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Silver bullion bars are available in a range of sizes and weights. Some of the most popular formats are 1 ounce bars, 10, ounce bars, 100 ounce bars, 1 kilogram bars and 1,000 ounce bars.
To be considered as investment grade silver, they must satisfy particular specifications. Refiners use pure silver, with at least 999 fineness to produce bullion silver bars.
The millesimal system is used to depict the purity or fineness of the silver. For example, using this system 99.9% silver means that there are 999 parts silver, per 1,000 parts. In contrast, sterling silver consists of 92.5% silver, and 7.5% other metals, usually copper. In this instance sterling silver, the highest purity in silver jewellery is described as having 925 fineness.
Why should you buy silver bars?
Investing in silver bullion bars or coins has a lot of the same benefits. Both offer the opportunity to hedge against risk, protecting your wealth, as well as offering potentially attractive returns for investors. But whether you opt for silver bars or coins will depend on your individual investment goals.
Silver bars have the distinct advantage of having a lower premium, as opposed to coins. Because bars take less time and effort to produce, dealers will charge a lower premium. The larger the bar format, generally the lower the percentage premium.
However, one important consideration when buying silver bars is that when you come to sell your silver bar you cannot sell part of a bar. Therefore, smaller format bars may be more suitable for smaller investors or for those wishing to realise part of their investment.
If you are taking delivery of your silver bars, there are VAT / TAX implications for your investment. Ensure that you take advice in this regard before purchasing and taking delivery.
Where should you store bullion silver bars?
While it is possible to take delivery of silver bars and store them yourself, most clients do not generally take this option as it becomes very expensive due to the application of VAT / TAX to their purchase.
As a result, most clients opt to have their silver bars stored on their behalf at a high security, specialist, private vaults. Storing silver in a vault in this manner can ensure its integrity and authenticity as it remains within what is known as the chain of integrity. Removing a bar from the chain of integrity will require that the bar is retested to ensure its purity and authenticity when you wish to sell it. This will incur additional costs and delay the selling process.
Storing silver bars in a specialist private vault within the chain of integrity may not only stop the application of VAT / TAX to your investment but also ensure access to greater liquidity and a faster sales process.