Buy Silver Bars: A Guide to Investing in Precious Metals

When it comes to where you should invest your money, there are many different options to consider. Stocks, bonds, and real estate are all popular choices, but for those looking for something tangible and valuable, precious metals like silver are worth considering. In this article, we'll take a closer look at buying silver bars as a way to invest in this valuable commodity.

What Are Silver Bars?

Silver bars are a type of bullion that is made of pure silver. They come in different weights and sizes, ranging from just a few grams to several kilograms. The largest silver bar commonly traded around the world is the 1,000 oz LBMA Good Delivery silver bar.

The value of a silver bar is based on the current market price of silver, which can fluctuate daily.

Why Invest in Silver Bars?

There are several reasons why investing in silver bars can be a smart move. First, silver is a tangible asset that can be held in your hand, making it a great option for those who want to diversify their investment portfolio.

Second, silver has been used as currency for centuries, making it a stable investment option.

Third, silver bars usually have a lower price premium (price per gram or price per troy ounce) than silver coins. This is because silver coins are often minted to a weight of one troy ounce, but silver bars can be produced to as much as 1,000 troy ounces. The cost of producing larger silver bars is much lower than one troy ounce silver coins.

Finally, silver is often used in industry, meaning there is a demand for it beyond just its value as a precious metal.

How to Buy Silver Bars

Buying silver bars can be done in several ways. Some people prefer to buy from a local dealer, while others prefer to buy silver bars online. When buying silver bars, it is important to make sure that you are getting a fair price for your purchase.

One way to do this is to research the current market price of silver before making your purchase. This will give you an idea of what to expect to pay for a silver bar. You should also compare prices from different dealers to make sure that you are getting the best deal.

Another thing to consider when buying silver bars is the reputation of the dealer. Make sure that you are buying from a reputable dealer who has a track record of delivering quality products.

Which Are the Best Silver Bar Brands

When it comes to investing in physical silver bars, there are many brands to consider. Common silver bar brands include:

• The Royal Canadian Mint (Canada)

• The Perth Mint (Australia)

• Metalor (Switzerland)

• Heraeus (Germany)

• Nadir (Turkey)

• PAMP Suisse (Switzerland)

However, the brand of the silver bar may not be the most important consideration when you invest in silver. While different silver bar brands may produce physical bars of different designs and dimensions, they will usually be of the same quality, having at least .999 fineness and the respective weight - measured in troy ounces or kilograms.

Should silver prices rise and you want to sell your silver bars, their value will be based mainly on the fineness and weight. It is advisable to buy silver bars manufactured from any of the reputable national mints or refineries. For the latter, they ought to be accredited by the London Bullion Market Association (LBMA).

This LBMA accreditation is often used by governments to determine if the gold and silver bullion bought is free from VAT or the sales tax.

Storing Your Silver Bars

Once you have purchased your silver bars, you will need to store them somewhere safe. Given how cheap silver is right now compared to gold, you can easily accumulate a lot of silver when you invest in silver. Many people choose to keep their silver bars in a safe at home or safety deposit box. Knowing that your investment is protected can provide added security and peace of mind.

However, not all safe deposit boxes come with insurance for your precious assets. Many bank safe deposit boxes are uninsured since you are not required to declare their contents. Unlike bank safety deposit boxes, Silver Bullion offers safe deposit boxes that are operated by The Safe House vault at The Reserve, which has the option for insurance.

Another option is to store your silver bars with a bullion storage provider. This can provide additional security and insurance for your investment. However, it is important to research different depositories and make sure that you are comfortable with the fees and terms before storing your silver bars.

Selling Your Silver Bars

Should the price of silver rise and you want to sell your silver bars to lock in a profit, you will be delighted that investment-grade precious metals like gold and silver are highly liquid. This means you can easily buy and sell your silver bars, given the readily available and transparent spot silver prices.

When the time comes to sell your silver bars, the following are 3 options to consider.

Sell Silver Bars to the Dealer You Bought From

One option is to sell your silver bars back to the dealer where you bought them. This can be a convenient option, and your precious metal dealer should be glad to buy back silver from an existing customer. 

However, it is important to compare prices to make sure that you are getting a fair price for your investment. This is why you can consider selling your physical silver bullion to other bullion dealers.

Sell Silver Bars to Other Bullion Dealers

Most reputable bullion dealers in mature precious metal markets like Singapore publish their silver buyback prices transparently online. They are incentivized to do so as they compete to buy back silver from investors since it would be cheaper than buying directly from their precious metal suppliers. 

When bullion dealers order precious metals from suppliers like national mints, wholesalers, or refineries, they often have to meet minimum quantities and buy above the spot price. In normal market conditions where there are no silver shortages, dealers' buyback prices are often below the spot price. This makes for good business when they resell silver bars to other customers looking to invest in silver.

Given that silver prices are online, you can compare which bullion dealer is reliable, and offers the better price for your silver bars, before bringing your physical bullion down to transact. 

Sell Silver Bars Online Directly to Other Silver Buyers

While you have the option to sell silver bars through online marketplaces like eBay or Carousell to buyers from around the world, it may not be worth the effort compared to selling the bullion bars back to bullion dealers. Despite the possibility of selling your silver bars at a higher selling price, you may encounter endless bargaining from online buyers and the need to arrange a meet-up or ship the silver bars to the buyer. In short, you will need to handle post-buying customer service, which can be tricky depending on the buyer.

FAQs

Q: What is the current market price of silver?
A: The current market price of silver can vary every few minutes when the international silver market is trading. You can find the updated spot prices for gold and silver on our website.

Q: Can I buy physical silver bars in different sizes?
A: Yes, physical silver bars come in different weights and sizes, ranging from just a few troy ounces, several grams, to larger bars weighing several kilograms. The largest silver bar that Silver Bullion sells is the 1,000 oz LBMA silver bar, which has the lowest price premium.

Q: How do I know if I'm getting a fair price for my silver bars?
A: Researching the current market price of silver and comparing prices from different dealers can help ensure that you are getting a fair price for your investment.

Q: Is it safe to store my physical silver bars at home?
A: Storing your silver bars at home may be safe but comes with risks. They can be stolen if your home is broken into or damaged if there is a fire. Home insurance may not cover silver by default. Many people store their physical silver bars in a safety deposit box or a precious metal depository or vault.

Q: How is owning silver in physical bars different from buying silver ETFs or shares of silver mining companies?
A: Silver Exchange Traded Funds (ETFs), futures contracts, and shares of silver mining companies often only give you exposure to the silver price, not physical ownership. Buying physical silver is the best way to own silver with little to no counterparty risk.

Q: Are there any risks associated with investing in silver bars?
A: Like any investment, there are risks associated with investing in silver bars. Unlike gold, the value of silver can fluctuate with greater volatility, so it is important to do your research and make sure that you are comfortable with the potential risks before making an investment. However, you can take comfort that silver has been used as money for most of humankind's history, and its value has never gone to zero, unlike currencies, stocks, or bonds.

Conclusion

Investing in silver bars can be a smart move for those looking to diversify their investment portfolio. Silver is a tangible asset with a long history of use as currency and in industry, making it a stable investment option. When buying silver bars, it is important to do your research and make sure that you are getting a fair price from a reputable dealer. Storing your silver bars in a safe or depository can provide added security, and when the time comes to sell, there are several options to consider.