New investors in the bullion space have several important choices to make. The first decision any investor should make likely comes as no surprise: which precious metal do you want to invest in? There are a number of differences between the most popular types of bullion. Everything from the appearance to the value of a bullion product depends largely on the type and purity of metal that it’s struck with…
While gold may be the precious metal that first comes to mind when readers hear the term “precious metal,” it certainly isn’t the only way to invest in bullion. In fact, a growing number of bullion investors are turning toward silver in order to pad their collection of precious metal without spending too much money. Silver is quite a bit cheaper than gold. Spot prices for precious metals obviously change on the daily, but silver is generally less than 1/60th of the price of gold!
Like gold, silver has an impressive history. The rare metal has been used in countless currencies throughout the history of the world, and cultures have long understood the unique value associated with it. In the past few decades, an increased push by investors and bullion experts has inspired millions of people to increase their material investment in silver. A combination of the metal’s low spot price and consistent rise in value makes it an ideal way for people without a high amount of capital to get involved in the bullion market.
Hero Bullion offers a wide range of quality silver products. We’re happy to be able to bring you a variety of different silver bars, coins, and rounds, all of which are shipped with security and investment preservation as a top priority.
We know that it can be tough to figure out which bullion products are right for you. For this reason, we’re bringing you a full guide concerning everything you need to know about investing in all types of silver bullion products. Is silver better than gold? Which silver products are the most popular? Hero Bullion has the answers you’re looking for.
History of Silver Bullion
Some bullion distributors underestimate the importance of history in determining the value of a given asset. Part of the value in gold and silver comes from their extensive historical status as valuable assets and stores of capital. In other words, we’d have little faith that gold or silver can effectively hedge against inflation if these commodities hadn’t had such a long history of doing precisely that.
Silver is often considered a “metal of antiquity.” These seven ancient metals were initially found in prehistoric times. Understandably, this means that we don’t know exactly when, how, or by whom they were discovered. Post-discovery, however, historias have a pretty good idea of the longstanding historical tradition of using silver both as a display of wealth and as a currency. Some cultures even used silver for ornamental purposes, decorating their homes, ships, or armor with the soft metal.
Contrary to popular belief, silver was once considered much more valuable than gold. In Ancient Egypt, for example, silver was considered among the most precious of metals available. Egyptians may have even discovered a way to extract silver from gold using a metal-heating process. In the 4th millennium BC, people discovered a method of extracting silver from lead ores. The result was an explosion in the supply of silver; relics from this time period demonstrate that silver was frequently used to make plates and rudimentary artworks.
The value of silver as a store of value and a currency really began to take off with the rise of Phoenician culture. The Phoenicians frequently stored silver on their ships and even used the precious metal in their ship anchoring systems. Grecian and Roman civilizations offered some of the most stable currencies in the ancient world, and their currencies were directly tied to the value of silver. Silver coins in Rome and Greek are still considered valuable relics today, and they provide us with a unique insight into the history of this exceptional commodity.
In the United States, popular interest in silver was historically tied to the treasury’s production of government-backed silver coins. In particular, the Morgan Silver Dollar was a popular coin released during the booming period for silver bullion in the U.S. mint, the years 1794 to 1935. American silver mines surfaced in great numbers during this time period, with many miners during the American “Gold Rush” actually making their fortunes off of this lesser-known but nevertheless valuable precious metal.
Silver remains a popular investment today, both for its historical value and relative scarcity and for its practical applications. The latter justification for collecting silver is particularly important. Silver is actually used as a core component of the rods necessary to run water-based nuclear reactors. As this form of energy continues to become more popular, the demand for silver is expected to continue to rise.
While the U.S. government no longer mints the silver dollars that it once backed, mints all over the world create silver coins that are used for investment purposes. The American Silver Eagle and the Canadian Silver Maple Leaf series serve as particularly popular examples. Investors in the 21st century continue to use both the historical value of silver and the metal’s contemporary applications to justify storing wealth in this unique commodity.
Benefits of Buying Silver Bullion Coins and Bars
In some ways, the benefits of buying silver bullion are similar to the advantages of investing in gold. It’s hard to deny the similarities between these two precious metals. The spot price of silver is often closely linked to the spot price of silver, at least where ups and downs are concerned. If gold increases in value, it’s likely that this profit will trickle down to silver as well. When we speak generally about the benefits of buying and investing in bullion, these upsides apply to silver as well as gold.
Still, there are a few reasons why silver is a wise investment in its own way. After all, famed financial genius and billionaire Warren Buffet made ripples within the bullion community when he bought an astonishing 129.7 million ounces of silver at once. With someone like Warren Buffet investing in silver, it’s hard to see how this store of value could be considered unwise.
Here’s a basic list of some of the most common benefits associated with buying silver bullion:
A hedge against inflation. This is an advantage shared by both gold and silver. A litany of world events directly influence the value of fiat currencies, while the price of silver remains relatively static. There isn’t much, short of a global catastrophe, that could tank the value of silver. If you’re looking to hedge against the possibility of inflation of traditional currencies, silver remains an unbeatable option.
High room for growth. Many investors love the idea of investing in gold, but are unready to put in the thousands of dollars necessary to really capitalize on the world’s most recognizable precious metal. Silver, on the other hand, remains a relatively cheap way to invest in precious metals. Because of its low price, some economists speculate that it offers a higher ‘room for growth’ than gold or platinum. When gold experiences a price hike, silver generally follows. But a tremendous price hike in silver could generate extreme profits for even the smallest of retail investors.
Higher volatility. Depending on your investment preferences and strategies, this can either be a big advantage or a disadvantage. Compared to gold, silver’s price is considered relatively highly volatile. This means that the value of silver can shift significantly in the span of a few weeks, months, or even a year. For the savvy investor who is capable of holding onto their silver investment, this could potentially mean large profits somewhere down the road. But the shakier investor who prefers consistent, guaranteed gains may prefer to stick with gold’s established return rates and low comparative volatility.
Types of Silver Bullion: Pros and Cons
Regardless of your investing strategies, preferences, or motivations, Hero Bullion is sure to offer a silver bullion product that’s perfect for you. Silver bullion investments with Hero Bullion fall into three main categories: coins, bars, and rounds. As you might anticipate, there are advantages and disadvantages to each of these three unique ways to invest in silver. We’ll walk you through some of the main pros and cons of each Hero Bullion silver product in this section.
Silver coins are a classic way to invest in silver. A silver coin is different from a round because it is backed by a sovereign government. This provides an additional layer of protection to your investment, as it means that the authenticity and face value of the coin is guaranteed by the government that minted it. Silver coins are also highly collectable; national mints regularly release yearly series that draw the interest of long-term silver collectors.
Government-backed. While the face value of a silver coin is almost never identical to its market value in silver, the presence of a face value at all is a welcome sign to some investors. Unlike silver rounds, silver coins are supported and minted by a sovereign national government. Like we explained above, this is great for investors who want security and consistency in their investments, as the backing of an official government guarantees the purity of a coin and a set pool of potential buyers in the long-term.
Brilliant designs. The long history of silver coins is filled with remarkable and memorable designs. The unique shine of silver bullion allows artists to depict intricate and beautiful scenes on both the obverse and the reverse of the medium. And these designs come at a much cheaper price than their golden counterparts, too!
Higher premiums. Premiums for silver coins are some of the highest in the entire bullion industry. As these coins are minted by governments and may retain high collector’s value over time, mints and distributors generally charge quite a bit higher than spot price for silver coin sales. Of course, this downside is generally offset by the collectability of coins; keeping your silver coins in good condition can help to retain the value of your investment.
Popular Silver Coins:
American Silver Eagle. American Silver Eagle Coins are exceedingly popular yearly releases. Initially minted in 1986, collectors eagerly anticipate the annual minting of the American Silver Eagle. The coin contains .999 fine silver, and it depicts Lady Liberty on its obverse and an American bald eagle on the reverse.
Canadian Silver Maple. The Royal Canadian Mint has distributed this collectable coin for over 30 years, making it one of the oldest and most revered silver coins in the world. On its obverse, the coin shows off the regal portrait of Queen Elizabeth II, while the reverse side depicts the classic image of the Canadian sugar maple leaf.
British Silver Britannia.
The British Royal Mint’s distinguished history helps to lend additional value to this classic coin. Britannia’s image adorns the reverse, while the familiar portrait of Queen Elizabeth II is the focus of the obverse.
Silver bars are a fantastic way to purchase more silver without paying the exuberant premiums of coins. With silver bars, you can purchase a high quantity of silver bullion at a cost close to the spot-price of the precious metal. Gold bars from Hero Bullion also vary quite a bit in weight, allowing you to customize your order to fit your investment needs.
Weight variety. We offer silver bars in a variety of different sizes and quantities. From .999 silver shot to massive 100 oz silver bars, we have something to pad the collection of any investor. This weight variety is great for collectors who want to diversify their portfolio. This is also an advantage for consumers who want to buy silver as a gift; you don’t need to spend thousands of dollars to get a quality silver bar gift with Hero Bullion.
Little collectability. The main reason collectors purchase silver bars is to increase their silver stock while paying as little premium as possible. Some silver bars have intricate designs, while others are relatively plain and simple. But most collectors are far more interested in the value of silver coins and rounds. By comparison, silver bars are mostly valued for their silver content alone.
Popular Silver Bars:
Aztec 10 Oz Silver Bar. It’s hard to find a design that better demonstrates the beauty and intricacy of silver art than the Aztec Calendar 10 Oz Silver Bar. Its face depicts a fully detailed inscription of the Aztec calendar, a popular symbol of Aztec culture and history. It features .9999 pure silver as well.
1 Oz Silver Bar (Any Mint, Any Condition). For collectors who are primarily interested in investing in pure silver alone, this is a fantastic option. These silver bars come from a surprise mint and condition, but always feature .9999 pure silver at an extremely low premium over spot price.
Silver rounds might initially appear very similar to silver coins. But the main difference between them is that silver rounds are unbacked by any government, while silver coins have the support of their minting nation. Silver rounds are often produced by private mints, meaning that their designs can be hit or miss. Hero Bullion is excited to bring you some of the most stunning silver rounds available from mints around the world.
Wide design selection. Because any mint can produce and distribute silver rounds, this method of investing in silver allots collectors the widest variety of different designs available. Investors interested in uniquely designed silver pieces that still retain collectable value should consider silver rounds.
Low premiums. Although this depends largely on the mint behind a given piece, many silver rounds are sold relatively close to the spot price of their silver. Mints which are able to cut down on minting and design costs can offer rounds at a price quite a lot lower than some government-backed coins of the same size.
No government backing. Some silver rounds may contain less pure silver than their mints claim. There aren’t many ways to verify the silver content of a round before purchasing it, and it’s harder to buy the claims of private mints than government mints. Rounds also often aren’t approved for IRA precious metal self-holding for this exact reason.
Popular Silver Rounds:
1 Oz Silver Round (Any Mint, Any Condition). This is another great option for investors who like the appearance of silver rounds but want to minimize the premium they pay over spot price. Our “Any Mint, Any Condition” rounds allow collectors to buy more silver without paying exuberant premiums. Asahi 1 oz Silver Round. Our one ounce Silver Asahi Rounds offer a relatively simple design, featuring the Asahi Mint logo on the obverse and a repeating mint logo image on the reverse. Asahi’s reputation speaks for itself; the Tokyo-based mint has been operating for over 200 years and only recently expanded operations to North America. Its .999 pure silver is provided at a low premium, making the Asahi 1 Oz Silver Round an excellent choice for investors who want pure silver in a simplistic and straightforward design. 26
Invest with Hero Bullion
We’re excited to bring you a wide selection of bullion products at the fairest prices possible. Our shipping process ensures that all purchases from our site arrive to your doorstep free of damage, blemishing, or scuffs. We realize how important the condition of coins is to our customers, so we strive to provide a comprehensive bullion service that makes investing in silver as easy and secure as possible.