Different Types Of Silver Bullion Bars

First of all, bullion would be the term used for a piece of precious metal that was struck and made into something that with value to be made as an investment for people (investors). This has created the bullion market from which a lot of investors, collectors, and other types of business-minded individuals participate in. There are many different kinds of small to sizeable investments that can be made through different means. As for silver, investors can opt to try out silver bars, coins and rounds.

Specifically, with silver bars we can describe it to be a slab (rectangular in shape) that was made from pure silver with a 0.999 reading in terms of purity. Prints and images can be found on top of these bars usually indicating the mint from where it was produced, it’s silver content, and a mark from that mint as well. When it comes to mints, Engelhard is renowned and these bars have become collectors' items as they are no longer made. Bars with collector value tend to be more expensive than other bars. But, premium pricing when it comes to silver bars the lowest when compared to its counterparts mostly because it is priced by the purity of silver in that bar as well as its weight and the rate for that weight. For this reason, investors who choose to invest in silver would most likely choose this as a form of investment in their participation in the market.

The different types of bars come in its sizes or weight which would also be the determinant for it’s price. 1 oz. bars would be the lightest and cheapest bars that you can find in the bullion market. Most entry level investors own these types of bars at the start since it requires less money. But, don’t be mistaken by its size and low value because large players don’t forget to have 1 oz bars in their denomination because trading and engaging in transactions (buying or selling) with them would be easy due to availability and low price.

There also exists bars like the 2 oz, 3 oz and 5 oz bars in the market. These represent floaters in the market since people don’t really own a lot of them and with the least demand because they are treated as not as flexible as 1 oz bars. The mark of a mid-level investment in this market would be when an investors buys 10 oz bars from the market.

When an investor wants to go big, they try to raise as much money as they can and search for 1-kilo or 100 oz silver bars. It is a representation in the total amount of investment that one has made because of the sizeable money that was shelled out in order to get a hold of such material in the first place. Bars of this size are considered to have a premium when traded in the market, but relatively speaking it wouldn’t be that high though.

Investing in silver bullion bars requires a little variety in terms of the denomination of bars owned because bigger bars don’t really have that much buyers. This means that a good amount of smaller bars are also needed to achieve flexibility in trading within the market because investment is more than just the money that was used up to make it.

References:

http://www.buysilveronline.org/types http://www.jmbullion.com/silver

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