What Is the Best Silver Bar Size To Buy?
Precious Metals Like Silver Come in Many Shapes and Sizes
As it comes to investing in precious metals such as silver, you will discover that these metals come in varying shapes and sizes. Of course, there are the popular coins and their many varieties but there are also gold, platinum and silver bars. If you’re new to bars and have an interest in investing, this post is for you.
Unlike silver coins, silver bullion bars are actually an industrial product. That is to say, they are not designed for consumer use. Silver bars are specifically crafted as an investment, as something that will maintain and increase in value over time.
What Sizes of Silver Bars are Available, and Which is the Best to Invest in?
Silver boasts two types of bars: minted (cast) and poured. Minted bars are a bit like coins. They are easier to produce. Poured bars are more labor intensive and, as a result, yield higher premiums.
As for sizes, silver bars, often referred to as silver ingot bars, typically consist of 99.99% silver and range in size from a single ounce to 5000 ounces. The 1-oz, 5-oz, 10-oz and 100-oz sizes are generally the more popular choices with silver investors (as well as the 32.15-oz bars better referred to as kilos). Obviously, the more ounces the bigger the cost and, thereby, investment potential.
As a curious note, according to our friends at Investing in Gold silver bars might lose ground to coins as it comes to taxation in some jurisdictions. Depending on where one lives, silver coins can be exempt from capital gains tax whereas silver bars are not so fortunate. If you are looking into high volume sales and gains, it might be worth your time to research how this might affect your investment on silver ingot bars.
So, what’s the best silver bar size to buy? Per usual, this comes down to preference and budget, but there is some objectivity to the decision.
Larger silver bars are great for keeping a lower premium per ounce; buying in bulk holds true with silver as well. You’ll be rewarded with lower premiums on a 100-oz bar vs. 100 1-oz bars. Depending on how much additional storage material you’re using for the smaller bars, if any, it may require less space to store the larger bars vs. a large quantity of smaller bars. Lastly, selling one 100-oz silver bar may be easier than selling 100 smaller bars as the buyer need only check the authenticity of one bar.
In turn, selling 100 1-oz bars can be easier than selling one large bar if you don’t have a buyer with the desire, or budget, for a 100-oz bar. In a barter scenario, or a scenario where silver’s price is well above where it is today, it’s a good idea to have smaller bars for smaller transactions. Smaller bars often better fit the collectible niche for something you, and others, might value well above its silver content. That’s not to dismiss the collectibility of a vintage large bar, but this is a good rule of thumb.
Are Silver Bars a Safe Investment?
As a precious metal, silver is one of the safest investments on the market. Historically speaking, silver is the most popular and commonly used form of currency on the planet. Its reputation is, literally, sterling.
Today, silver’s popularity means that it’s being used less and less in the minting of coinage and more and more in the production of industrial and investment assets. Silver is not only found in coins and bars but in electronics, medical equipment and solar panels and so much more. Because silver is in such high demand across the board it’s clear the precious metal has a shiny outlook for the many coming years and decades ahead.
So, if silver is on your radar, have a look around and see what shape works best for you. Silver bars are beautiful creations with considerable potential. Go big or go small. Either way, silver is poised to bring about a subtle but agreeable win as it comes to contributing to your investment portfolio.
About The Author
Hero Bullion provides an environment that is informative and safe for those looking to own physical gold and silver bullion as an investment. We love helping folks at all stages throughout their bullion journey making progress towards acheiving their financial goals. Whether you are a seasoned bullion investor or brand new to the game of gold and silver bullion ownership, we're here to help and serve you in any way we can.