Silver has always been seen as a great investment. Silver bullion bars have become one of the most popular ways to invest in. The price of silver is reaching new highs, and dealers are witnessing a huge demand from investors for all the size bars available. Let us take a look at the several advantages to purchasing silver bars over silver coins:
- It is easy for the investors taking delivery as they find it very easy to store, stack and manage the bars because of their flat and uniform size.
- Investors eyeing to invest in a large amount of silver do not require a large amount of storage space due to the bars’ compact size.
- They can be easily liquidated (that is, can be converted to cash easily), because of their clearly stamped, easily identifiable hallmarks 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 one ounce to 1000 ounces. Let’s take a look at each individual size bar and the advantages and disadvantages of owning each size.
Fractional Size Silver Bars – Gram Silver Bars
Fractional size silver bars contains the smallest increment of silver bullion that is available for purchase in bar size. To better understand it, understand that there are 31.1 grams of silver in one troy ounce of a bar! A “one gram” bar is just a tad bit smaller than a dime! To calculate the value of the same, make sure to divide the current silver spot price by 31.1. 1 oz silver bars are also known as ingots. They contain one troy ounce of silver and are 99.9% pure.
10 oz silver bars
The 10 oz silver bars size is one of the most popular sizes available in the market. It contains ten troy ounces of 0.999 fine silver. Thus, it is also a very pure form. Like the 1 oz size, this size bar is also produced by many well-renowned manufacturers, due to its popularity.
Engelhard and Johnson-Matthey produce the most popular 10 oz bars. Sunshine Minting and Wall Street Mint are also popular brands known for this size. Unlike the 1 oz and 10 oz bars, which are often termed as an inflation hedge, the 100 oz silver bullion bars are purchased for investment purposes. They are primarily an industrial product that are used for storage purposes.
100 oz silver bars
Alike the 10 ounces bars, Engelhard and Johnson-Matthey, world’s two largest refiners, are the most famous producers of 100 ounces bars as well. However, these bars have not been produced at a mass scale since the late nineteen-eighties. Hence, the ones available in the market today are very rare. The RCM (.9999 fineness), Academy (.999 fineness), Sunshine Minting (.999 fineness), or the Ohio Precious Metals (.9995 fineness) brands are the more readily available ones. They weigh just about 6.86 lbs.
They offer the highest liquidity of all silver bar sizes and are also portable, considering their size.
850 oz silver bars
There is a very unique bar size of 850 oz that is produced by the Royal Canadian Mint. They contain .9995 silver. However, in real, they do not weigh 850 ounces, but their weight ranges from 800 to 900 ounces, with the average value being 850 oz.
1000 oz silver bars
The 1000 oz silver bar size is most popular amongst the Comex futures investors, who choose to take delivery of their bars. These bars use newly refined poured silver bullion. However, it is not likely that you will find a bar of this size weighing exactly 1000 ounces. Their weight generally ranges from 960 to 1030 oz. All these are stamped with their weight, hallmark and their serial number, further adding to their value.
Odd Size Bars
5 oz, 20 oz, 25 oz, 50 oz and a kilo size are all examples of odd size bars. These bars were popular during the 1970s when silver bullion bars were first introduced, and silver bullions are popularly used as inflation hedges. But these bars are not as popular today because most investors choose to go for either the 10 oz or 100 oz sizes. However, you can still find that these odd size bars are available on the secondary market, when silver prices are on the rise and sellers are intending to liquidate their holdings.
As evitable from above, there is a variety of options available to invest in. The only thing that should matter while selecting the size bar is the budget and objective of your investment.
Looking to buy Gold, Silver or Platinum bullion? Private Vaults Australia is one of Australia’s leading precious metal and gold bullion specialists.