Silver bullion bars have become one of the most popular ways to invest in silver˳ With the price of silver reaching record levels, dealers are seeing huge demand from investors for all size bars˳ There are several advantages to purchasing bars instead of coins˳
- Investors who take delivery find them very easy to store, stack, and handle, because of their flat, uniform size˳
- Investors who want to invest in a large amount of silver need only a small amount of storage space because of their compact size˳
- They are very liquid and can be converted to cash very easily because of the identifiable hallmarks, clearly stamped on each bar˳
- The premium on silver bars is much less than that of one ounce silver coins˳
Silver bullion bars are available for purchase in sizes ranging from range in size from one ounce to 1000 ounces˳ Let’s take a look at each individual size bar and the advantages and disadvantages to owning each size˳
Fractional Size Silver Bars – Gram silver Bars
Fractional size silver bars contain the smallest increment of silver bullion that you can purchase in bar size˳ To put things into perspective, there are 31˳1 grams of silver in a 1 troy ounce bar! A 1 gram bar is just a bit smaller than a dime! To calculate the value, you must divide the current silver spot price by 31˳1˳
Advantages:
1˳ Perfect size for someone on a super tight budget to diversify into precious metals˳
2˳ Perfect size for gifts and special occasions˳
3˳ Even large quantities of this size bar can be stored in just a small amount of storage space˳
Advantages:
1˳ Highest premiums over spot of all silver bar sizes˳
2˳ More difficult to sell than the larger size bars as they aren’t as widely recognized˳
3˳ Value is harder to calculate than the larger size bars˳
4˳ Difficult to locate and are mostly purchased as collector’s items˳
1 oz silver bars
1 oz silver bars also known as ingots, contain 1 troy ounce of silver and are 99˳9% pure˳ One of the most popular 1 oz size bars is produced by Sunshine Minting˳
1˳ The 1 oz size is the most affordable way for small investors to invest in precious metals˳
2˳ They are produced by many of the world’s renowned manufacturers such as Engelhard, Johnson-Matthey, and Silvertowne, and Sunshine Minting˳
3˳ Because of their small size, only a minimum of storage space is needed˳
4˳ They are very portable and have great liquidity˳
Disadvantages:
1˳ They have the higher premiums than the larger silver bar sizes˳
2˳ Wouldn’t be practical for buyers wanting to purchase a large quantity of silver˳
10 oz silver bars
The 10 oz silver bars size is one of the most popular sizes on the market˳ It contains 10 troy ounces of˳999 fine silver˳ Like the one ounce size, this popular bar size is also produced by many of the most well-known manufacturers˳
The most popular 10 ounce bars are the Engelhard and Johnson-Matthey brand˳ Sunshine Minting and Wall Street Mint are also popular sellers as well˳ Not many of the 10 oz Engelhard were produced and they are very difficult to find˳
Advantages:
1˳ They are very liquid, tradable, and are always in demand˳
2˳ The 10 oz size is a very suitable, economical, and dependable way to invest in silver bullion˳
3˳ They are less likely to be fake as counterfeiters prefer the larger sized bars˳
4˳ This size bar is perfect for bartering purposes˳
5˳ An IRA acceptable investment˳
Disadvantages:
1˳ The 1 oz and 10 oz size carries the highest premium over the spot price of silver˳
2˳ Small size isn’t practical for large investments˳
3˳ Higher cost makes them impractical for small investors˳
4˳ Aren’t suitable for bartering purposes because they are indivisible˳
100 oz silver bars
The 100 oz silver bullion bars are often purchased for investment purposes, not as an inflation hedge as is the case with the 1 oz or 10 oz bars˳ They are primarily an industrial product that is used for storage purposes˳
The most popular 100 ounce bars are produced by Engelhard and Johnson-Matthey, the world’s two largest refiners˳ However, these bars have not been massed produced since the late nineteen-eighties˳ More readily available are the RCM (˳9999 fineness), Academy (˳999 fineness), Sunshine Minting (˳999 fineness), or Ohio Precious Metals (˳9995 fineness) brands˳They weigh just 6˳86 pounds˳
Advantages:
1˳ They have a very low markup above the spot price of silver˳
2˳ They are acceptable for an investment in an IRA˳
3˳ They are recognized world-wide as a trading vehicle˳
4˳ Highest liquidity of all size silver bars˳ Has a relatively portable size
5˳ Uniform shape makes them easy to store and stack˳
Disadvantages:
1˳ Because of their larger size they require more storage space˳
2˳ They aren’t as portable as the 1 oz or 10 oz size bars˳
3˳ Price may be too high for smaller investors˳
850 oz silver bars
The Royal Canadian Mint produces a very unique 850 oz size bar that contains˳9995 silver˳ In actuality, the bar doesn’t weight 850 ounces˳ The weight will range from 800 to 900 ounces, with 850 oz being the average˳
Advantages:
1˳ Smallest markup over the silver spot price˳
2˳ They can be shipped via the USPS using a flat rate box because they weigh less than 70 pounds!
3˳ High purity level of ˳9995+ silver˳
4˳ They are stamped with a unique serial number along with the production year and Royal Canadian Mint hallmark˳
Disadvantages:
1˳ They weigh around 58 pounds, significantly more than the 6˳86 100 oz bar˳
2˳ Because of their heavier weight, they are more difficult for the average person to handle and store˳
1000 oz silver bars
The 1000 oz silver bars are most popular with Comex futures investors who choose to take delivery of their bars˳ These bars utilize newly refined poured silver bullion˳ You won’t commonly find a bar of this size weighing exactly 1000 ounces˳ The weight generally ranges between 960 and 1030 ounces˳ All bars are stamped with their weight, hallmark, and serial number˳
The most popular 1000 oz bars are Johnson-Matthey˳ They generally weigh between 930 and 1080 ozs or 70 lbs˳ The size of each bar will vary˳ Each 1000 oz JM bar is stamped with the hallmark, purity, and weight˳
Advantages:
1˳ Offer the lowest markup over the silver spot price˳ Often they are priced at spot, with no premium˳
2˳ Great for investors wanting to purchase large quantities of silver
3˳ Are Comex deliverable
4˳ Ideal for storage in precious metal depositories˳
5˳ Also suitable for IRA investments˳
Disadvantages:
1˳ Not as easy to store or handle as the smaller sized bars
2˳ Not suitable for investors who want to take delivery of their precious metals˳
3˳ Will need to use a facility that specializes in precious metals storage˳
4˳ May need to be assayed when sold˳
5˳ Not as liquid as the smaller bars˳
6˳ Since the weight of the bars vary, it may be difficult to calculate the amount of silver that you actually own˳
Odd Size Bars
5 oz, 20 oz, 25 oz, 50 oz, and kilo size (32˳15 oz) bars were popular during the 1970’s when silver bullion bars were first introduced and became extremely popular as an inflation hedge˳ These size bars are not as popular today as most investors chose to buy either the 10-oz or 100-oz sizes˳ You can still find these odd size bars on the secondary market though when silver prices are on the rise and sellers tend to liquidate their holdings˳
Advantages:
1˳ Some of these odd size bars carry unique hallmarks˳
2˳ The 25 and 50 oz size bars tend to sell at the same price as the 100 oz bar size˳
3˳ The five ounce size often sells at the same price as the 10 oz size˳
4˳ Great for collectors who want a unique, hard-to-find item to add to their collection˳
Disadvantages:
1˳ Not as liquid as the other popular size bars
2˳ Not easy to obtain as they are purchased mostly by collectors and not investment purposes˳
Conclusion:
As you can see, there are advantages and disadvantages to purchasing and owning each size silver bar˳ Not every size bar is suitable for every investor˳ Your investment objectives and the capital that you have available and want to invest in precious metals are important factors in determining the best bar size for you˳
- Smaller investors who don’t have a lot of money to invest or don’t have a lot of storage space are better off purchasing the 1 oz bars˳
- Collectors or individuals who are interested in purchasing silver to give as a gift should consider the gram size bars˳
- Investors who want to build wealth with silver and would like to utilize the dollar cost average method should go with the 10 oz bars˳ These bars are also perfect for those who would like to take possession of their precious metals as their uniform size is perfect for storage purposes˳
- Experienced investors with more capital to invest or those with longer-term goals should go with the 100 oz bars˳ These bars are perfect for savers who want to diversify their IRA away from risky paper investments˳
- Collectors who enjoy collecting unique, hard to find silver products should pursue the odd-size or gram size bars˳
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