Choosing the right type of silver bar to buy is an important decision. Here are few things that you need to make before the purchase:
- What is the size of silver bar you need to buy
- When is the right time to buy silver bullions over silver coins?
- Learn about the advantages and disadvantages of different sized silver bar
- Check out the most commonly purchased size of silver bars
- Which is a good choice minted bars or cast bars
- Are silver coins more expensive than silver bars
- What are the different brands of silver bars
Before proceeding ahead, we need to address the most important issue of choosing silver bars over silver coins. It takes much more efforts to produce silver coins as compared to the silver bars. Most of the silver bars are cast which is much simpler than striking a coin.
Due to this reason, silver bars for sale have much lower mark up as compared to the spot price of silver. You have to understand that the difference in markup between bars and coins is much more prominent in silver than gold. In the current scenario, silver is approximately 80 times cheaper than gold. This means that in order to purchase 1-ounce gold you would require approximately 80 silver coins.
There are many other reasons to purchase silver bars over making other investments. They are much cheaper to store than silver coins. Due to the shape of coins, they consume more volume after packaging as compared to equivalent weight of silver in bars.
Where to buy the bars?
Now once you have decided to purchase silver bars, next decision is to choose the size of silver to buy. You have to understand that largest bar will provide smallest premium. The net cost of producing a large bar is much similar to that of producing a smaller one. It is quite clear that 1000 oz. silver bar is one of cheapest way to purchase silver. However, it may not be the best option for everyone.
There are few consequences of large bars. Divisibility is a common issue as you can’t divide a much bigger bar into smaller pieces. On the other hand, if you purchase 100 oz. silver bars or even smaller 1kg bars, they are quite effortlessly sold in tranches. While reselling the bars, you will get much limited options as there would be fewer potential buyers.