Silver bullion bars usually cost less than silver bullion coins on a per ounce basis making them more lucrative if you:
My goal is to report both the pros and the cons of buying silver bars so that you are better informed when you make a purchase.
|One ounce minted silver bars are a popular size and easy to store at home (see photo on right).|
With that in mind, silver bullion bars are a viable option if you:
Three different manufacturing techniques are used to produce silver bullion bars of various sizes.
|Extrusion (extruding) is what bakers do when they force icing through a hole to decorate cakes for special occasions.|
Fewer People Buy Bars
A greater number of people buy silver coins than silver bars. So it may take a little longer to sell your silver bars at acceptable prices. This is more true of the large silver ingots (pictured below).
Diamond jewelry is a good analogy that helps makes this point.
For example, there are far fewer potential buyers of a 4-karat diamond ring than a more modest ¼-karat diamond ring.
Therefore, the larger ring will probably take longer to sell.
However, the larger ring may sell quickly if demand for the ring with more “bling” exceeds supply. So it’s really a matter of market timing.
Value of Silver Bars
Silver bar prices are closely tied to the silver spot price or spot silver price (both wordings are used) for one troy ounce of silver.
Silver Ingots and Silver Coins
Consolidation Saves Money
You are consolidating silver when you purchase it in bulk forms such as silver ingots.
This consolidation process produces greater efficiencies -- and increased efficiency empowers dealers to charge less for silver bullion. So, logically, larger silver ingots are cheaper to produce than the smaller silver bars.
Also silver bars are cheaper to produce than silver coins since bars do not typically include as many fine details (i.e. art). When you buy silver bars
(> 1 oz.) or ingots you are consolidating more silver in fewer pieces.
In short, the larger the silver bar the lower the cost on a per ounce basis. The flip side, as mentioned above, is silver ingots/bars may require more time to sell at desired prices.
Sterling Silver Bars
Silver bullion bars can be purchased in alloy forms. This means an additional metal(s) is added during the production process.
Sterling silver bars are a common form of alloy silver bars. These bars are 92.5% pure silver with an alloy metal(s) as the balance material. Copper is an alloy metal widely used with silver.
If you are only interested in pure silver bars ... not a problem. Listed below are some very credible brands:
Assorted Silver Ingots and Silver Bars
I hope the number of fake silver bars in the marketplace is miniscule. But since they are out there it’s wise to take steps to avoid them.
Some simple suggestions to consider when buying silver bullion bars are:
Please view the video below to see how a specific gravity test of gold or silver is performed. The specific gravities of pure gold and pure silver are 19.32 and 10.49 respectively.
A 1oz. silver bar was used in the video. Also the scale in the video was only precise to .1 gram. A scale that measures to the .01 gram is recommended since it will produce a more exact measurement.
An assayer is responsible for verifying the silver bullion weight and fineness (purity) claims of a refiner. Some brands stamp serial numbers on their silver bars and/or include assay certificates to accompany their products.
There are different opinions concerning the value of assay certificates. These differences stem from the fact that paper certificates are easier to counterfeit than silver bars.
Although paperwork is more easily forged, it’s still one more thing a counterfeiter must do to be successful. Another deterrent is the sealed packaging many refiners use.
The Perth Mint does not serialize its silver bars (except 1,000 oz.). Rather it relies on its swan logo (artfully-created, difficult to replicate) and sealed packages w/assay cards as deterrents.
One way to find reputable silver bullion dealers is ask for a referral from someone you know and trust who has purchased silver bullion bars. You can also check a dealer's track record with the Better Business Bureau.
1,000 oz. Silver Ingot
The Bottom Line
Once again, maximizing profits is the number one reason why silver investors buy silver bullion bars.
I hope you calculate the ownership costs of bars vs. coins. I think you will find the results impressive.
These are the benefits and drawbacks of buying silver bullion bars in my opinion. Please choose a link from my navigation bar (upper left) to learn more about precious metals.Return from Silver Bullion Bars to Gold Bullion and Silver Bullion (Home)
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