Silver Bullion 101

Buying Silver Bullion

As Easy to Sell as It is to Buy

One of the best ways to diversify a paper-backed portfolio of stocks, bonds, or mutual funds is by investing in silver bullion. In fact, purchasing silver bullion is one of the smartest investment decisions to make if you want to make the most of your money. Right now, too, it’s very simple to buy bullion, coins, and bars online. The asset is as easy to sell as it is to buy.

 

 

Look at the Spot Price

However, before you take the plunge and start stocking up on silver, you need to align yourself with the proper resource. Plus, you’ll need to compare the metal’s value with the spot price. Therefore, to make a more informed decision, you need to consider the purity of the bullion and how the cost compares with the price set in the marketplace.

How it All Came About

Bullion, itself, is defined by bars or ingots that are designed so they can be processed or melted down. The term takes its name from Claude de Bullion, an aristocrat who lived from the late 16th century to the middle part of the 17th century in France. He served under Louis XIII as Minister of Finance from 1632 until his death in 1640.

Bullion Can Also Refer to More Common Metals

Other people say the word was coined from an old French term, bouillon, which, when translated, means boiling, and refers to the minting process. Besides silver and gold, bullion may also reference such metals as nickel, aluminum, or copper.

Silver Purity

The worth of the silver bullion that is traded on a commodity market is determined by the overall value of its content, or the purity of the silver. Silver bullion bars must meet a quality or purity standard of 99.9% in order to be traded in the marketplace.

Bullion Coins

Coins may also be included as a bullion investment, as long as they are uncirculated and meet the minimum 99.9% standard with respect to purity. Most of these coins are minted by official entities for the sole purpose of investment.

How Bullion is Used

Various trades and professions are involved in bullion trading, including banking institutions, refiners, operators of vaults, and brokers. All of these kinds of companies use bullion for melting, assaying, refining and storing the asset.

A Form of Protection

Among investors, silver bullion is considered then to be a hedge, if not a kind of insurance, against any losses in the stock market or as the result of inflation. When contrasted with numismatic type coins, silver bullion can be bought and traded at a value closer to the spot or market price.

Better than Paper

The sterling metal has been used as a type of exchange for hundreds of years. Like gold, the metal will hold its value, despite a fluctuating marketplace. Silver or gold simply can’t lose their overall worth like paper currency.

Overall Liquidity

By investing in silver bullion, you’ll enjoy the security of possessing a liquid asset – one which can be converted for spending as well. When investing in silver bullion then, formulate a strategy before buying the precious metal.

For example, do you want to collect only bullion or do you want to include silver coins as well in your portfolio? Bullion items are tied directly to the spot price of raw silver. Therefore, ingots or bars are more liquid than their numismatic counterparts.

Are You and Investor or a Collector?

You may want to collect silver bullion for its quality and rarity. Therefore, your choice will be based on the current supply and demand. While the spot price is essential to know for acquiring bullion for investment, it is more important to know a coin’s quality and grade if you are a coin collector.

Adding to Your Silver Holdings: The Symbol of Quality

Purchasing bullion is an ideal way to add to your silver holdings, whether you choose rounds, bars, ingots, or coins. Just make sure that the product you are buying meets with the purity standard of 99.99%. Coins and bullion that contain almost all silver display .999 as their symbol of purity.