Silver bullion has become one of the most popular ways to invest in silver. With the price of silver reaching record highs, traders are seeing high demand from investors for bars of all sizes. There are several advantages to buying bars instead of coins.
- Inverters who take deliveries find them very easy to store, stack, and handle, due to their flat, uniform size.
- Investors who want to invest in a large amount of silver only need a small amount of storage space due to its compact size.
- They are very liquid and can be converted to cash very easily due to the identifiable seals, clearly stamped on each bar.
- The premium for silver bars is much lower than for one ounce silver coins.
Silver bars are available for purchase in sizes ranging from one ounce up to 1000 ounces. Let’s take a look at each individual size bar and the pros and cons of owning each size.
Fractional Size Silver Bars – Gram Silver Bars
Fractional size silver bars contain the smallest increment of silver bars that you can purchase in bar size. To put things in perspective, there are 31.1 grams of silver in a 1 troy ounce bar! A 1 gram bar is slightly smaller than a dime! To calculate the value, you must divide the current spot price of silver by 31.1.
advantages:
1. Perfect size for someone on a very tight budget to branch out into precious metals.
2. Perfect size for gifts and special occasions.
3. Even large numbers of bars of this size can be stored in only a small amount of storage space.
advantages:
1. Highest spot premiums of all silver bullion sizes.
2. Harder to sell than the larger size bars, since they are not as recognized.
3. The value is more difficult to calculate than the larger bars.
4. Hard to locate and mostly bought as collector’s items.
1 ounce silver bars
1 oz silver bars, also known as bullion, contain 1 troy ounce of silver and are 99.9% pure. Sunshine Minting produces one of the most popular 1 oz size bars.
1. The 1 ounce size is the most affordable way for small investors to invest in precious metals.
2. They are produced by many of the world renowned manufacturers such as Engelhard, Johnson-Matthey, Silvertowne and Sunshine Minting.
3. Due to its small size, only a minimum of storage space is required.
4. They are highly portable and highly liquid.
Disadvantages:
1. They have higher premiums than the larger silver bar sizes.
2. It would not be practical for buyers who want to purchase a large amount of silver.
10oz silver bars
The 10 oz silver bullion size is one of the most popular sizes on the market. Contains 10 troy ounces of .999 fine silver. Like the one ounce size, this popular bar size is also produced by many well-known manufacturers.
The most popular 10-ounce bars are those of the Engelhard and Johnson-Matthey brands. Sunshine Minting and the Wall Street Mint are also popular sellers. Not many Engelhard 10 oz were produced and they are very hard to find.
advantages:
1. They are highly liquid, tradable, and always in demand.
2. The 10 oz size is a very convenient, inexpensive and reliable way to invest in silver bullion.
3. Less likely to be counterfeit as counterfeiters prefer the larger bars.
4. This size bar is perfect for bartering purposes.
5. An acceptable IRA investment.
Disadvantages:
1. The 1 oz and 10 oz size have the highest premium over the spot price of silver.
2. The small size is not practical for large investments.
3. The higher cost makes them impractical for small investors.
4. They are not suitable for barter purposes because they are indivisible.
100 ounce silver bars
100 oz silver bullion bars are often purchased for investment purposes, not as a hedge against inflation, as is the case with 1 oz or 10 oz bars. They are mainly an industrial product that is used for storage purposes.
The most popular 100-ounce bars are produced by Engelhard and Johnson-Matthey, the world’s two largest refiners. However, these bars have not been mass-produced since the late 1980s. More readily available are the brands RCM (.9999 fineness), Academy (.999 fineness), Sunshine Minting (.999 fineness), or Ohio Precious Metals (.9995 fineness). They weigh only 6.86 pounds.
advantages:
1. They have a very low markup above the spot price of silver.
2. They are acceptable for an investment in an IRA.
3. They are recognized worldwide as a commercial vehicle.
4. Higher liquidity of all sizes of silver bars. It is relatively portable in size.
5. Their uniform shape makes them easy to store and stack.
Disadvantages:
1. Due to their larger size, they require more storage space.
2. They are not as portable as 1 oz or 10 oz bars.
3. The price may be too high for small investors.
850 ounce silver bars
The Royal Canadian Mint produces a very exclusive 850 oz bar containing 0.9995 silver. Actually, the bar does not weigh 850 ounces. Weight will range from 800 to 900 ounces, with 850 ounces being the average.
advantages:
1. The smallest markup on the spot price of silver.
2. They can be shipped via USPS using a flat rate box because they are less than 70 pounds!
3. High purity level of silver .9995+.
4. They are stamped with a unique serial number along with the year of production and the Royal Canadian Mint hallmark.
Disadvantages:
1. They weigh about 58 pounds, significantly more than the 6.86 100-ounce bar.
2. Due to their heavier weight, they are more difficult for the average person to handle and store.
1000 ounce silver bars
1000 oz silver bars are the most popular with future Comex investors who choose to receive their bars. These bars use recently refined poured silver bullion. You won’t normally find a bar this size that weighs exactly 1000 ounces. Weight generally ranges from 960 to 1030 ounces. All bars are stamped with their weight, stamp, and serial number.
The most popular 1000 oz bars are Johnson-Matthey. They generally weigh between 930 and 1080 ozs or 70 lbs. The size of each bar will vary. Each 1000 oz JM bar is stamped with the hallmark, purity, and weight.
advantages:
1. Offer the lowest markup on the spot price of silver. They are often priced spot, with no premium.
2. Excellent for investors who want to buy large amounts of silver
3. Is Comex deliverable?
4.Ideal for storage in precious metals warehouses.
5. Also suitable for IRA investments.
Disadvantages:
1. Not as easy to store or handle as smaller size bars
2. Not suitable for investors who want to receive their precious metals.
3. You will need to use a facility that specializes in the storage of precious metals.
4. It may need to be tested when sold.
5. Not as runny as the smaller bars.
6. Since the weight of the bars varies, it can be difficult to calculate how much silver you actually have.
odd size bars
5 oz, 20 oz, 25 oz, 50 oz and kilo (32.15 oz) bars were popular during the 1970s, when silver bullion was first introduced and became extremely popular as an inflation hedge. . These size bars are not as popular today, with most investors opting to buy the 10 oz or 100 oz sizes. You can still find these odd-sized bars in the secondary market when silver prices are on the rise and sellers tend to liquidate their holdings.
advantages:
1. Some of these odd-sized bars have unique characteristics.
2. 25 and 50 oz bars tend to sell for the same price as 100 oz bars.
3. The five-ounce size often sells for the same price as the 10-ounce size.
4. Ideal for collectors who want a unique and hard to find item to add to their collection.
Disadvantages:
1. Not as runny as the other popular size bars
2. They are not easy to obtain as they are mainly acquired by collectors and not for investment purposes.
Conclusion:
As you can see, there are advantages and disadvantages to buying and owning silver bars of each size. Not all bar sizes are suitable for all investors. Your investment objectives and the capital you have available and wish to invest in precious metals are important factors in determining the best bar size for you.
- Smaller investors who don’t have a lot of money to invest or don’t have a lot of storage space are better off buying the 1 oz bars.
- Collectors or people who are interested in buying silver to give as gifts should consider gram size bars.
- Investors who want to accumulate wealth with silver and want to use the dollar cost average method should opt for the 10 oz bars. These bars are also perfect for those looking to take ownership of their precious metals as their uniform size is perfect for storage purposes.
- Seasoned investors with more capital to invest or those with longer-term goals should go for the 100 oz bars. These bars are perfect for savers who want to diversify their IRA away from risky paper investments.
- Collectors who enjoy collecting unique and hard-to-find silver items should look for irregular or gram size bars.