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Silver bullion
Silver bullion is the basic commodity traded in the precious metals market.
Silver bullion and gold bullion have been regarded as a form of money and store of value for more than five thousand years.
Nowadays, a variety of ways to invest in silver bullion are available to silver investors of varying investment sizes.
Investing in silver bullion
It is suggested to have 15-25% of portfolio assets be in precious metals, including gold and silver bullion.
If you are investing $10,000 or less, you should invest exclusively in silver bullion, first in one-ounce silver rounds or junk silver coins. If you are investing more than $10,000 you should include also a few silver bullion bars.
Owning silver bullion is easy and convenient, and commissions on buying and selling bullion are minimal. Account (IRA) participants can invest a portion of their investment portfolio in silver bullion including silver coins and silver bars.
Investors buy silver bullion for one of three purposes: as an investment, as an inflation hedge, or for survival purposes.
The best way to invest silver is to buy some physical silver like silver bullion bars, silver bullion coins, silver bullion rounds or junk silver coins.
Silver bullion products like .999 pure silver bars or .999 pure silver coins and rounds are easy to sell when it comes time to liquidate.
Find sellers who are selling silver bullion products as close to the spot silver price as possible. The more silver you are buying the less premium you should be expected to pay.
Silver bullion prices
Silver is a commodity that is traded 24 hours a day in the world’s market centers. A primary factor affecting silver bullion prices is the available supply versus fabrication demand. There are a number of web sites which give live spot silver prices, including the page at the site at Silver bullion prices.
Silver bullion prices may move up and down some over time, but they will never experience the sharp rises and declines that stocks and paper money are capable of. Although the prices of silver bullion may vary, it has an intrinsic value that is immutable and permanent.
Silver bullion investing choices
There are the follow choices when invest silver bullion:
- Junk silver coins (in junk silver bags).
The most popular silver bullion products are 100-oz silver bars, junk silver coins, American Silver Eagles and 1-oz .999 silver rounds.
Each silver bullion product has unique features that appeal to different investors.
Silver bullion bars
Silver bars, also called silver ingots, are the most popular way to invest in silver.
It is possible to buy silver bars in various sizes from 5 grams up to 1,000 ounces but 100-oz silver bullion bars are the most popular with retail investors.
100-oz silver bars are easy to handle, stack and store, and they carry very low premiums over spot silver prices. The most popular brands of the silver bullion bars are Johnson Matthey silver bars and Engelhard silver bars. Now 100-oz silver bar dominate the silver bullion market. 100-oz silver bullion bars are often called investment bars.
Silver bullion coins
Silver coins are probably the most popular way of purchasing and collecting silver bullion.
If you want silver bullion in a form of real money you can buy American Silver Eagle coins or bullion coins from other countries like Canadian Silver Maple Leaf coins or the Australian Silver Kookaburra.
The American Silver Eagle coins more attractive than silver bullion bars or junk silver coins but carry premiums usually several dollars an ounce higher that the premiums on junk coins, 1-oz silver rounds or 100-oz silver bars. Since their inception in 1986, more than 230 million Silver Eagles have been sold.
Each Silver Eagle is guaranteed in terms of weight, content and purity by the US government.
Silver Maple Leafs are Canada's official silver coins, and they compete with the U.S. Mint's Silver Eagles. While Silver Eagles are .999 fine, Silver Maple Leafs are .9999 fine but American Silver Eagle coins are more popular. But both American Silver Eagle coins and Silver Maple Leafs are very liquid bullion coins.
Silver bullion rounds
Privately-minted 1-oz silver bullion rounds are alternatives to silver bullion coins. They look like silver coins but do not have legal tender status and face value.
Silver bullion rounds are usually cheaper then Silver Eagles and they have less of a premium about spot price.
Junk silver coins (junk silver bags)
Investors wanting silver in a form that could be used as money or in barter situations usually opt for circulated pre-1965 US 90% silver coins, commonly called "junk silver coins".
Although technically not silver bullion, circulated pre-65 U.S. 90% silver coins are a bullion investment because when you buy a junk silver bag with $1,000 face value you are essentially buying 715 ounces of pure silver.
Junk silver coins are very liquid, are legal U.S. tender and has a very low premium over spot silver prices (as 100-oz silver bars).
Silver bullion collection
Silver bullion is very interesting for collecting. You can collect silver bullion bars, silver bullion coins and rounds.
Silver Eagles and Maple Leaf coins are most popular among bullion collectors.
Read more about silver bullion at other pages of this wiki-site.
