You have probably struggled in the past to buy silver coins or bars. However, many factors are associated with purchasing silver that are challenging for novices or even traditional investors.
So, I have compiled this guide that breaks down all the essential elements you have to consider around buying these silver coins or bars. Once you get all the basics right, making a purchase should be a simple process.
What are Silver Coins and Bars?
First, it’s good to start by determining the specific meaning of coins and silver bars. Usually, these assets have the name Silver Bullion, which refers to a form of concentrated silver. Such silver assets often have a purity level of up to 99.9%.
Below are the basic things you should learn about these silver assets:
A silver coin refers to a form of currency that gets its value from being a precious metal. Usually, an official world government is responsible for the monetary value behind such a coin. Plus, silver coins fall into two distinct categories:
Refers to a type of coin currency or investment that producers make each year. Usually, the bullion coins have a specific value, and the value often remains consistent. The standard category of coins includes:
- S. Gold Eagles.
- S. Silver Eagles.
- Canadian Silver Maples.
- South African Krugerrands.
These refer to collectible coins. Unlike the bullion coins, these types get their value from their condition and rarity. Both of these factors are crucial to the value that a particular coin can produce. The standard coins in this category include:
- Peace Silver Dollars.
- British Sovereigns.
- 20 Swiss Francs.
Pro Tip – Remember that Numismatic coins are not the perfect store of wealth because their value relates to the bullion spot price.
Refers to a hand-poured, minted, or cast silver bar. Usually, these types have a physically larger size than their silver counterparts. Plus, their value originates specifically from their average weight and quality.
Some rare vintage silver bars are highly sought after, which often causes their value to increase. Plus, silver bars often have a lower value than coins due to the ease of production. Also, the silver bars often have a relatively low numismatic value.
Private refineries are responsible for the production of most silver bullion bars in the economy today. The only exception would be for companies such as the Perth Mint of Australia and the Royal Canadian Mint. Plus, silver bars tend to be more affordable than coins with the same weight, size, or purity.
When buying silver bars, the common terms you will encounter include “generic” or ” brand name.” The latter type come from reputable platforms such as the government or companies such as PAMP Suisse.
What are the Differences Between Bars & Coins?
One of the first things to consider when buying silver coins or bars would be the key differences between these currency types. You have to consider at least the five factors:
1. The Legal Tender Value
The critical variation between silver bars and coins relates to the legal tender value. Coins have a legal tender value, while bars do not. So, the legal tender for each silver coin tends to be far too minimal compared to its accompanying metal value.
A good example would be the Silver American Eagle, which contains a single ounce of pure silver. However, the face value of the same currency would be $1. Another excellent example would be the Silver Canadian Maple leaf, which weighs 1 ounce.
However, the face value of this currency would be CAD$5. So, silver bars don’t often have a reasonable legal tender face value, as government-owned platforms do not produce them. Usually, these currencies also feature some indication that shows their purity and weight on either bar.
There is a third silver asset alternative, which would be silver rounds. These types refer to silver planchets, which go through minting procedures to bring up unique designs. Plus, their strategies might be similar to those of silver coins, but the difference is that government mints do not produce them. Furthermore, they don’t have any significant legal tender face value.
One of the most notable variations between silver coins and bars would be their size. Traditionally, silver coins only averaged one ounce. However, in recent times, mints has become an excellent way of making silver coins for collectors and investors.
Plus, silver bars are typically larger than coins. Remember that most producers make silver bars in troy ounce sizes that can average between 1 and up to 100 ounces. However, some industrial bars can exceed such sizes and reach up to 1000 ounces.
You can find information on the sizes of silver bars or coins through a reputable seller. Similar to all the other essential differences between silver assets, size also relates to various factors. For instance, the average size of the coin or bar will relate to the silver purity, purification procedures, and monetary market factors.
3. The Design of the Currency
Silver coins are available in various designs. A good example would be the Adolph Weinman Liberty of the Silver American Eagle and the Silver Britannia Lunar series. Plus, there are multiple types of limited-edition coins containing relics of World War 1, and won’t be produced again once they run out.
While silver bars often contain a design, most of them don’t have the same ornate designs as the coins. Furthermore, the silver bars are ideal for those who want to buy currency with concerns such as design aesthetics.
Benefits of Silver Coins and Bars
Below is a quick rundown of the benefits you can expect with each of these silver assets:
Benefits of Silver Bars
The notable benefit of silver bars is that they come in various sizes. For instance, if you want to invest up to $40,000 in silver, the amount could translate to thousands of coins. However, this could mean investing in a single 1,000-ounce bar or over 500 one-ounce coins.
Silver bars are also highly affordable when compared on a per ounce basis, especially the large types. The only change is that not each investor has the financial means to invest in large bars simultaneously.
Some other silver bars are also available with resources such as certificates of authenticity, serial numbers, and various others. Verifying this data will help console investors who are concerned about fraud issues.
Benefits of Silver Coins
One of the critical benefits of silver coins is that they are easy to recognize. Almost every savvy investor can recognize popular coins, such as the Royal Mint, Perth Mint, and others. Unfortunately, however, it takes time and experience to get acquainted with all these silver coins.
Furthermore, silver coins are also easy to transport when compared to large bars. Plus, since they tend to be minor, they also become easy to sell during breakdowns in the monetary system. Monetary system breakdowns often seem less likely to occur, but they can happen when currencies or economies collapse.
The other significant benefit of silver coins is that they are easily recognizable. Everyone recognizes the silver coins produced by the US Mint, Royal Mint, Perth Mint, and others. But not every investor is familiar with the bars produced by refiners and assayers.
A good example would be the Weimar Hyperinflation that occurred after World War I in Germany. People who had invested in gold and silver currencies experienced far better outcomes than people with traditional modes of finance.
The silver coins which are produced for investment through the IRA often come with various legitimate resources. These include resources such as certifications, which officials use to help reduce issues such as counterfeiting.
Plus, buying silver coins from sellers with legitimate mints for the production process reduces the likelihood of counterfeiting or fraud. Nevertheless, choosing good sellers is a common issue for silver asset investors.
Silver Coins vs. Bars: Which One is Right for Me?
Similar to most types of investment, the kind of silver you buy relates to particular investment goals. For example, if you want monetary gains alone from factors, such as increases in the price of silver, then consider silver bars.
However, if you enjoy the benefits of monetary value increases in the cost of the dollar, consider hedging against a few factors. These include factors such as the collapse of the international fiat currency system or the dollar’s devaluation.
If you want to diversify your investment portfolio, consider investing in both sources. A healthy mix of silver bars and coins will be ideal for rebalancing the portfolio of investments you have available.
Where Can You Buy Silver Bars or Coins?
Now that you have a bit more information about investing in silver assets, below are some suitable investing platforms:
- Online retailers – these are the most popular, especially when you can choose a reputable service. Usually, these services have discreet, secure, and effective shipping policies.
- Local coin shops – most local coin shops boast of several silver investments, and the good thing is that you can easily verify the quality first hand. It’s also a great option if you want to avoid shipping costs.
- Coin shows – like the traditional LCS, coin shows can provide you with access to numismatic silver coins and investment-grade bullion resources.
If you want to purchase silver assets, you have various options, and it’s good to be well informed on protecting your investment. When investing in silver coins or bars, know that each has its unique benefits and drawbacks. A few other helpful tips include:
- Find a reputable selling service.
- Conduct adequate research on each specific asset.
- Seek the opinions of an investment expert if possible.