The Good and Bad of Bullion Silver Bars vs. Coins: How to Spot the Obvious Divide
Have you ever at a coin dealer, looked at a bullion silver bar, and stared across at a shiny coin and said, What is the difference really, except the shape? In that straightforward distinction there is much detail too.
How Can You Define a Silver Bullion Bar?
In a nutshell, a bullion silver bar is essentially a chunk of silver, which has been refined (of varying sizes: starting at the humble 1-ounce slabs and going all the way to massive kilos and beyond). Bars do not seek to attract your attention with fancy decorations. Rather, they are all about value staging, both efficiently and economically. These bars tend to be in the shape of rectangles with their weight and purity stamped on them. Just as it is, no monarchy about it, no pretty fripperies, but straight out silver pure, good and simple.
Silver Coins: Not Only the Pocket Money
Silver coins, by contrast, are also legal tender. They are issued by governments, which implies they have face value. There is art in their pictures-a king here, a Britannia there, rosettes of roses and flowers, everywhere. Niches in collecting can be found in what issue collectors are digging on their artistic side, and coin hobbyists may focus on such features as mintmarks and the year of issue.
And now this is where it gets interesting, silver coins usually have premiums attached to them on top of the spot price. Not just because of the silver in it- you are paying also because of the government support, the collectible needs, and sometimes as well because of the additional craze of the limited-edition needs.
The main Reasons Why Investors Prefer Silver Bars
What is the use of a bulky silver bar when one can carry a coin in the pocket? So, what is behind the scenes?
Less expensive premiums: The premiums per ounce would also be cheaper with bars. You can even imagine it to be the difference between buying in bulk at a warehouse store and going to a convenience store and grabbing a can at a time.
Stackability: Bars are clean, convenient space to storage, and can be stacked like bricks. Coins? They go rolling along. Literally.
Increased Purity: The vast majority of investment bars are either .999 or better, in some cases .9999 pure silver, no fooling around.
It’s About the Meal: To the straight-up investor, it is the amount of silver that counts and not how nice it looks and which king is printed on the top.
However, when liquidity is the priority, then coins are at times sold quickly, particularly amongst collectors. It helps them to be recognizable.
Saving: Storing Your Silver Treasure
You have put your hard-earned money. Now, how do we make sure these bars are safe?
Homestorage Solutions
Others take it back to the old-fashioned method, stashing it up in a sock drawer, a domestic strong room, or even a fancy secret compartment. When storing at home, you should consider the following:
Safe: Buy a heavy one. Fire retardant, preferably, concealed in a place that a burglar would never imagine to search.
Where: under the bed? Too obvious. Up the attic? The temperature variation is not good in terms of long-term storage. Be innovative yet reasonable.
Note, keeping bars in the household can result in risks. The obvious concern is the theft, but there is also the minor issue of getting lost in case of fire or flood. A good bet is insurance (which we shall hear about in a moment).
Bank Safety Deposit Boxes
Unless you want to have silver under your roof, it is possible to keep money in a safe deposit box at the bank. It is gone from your house and put in a safe vault; it is less subject to prying eyes.
Downsides? It comes with a rental charge, and banks are not always open, especially when you need to access them. In the case of a crisis, you cannot just go to your spare room and get your bars.
Precious Bullion Holding Centers
Specialist storage companies will provide vaulting services to more serious investors. Your silver is stored in a locked, monitored and sometimes insured facility. And some services go as far as to keep you informed on the current inventory statements and enable you to request buy or sell inquiry at any time.
It should be a well-known player, and always read between the lines. Make sure you own, and you do not merely have a claim to silver.
Insurance: Protection of your Silver Bars
That extra safety net: insurance, goes hand-in-hand with a high-value silver horde. This is how you can consider it.
Contents of Home Insurance
There are those house owners who add bullion to their contents insurance. Nevertheless, the compensation of precious metals may be limited by policy, so additional documentation may be required. Never believe that you are covered; always demand details and be very keen on your records.
Expert Bullion Cover
In the case of other collections outside of household value, then seek a policy specific to bullion coverage. Providers will demand more information, including inventories, photos, serial numbers, and purchase evidence. They will enquire about locations and methods you use in storing silver.
Insurance gives peace of mind, and it does not cost anything . Choose whether you need protection against loss, theft, or even mysterious disappearance. When your silver disappears under suspicious circumstances, do not be surprised to be caught with a lot of questions by the insurer.
Very commonly asked questions.
Is it Easy to sell silver bars?
Most bars with known refiners such as PAMP, Johnson Matth, or the Royal Mint sell with little fanfare. However, when it is an off-brand or something obscure, dealers have the provision to test it out before purchasing.
Do Tarnish Affect Value?
A weak patina will have no impact on melt, but numismatists can reject tarnished issues. In the case of bars, nobody even raises an eyebrow at discolouration-silver reacts to the air, that is expected.
Do Fakes exist? What can I do to prevent them?
Unfortunately, yes. Purchase from only the reliable dealers, better still, those that are widely known in the market, or those whose product authenticity is evident. Frauds can be detected using visual checks (check the marks and weight), a magnet, and an ultrasound.
