Investors have started buying silver bullion to hedge against inflation and protect their wealth during economic downturns. Buying silver bullion is one of the most effective ways to diversify your investment portfolio, and it continues to be the precious metal of choice for many savvy investors.
Silver bullion comes in a variety of shapes, weights, brands, and designs. It is most commonly bought in the form of rounds or bars. Bars and rounds are sold strictly for their precious metal content. They are priced based on their weight in troy ounces relative to the spot price of silver.
Both private mints and sovereign government mints around the world mint silver bars and rounds. The most commonly bought silver bullion products range in size from 1 oz up to 1 kilo. A wide variety of silver bullion products is available for investors with a wide range of budgets.
While some services allow you to purchase silver bullion and store it in their vaults, most investors and stackers prefer to take delivery of precious metals. Most stick to the common catchphrase, “If you don’t hold it, you don’t own it.”
What type of Silver Bullion Available?
Government Bullion
Silver bullion comes in a variety of shapes, sizes, and weights. In the United States, the most commonly purchased and widely recognized coin is the American Silver Eagle. The US Mint mints American Silver Eagles, which are the official silver bullion coin of the United States.
Other popular silver bullion coins that sovereign governments produce include:
- the Canadian Silver Maple Leaf, which the Royal Canadian Mint mints
- the Mexican Libertad, which is minted by La Casa de Moneda de México, the Mexican Mint
- the Australian Kangaroo, minted by the Perth Mint
- the Britannia of Great Britain, minted by the Royal Mint
- the Austrian Philharmonic, minted by the Vienna Mint
Silver Bullion coins minted by sovereign governments are sold at a greater premium over silver spot price than privately minted or generic bullion. This is because government-backed bullion is guaranteed for its purity by the mint and is widely recognized by investors.
Private Mint Bullion
Private mints around the world mint silver bars and rounds. Investors buy silver bullion products from private mints for their silver weight.
Silver Bars and rounds are most commonly produced in 1 oz weight denominations. It is also common to find silver bars that weigh 5 ounces, 10 ounces, kilo, and 100 ounces sizes. The most common cast silver bars will be stamped with the manufacturer, the bar’s weight, and the silver’s purity or fineness (usually .999).
The silver rounds and bars premiums are usually closer to the spot price than government bullion.