If you have decided to hold silver bars in your portfolio then you have made a great first step in diversifying and future-proofing your portfolio. Silver bullion has repeatedly shown itself to be a safe haven, a form of insurance if you will, during times of uncertainty, inflation, and all manner of geopolitical risks.
Silver bars are a great choice for investors. Many worry that silver bullion bars are expensive and that silver coins are a better choice but there is a range of bars to suit investors, at every level.
Knowing which silver bar to buy and wondering if silver bullion is expensive, are understandable concerns for someone considering adding it to their portfolio. It’s important to have the full picture before investing in silver. Below, we break down some of the key pieces of information regarding silver bullion bars.
What is a silver bar?
A silver bar is a standard block of at least 999.95 purity silver. You can buy bars in a number of sizes from one ounce silver bars all the way through to 1,000 ounces.
Read more: What are silver bars?
Are silver bars measured in ounces or kilos?
As confusing as it sounds, some silver bars are measured in troy ounces and others in kilos!
A troy ounce is different to an avoirdupois ounce (regular). Where a troy ounce is equal to 31.1g in the modern system, an avoirdupois ounce is equal to 28.35g. In short, one troy ounce equals 1.097 standard ounces.
The historical Troy ounce is a measure unique to precious metals and gemstones. It can be traced back to the middle ages, where it is believed to have come from Troyes, in France.
The most common, large silver bar is the London Good Delivery silver bar which comes in at a whopping 1,000 ounces and is of 999.999 fineness.
But you can get smaller silver bars from 5g, 10g and 20g and 100 ounce bars.
What’s so shiny about a London Good Delivery Bar?
To have ‘Good Delivery’ status tells you about the quality of the bar, the refinery and the storage history. To be Good Delivery a bar must 999.99 fineness, have been refined by one of the LBMA-approved refineries, and remain in a secure storage facility also approved by the LBMA.
If the bar is taken out of the LBMA-approved storage system then it can no longer be deemed ‘Good Delivery’.
London Good Delivery bars are bought by a variety of organisations and individuals, from institutional investors, banks, governments through to private investors. If you read about ETFs and digital silver you will see that they mostly only deal with Good Delivery bars. Furthermore, bars of this size are also often bought prior to being melted down to be used in industrial and jewellery applications.
The silver spot price is determined by the price of the Good Delivery bar. Good Delivery status is very important. Due to its size, Good Delivery bars are the best price per ounce.
Which silver bar should I buy?
Large bars are better value for investors and are more liquid. investors will also find it more economical to build up their investment portfolio This is why here at GoldCore we offer the two larger bars:
- 100-ounce Bar: The 100 oz bars measure about 184 by 80mm by 20mm and contain around 3.107kg of pure silver. 100 ounce bars are one of the most popular silver bars.
- 1,000-ounce Bar: The 1,000 oz ounce Good Delivery bars is 6 inches long, 2 inches wide and ¼ inch thick. A 1,000 oz bar is a Good Delivery bar. The bar contains 31.07kg of silver
Whilst the 1,000 oz Good Delivery bar might be a popular choice, it doesn’t suit every investor. There is also the 100 oz silver bar which also has lower premiums than smaller bars and
How much is a silver bar?
When working out the price of a silver bar you need to take three things into account:
- The price of a troy ounce of silver
- How many troy ounces are in a bar of silver
- The premium charged
It’s straightforward to work out the price of a bar of silver, whether it’s quoted in troy ounces or grams.
If the silver bar is quoted in troy ounces, simply multiply the number of troy ounces by the wholesale spot price for an ounce of silver. If it is quoted in grams then carry out the following calculation:
A troy ounce is equal to 31.1g. So for example, to work out the 1kg silver price in the UK, divide 1,000 by 31.1 and multiply by the current silver spot price.
Once you have worked out the cost of the silver you will need to consider the premium charged. The premium is the costs involved in making that bar for you, in its current form. So this is the melting down into smaller bars, transport, marketing etc. Understandably the smaller bar, the higher the premium. You might find premiums are also affected by supply and demand for that particular bar.
Finally, VAT. VAT is chargeable on all investment silver in the United Kingdom. However, this is not the case if you choose to store your silver in a high security bonded warehouse, such those offered by GoldCore. If you do choose to hold your silver in this way then you do not have to take VAT into account when working out how much a bar of silver is.
Also read: How to buy Silver Coins?
How to buy silver bars?
Whilst you might expect to hold stocks, shares and property as part of your investment portfolio, it is also vital that you also have silver bars. This is because ‘regular’ assets have not shown themselves to stand the test of time when it comes to preserving value, acting as a hedge against inflation and uncertainty. Silver bars can act as a form of financial insurance. And nobody should be without insurance.
At Goldcore we have a range of products available to someone who is looking to get into silver investment. Whether this is your first or your 101st investment into silver, we have something for everyone.
To get started, all you have to do is to visit our website's “open account” page and follow the on-screen instructions to set up your trading account.
If you’re feeling unsure or have any questions, call our team on any of the following numbers:
We are here to answer any questions you may have and help you to the best of our ability. Reach out to us today for more information. We look forward to hearing from you.
Also read: Where to buy silver?