Types of Silver Bullion
Bars
Bars are perhaps the most popular and well recognized form of silver bullion. Bars, as most people envision them, are big chunks of metal that are stored away in some secretive vault. The truth is, however, that bars can be obtained in all sorts of sizes, and that the majority aren’t even all that big or expensive. Even the collector or investor on a very small budget would be able to find affordably priced bars to add to their silver portfolio.
Though bars are common among every variety of silver buyer, they are certainly most prevalent when it comes to investors. Since bars do not carry any inherent premium over spot price, they do not have any extra collectibility like you would find in coins or even rounds. Because of the lack of premium pricing, bars are the best option for anyone looking for a long term investment or a short term profit.
Another traditional benefit to buying bars over the other forms of silver bullion is their ease of transfer and storage. Though few would argue that coins are exactly a “struggle” to move around, there is no debating that bars are just a bit more efficient. You can stack piles and piles of bars before you would ever need to worry about organization or space constraints. Plus, a bar does not need to be worried about when it comes to proper care. Coins are most valuable in prime condition, whereas bars can be beaten and battered and it will not effect the end price.
Coins
Coins are one of the most time tested forms of silver bullion in the world. Aside from their aesthetic appeal, coins also carry a bit of national pride and even added value in most every situation. The production of a round by a government mint is what discerns a coin from a round. If you find a circular piece of metal, it is not necessarily a coin. A few examples of coins would be the American Eagle and the Chinese Panda. Don’t be confused by items that commemorate national events, as these are still not considered coins.
Silver coins are ideal for collectors, but are also a mainstay in the portfolios of avid investors. Even though most coins carry a little bit of a larger price tag, more often than not they will recoup any added expense when it comes time to sell. Beyond this, some investors simply prefer the appeal and recognizability of a coin over a generic chunk of metal as is the case with bars and even many rounds. Collectors drive the value of coins, but investors have no qualms about buying them either.
Rounds
Rounds are coins that are not manufactured by governments and do not serve as legal tender. Whereas a coin such as the Canadian Maple Leaf carries an actual value in terms of Canada’s currency, a round would not. Instead, rounds are nothing more than silver that is minted in whatever design that a company desires. If you have ever seen a commercial on TV for a memorial or commemorative type of coin, the chances are that you were looking at a round. Rounds are very much novelty items and will seldom carry a sustained after market value that exceeds the spot price of silver.
For collectors, rounds are a cheap way to add a little but of variety. Since coins will cost a fair amount more than their regular silver counterpart, rounds offer a way for collectors to diversify their collections without spending any additional money. The vast majority of rounds are available for right at or very close to spot price. Rounds do cost a bit more when they are initially released, but this is nothing more than a product of the price that is set by the original mint or retailer. If you see a coin advertised as “limited edition” with a marked up price tag, you are almost always going to lose money in the long run when compared to someone who spends the same amount on a bar or even a coin.
