As some of you savvy investors already know, I am a huge, huge advocate of adding precious metals to your portfolio.
A hugedilemma some of you will run into is deciding on whether to purchase silver coins or silver bars - so today we're going to decipher which is BEST for you.
With the global pandemic reigning hellfire on our market indexes, I think this article is going to be so relevant NOW more than ever.
Whether you're mulling over the decision to add some Silver to your portfolio or not, I really urge you to take some notes here and take action if your current situation gives you the chance.
In the current economic climate, we should expect a sharp decline in industrial output as a recession is all but inevitable. While there will be some demand for silver as an investment in such volatile times it is impossible to ignore the potential for a significant reduction in demand in the short to medium term.
While most folks will end up being at a loss as paper assets decline leading into this depression, I want everyone who's curious to learn more about Silver to have an advantage to the masses and grab some bullion while it's cheap.
The advantegous thing about silver is that it's far more volatile than gold. That means that opportunistic investors can make a lot more money from selling options in silver ETFs or silver miners. For patient, long-term investors, this volatility is a good thing.
Let's all be risk takers together in these strange times, and allocate our capital diversely so that we can withstand ANY economic turmoil both short term, and long term.
So you’re a novice investor who’s interested in converting some of your wealth into precious metal bullion.
If you're here, you're looking for the best choice: silver coins vs silver bars. You’re willing to invest in either, but you want to know which is best.
Ultimately, the question on your mind is “is it better to buy silver coins or bars?”
Whether it's silver rounds vs coins, we're here to ensure you make a profitable (and knowledgeable) investment so your portflio stays diverse.
To summarise quickly, there is no concrete answer to this question.
You can’t really pick one over the other and declare it the superior of the two. Both of these have advantages and disadvantages that make them the better choice depending on your situation. Let’s take a closer look at both, so we can end the silver bars vs. coins fight once and for all.
Silver Bars OR Coins for Investing (2020)
The only similarity between these two forms of precious metal is that they have significant advantages over paper currency.
Silver bars and coins make sound investments because their prices remain consistent for long periods of time. Paper currency has the tendency to fluctuate because it's affected by various political, financial, and global health catasrophe related factors.
Meanwhile, silver and other precious metals such as gold can always be resold at prices that don’t always change or stray from the original buying price.
For this reason, many investors switch their wealth into precious metals, be it silver bars or coins or gold, etc, just to make sure that the value doesn’t decrease drastically.
During times of economic uncertainty, you can rely on these metals to serve as wise investments. You can check out here for investing guide for expensive metals.
There’s really no need to pit silver coins vs. bars because they do the same thing: protect your wealth. But as we said earlier, there are a few reasons to choose one over the other. So let’s discuss each of them in detail.
The Difference Between Silver Coins And Bars
Owning Silver Coins
Coins have the status of legal tender, meaning you can use these to pay your debt. Each side of a coin includes an intricate design that changes every now and then. These are produced by the government’s mint. Most coins feature a face value and year stamped on the front, while their purity and weight is inscribed somewhere on the reverse.
There are also so-called junk coins that aren’t made entirely out of silver. They may not be pure, but they have a percentage of precious metal mixed in ranging from 35 to 90 percent. These make a great investment for some people because they can be purchased at spot price, or slightly below it.
Disadvantages and Advantages of Silver Coins
One disadvantage to owning coins is that the premium is usually higher than the metal’s spot price. This is mostly because of its collectability, rarity, and the fact that it is legal tender.
However, when compared to silver bars, it becomes obvious that coins are more collectible. Its status as legal tender also helps boost its appeal, not to mention you can get junk silver coins for below or at spot price.
Lastly, coins are easier to “barter” or trade off during a crisis. This makes them a highly liquid asset that any clever investor should consider owning.
Owning Silver Bars
Bars are a lot less complicated than coins. They’re thin, rectangular slabs of precious metal that are produced by private mints. They are not considered legal tender, but they are still worthy of your consideration. Owning bars is a great way to keep your raw precious metal in 1 to 10 ounce sizes.
They are compact, stackable, and very easy to store. They may have less collectible value than coins, but at least they have the lowest premium over spot price. This also applies to gold bars. This is the reason why serious, large-scale investors are interested in owning as much precious metal as possible – often in bar form.
Investment Options For Every Budget
With that in mind, we can conclude that smaller investors should consider opting for silver coins, while larger investors such as corporations should consider getting bars. Individual investors have more use for legal tender assets anyway, while larger investors don’t need much of collectible assets – they need something that can be purchased at the lowest premium over spot price.
Still, newer investors shouldn’t completely disregard the value of silver bars because they allow them to quickly build their financial portfolio, making you a trustworthy investor.
Gold and silver bars and rounds generally have the lowest premium over spot price. That's why they are often favored by serious, large-scale investors interested in owning as much precious metal as possible at the lowest price (as opposed to collecting legal tender coins).
Is NOW the time to buy Silver?
It all boils down to your purposes and goals. When deciding whether buying silver coins vs bars, it is important to keep track of your own needs and silver price forecasts. In this economic climate, it looks like silver could be a great long term investment. Depending on your own risk factor, I do reccomend allocating some capital towards silver today. SD Bullion are the friendliest company for buying silver in my opinion. They have hundreds of happy customer reviews. Check them out below.
As an Investor (or future investor), you need to be in a position to forecast and predict market volatility before it happens.
If COVID-19 has taught us anything, it's that we need to prioritize diversifying our portfolios to prepare for future market turmoil.
For those who take advantage of it, the coming decade could return untold fortunes.