What is silver bullion?

Silver bullion generally comes in the form of a bar but can also be in the form of coins, ingots or rounds. Silver bullion is produced by many manufacturers e.g. Credit Suisse, OPM Silver Bars, ABC Refinery & Perth Mint. To buy silver bullion is a long-term investment strategy that many commodity investors partake in.

What are some statistics and facts about silver in general?

  • Major producers of silver include; United States, Peru, Australia, Mexico, Canada and Russia.
  • 27 thousand metric tons of silver was produced in 2016.
  • Silver has been of valuable as a commodity for the last 5,000 years.
  • Silver is more affordable and useful in smaller units.
  • It has the highest thermal and electrical conductivity of all the commodities.
  • In 2016, the estimated domestic uses for silver were electrical and electronics, 30%; coins and medals, 27%; jewellery and silverware, 7%; photography, 6%; and other, 30%.
  • Exports from the US of silver have grown mostly in waste and scrap.

How much is silver bullion worth?

At the time of writing this article the silver spot price per ounce was $17.17. The price fluctuates hourly, daily and weekly. So always check the price before purchasing.

What should I consider when buying silver bullion?

Below are some of the factors that need to be considered when wanting to buy silver bullion:

  1. Industry demand – is the base metal mining industry on the increase? What are some of the industrial uses for silver e.g. water purification, batteries, solar energy?
  2. Quality – are you purchasing your silver bullion from a reputable manufacturer/supplier? How is the quality of the silver bullion maintained through the manufacturing process? How pure is the bullion?
  3. Price – at what price are you wanting to purchase your bullion for? At what price are you prepared to sell?
  4. Short time volatility – is the price of silver about to increase or will it be decreasing in the short term? What are some of the factors affecting market volatility?
  5. Storage and care – where will you store your Silver Bullion? Do you have a few secure locations that can be used? How can I ensure that my silver bullion does not tarnish over time?
  6. Make sure you have a plan – what is your strategy based on the last few years data? Are you willing to sell in the next few months or years or are you prepared to hold for the long-term?

How will I know my investment in silver bullion is worthwhile?

The only way to tell whether your investment in silver bullion is worthwhile is to stay abreast of all the political and economic news to determine the shifting market price for silver. You may like to sell your silver bullion at a time when the perceived market value for silver is at a high. It is important to remember that silver has an on-going use in the industrial markets especially for electronics and mobile phones. Gold on the other has limited industrial uses but can be used for trading and bargaining purposes particularly in the case of an economic crash. So, knowing the difference between the two commodities is important. It is advisable that investors purchase both gold and silver to diversify their portfolio. Silver has more recently become a safe-haven like gold and can be turned into money at any time you require it. Overall, to buy silver bullion is a wise choice.