Silver Bars vs Coins vs Rounds | Should I Buy Bars or Coins?
What are the differences between Silver Coins, Silver Rounds, and Silver Bars?
- Silver coins are legal tender and can be used as currency.
- Silver rounds are flat discs made of silver by private minting companies. They are NOT legal tender. They are equivalent to silver bars – valued for the amount of silver. They are more widely available than coins and carry a low premium over the silver spot price.
- Silver bars are 99.9% pure silver and are used for investment purposes. Easy to store. Low premium over the silver spot price.
Should I Buy Silver Bars or Coins?
When deciding whether you should buy silver bars or coins or silver bars vs silver rounds, there are several things to consider including:
- Size
- Are you using a storage facility or self-storing? (non-IRA accounts)
- Are you investing, collecting, or starting a precious metals IRA?
- Ability to buy and sell silver easily
You can buy gold and silver to have and hold, store in a depository, or put in a gold or silver IRA as an option to diversify your investment portfolio. Get the information you want with the professionals at Goldco by clicking below.
Silver Coins
Ok, so this one is pretty obvious. Silver coins are produced by mints around the world and are easy to use in the event of a monetary system breakdown. Silver coins can be easily used as currency.
Silver coins used for investment like in a silver IRA come with certificates of authenticity. It is recommended to purchase coins from sellers that work with the mints to avoid counterfeit coins. Gray or secondary markets can be risky due to counterfeiting and questionable sourcing of coins.
You’ll pay a higher price because of the collectibility of the coin and this can vary widely independent of the value of the silver.
You must take extreme care if storing the coins yourself to ensure they are not damaged and retain their uncirculated status. In the case of a silver IRA, the coins must be stored in an approved storage facility.
Silver Rounds
Silver rounds are flat discs of silver from a private minting firm. They are not currency (not legal tender) and should be treated like silver bars, but more convenient. Typically, silver rounds have their weight and purity stamped on them. The round may have the mint name or logo stamped on the silver round, but not always.
Silver rounds are easy to store, easy to transport, and have the lowest premium over the spot price compared to coins.
They are not considered collectibles, are not easy to trade or barter, and have no face value.
Ideal alternative to silver bars if self-storing however it is recommended to use a seller that offers storage services.
Silver Bars
Silver bars can range from 1 to 100 troy ounces (ounce=28.35 grams | troy ounce=31.1 grams). So-called “silver metric bars” can range from 1 gram to 1 kilogram (0.032 to 161 troy ounces).
When investing in silver, silver bars are the most convenient because the bars are easier to store, keep track of, and are more affordable on a per-ounce basis.
Silver bars have certificates of authenticity, serial numbers, and other ways to prevent counterfeiting. Using a reputable storage facility makes the buying and selling of silver much easier and safer.
