How to buy Silver Bars? (2024 Guide)
This article has been reviewed and updated for 2024.
So, you’re ready to buy silver bars. Brilliant, but now what? Are you wondering how to buy silver bars? Or maybe just where to buy silver bars?
Adding silver bars to your portfolio is a great step towards future-proofing your portfolio. Over millennia it has not only been an indispensable metal for the industry but also a store of value for those looking to preserve their wealth. But, that doesn’t make it easy to decide where you find them.
Read this guide to find out how and where to buy silver bars.
Why buy silver?
Silver is a shrewd investment for anyone looking to future-proof their portfolio. It has shown itself to be a store of value over thousands of years. Even though it is no longer used in our monetary system, it is still very much seen as a borderless currency that will protect its holder from poor economic and monetary policies.
Silver is also known as the ‘indispensable metal’, so useful is it across a number of industries. It’s highly conductive and reflective properties mean it is enabling the renewable energy and battery-powered vehicle industries to move at an enormous pace. We expect to see silver shortages in the years to come.
In short, silver performs well in good economic times as industry tends to be booming and so uses more silver. But when things take a turn, silver steps up as a safe haven and store of value, as has been its role for many, many years.
Also read: Is buying silver a good investment?
Should I buy silver bars instead of coins?
There are strong advantages to holding both silver bars and silver coins in your portfolio (and we prefer to hold both at the same time), but if you wish to choose then consider the following factors:
- Silver bars often come with a lower premium relative to the amount of silver contained, as they do not take as much time and effort to cast or mint. Coins very often have beautiful designs which take tie to create.
- Silver bars cost less per ounce than silver coins, this is great for investors looking to build up their silver holdings quickly.
- On a cost/space ratio, bars take up less space than coins of a similar value so your storage costs in a secure vault will be less.
What weight silver bars should I buy?
Once you have decided to buy silver bars, you need to decide what weight you would like to buy. Like gold, silver bullion is measured in troy ounces. A troy ounce is slightly heavier than an avoirdupois (regular) ounce. A troy ounce weighs around 31.1035 grams, compared to an avoirdupois ounce which weighs around 28.35 grams.
You can buy silver bars in different weights and sizes. The smaller the bar, the higher the premium. Here at GoldCore we offer two sizes of silver bar, 100 ounce, and 1,000 ounce.
A 1,000 ounce silver bar is also known as a London Good Delivery bar. It is a common type of investment-grade silver bar, preferred by governments, institutions, banks, and investors alike.
In order to be classed as Good Delivery the bar must have been cast by an LBMA-approved refinery and kept within the ‘Good Delivery system’. In short, these bars are the top dog of silver bars and we are proud to sell 1,000 ounce bars at GoldCore and offer them with VAT-free storage.
However, if the 1,000 ounce bar doesn’t suit your investment strategy then we also recommend the 100 ounce bar. These are also traded by banks and institutions, as well as investors.
Also read: How much does a silver bar weigh?
Are silver bars expensive?
The price of silver bars should be determined by just three things:
- The weight and purity of the silver contained within the bar
- The premium charged
- The UK silver spot price
Occasionally it might be affected by demand and supply for that particular bar, but this is extremely rare and more likely (although still uncommon) with coins.
Also read: Should I buy gold or silver?
What do I need to know before I buy silver bars?
When are trying to decide where to buy silver bars you need to pay attention to the following factors:
- The premium charged - premiums on silver bars will be lower, the larger the bar. Premiums cover the costs involved in getting that bar to the point that it can be sold to you (refining, minting or casting, storage, marketing etc). Take the time to compare premiums across providers and do not be afraid to ask why premiums are what they are.
- Additional costs - some merchants have been known to charge undisclosed fees to those buying silver bars. Check what these might be, prior to making any commitment. There should not be any charges past the bar itself, the premium, and (if relevant) any delivery costs.
- Buy-back terms - right now you are likely thinking you plan to buy silver bars and just hold onto them, after all when will you ever want to be without insurance? But the truth is that there might come a time when you want to realise some gains, or maybe just reduce your exposure to the precious metal. If this happens then you need to know that you can easily resell some or all of your holdings on a secure, highly liquid, and low-cost platform.
- Storage arrangements - Just because you have decided to buy silver bars doesn’t mean the decision making ends here! Now you need to decide how you would like to store them; at home or in a secure storage facility in a choice of safe jurisdictions? You will also want to look for the option to store silver VAT-free.
- Range of products offered - The range of products offered is a good assessment of the quality of outlet you are buying from. It’s important that you are able to choose from a selection of silver bars and coins, so you can best suit your investment strategy.
- Reputation - It might seem impossible in a world of online merchants to assess a company’s reputation, but the beauty of the internet is that there are some great forums and review sites that will give you a good idea of a company’s intentions. Here at GoldCore we have over 14,400 customers and you can be sure to find their happy reviews online!
Where can I buy silver bars?
The following is a list of places that will sell silver bars, however we always recommend that you do your own research and always consider the factors listed above in order to make an informed decision.
Always keep at the forefront of your mind the reasons why you are buying silver. If any of those reasons are put at risk by the place you could buy silver from, then you should not purchase your silver from there.
- Royal Mint - As a place to buy some silver the Royal Mint is one of the most respected and oldest places in the world. Their coins are collected around the world and they have a secure set-up. However, they only sell bars that they have minted and they do not buy them back from you, even if they were your point of purchase. This is restrictive for the investor on a number of levels, and makes the already higher-than-average premiums even less attractive.
- Post Office - Your grandparents might have bought a silver ‘collector’s edition’ coin from the Post Office for you one year, but this does not mean it is the place to start your silver investment journey. The age-old Post Office only sells a very limited selection of Royal Mint fare and more often than not it is for gifting purposes. This means that the premiums are even higher than those found at the Royal Mint, which can eat into your returns even more.
- Online marketplace - people choose to buy silver bars because they wish to reduce the counterparty risk that their portfolio is exposed to. If you choose to buy from an online marketplace then you are pretty much giving up this advantage. When you buy silver from an online marketplace then you have very little way of knowing that the silver bar you have bought is in any shape or form what you expect it to be. It can be very costly to verify your purchase and even more costly if you wish to sell it at a later date.
- Bricks and mortar shops - We understand the attraction of going to a physical shop to buy your silver bars. It is great to be able to see and touch your purchase, plus you can take it home with you that day. However, this is where the advantages end. By nature of a shop’s running costs, the premiums on its products will be higher than those offered by a dedicated silver bullion dealer. They will also not be able to offer you as global or as liquid a market if you would like to sell your holdings at a later date. Additionally, if you would like to store your silver (VAT-free, as well) then this is certainly not something a physical shop will be able to offer you, at the level of security that is required for such an investment.
- Dedicated silver bullion dealer - We are so proud of the fact that we are one of the UK’s leading silver bullion dealers and that we can look at that list of factors and happily state that we know we offer our customers the best experience when it comes to buying silver bars.
We have a great range of silver bars, from 100 ounce to 1,000 ounce, not to mention our Perth Mint Certificate Program. We are also able to offer you VAT-free storage in Switzerland, and have a great reputation when it comes to customer service. If you think you might want the option to sell or part of your silver in the future, then GoldCore will be happy to help with our secure yet accessible global marketplace.
Buy silver in the UK
If you would like to find out more about How and Where to Buy Silver bars, then please do not hesitate to schedule a free strategy call with us. We can give you more information and discuss your options with you.
Alternatively, contact us on:
Ireland +(01) 653 3426
Or, if you are ready to get started and buy silver today then sign-up here.
You may like to read our similar blog on How to buy silver coins?
