Bullion is the word used when talking about gold and silver, and any other precious metal, when in the form of bars, rounds, coins, and/or ingots. It came from a similar French word which meant boiling, mint, or melting house.
Silver bullion is amongst the most popular of all the precious metals, and its bullion is traded on the commodities market throughout the world. The value of silver bullion is determined by the amount of silver actually present in the bar or coin itself. In the following few sections you will be let in on the reasons why investing in silver bullion is an incredible way to store the value of your assets.
To start investing in silver bullion bars, be sure to visit JMBullion.com as they have the lowest prices over spot and a wide selection of silver bar products.
Low Premiums
Silver bars are the superior form of investing in the precious metal because they have the lowest premium over spot value. What this means is that the mark-up price of silver bars is substantially lower than that of coins or rounds. The reason coins have such a high mark-up is because while the amount of silver in the coin helps direct the price, so too does the popularity of the coin itself.
Because the countries that produce silver coins have predetermined quantities that are going to be minted, the demand can easily outweigh the supply and thus drive up the cost of a particular coin or set of coins. This same concept can be applied to older coins of which very few remain.
Silver bars are minted by private companies who do not so heavily restrict their mintages and for this reason the price of any one silver bar will not vary much from a different, similarly sized silver bar produced by a different company.
How to Invest
Investing in silver bullion bars can be done with ease, and is the least expensive way to invest in the precious metal. The reason it happens to be the cheapest way to invest in silver is because the premiums on bars are lower than on coins and even rounds.
Unlike coins, there is no reason to collect silver bars as they all are generally plain looking and bulky. Instead, people purchase silver bars as a way of preserving their assets and because silver rarely loses its value, it turns out to be a wise investment opportunity. Not only does silver rarely decline in value, it more often than not gains value as governments inflate their fiat currencies.
You can purchase silver bullion easily online because of the many dealers that exist, but if buying things online is not something you are willing to do there are a lot of brick and mortar dealers as well.
Buying in Bulk
If you are going to make an investment in silver bullion bars it is recommended that you make a bulk purchase of the metal. The reason we advocate bulk purchasing is to keep your costs over spot price as minimal as possible.
The minting costs for producing one 1 oz silver bar are proportionally higher than the costs for producing one 100 oz silver bar, so buying larger bars always saves you money on premiums over spot. Buying generic bars as opposed to new, brand name bars also saves you a lot of money on premiums.