Why Buy Silver?
Silver and gold are most popular precious metals for investors. Silver is available to investors as bars, coins or rounds, and can be purchased in denominations from 1 gram to 100-ounce sizes. Silver is also a more affordable investment – a 1 Ounce gold coin costs around $1100 - $1300, while a 1 Ounce silver coin is between $20 - $30. This makes silver a better option for incremental investors. For this reason, larger amounts of silver, such as silver monster boxes of coins are readily available in the market.
Investment silver can be purchased as a bar, a coin or a round. Silver rounds and silver coins are both the same shape. However, silver coins are produced by government mints, and have legal tender value on the front, which can also have tax advantages. Silver rounds have no legal tender value, however they normally carry a lower premium. Silver bars are produced by both private and government mints. They normally carry a lower premium than coins, and are available in a large range of sizes. There are a number of silver coins, such as the silver Chinese Panda series, that are produced annually in limited mintage, and therefore command a very high premium, as they are highly sought after by collectors.
Silver bars come in a large range of shapes, sizes and qualities. Larger bars, such as 100 Ounce bars, are normally poured or extruded. Smaller bars, including the 1 ounce and 100 gram silver bars, normally have a higher quality finish, and many are sold in presentation packaging. In Europe silver bars are mostly purchased in 100 Gram and 1 KG sizes. In the United States, 1 Ounce and 100 Ounce bars are the most popular. Premiums on silver bars vary significantly, however as a general rule the larger bars carry a lower premium.
Silver rounds are almost always available in 1 Ounce size. Some silver rounds are also available in ½ ounce, or 5 ounces sizes, but this is less frequent. One of the most common silver rounds available in the precious metals market is the Silver Buffalo round, which is produced by a number of private mints across the United States.
Silver coins are more expensive than bars when it comes to silver investing. However many silver coins will also retain a higher premium if resold. This is especially true for those that are rarer or limited, including the Chinese Panda series. The most popular types of silver coins available to silver investors include the Canadian Maple Leaf, the American Eagle, the Austrian Philharmonic and the British Britannia. Recently launched were the Perth Mint silver Kangaroo, and the South African Mint silver Krugerrand. Additionally, a number of smaller countries have also begun launching their own silver coin series. These include Fiji, the Cook Islands, Andorra, Somali, and Armenia.
The higher cost of silver coin is due partly to the increased cost of manufacture (the high quality design), and partly due to minting quantities.
For clients looking to invest in silver, SwissBullion.ch recommend purchasing a mix of silver bars and coins. The best type of precious metals portfolio is a diverse one.
Both government and private refineries produce silver bars and coins. Below you can find a list of the major and most renowned precious metals refineries:
- Austrian Mint
- Chinese Mint
- Mexican Mint
- Perth Mint
- Royal Canadian Mint
- Royal Mint
- South African Mint
- US Mint
The Silver Price
The spot silver price is a highly relevant factor to consider in purchasing silver bullion. In the last decade, silver prices have ranged from $10/ oz to over $40 / oz. SwissBullion.ch calculates the prices of all the products available at a premium above the spot price. The spot price is updated continually on the website. SwissBullion.ch provides its clients with the current spot silver price, and silver price charts.