If you are reading this, then you are thinking about or have made up your mind to invest in silver bars. It doesn’t matter if you are yet to decide or not, the fact is that you need to know certain facts about this form of investment.
If you have made up your mind, then allow us to congratulate you for being a savvy investor. Investing in precious metals such as silver is a great way to diversify your portfolio.
If you are yet to make up your mind, we encourage that you choose to invest in argentum bullion bars. There are so many benefits you stand to gain from making this decision.
Therefore, this article will provide you with the important information you need to know about this investment form.
Why should you invest in this Commodity?
You should know that when we talk about bullion, it could either be bars or coins. If you choose the former, their premium is lower than the latter. This is especially true if the item was cast. Hence, the manufacturing process is simpler, which in turn makes it cheaper. You can watch this video https://www.youtube.com/ to understand what silver bullion premium is.
The universality of bars means that they can be sold and bought anywhere at a premium. They are also compact, can be carried and stored easily. Besides, who wouldn’t love to hold a silver bar?
This commodity comes in different sizes and ounces with the larger bars providing the best value to investors.
Is it a Good Idea to Invest in this Commodity?
We will list some reasons why investing in this precious metal is a good idea:
- It can be bought and sold easily
- It offers the lowest premium when compared to other bullion products
iii. The bars can be stacked easily thereby lowering the vaulting costs
Is Investing in Silver Bars Safe?
The answer to the above question is yes. Argentum blocks are regarded among the most universally traded and acceptable physical silver form. Compared to traditional investments, they are less volatile.
Nevertheless, you need to be careful due to the increase in fake argentum bars. Although the increase of these non-genuine items is not as high as gold since the resale of gold is higher, however, there is still a need for concern.
While a good number of these counterfeits can be easily discerned as fake, some are well-designed that they might fool even experts.
Such fakes can only be discovered with the use of a professional x-ray or XRF scanner. The other option is destructive drilling/cutting. Some specialists however might see signs such as the original drilling where the filler was filled into the fake.
Hence, you need to be sure that you are purchasing your bullion from a trusted supplier. Do not be carried away by a “good deal”. Do not buy items that are at the spot or below the spot. To help you remember, do not buy any commodity that is less than 5% of the actual market price. Click here to learn what spot price is.
Should you go for Cast Bars or Minted?
The answer to this depends on your preference. To tilt your decision towards one end, let us examine both types a bit.
A cast bullion bar is manufactured by pouring the molten precious metal into a well-shaped mold. After which it is then hit with the maker’s mark as well as other necessary legal details. This is how simple it is to manufacture this bullion form.
Minted bullion bars, on the other hand, are complex to manufacture. To begin, blanks that are carefully measured are gotten from a big silver sheet. Alternatively, it is cut from a lengthy thin cast or extruded bar.
After that, the blanks are sent into a pressing or stamping machine which then imprints a pattern, makers mark, fineness display, and edging on the blank. The pattern can either be ornate or simple while the areas that are flat have a smooth polished look. The serial numbers of the bullion are then stamped or engraved when the minting is completed.
The minted items with beautiful ornate designs usually are sought after by collectors. The premium for ornate bars is usually higher. Hence, they tend to sell more easily and faster, usually above the spot. This is not possible with generic bars.
What are the Best Silver Bar Brands?
The best silver bar brands are not fixed as the popularity of brands varies from country to country. However, one brand we can recommend is APMEX.
This company has its base in the city of Oklahoma and is regarded as the largest online precious metals retailer in the world. Since its establishment in 1999, they’ve sold more than $10 billion worth of precious metals.
Furthermore, they self-produce their struck/minted silver bars in different weights 1000z, 500oz, 1kg, 25oz, 10oz, 50oz, 1oz, and ½oz all at 0.999 fineness (in other words, the silver purity is 99.9%).
What are the Common Sizes?
The most popular silver bar size is 1000oz. This is usually found in the possession of the government, institutional investors, national banks, and very wealthy individuals.
While the above size has the least premium, they are not the most practical form for investors since a single bar could cost up to $20,000. Hence, selling it can be somewhat challenging as not many operate within that market space.
Instead of choosing such a size, it is best to go for smaller sizes. Each country and region has which sizes they prefer.
In the United States of America, the common sizes bought by investors are the 50oz, 10oz, 5oz, and 1oz bars. Apart from these listed sizes, the Kilobar or 1000g is gaining popularity as a result of its international appeal and low premium.
European investors go for silver bars that are metric-system sized; the only exceptions are the 10oz and 1oz sizes. Therefore, the most common sizes apart from the 10oz and 10z are 100g, 250g, 500g, and 1kg.
Conclusion
Investing in silver bars is a good idea. Nevertheless, it is important to have some basic information regarding this investment form. As a result of this need, we have taken our time to reveal certain information that will come in handy in the article above as you begin this investment journey.
