What is the best way to invest in silver? Some people will tell you about silver ETFs, futures, and stock of silver mining firms, but there is one more method that is gaining a lot of popularity – silver bars. They are considered the smart way to invest in silver, and they work very well for both experienced and novice traders targeting large quantities. Here is all that you need to know about silver bars.
A Brief History of Silver Bars
Silver bars are considered the purest forms of silver on the market. They are melted and minted into bars that are 99.9% silver. Most investors targeting these bars buy them and sell at a profit when the price moves up, making them very popular in the silver market.
Silver has been in use as a commodity for centuries, but the exact time when its use started has remained a subject of debate among historians. It was mined, bartered, and used as a currency until the 20th century when most jurisdictions dropped it as a legal tender. However, its rarity and value as a precious metal made the production to continue, and people still buy it for this value as opposed to currency.
Today, a lot of silver is used for industrial purposes. For example, over 75% of the silver produced in 2020 was used for industrial purposes, such as the production of photovoltaic and photographic products. This means that you can buy silver bars and expect to sell at a profit in the coming years at a profit because of the growing demand. To make more profit, consider silver as a long-term investment.
The Main Sizes of Silver Bars
The lovely thing about silver bars is that they are available online in different sizes to allow investors, including those with tight budgets, to join the market. So, here are some of the common sizes that you might want to consider for your investment portfolio:
- One-Oz Silver Bars
These bars are very popular, and investors love them because it is easy to accumulate them progressively or sell a small portion and continue holding the rest. Smaller bars are also seen as a good opportunity for diversifying an investment portfolio that is characterized by larger silver bullions.
- Five-Ounce Silver Bars
These bars are of lower premium compared to the 1-oz bars, but higher compared to the 10-ounce option. The size is still small enough, portable, affordable, and a great option for new silver investors with small budgets.
- 10-Ounce Silver Bars
With the 10-ounce silver bars, an investor can expect to make some savings per ounce compared to the government-issued coins. These bars mainly come separated into sheets of five or ten sheets that can easily be separated.
Other than the three bars we have listed above, others include the kilo silver bars, which serve as the middle ground between the 10-ounce bars and the bigger 100-ounce silver bars. If you want to buy silver as close as possible to the live price, consider going for the 100- ounce bars.
Tips for Buying Silver Bars
- Only buy silver bars from trusted dealers.
- Most modern bars of more than 10 ounces come sealed with plastic.
- The brand that minted the silver bar matters a lot when determining the market value.
- Smart buyers go for bars from the most reputable brands and mines.
- Try to avoid off-weight bars or older bars because they are mainly bought for melt stock.
Silver bars can be an awesome option for investors looking forward to making good returns from their investments. Make sure to work with top brands, such as Gold Avenue, and adopt a good strategy to help you understand the emerging trends and make good investment decisions.
