Often, dealers will buy an entire portfolio or a collection from an individual investor who is divesting all or some of their portfolio. Instead of being sent back to the refinery, most silver bars enter the secondary market.
Sometimes, the dealer will offer these items for sale, listing them on their website as random or generic silver bars.
At the retail level, silver bars in good condition are often sold back to distributors instead of being sent to the refinery.
Silver bars enter the secondary market from a dealer buying them from a third-party source other than the original mint.
The amount and purity of the silver in these bars are the same as buying from the source. The difference is that secondary market bars may show signs of wear, including tarnish, dings, scratches, or other marks that show handling.
Investments in secondary-market silver can be advantageous compared to newly minted. Online bullion dealers will often price these at a substantially lower premium.
Standard Denominations Available
Secondary market bars are available in various sizes to accommodate different investment preferences. Common denominations include:
| Weight | Typical Dimensions | Typical Premium Range |
|---|---|---|
| 1 oz | Compact and stackable | $2 to $3 over spot |
| 5 oz | Moderate size for stacking | $1.75 to $2.75 per oz |
| 10 oz | Popular for investment | $1.50 to $2.50 per oz |
| 100 oz | Common for bulk buyers | $.90 to $1.60 per oz |
| 1 kilogram (32.15 oz) | Internationally favored size | $1.00 to $1.50 per oz |
These standard weights allow investors to buy silver bars in a size that align with their budgets and goals.
Secondary Market Silver Bars are Cheaper
There are several reasons why you should buy random generic silver bars. Below are just a few of those reasons.
- Dealers buy silver bars from individuals, often paying below the spot price, allowing for lower premiums than newly minted bars.
- You can sometimes receive difficult-to-find vintage silver bars such as Engelhard and Johnson Matthey.
- Prices are often lower due to them showing signs of wear or tarnish.
- It is an excellent way to buy silver bars because of the lower premiums.
While these are just a few reasons people buy silver bars from the secondary market, investors have a large variety to choose from that are high in quality and offer great value.