Precious metals have long been seen as a good investment in a declining economy as well as a means of storing wealth. Silver is a great metal for new investors to start with, given its budget-friendly pricing. Buying bullion is a popular way to invest in silver. Bullion is pure metal sold by weight and comes in a variety of forms, including bars, rounds, and coins.
The experienced dealers from First National Bullion and Coin offer the following advice about how to decide which form of silver suits your needs best.
It’s important to understand how precious metals are priced before deciding on what form of bullion to purchase. The spot price is what the metal is valued at by weight. Prices for bullion from a dealer will include a premium above spot price that represents the work of minting the bullion and the work of the dealer to sell it.
Bars & Rounds
Silver bars are generally minted privately and represent the value of the metal by weight, with no legal tender amount. There are a variety of bar sizes and designs available from different mints. There’s sure to be something that appeals to every investor and collector. Smaller bars can be easier to liquidate but hold a higher premium over spot when buying. Larger bars generally have a lower premium above spot, making them the best value, but they can be harder to liquidate. Like bars, rounds are valued by weight but come in a round shape like a coin. Unlike coins, they show no legal tender amount. Silver bullion rounds come in a variety of different weights and designs, so they have great appeal for collectors.
Silver bullion coins are government minted, with legal tender amounts on the coins themselves. There are a few exceptions to this, including international coins such as the South African Krugerrand. Coins have a higher premium over spot than bars but will have far more recognition in the market. Recognition and a guarantee of quality from the coin’s government make bullion coins easy to liquidate. These qualities make silver coins a great way to begin investing. The American Silver Eagle coin is one of the most recognizable coins on the market and belongs in every precious metal investor’s collection. Canadian and European mints also produce government tender silver coins. There are also many commemorative silver coins available on the market.
Make sure to work with reputable dealers when buying silver bullion bars or coins. For resale, it’s important that bullion is marked with the weight and purity of the silver. While the bullion’s worth comes primarily from the weight of the metal, the condition can also change its value. Collectors especially enjoy the luster of a bar or coin in perfect condition.
If you live in San Diego, silver bars and coins of the highest quality are available at First National Bullion and Coin. We buy and sell all kinds of precious metals, including silver, platinum, gold, and palladium. San Diego collectors who are looking for trustworthy dealers and high-quality service should give us a call at 858-666-6570 to speak with one of our precious metals experts.
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.