Precious metals have always been a top choice for investors, especially when it comes to silver. Silver has many advantages, including its use as a currency. It also has many practical and industrial uses. An investment in silver can benefit a precious metals portfolio.
In this article, we will look at the most important considerations when purchasing silver bullion for investment.
Investing in Silver Bars or Silver Coins
If you decide to purchase silver as an investment, and not for numismatic or collecting purposes, then you should consider investing in silver bars. There are many reasons for this, including:
Silver bars are less expensive than silver coins – the production of silver coins requires more time and money than the production of silver bars. This is also reflected in their prices. If you are looking for an investment, keep in mind that for the same amount you will get more silver, when purchasing it in bars instead of coins.
Silver bars are easier to store – Silver coins when obtained in big quantities take up much more space compared to the same weight of silver in bars. At first, this might not seem important. However, when you have purchased a considerable amount of bullion, storing it can become a problem.
Silver bars are easier to handle – When stored correctly, silver bars will not tarnish and will remain intact. Some other advantages is that bars are easy to liquidate and easy to transport.
What to Look for When Purchasing Silver Bars
Now that we have determined that silver bars are an excellent option for investors, it is time to take a look at what you need to consider when purchasing the silver bars. The most important factors that you need to determine before purchasing any bars are:
Weight – bars are available in a range of weights. Keep in mind that silver bars are weighted in troy ounces and in grams.
Purity – the purity of the silver you are getting is extremely important. Investment silver bars are available with a purity of 999 and 9999. Bars with a purity lower than this are not classed as investment grade.
Refinery – Another thing to consider is the manufacturer of the bar. Is the bar manufactured by an LBMA approved Mint or Refinery? Does the bar meet international standards for quality? All bars will have their manufacturer’s name stamped on it.
Serial number – The silver bar you are purchasing may or may not have a unique serial number, depending on the manufacturer.
What is the Best Size Silver Bar to Buy?
Silver Bars are available in various sizes. The most popular sizes are:
One ounce bar – this is a small bar that contains about 31.105 grams of silver. This is also the size of most silver coins.
Ten-ounce bar – this bar contains about 311 grams of silver.
One kilo bar – this is a bar of 1000 grams, and the bar is a similar size to a small brick. This bar is the most popular choice with European investors, who prefer to purchase bullion in gram/kilogram denominations.
100-ounce bar – this bar contains 3.107kg of silver and it’s one of the most popular choices worldwide, particularly in North America. These bars have some of the lowest premiums on the market and are therefore also popular with investors buying silver purely based on premium.
1,000-ounce bar – this is a big bar that contains around 31.07kg. These bars are very heavy, and generally only purchased for storage. They are difficult to move, and can be difficult to sell.
Among those sizes, the most practical ones for storage and investment are the bars that weight 1 kilo and 100 ounces.
Our recommendation for 1-kilo silver bars are:
Lastly, our recommendation for 100 ounces silver bars are:
Where to Store your Silver Bars
After purchasing silver bars, you need to determine their storage location. In Swiss Bullion’s secure Switzerland VAT-exempt storage, you can store your bullion without paying any VAT. Invest in silver bars and let your portfolio grow tax-free.