver round for.   There are a variety of reasons behind the price difference, but primarily because rounds can be minted in limitless quantities.  Silver coins minted by the government may face constraints and limiting how many coins are produced yearly.  Although one would think that the government would meet the demand, which legally they are supposed to, they do not follow this rule of thumb, which drives up the premium on coins. 

However, there are many investors who are only interested in obtaining their bullion that was minted by a government agency.  This is a great way to go for those wanting to collect various coins and/or if they don’t have a reliable coin dealer they trust to buy rounds. 

Both coins and rounds will have their weight and purity stamped on them.  If you are interested in silver, both options are considered good investments.   If you are unsure which is best for you, then contact us and we will discuss your needs and wants to help you determine what makes the most sense for you. 

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  • Nick Grovich