Silver Dollar Coin Values

Silver dollar coins are likely to increase in value in the years to come, due to the several reasons. While past price appreciation never guarantees future growth, these silver dollar values have consistently trended upward over time.

Demand for Silver Dollar Coins

Fear, associated with the global economic downturn, resulted in precious metals like gold and silver, becoming attractive investments. Inflation also played a major role in giving a boost to the price of precious metals. Inflation, which resulted in currency depreciation, discouraged people from investing in stocks since currency depreciation has a negative impact on the stock market. People turned to precious metals, like gold and silver, hoping that they would function as safe haven investments.

It has been observed, over time, that the US dollar is usually weak in the last quarter of every year. Precious metals peak seasonally and the peak value is generally attained during the first quarter of the following year. Generally, silver peaks in the month of May. This year too, the price of silver peaked in May. This massive increase in price of silver, however, was the biggest since the 1980s. The reason for this enormous gain was due to the fact that recession resulted in an increase in the demand for precious metals like silver and gold. This coupled with inflation and a weak dollar, was instrumental in pushing up the price of the commodity.

The price of silver dollar coins depend on the rarity of the coins, their condition, the year of mintage and the price of silver. When the price of silver increases, rare silver dollar coins also increase in value. Hence, there has been an increase in the demand for silver dollar coins. This trend is expected to continue till 2012.

History of Silver Dollar Coins

Silver dollar coins have been minted in the US since 1793. Flowing Hair, Capped Bust, Sitting Liberty, Trade, Morgan, Peace, Silver Eagle and Eisenhower silver dollars coins have been minted in Philadelphia, New Orleans, Carson City, San Francisco, Denver and West Point. The earliest silver half dollar coin was minted in the year 1794. The most popular US silver dollars are: Morgan (1878-1921), Peace (1921-1935) and Silver Eagle (1986-to date). These silver dollar coins are relatively inexpensive and hence popular. A rare, well maintained silver dollar coin can fetch a ton of money. The Peace(1928) and Morgan (1878,1891,1893) silver dollar coin values have shown a consistently upward trend in the last 40 years.

Silver Dollar Coin Values and Future Trends

For those who missed the peak of May 2009, there is good news in store. Towards the end of 2009 or the beginning of 2010, analysts expect the prices of gold and silver to appreciate again. Some analysts believe that in the long term, silver will outperform gold. This is expected to take place sometime in 2011 or 2012. For a long time now, the silver to gold availability ratio was 12:1. A ratio of 12:1 would mean that for every 12 ounces of silver, that can be found on the surface of the earth, only 1 ounce of gold is available. Today, the availability ratio is around 8:1 which means that for every ounce of gold available, roughly 8 ounces of silver can be found on the surface of the earth. In other words silver, which is a less precious metal as compared to gold, is becoming scarce.

A scarce metal that has investment and commercial value will definitely increase in price. The ratio between the prices of gold and silver has narrowed over time and today it stands at 50:1. Analysts expect the price differential to narrow further and hence investing in silver dollar coins may be a worthwhile option in the days to come. This relatively inexpensive investment has more liquidity as compared to gold and may be exchanged for staples during hard times. Moreover, even if the price of silver does not surpass or meet expectations, the silver dollar coin value will still increase on account of numismatic worth.