As investors, you have all the rights to choose whatever type of silver you would like to collect and invest in. I know that you have your personal reasons why you have chosen this type of investment. There must be nobody in this world, who will command and force you to do so. When you would like to start collecting on something, it must always be at your own will. What you are doing right now is for your personal satisfaction and benefit – not for other people.
It is also possible that you may have picked up the idea of investing in bullions like silver bars or gold coins. But, that does not mean that you are investing because they want you to do the same. Let’s say that they influence you. So, it means that you are into this kind of investment right now or have plans of starting it because it is your happiness and you are determined to be a successful investor and a collector at the same time.
If you have made up your mind that you would like to collect silver, then I suggest you to start with silver bars. So, why silver instead of gold? Let’s say that you are still a fresh collector. This means that you still have a long way to go before you can compete with another collector. You need more experience, knowledge and skills when facing dealers from different parts of the world. Now, before buying the silver bars, you need to know a lot of things to work on.
The value of Silver
When you are going to check out the silver from different dealers, you need to compare the value. For example, they are offering silver coins and bars. Which do you think is cheaper? Let me tell you that when it comes to producing these options. A bar takes less time as well as effort when it comes to production rather than a coin. The bars will be produced by simply pouring or casting, while coins will still need to be minted.
It is also because of this process that makes a bar have lower markup or cheaper, compared to coins. Do you know that a silver is more than 80x cheaper than a 1 oz of gold? If this is the value of silver, then a bar would be less expensive than that.
The Bar Size
Remember that the cheapest bar is the 1000 oz. But, it does not always mean that this is what you will buy because you still have other options. Therefore, you have to know about the downsides of different sizes. For example, if you would like to buy a bar that you can cut into several pieces, then you must be looking for a larger bar. Other sizes are sold in tranches.
Now, if you are investing on bars that you can resell, choose the size that you can sell fast. Do not think about reselling a 1000 oz because with this one, you cannot easily get potential customers except for metal refiners. And then, if you are required to assay the 1000 oz, then that would take more time and additional cost, too. It would be great, if you can also find out how or what happens when assaying a metal.
Most of the investors and collectors are buying the 1kg bar of silver. In my opinion, it would be nice to check this bar size, too. They buy this size because comes with a lower premium and can be divided. And then, if you would like to add further divisibility, you may also consider a 10 oz silver bar.
Silver Cast vs Silver Minted Bars
A silver cast bar means that this has undergone melting and then was poured into a mould or a cast. The cast comes with a stamp of the refiner’s hallmark that goes along with purity and weight.
While a silver minted bar has to undergo a procedure just like how coins are minted. Just like a silver cast, it also needs to be poured into a mould for a particular size and will be fabricated after that. And then, a machine will be used to strike or stamp it just like how a coin was done. It usually comes in a 1 oz size.