Silver, as a pure metal, is used in many areas including as jewelry and for investment purposes. Just like any other precious metal, it can be used in wealth accumulation. However, one of the easiest ways to include silver in your portfolio of precious wealth investment is through the purchase of silver bars.
In spite of this, the process of buying silver bars can be overwhelming especially for beginners since there are certain details that you need to know. This article provides a brief buying guide to help you in buying your first silver bars.
Understand the terms used
Just like any other trade, buying and selling silver bars has specific terms that are used. For example, the unit of measurement here is the troy ounce which is a bit higher in value when compared to the normal ounce. Secondly, all metals bought ought to be high in purity to a degree of 99.5% as this is what is considered acceptable in the market. Thirdly, there are certain costs associated with the purchase of the silver bars termed as premiums, which tend to increase the market price of the bars. Having clear information about the terms used can guarantee you easy time while making your purchases.
Sizes of silver bars
Silver bars are sold and bought in different sizes. The size of a given bar determines its price, which is usually calculated based on the weight it has. The size of the silver bars can start from as low as an ounce to 1,000 ounces. You can get as much as a 10 ounce silver bar. However, the size that you get will differ from the others in terms of weaknesses and strengths.
Purity
Silver bars are measured in terms of their purity for the purpose of determining the appropriate price. Usually, the reference point of purity is 99.5%. Understanding the purity of any silver bar is a significant factor to help you choose a high-quality bar. If a silver bar has a high purity the indication is that it has much silver and hence, high value. The good thing about silver is that the majority of the bars you will get in the market are 99.9%.
Hallmark of silver
The hallmark of silver is considered to be its brand. Different silver bars come from a diverse source, which might be different in terms of quality and credibility. While looking out for silver bars, consider those from reputable international sources as they are easy and simple to sell. In addition, they have the best value and hence, guarantee better returns in the long run.
Despite the common use of silver for aesthetic value, they are also important for investment. Nevertheless, investing in silver bars can be a daunting task especially if you do not have the basic information. It is always important to carry through research on any available options before making any purchases. Do not buy any silver bar just because it is low in price. While making purchase decisions, you need to be guided by the purity, demand, and hallmark of the silver bars.