Silver bullion bars are one of the most common forms of silver investment. They are produced in several different weights and denominations depending on much you want to invest, and normally sell at a little over the spot price for silver. One of the main advantages of buying silver bars over other forms of silver investment is that the purity of the silver content contained in them is guaranteed. All silver bullion bars are composed of .995 or higher purity silver which makes them an attractive investment for investors looking for a higher rate of return.
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Silver bars are available in several different sizes and weights. Typically ranging from anything from 100 grams, to 1 kilo all the way up to 10kilos. When buying silver, it is important to think about your requirements before making any decisions as to which size bars you go for. For instance, if you are buying silver to hold onto for the future then larger sizes may be more suited to you, whilst if you are buying silver for short-term gain then smaller bars are easier to sell as they are more affordable for most buyers.
Cast or “moulded” bars tend to be cheaper than minted bars and are typically worth much less. This is because the creation process leaves blemishes/abnormalities and they are generally cheaper to manufacture. Minted bars are typically more popular with investors and collectors due to being more aesthetically pleasing to the eye and also due to the fact they can be designed in far greater detail.
Like gold, the value of silver is prone to fluctuation, however, silver represents a much more affordable option for many investors. Whilst the current value of silver is not as high as other metals such as gold and platinum, many investors believe that its price is likely to increase dramatically in the future as we are currently mining much more of the metal than we are producing. New uses for silver are also being discovered all of the time, particularly in industries such as solar energy and manufacturing.
There are several advantages to buying silver in bar form. For example, if you are looking to buy silver in bulk then a bar is more practical than coins (e.g. Britannia) or other forms of silver as it is more easily stored. Silver bars are also fairly liquid meaning you can sell them quickly if you need to raise the money in a hurry.
When investing in any form of silver you should always be aware of the spread. This is the difference between the price a dealer is willing to pay for silver and the price they are looking to sell it for. Dealers will always sell at a higher price as they need to earn a living. Therefore, you shouldn’t expect to make a massive profit on silver in the short term unless its market value rises dramatically, as it just isn’t realistic. The spread tends to vary considerably from dealer to dealer so in order to get the best deal you should always shop around before making any decisions.
Physical Gold, specialise in a very large selection of silver investments. We also offer a full range of gold bars (from smaller sizes like 100g and 1oz, up to 1 kilo) and silver bars from 100 grams all the way up to 5 kilos. Call us today on 020 7060 9992 to discuss your options.
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Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.