Highlights
- Silver bars often have lower premiums than coins, enhancing profit margins for investors.
- Minted bars are polished and pricier; cast bars are cheaper but may have a rough look.
- Bars from LBMA-accredited brands like PAMP Suisse and Valcambi are easier to sell worldwide.
- Investment-grade silver bars can be tax-exempt in countries like Singapore.
- Larger bars (1,000 oz) offer lower premiums; smaller bars (10 oz) are more affordable but have higher premiums.
Why Invest in Silver Bars?
Before deciding which are the best silver bars to buy for investment, let’s look at why investing in silver bars is a good idea.
In the precious metals market, bigger products usually have lower price premiums. If you’re investing, your main goal might be to make a profit, so buying silver with lower premiums can help.
What’s a Price Premium?
A price premium is the extra amount you pay above the current market price (or “spot price”) for silver. For instance, if the spot price is $30 per ounce and a dealer charges $32 per ounce for a silver bar, the premium is $2. Lower premiums are better for investors, as they increase the potential for quick profits when silver prices increase.
Most silver coins are minted at around 1 ounce, and while larger silver coins exist, they’re rare. Silver bars, however, come in larger sizes—some as big as 1,000 ounces.
For example, a 1-ounce American Silver Eagle coin might have a 20% premium over the spot price, while a 1,000-ounce silver bar might only have a 2.6% premium.
If you’re focused on investment returns rather than collecting, silver bars offer an affordable way to buy silver. They have the same 99.9% purity as silver coins but usually have lower premiums.
Factors to Consider When Buying Silver Bars
Buying silver bars is straightforward, but each investor may have unique needs and preferences. Here are some important points to think about when choosing silver bars.
A. Minted vs. Cast Bars
Silver bars come in two types: minted and cast. While both have the same silver purity and weight, they differ in appearance.
- Minted Bars: These bars have polished or matte finishes and often feature intricate designs. They look sleek but come at a higher price due to their refined production process. Dealers may offer a higher buyback price for these bars.
- Cast Bars: These are hand-poured, with a rough look and imperfections like scratches or dents. They’re usually cheaper because they cost less to produce.
Consider each type’s buy and sell prices to see which works best for your investment goals.
B. International Recognition
The reputation of a silver bar’s brand or refinery is essential, especially if you plan to sell. Silver bars from well-known international refineries are typically easier to sell globally.
One way to check a brand’s credibility is to see if it’s on the Good Delivery List of the London Bullion Market Association. It sets strict standards for silver and gold bars. Refineries on this list, like PAMP Suisse, Valcambi, and Metalor, are known for meeting LBMA’s high standards and responsible sourcing requirements. Bars from these refiners are generally more liquid, making them easier to sell worldwide.
C. Tax Benefits
In some countries, like Singapore, investment-grade precious metals are exempt from sales tax or VAT. These tax exemptions often align with the LBMA’s Good Delivery standards.
However, not all private mints and refiners are LBMA accredited, especially in the U.S. Buying from non-LBMA-accredited refiners could lead to additional taxes if the importing country follows LBMA guidelines for tax policies.
At Silver Bullion, most of our products come from LBMA-accredited refineries, so when you purchase from us online, you won’t need to pay Singapore’s Goods and Services Tax (GST).
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Best Silver Bars to Purchase for Investment
When choosing silver bars for investment, size, and brand are key factors affecting price premiums and liquidity. Here are some top picks to consider based on these aspects:
1. LBMA 1,000 oz Good Delivery Silver Bars
For investors seeking maximum value, LBMA 1,000 oz Good Delivery Silver Bars are a top choice. These hefty bars, weighing 32.1 kilograms, have the lowest price premiums and narrowest spreads, making them ideal for long-term investment returns.
Their rough appearance and hand-poured style reflect lower manufacturing costs, and they meet the strict London Bullion Market Association (LBMA) standards, enhancing their liquidity and global recognition.
2. 15 Kg Silver Bars
For those who find 1,000 oz bars cumbersome, 15 kg silver bars (approximately 482.26 troy ounces) offer a slightly more manageable option while maintaining low premiums and small spreads. These cast bars from LBMA-accredited refineries like Nadir Metal Rafineri and Heraeus retain high investment value with their rough look and purity focus.
3. 100 oz Silver Bars
If portability is a concern, 100 oz silver bars provide a balanced choice between value and liquidity. With a relatively low premium and manageable size, these bars allow more flexibility for phased sales, letting investors capitalize on market changes over time.
The best place to buy silver bars are reputable brands such as the Royal Canadian Mint, Perth Mint, and Johnson Matthey, which produce 100 oz bars recognized globally and have broad resale options.
4. 1 Kg Silver Bars
For smaller investments or higher portability, 1 kg silver bars (about 32.15 oz) are an accessible choice, though they come with higher premiums. These bars are ideal for investors in regions with lower political stability, given their ease of transport.
Prominent LBMA-accredited refineries like Metalor, PAMP Suisse, and Heraeus produce 1 kg bars, typically cast but may also be available as minted bars for a slightly higher premium.
5. 10 oz Silver Bars
The 10 oz silver bar is an option for smaller budgets, offering affordability and accessibility, albeit with a higher premium than larger bars. They are produced by respected refineries, including the Royal Canadian Mint and Nadir, and are available as both minted and cast bars.
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Summary
Investing in silver bars offers flexibility, affordability, and the chance for higher returns due to lower premiums than coins. By selecting the right size and reputable brands, investors can maximize liquidity and minimize transaction costs. With these factors in mind, when considering what is the best silver bar to buy, look for options that balance premium, portability, and brand reputation.
FAQ
Buying Silver Coins Or Bars: Which Is Better?
Coins are great for investors who want easy-to-sell assets, government backing, and collectible appeal. They’re also a good choice for people with limited storage space. On the other hand, bars are better for big investors who want to buy silver at a lower cost per ounce and have enough storage space.
Disclaimer
The content provided on this blog is for informational and educational purposes only and does not constitute financial or investment advice. While we strive to provide accurate and up-to-date information, you should not rely on this content as a substitute for professional financial advice. Any financial decisions you make are done so at your own risk, and we encourage you to consult with a licensed financial advisor before making any investment decisions.
The views and opinions expressed in this blog are solely those of the authors and do not necessarily reflect the views of any affiliated entities. The information presented here is not intended as a solicitation or recommendation to buy, sell, or hold any financial product.
