A silver bar is a precious metal nowadays with the best total value and is one of the best means of owning silver bullion. Every time the silver price increases, investors’ fondness in the silver market intensifies, with countless questioning if it’s time to buy silver bar and have it as a portion of their portfolio.
Silver is valuable! No doubt about it. Certainly, silver is not as valuable as gold. Still, your silver bars are a good investment as they allow you to hold a decent quantity of valuable metal in a fairly compact unit.
Those desiring to optimize their investment will usually purchase silver bullion bars. From the three forms of silver bullion – silver coins, silver rounds, and silver bars – bars usually have lower premiums per troy oz. over the silver spot price.
Benefits of Purchasing Silver Bars
Silver bars are less expensive
The main advantage of buying silver bars is the lower cost per gram, unlike silver coins. This is because of the simplicity of manufacturing without any numismatic value. A silver bar can be purchased in big sizes like 5kg, but still be inexpensive because of silver’s low cost. Coins may be more appealing, though you pay additional for that attractiveness.
Suppose you are a common investor, it is one investment which is inexpensive and can readily give you protection in times of financial crisis. When political and economic tensions are rampant, legal tender typically gives a lower priority to investments like silver.
Offers higher returns than gold
Silver is likely to shift simultaneously with gold: when the price of gold climbs, the rate of silver goes up as well. Buying silver bars stand to witness a far greater benefit if the silver price rises. Silver increases much more than gold in bull markets and drops way deeper than the other in bear markets. Therefore, as an investor, if you purchase during a bull market, experts declare silver bars will give you a higher return than gold bars.
Silver will never lose its shine
Silver bars will not stain and will stay undamaged when stored well. Furthermore, silver is always needed, as it’s often used in industries like jewelry, manufacturing electronics, and so on. Any change in the value of the money will always have a reverse impact on the rate of silver.
Silver bars are easier to store
Silver bullion bars require less space than the equivalent number of ounces of silver bullion coins. You can ask for a storage solution when you buy silver bars from a reliable dealer. Nevertheless, storing these precious metals within your home vault is very manageable as the bars are rectangular and need less room.
What To Look For When Investing In Silver Bars
Now that you have an idea of how silver bars can be a perfect addition to your investment portfolio, it’s time to check out what you have to assess when buying silver bars. The most crucial factors that you have to figure out before investing in any precious metals are:
Weight and Size
Silver bars come in various weights and sizes. Most range from one ounce to 1000 ounces, which is appropriate for many investors. Among those weights, the most suitable for investment and storage are silver bars that measure 1 kilo and 100 ounces.
Purity
Look for a .999 fine silver or purity of 99.9%. A silver bar with a purity lower than this is not considered an investment grade.
Types of Silver Bars
There are two types of silver bars – art bar and bullion bar – that are both generally 99.9% silver. Art bars are engraved with creative designs, while bullion bars are merely simple pieces of silver bars.
Serial Number
The silver bar you are buying may or may not contain a special serial number, depending on the manufacturer. Look for a serial number that specifies when the bar was made. Some private mints in the market today don’t contain this detail which could indicate it’s not a pure silver bar or has substandard quality.
Mint Bars vs. Cast Bars
Minted bars are made by pressing blanks that have been manufactured. On the other hand, a casted silver bar is produced by pouring molten silver into a mold or cast, then engraved with preferred markings.
Minted ingots generally have a smooth finish and an immense amount of gloss to them. Casted bars, by contrast, have a grayish, nearly rustic effect and may seem old. The main advantages of cast bars against minted bars are their uniqueness and lower potential cost.
Where To Buy Silver Bars?
When buying physical silver, investors must see that they are completely untroubled with the proceedings, not just looking at a price but also with the conditions of sale. Silver bars can be purchased a few ways:
- Online dealers
- Auction sites
- Local coin or bullion shops
The soundest approach here is to purchase your silver investments from a reputable dealer. Search for these things as well:
- Positive reviews
- An educational dealer or website
- Exemplary customer service
- Multiple forms of payment (e.g. check, cash, bank wires, and credit cards)
- Ease of ordering
- Delivery promptness
- Buyback guidelines
Moreover, investors must expect to settle the assay cost as well when buying silver bars through a dealer to guarantee the legitimacy and purity of the silver. This proof of assay dictates the authenticity of the silver bar, securing the welfare of individuals involved.
How Can You Buy Silver Bars?
The effortless way to purchase silver bars is through a reliable online dealer. When looking for fair prices, search for a few dealers or suppliers to know about current silver prices. Dealers must be competitive with their prices. Make the best use of the most competitive offers and the biggest selection on the internet.
You may want to choose to purchase some of the finest silver to invest nowadays, like Johnson Matthey Silver Bar, Northwest Territorial Mint Silver Bar, Royal Canadian Mint Silver Bars, Engelhard Silver Bars, and many more.
One practical way for first-timers is to purchase from two separate dealers, so you have more valid information on which to transact on your next investment.