How to Choose the Right Silver Bar for Your Investment

The type of silver bar you buy definitely matters. This is primarily because of factors such as purity, size, and the reputation of the company that refined or produced the bars. Keep reading as the precious metals experts from First National Bullion, the silver and gold dealers San Diego collectors rely on for outstanding quality and service, explain what to look for when you’re buying silver bars.

Size

The value of a bar varies based on many factors, including size. There’s a premium over the spot price for each bar. Normally, the premium increases with smaller bars. However, there are exceptions. The good news is the difference usually ranges from $2.00 to 2.50. You may not want to simply opt for a larger bar. However, the downside is that it’s more difficult to sell a more expensive bar of silver than it is to sell smaller bars of silver. For instance, you may wish to only sell part of your collection and keep the rest or sell it later in pieces.

Producer

There are many different producers of silver bullion bars. The main difference is with the mark-up price. Some buyers are happy to pay a higher premium if they find a producer or mint they like. Others, however, prefer to pick and choose to get the lowest possible price. Silver bars are generally easier to purchase if you buy the bars from private mints or reputable precious metals dealers, such as First National Bullion, who purchase their bars from private mints. 

Condition

When you purchase new silver bars, they come in sealed packaging to protect them. Secondhand bars are often unsealed. This is often done so dealers can inspect them. There’s nothing wrong with this practice. You just need to make sure you’re getting silver bars in the best possible condition for your investment.

Shape

Most silver bars are rectangular. Silver bars can also be triangular or even round. Rectangular shapes are most popular and common because people expect bars to be shaped this way and because they’re easier to store and stack. It doesn’t matter which shape you purchase. It’s simply a matter of preference. However, some buyers may prefer traditional shapes. If you go with an odd shape, you may have some hesitation from investors if you sell your bars.

Style

Silver bars normally have weight and purity markings along with mint logos. Some bars are a bit more artful. Some silver bars are made for special occasions or events. These bars are usually more expensive than ordinary bars. Art bars are usually not recommended as an investment if you plan to sell them and recover what you spent. For example, these bars may not be as desirable once a special event they commemorate is over.

Price

Naturally, silver bars are going to be more expensive if they contain more silver or if they’re artful. Determine how much you can afford to spend on silver bars. The good news is you may be able to recoup your investment if you sell your bars when silver is at a higher value than it was when you originally purchased it.

When they’re looking for the best place to buy silver bullion, San Diego precious metals collectors can rely on the trustworthy professionals at First National Bullion. Privately minted silver bullion as well as government minted silver bars are easy to purchase from any of our First National Bullion locations. We can answer all your questions and help you find all the information you need on how precious metals can be a valuable part of your portfolio. Give one of our experienced dealers a call today.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.