Around 500 BC, the first silver coins were minted and began to be used for trading and currency. Silver’s use as currency has declined significantly. Today, however, this metal is believed to be up to eight times more abundant than even gold, making it a coveted investment option.
Not only is that true, but it remains one of the rarest metals in the world, given that its abundance is only a little more than that of gold bullion.
In this article, you will learn all about silver bars, their importance, and the pros and cons of investing in them.
Rosland Capital is a Los Angeles-based precious metal dealer founded in 2008. The company specializes in precious metal IRAs and physical metals, such as silver. In addition to serving U.S. consumers, the company also offers investment options to clients in Hong Kong, the UK, and Germany.
Rosland Capital offers silver bars ranging from one ounce to 1,000 ounces; however, their most popular sizes are 10 and 100 ounces. All their silver bars contain .999 fine silver and are produced by the Wall Street Mint, Engelhard, Johnson Matthey, and A-Mark.
The company is accredited by the Better Business Bureau and holds an A+ rating. Additionally, Rosland Capital has an AAA rating from Business Consumer Alliance. To get started, consumers can complete their purchase online or by calling the company directly. Rosland Capital operates Monday through Friday from 7 a.m. to 6 p.m.
Regal Assets offers a wide selection of precious metal investments, as well as cryptocurrencies. The company was founded in 2009 in California but has expanded to offices in Dubai, London, and Toronto. Regal Assets has been inducted into the Forbes Finance Council and is highly rated by Smart Money and the Huffington Post.
Regal Assets offers 10 and 100-ounce silver bars from U.S. and worldwide mints. These bars are IRA-approved and contain .9999 pure silver. Additionally, each bar features a hallmark, purity, and engraved serial number.
The company waives all fees for the first year. However, afterward, investors will be charged a flat $250 annual fee for administrative and storage costs. Additionally, Regal Assets requires a minimum $5,000 investment for precious physical metals.
Patriot Gold Group
Patriot Gold Group is a Los Angeles precious metals dealer that has been in business for over three decades. The company offers precious metal IRAs and physical coins and bars. Silver bars are manufactured by the U.S., Canadian, and UK mints.
Investors can purchase 10-ounce silver bars from Patriot Gold Group. These bars weigh 10 troy ounces and contain .9999 fine silver. The minimum investment is $2,500. For investments under $30,000, consumers are charged a one-time fee of $225. Afterward, there is an annual $140 fee for storage and insurance.
Investors can contact Patriot Gold Group by completing an online request, calling an agent, or joining a live chat. The company operates Monday through Thursday from 7 a.m. to 5 p.m. and Friday from 7 a.m. to 3 p.m.
Birch Gold Group
Based in Burbank, California, Birch Gold Group is a precious metals dealer specializing in IRAs and physical investments. The company was founded in 2003 and has been accredited by the Better Business Bureau since 2011.
Birch Gold Group offers silver bars ranging from one to 100 ounces. These bars have a minimum of .999 fineness and are IRA eligible. For cash purchases over $10,000, shipping is free.
To purchase silver bars, investors can contact an investing specialist online or by phone. Birch Gold Group’s staff will help you open and fund your account. The company operates Monday through Friday from 6 a.m. to 5:30 p.m.
What is a Silver Bar?
A silver bar can also be referred to as silver bullion. It is a piece of highly concentrated silver of up to 99% purity. Bullion comes in the form of coins or bars. Unlike yesteryears, today, it is primarily used for investment purposes.
Banks moved to purely fiat currencies because of the limited supply of silver and its high prices. Now, it is not being used as currency anymore but as a form of investment, industrial use, and a store of wealth.
Silver Bar Sizes
Silver bars are available in a variety of sizes. Most of their sizes are based on troy ounces. Nonetheless, some mints offer them in grams. Still, there are imported bars that are sized in metric units. Common silver bar sizes in the market are one, five, ten, and one hundred ounces. Certain mints make other standard sizes that include:
- Half ounce
- Two ounces
- Fifty ounces
- Ten thousand ounces
Types of Silver Bullion Bars
There are a variety of silver bars in the market today if you are interested in investing. The most popular ones amongst most investors are the minted ingots. Ingots start as long-cast silver bars that are fed into a stamping press.
The stamping press is computer-controlled. As a result, each bar is precisely cut by weight and size. Additionally, the press stamps a unique design on each ingot. While some have exciting designs, others only have essential standard markings. So, this type is the most preferred given its precision and weight, purity, and metal content in each bar.
Investors and collectors also prefer the alluring hand-poured and cast bars. As a result, most refineries continue to use traditional techniques when creating silver bars.
Even though not all hand-poured or cast bars lack flair, various U.S refineries pride themselves on producing hand-stamped and hand-poured silver bars with designs; hence, there are no two silver bars in the same series that look similar.
Despite the type of silver bar you buy, you can rest assured that it is refined with .999 .9999 pure silver content. Additionally, many silver bars have an assay card that authenticates each product and verifies purity, weight, and content.
Silver Bar Manufacturers
Silver bars have been manufactured for years. Some silver bars have been manufactured by two very old but popular companies, Johnson Matthey and Engelhard. They are no longer in operation, though. As a result, their silver products are in high demand because of their rarity. They have unique designs, plus their historical value makes them the most desired bars by collectors.
On the other hand, new silver manufacturers include the following:
NTR Metals was established in 2004 and dealt with the refining of various metals for pawnshops and jewelers. The company serves customers throughout the world. It is worth noting that the company is based in the United States.
PAMP Suisse is another metal refining company that has managed to build a good reputation over the years. The company was established in 1977 and has been consistent in producing high-quality metal bars throughout its existence. It deals with the refining, assaying, and minting of gold. Additionally, it also produces platinum, palladium, and silver bullion products.
The above-mentioned companies manufacture silver bars of varying sizes and designs. They are among the most trusted and reputable companies to get quality products from. Just recently, Australian and Canadian companies began producing silver bars, as well. The Royal Canadian Mint, for instance, is a stunningly crafted silver bar with impressive designs.
Several other companies produce silver bars, including
- Atlantis Mint
- Highland Mint
- OPM Metals
- Perth Mint
- Scottsdale Mint
Why Invest in a Silver Bar?
Owning or investing in precious metals like silver bars can reduce the risk of other investments like paper currency and stocks.
The value of paper money has been on an all-time decline. This has worsened, especially when governments are printing more money in the wake of the economic downfall caused by COVID-19. On the other hand, precious metals, such as silver bars, have remained relatively stable and may help guard your portfolio against inflation.
On the other hand, silver is a limited resource, meaning that its potential to gain value as its demand increases is high. It cannot be recreated on a computer, nor can it be duplicated like paper money. Therefore, as an investment, it may gain you a higher return on investment.
Silver Bar Pros and Cons
Before investing a large chunk of change in silver products, weigh the pros and cons of purchasing this asset.
- Inflation Hedge
The purchasing power of the dollar is likely to decline with time. In such situations, precious metals like silver help investors protect against inflation.
- Portfolio Diversification
Investing in silver is a great way to diversify your portfolio and maintain its value in times of economic depression or stock market crash. Silver is inversely correlated with other assets, meaning prices may increase when the cost of other assets decreases.
- Stock Market Alternative
Silver prices tend to rise in response to the fall in stock and bond prices. In this case, investing in silver does wonders to safeguard your assets.
- No Passive Income
Unlike stocks and bonds, investing in silver doesn’t earn passive income through dividends. Instead, silver bars appreciate when the cost-of-living increases and the economy undergoes a recession.
- High Premium
When buying silver bars, dealers charge a premium above the spot price. This increases the cost of the bar above the actual market price. Moreover, premiums may increase when the demand for silver bars is high.
- Secure Storage Fees
It is necessary to store your silver bars in a secure storage vault to prevent theft or loss. Many prefer storing their precious metals at a reputable depository. In either case, you will be paying fees for high-quality safe or depository storage.
- Capital Gains Tax
Precious metals are subject to capital gain tax by the IRS. When you want to sell your silver, any profit you have made is taxable. The current tax rate on long-term capital gains is 28%.
Silver Bar FAQ
How Can I Buy Silver Bars?
You can purchase silver bars at your reputable local dealer or website. However, buying from banks may entail much higher premiums and prices.
What’s The Difference Between a Coin and a Bar?
A silver coin is minted by government entities and sovereign mints. Thus, each coin gets a legal tender attribution from the country it was minted.
A bar, on the other hand, has a purity of 99.9% and can be privately or government minted.
Where Should I Sell My Silver Bullion?
It is advisable to always trade your silver with the same bullion dealer. A good relationship with your dealer may lead to better payment or incentives.
Which Silver Bar Should I Buy?
To know which silver bar is right for you, first understand your primary goals. For instance, you may be looking to invest and diversify your portfolio or for collecting purposes. A bar with a design costs more than a plain one; thus, for investment purposes, it’s advisable to go with the most economical bar.
Also, decide what your budget is. Many dealers are willing to work with you to purchase silver products that meet your goals and budgetary constraints.
Why You Should Consider Buying Silver Bars
If you have not yet made up your mind to buy silver bars in 2022, here are the reasons why you should do so:
- High-level stock market – geopolitical tensions that make the stock market decline may lead to a corresponding rise in prices of valuable metals, such as silver. If you buy today and sell later, you may enjoy large returns.
- Silver is the best way to diversify your portfolio – Most investors are quick to invest in the stock market due to its quick and attractive returns. However, when the stock markets crash, investors lose a huge portion of their investment. Therefore, investing in silver bars can be a wise idea to diversify your investment portfolio and safeguard your assets in the event of a stock market decline.
- A not-so-good global political scenario – The geopolitical tension being experienced in various parts of the world can lead to an economic slowdown in the future. Therefore, it may be best to proactively safeguard your investment now by investing some portion of your funds in silver.
Are Silver Bars Easy to Sell?
Absolutely, there are many places where you can sell your silver bars if you no longer need them. Reputable places are handy, especially in times of financial need. Also, you can check with your reputable local jeweler or industry professionals with a knack for selling silver.
The key is to carry out some initial research and find out the best places for you to sell. Once you have a list of some of the most trustworthy dealers, you can go ahead and sell your silver bars at a rate that will ensure you get good returns.