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Precious Metals

Buy Silver Bars or Coins?


One of the most popular ways for investors to start making safe investments is to invest in precious metals. They can choose to buy silver bars or coins, which can add some much needed diversification to their portfolio. Silver is a great choice because it is a very affordable metal, and you will likely be able to find something that you will can buy no matter how large or small your budget is.

Advantages of the Bars

You will find several sizes of silver bars that you can buy, and they make great investments. They are easy to stack in your safe, and they are easy to transport as well. One of the great things about buying the bars is that they are generally cheaper per ounce of metal than the coins. You will find that the bars are easy to sell as well, although when you have large bars, it can take a bit more time to find a buyer simply because the cost is higher. Some companies through which you buy your metals will buy the bars back.

What should you look for when you buy silver bars?

You want to make sure that the bars are at least .999 fine silver bullion. The bars come in many different sizes, and the amount that you have to invest will often determine the size that you choose. The most popular sizes that you will find are the bars that are 100 ounces and those that are 1000 ounces. If you have a small amount that you can invest, you might want to choose the 100 ounce bars. However, you will find that when you buy silver bars that are larger, the price is cheaper per ounce of silver.

You will need to find a dealer that has the bars that you need. You can find many great dealers on the Internet, but before you buy from the first company you find, make sure that you do your research. Always choose a company that has been in business for several years and that has a good name in the business. Make sure that the company has a sales rep or customer support division that you will be able to call and speak with to get answers to your questions. Something that some people overlook is the need for a physical address. To make sure that the company is legitimate, make sure that they have a street address and not just a website.

You are also going to need to consider how you plan to store the metals. Some people choose to keep their bars in a depository or in a bank safety deposit box. Others prefer to have the bars on hand in their home so it is easier if they ever need to have access to them. If you buy silver bars and choose to keep them at the house, you will need to take safety precautions. Find a good, heavy safe that you can bolt to the floor. Keep the safe hidden, and make sure that you are the only one who has the combination.

Advantages of the Coins

Many different sizes and types of coins are available for the silver investor. It is important that you always choose bullion coins, such as the Canadian Maple Leafs or the American Eagles for your investments though. The bullion coins have the backing of the government, and that means that no matter what happens to the price of silver, they will always be worth at least their face value. Coins come in different sizes, and you can even find bags of junk silver that you can buy. These bags contain quarters and dimes with varying amounts of silver in them, either 90% or 40%. The coins are very easy to sell when you are ready to liquidate.

What Should You Avoid?

Those who are new to investing might think that it is a good idea to start buying silver jewelry, but this is a mistake. On its own, jewelry can be beautiful and make nice gifts; however, it makes a poor choice for the investor. You should stick to one of the types of silver discussed above. Similarly, you should avoid choosing to buy stock in a company that deals in silver. When you invest in stock, you are investing in the company, and you have no control over how the company does business. If the company should fail or do poorly, you will lose money and that’s a nightmare for every investor.

Another temptation that some investors encounter is rare coins. Unless you are a collector of rare coins, you will want to avoid them for investment purposes. The coins cost far too much and have too many factors that contribute to their value.

Whether you choose to buy silver bars or decide that you want silver coins instead is up to you. As you can see, both have advantages. Often, it comes down to two things: personal preference and your budget.

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