Apr 2012


Apr 2012

Silver Bullion

By StoneX Bullion

General Facts on Silver Bullion

Silver bullion is the physical way of investing into silver and it comes in two very well-known forms by investors: silver bars and silver coins. People have turned their attention towards investing into precious metals because these are always looked like a safe asset in which to invest your funds, precious metals are the path that keeps people secure against currencies devaluation and inflation.

If we were to compare silver with gold, people could state that less people invest into silver bullion. It is true that the silver market is much smaller than the one of gold; however there will always be a demand for this precious metal with unique characteristics amongst all the precious metals, fact that makes it so desirable. And demand is a force that increases the price for silver.

The main drive for increasing the price of silver bullion is the various industries which are in a continuous development like the jewelry one and also future industries that will use this precious metal because new uses for silver are discovered every day. Another important factor is the investors who prefer silver because is more affordable and can be massively invested in.

Silver Bullion Coins

Silver is used mainly in manufacturing silver commemorative coins which are mainly addressed to collectors and a vast quantity of silver bullion coins which also have the status of legal tender. However, they do not circulate, being instead used with the purpose of investing into precious metals. Compared with silver bars, they require a reduced amount of funds, moreover when it is about beginner investors.

Silver bullion coins are accessible to anyone, even to those inexperienced regarding the investment into precious metals. It is an easy way to transform and diversify your assets. Their value is established by a reference to the spot silver price, which changes daily so you better stay informed in order to maximize your investments.

Furthermore, I am going to present you a list with the most popular silver bullion coins: Canadian Maple Leaf which is the purest silver coin 99.99% fineness and was first minted in 1988, the Mexican Libertad minted in 1982 with a purity of 99.90%, 1983 Chinese Panda 99.90% purity, American Silver Eagle the most renowned silver bullion coin with 99.90% fineness, Australian Kangaroo 99.90% purity, British Silver Britannia with a smaller purity of 95.80%, Austrian Vienna Philharmonic 99.90% purity minted in 2008, and Russian George the Victorious minted in 2009 with the same predominant purity of 99.90%.

Silver Bullion Bars

A silver bullion bar is the second physical form of investing into silver and can be obtained by smelting silver into different shapes, an operation realized with the help of the crafting skills. Therefore, a silver bar is mainly refined silver.

Silver bullion bars have a purity of at least 99.90%. Silver bars are produced in a rectangular shape which makes it easier to store them. The sizes in which they are manufactured range from 5 troy ounces to as much as 1000 troy ounces.

Investors that decide themselves to invest into silver bullion bars will mainly buy bars that have a weight over 100 troy ounces because their premium becomes lower when they are purchased in large quantities, this is the rule regarding precious metals.