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Silver bullion is the general term used for silver bars, coin, and rounds.
These bullion products are minted to satisfy silver investment and gift demand worldwide.
Silver bars are produced in various weights, sizes and purities.
They can easily be carried and stored in a private safe box.
Most common weights are 1 oz, 2 oz, 5 oz, 10 oz, 100 oz, 300 oz and 1 kg silver bars.
These bars are mainly made from 99,9 pure or .9999 purity silver.
Every silver bar carries its producer, weight and purity stamp.
National and private mints may produce silver bars.
Just like silver bars, silver coins offer many options for buyers.
Coins of 1-ounce weight are very affordable.
The price is generally very close to the spot price of silver ounce.
These coins are easily stored thanks to their size.
Silver coins can also come in special boxes, which increase their gift value.
They are the first choice for starter investments, as they carry less premium in comparison to other alternatives.
Dealers generally present lower prices for higher amounts of coins offering better deals.
The savvy investor may pay less premium by considering a larger purchase, thus increasing profit margins.
National mints produce coins with beautiful designs such as the American Silver Eagle, the Canadian Maple Leaf or the Chinese Panda.
This aesthetics aspect enhances the gift side of silver coins, besides their “store of value” and investment characteristics.
Moreover, the value of a silver coin may increase with limited edition series.
These are rare opportunities to acquire a family heritage, which will pass on to the next generations.
As in silver bars, silver coins are often minted from 99,9 % pure silver.
They may carry a face value as in the American silver eagle which has a face value of 1 US dollar.
Silver rounds are just like silver coins but they do not carry a face value.
Although national mints may also produce silver rounds, they are generally made by private mints.
Silver rounds do not carry face value thus cannot be used as legal tender.
Their most common weight is 1 ounce but there are many different rounds with different weights.
Silver rounds carry a small premium over the ounce price making them a good choice for investment purchases.
As silver rounds are mainly produced by private mints, they come in a wide variety of designs.
Silver buffalo, native American figures, Chinese lunar calendar animals or privateer collection featuring pirates, mermaids and alike are all good choices for gifting purposes.
These are ideal silver gift ideas for christening ceremonies, birthdays and graduation days.
Where to buy silver bullion?
Silver bars, coins, and rounds may be bought from offline and online dealers.
While physical stores carry heavy fixed costs, online bullion dealers are able to wipe out these expenses and offer better prices.
On the other hand, local stores operate over the counter.
You may receive your silver bullion on the spot, in contrast to online dealers where you’ll have to wait for the arrival of your shipment, which may have delays.
Bullion coins and bars offer diversification from paper currencies.
Silver and gold bullion have place in every portfolio thanks to being “a store of value” which is outside central bank manipulations.
This offers an innate protection from man-made inflation.
Silver, like gold, is a “safe haven” option in crisis times where the credit flow gets weak and asset prices experience unforeseeable downside movements.
As the speed of money slows and consumption dives down, individual investors, companies, and governments may choose to sell their assets.
This may cause sales at serious discounts, and even, assets to change hands at oversold prices.
Although they wouldn’t otherwise, they liquidate assets to compensate their deficits and urgent expenses.
If this wave turns into a tsunami of sellers trying to liquidate their assets, silver and gold may receive an excess of fund inflows offering immense gains to their investors.
Nevertheless, one must never forget that the precious metals market is volatile.
Every investment may experience losses and may not return to its previous highs for a long time.
A perfect gift
Thanks to beautiful designs, silver coins are always a gift option which has value enduring time.
Today, we have more choices than ever to select from may it be bars, coins or rounds; may it be private or national mint products.
There are classic collections like silver eagles or silver pandas but there also special collections.
These are limited-edition collections produced for anniversaries and important events like birth of a national composer or Olympic games.
Limited coins may be the perfect gift for a hard currency appreciating music lover or sports fan.
Investing in silver bullion
If we aim to buy silver bullion as an investment, there is no need to rush.
Dollar-cost averaging by buying 1-ounce coins every month, for example, is a practical and logical investment choice.
It takes out the burden of perpetual decision making out of the investment process.
By this way, we may make our investments in small amounts and easily store our bullion.
We can enjoy the benefit of dollar-cost averaging without worrying about buying and selling large amounts at the extreme highs and extreme lows.
By taking less risk at each transaction, we are saving us from discouragement from investing and wasting energy.
Where should silver be stored?
Every silver investor must have a plan for storage.
While small pieces may be stored in homes; for larger amounts, you may opt for a more professional route like a private precious metal deposit company.
This option offers storage in secure vaults all around the world and is priced accordingly.
These companies have many different plans including free shipment, storage in different states and different countries, allocated, unallocated and segregated storage.
In unallocated storage plans, the deposited metal is a liability on the bullion vault company’s balance sheet, where the “owner” is an unsecured creditor.
Say, you deposited 1 kg bar of silver.
The storage company owes back one kg of silver, but not the same bar you gave them or even a similar bar but a total of one kg silver.
In allocated plans, if you deposit one kg bar of silver, the company has the liability of returning one kg bar of silver back, but that may not be the very same bar you stored with them.
In segregated plans, the vault is responsible for returning the exact same one kg silver bar that you gave them.
In this option, the deposits are separated from other clients’ properties.
One should get well informed before considering pros and cons of private storage.
To make the right decision for bullion storage, you should elaborate your needs such as redeeming frequency and time it takes to receive deposits or arrange a personal visit to the vault.
These private storage plans may have various fees from account opening to transport.
Furthermore, there may limits on these actions.
You should also consider price and regulation changes.
Don’t forget to take into account the country and jurisdiction the private vault is located.
Regulation changes may affect your reach and control over your bullion.
To end with, silver bullion has the advantages of being a store of value and an investment.
They are excluded from central banks’ fiat currency manipulations.
Moreover, they are awesome gifts for many different occasions.