Maybe you are in a position to make an investment, and silver seems like an attractive option. Investing in precious metals, such as silver and gold, can be a much safer alternative to investing in stocks in the stock market. Precious metals tend to have a predictable increasing value. One of the conundrums that new investors often face is whether to purchase silver bars or silver coins. There are significant differences between the two, and you should consider all the pros and cons of each before you work with a dealer.
Pros and Cons of Silver Bars
You can purchase silver bars in a variety of standard sizes. Most dealers give investors the option of purchasing 1-ounce, 10-ounce, 1-kilogram, 100-ounce, 1,000-ounce, and 5,000-ounce sizes. The most convenient sizes to purchase are the 10-ounce, 1-kilogram, and 100-ounce sizes. You can easily stack these small bars, or ingots, in a safe deposit box.
You may want to consider whether you will be selling your silver bars in the future. At the time this article is being written, the price of silver is nearly $20 per ounce. A 100-ounce bar would be worth about $2,000. In a difficult economy, it may be hard for you to find investors who are willing to purchase larger bars of silver.
A significant advantage of silver bars is that they can be easily stored. However, they lack the collectability that is often associated with silver coins. Most silver bars do not feature any sort of interesting history or stamp. Large silver bars may not have the same barter potential that silver coins have.
Pros and Cons of Silver Coins
Silver coins can be purchased in numerous countries. Each country’s silver coin features its own imprinting and is produced by the government. Generic coins are those that are manufactured by private companies. Generic coins do not have the same collectability factor that government-produced coins have. Each country also has specific types of silver coins that are highly sought after by collectors, such as Canada’s silver maple leaf coin or the U.S. silver eagle coin.
Silver coins have imprinted information that can make it easier for an investor to decide whether to purchase them. A silver coin may have an imprint that indicates its face value, year of minting, design, and grade.
Conclusion
Silver coins are likely the best option for a beginning investor because they can be traded or exchanged at low values. Some investors make the mistake of purchasing high-value silver bars that are not in high demand. Sticking to silver coins is your best bet if you are seeking to invest in silver.
