About Silver bullion
From Silver Bullion Bars, Coins and Rounds. Silver Ingots and Junk Silver. Silver Prices
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About Silver bullion
Silver bullion is precious metal .999 fine or more in the form of bars, wafers, ingots, coins or rounds. Silver bullion is the most popular bullion among precious metals (gold, silver, palladium and platinum). Silver bullion is the form of silver traded mostly for investment purposes. From silver metal, coins, rounds, bars and ingots are struck or cast to form a physical product that is bought or sold on the basis of the silver content and current spot price (including the premium). Silver bullion products are marketed in Troy Ounces – oz (1 oz = 31.1 grams) and available in weight range from 1 oz to 100 oz and 1000 oz.
Changes in government attitudes have resulted in paper replacing silver as a currency, but this has not diminished the value of silver. Silver bullion is more valuable now than it ever was. Silver bullion is still readily available at a very good price, currently at only 1/70 to the price of gold bullion in 2010. But silver is only 1/13 times more common than gold - which means that silver bullion is currently grossly under-priced by the market. Now is the best time to buy silver bars, ingots, rounds and coins.
History of silver bullion
Throughout history, silver bullion has served peoples as a primary monetary metal because silver bullion is durable, divisible, convenient, easy to handle, has utility value and cannot be created by fiat.
The inflation of the early 70s prompted investors to protect their assets by investing in silver and gold bullion. In order to accommodate this sudden demand many small and big refiners began producing .999 fine silver products such as silver bars and silver rounds. The most popular products were 1-oz Engelhard silver Prospectors and 100-oz Engelhard silver bars.
Types of silver bullion
The types of silver bullion available on the market are:
- silver nuggets;
- silver bullion bars or silver bullion ingots;
- silver bullion coins;
- silver bullion rounds;
- junk silver coins (often sold in junk silver bags).
Silver nuggets
When silver nuggets are mined in their raw, natural form, they are mixed with several other elements and impurities, which must be removed.
Nuggets are very hard to come by and require an experienced eye to judge their true value. Of course there is the silver content and silver has a definite value per oz. But nuggets are rare and that rarity will add to the value of the nugget.
Usually silver nuggets are not traded on the market and I cannot recommend them for including in your investment portfolio.
Silver bullion bars or silver bullion ingots
Silver bars (silver ingots) are the much better option as they are produced to specific and they contain .999 or .9999 fine silver. You can buy from a 1-oz silver bar up to 1000-oz silver bar. 100-oz silver bars are the most popular on the market because of the low mark-up over spot silver.
A silver bar have stamped the amount of silver content, the degree of fineness which should be .999 or more, the name of the mint in which it was struck and often the serial number.
The smaller bullion silver bars are proportionally more expensive due to premium over silver spot price and shipping costs. Usually the smaller silver bullion bars are sold for decorative or aesthetic value, even as jewelry. It is the 100-oz silver bars and 1000-oz silver bars that are the most popular among investors and collectors for their investment value and high liquidity.
Engelhard silver bars and Johnson Matthey silver bars are the most popular bars among investors in precious metals because JM and Engelhard are most known and reputable brands of the silver bars.
Silver bullion coins
Silver bullion coin is a silver coin that a symbolic face value but traded at the current silver bullion price plus premium over spot silver.
Silver coins are probably the most popular way of silver investing and collecting silver bullion. Not only is there an aesthetic appeal and beauty about silver coins there can also be an excellent liquidity and investment value.
American Silver Eagle coins, Canadian Silver Maple Leaf coins, Mexican Silver Libertad coins and the Australian Silver Kookaburra are the most popular government minted silver bullion coins. All these coins contain 1 oz of .999 or .9999 fine silver.
Because it is not expensive to purchase silver coins it is easy to build up a good collection with dates of issue and proof sets. This is an excellent way to collect silver bullion but not the best way of investing in silver bullion. Silver bullion coins have higher premium than larger silver products like 100-oz silver bullion bars.
Silver bullion rounds
Silver rounds look like silver coins but do not have any face value and legal tender status. Silver bullion rounds are usually minted from .999 fine silver by private mints or refineries. Silver rounds can be bought with different designs (people, events, places) or ordered with a custom design. The most known and popular silver round is 1-oz Engelhard silver Prospector.
Silver bullion rounds are usually cheaper then bullion coins and they have lower premium above spot price.
Junk silver coins or junk silver bags
Junk silver is an informal term used for any silver coin which is in fair condition and has no numismatic or collectible value above the bullion value of their silver content. Junk coins are sold based on the value of the silver content plus a little mark up over spot.
Junk silver coins contain 50%, 90% or 92.5% (Sterling silver) of bullion silver. Junk coins are often sold in junk silver bags. A $1,000 face value junk silver bag usually contain over 700 oz of bullion silver.
Junk silver coins do offer several investment advantages: they can be bought and sold easily, they are very liquid, are legal U.S. tender and they have a low premium over spot silver price.
Silver bullion prices
The spot price of silver is reported every business day in all major newspapers, network television and radio and online. The silver bullion prices has been notoriously volatile as it can fluctuate between industrial and investment demands. You can find the latest charts with silver prices at Silver bullion prices.
Where to buy silver bullion
You can find silver bullion products everywhere. Try your local coin shops, jewelry shops and local gold and silver dealers. You can also find silver bullion suppliers online on Ebay, other online auction sites or online dealer’s sites. Buy silver bullion from reputable sources only and stick to well-known brands. There a lot of reputable refiners in the world: Johnson-Matthey, Engelhard, Academy, US Assay, Wall Street Mint, US Mint, Pan American Silver Corp., Westminster Mint, Sunshine Mint, Northwest Territorial Mint, A-Mark etc.
