There are three basic types of Silver Eagle Coins, Bullion, Proof, and Uncirculatedl I would like to take a few moments to explain the differences among them as well I why I think the MS70 Graded Silver Eagle is the most valuable.
Their seems to be a lot of people talking about how a 2010 Silver Eagle Dollar Coin could not possibly be worth more than the "spot"price (market price) of silver. I have included below the definitions for each of these types of coins,taken directly from the pages of the reference material. Read over these and I will give a brief explanation as to the "why" MS70 Silver Eagle is of great value.
Bullion Silver Eagle:
Definition of "Bullion": "a coin struck from precious metal and kept as a store of value or an investment, rather than used in day-to-day commerce. Investment coins are generally coins that have been minted after 1800, have a purity of not less than 900 thousandths and is or has been a legal tender in its country of origin.
Bullion coins sell for a premium over the market price of the metal on the commodities exchanges. This is due to their comparative small size and the costs associated with manufacture, storage and distribution."
Ref:1
Proof Silver Eagle
Definition of "Proof": "The American Eagle Silver Proof Coin is a collector version of the official United States Mint American Eagle Silver Bullion Coin. Each coin contains one ounce of .999 fine silver. United States Mint proof coins are extraordinarily brilliant, with sharp relief and a mirror-like background. Their frosted, sculpted foregrounds give them a special cameo effect. Proof blanks are specially treated, polished and cleaned to ensure high-quality strikes. Each coin also bears the "W" mint mark reflecting its striking at the United States Mint facility at West Point. Each coin is packaged in a blue velvet, satin-lined presentation case and accompanied by a certificate of authenticity signed by the Director of the United States Mint."
Ref:2
Uncirculated Silver Eagle
Definition of "Uncirculated": "A coin that is released to the public but not intended for general circulation (i.e. not used for money although it has an actual value) but is available through a mint or through a local coin dealer."
Ref:3
MS70 or Mint State 70:
Definition of Mint State: "refers to a grade used in numismatics. It is given to a coin which was not used in circulation, and thus can be described "as new". In modern-day United States numismatics, mint state coins are given a number from 60 to 70, with 70 being a perfect coin with no visible blemishes such as hits or wear. Coins with a low grade, (60-63), although unworn, may suffer from weak striking, bag marks and other defects that make them less attractive to the collector. Some early coins appear quite worn in mint state, due to striking problems."
Ref:4
Now as you can see each of these types of coins carry a distinctive difference, and all will carry their own market value. A "Proof" coin is specially made as a collectible and is handled as such,completely different minting processes are used to create these amazing coins. BUT that can actually take away some from there value, as they are handled with "kid gloves" from the minting process on making most all proof coins of equal value. These are truly beautiful coins and are treasured by their respective owners.
How is the MS70 Silver Eagle is worth SIGNIFICANTLY more than a Bullion Silver Eagle?
For starters bullion are mass produced and purchased by investors for basically the "value" of the silver they contain. They can be worth SLIGHTLY more than the market price of silver which at the time of this writing is $22.51 per ounce. Current market prices for gold and silver can be found HERE.
The MS70 on the other hand is a "collectible" and is collected and cherished for it’s rarity due to the fact they are minted with the standard minting processes of all US coins and only a SELECT FEW will pass grading as an MS70. Handling and wear take a toll on coins making a "perfect" Silver Eagle more rare.
Prices vary greatly for the US Silver Eagle anywhere from $60.00 to $160.00 for the 2010 MS70. You can plainly see the INCREDIBLE difference in the values of Bullion and Graded Silver Coins and that they are like comparing apples to oranges.
"OK" you may ask "what is all the hype about the MS70 ?" The "hype" is in the value. Here is the price difference between an 2010 MS69 Silver Eagle $39.95 and an 2010 MS70 Silver Eagle $95.00 taken from Austin Rare Coins and Bullion which can be found at www.austincoins.com The difference seems clear to me…perfect is perfect and that brings TOP price.
I have tons more FREE information on the 2010 Silver Eagle Dollar that can be found on my blog.Come see why I think the 2010 MS70 Silver Eagle may become a VERY valuable commodity in the future.
