Silver is one of the most useful elements known to man. It has the best electrical and thermal conductivity of all pure metals. Since ancient times, its superior ability in reflecting visible light has made it the preferred material for making mirrors. But where silver has really shined, so to speak, is as a store of wealth.

The ancient Greeks and Persians were the first people to issue silver coins. The ready availability of these coins put silver in the reach of normal people for the first time. Saving silver coins became the easiest way for common people to store wealth. As inflation spiked in the 1970s, silver demand intensified. This led to the introduction of pure silver bullion coins in the 1980s as an investment vehicle.

Silver bullion is silver which derives its value solely from its metal content. There is no artistic or collectible value to silver bullion, unlike in jewelry or rare coins. Silver bullion comes in many shapes and sizes to meet the needs of the investment market. While one troy ounce is the most popular size, you can buy silver bullion in weights ranging from one gram to 10 kilograms!

Silver bullion comes in three basic forms: coins, bars, and “rounds”.

SILVER BULLION COINS

Silver bullion coins are made by government mints for sale to investors. Modern silver bullion coins have a purity of 99.9% (.999 fine) or better. Most pure silver bullion coins weigh one troy ounce, which is 31.1035 grams, or 1.097 “regular” ounces. These standards make tracking your silver holdings a simple matter. The number of coins you have, no matter the nation that minted them, equals the total ounces of silver you own.

The most popular silver bullion coin in the world is the American Silver Eagle, produced by the US Mint. More than a half-billion Silver Eagles have been sold since its introduction in 1986.

SILVER BULLION BARS

Silver bullion bars are made to the same .999 fineness as silver bullion coins. Silver bullion bars come in many shapes and sizes. These sizes can range from 1 gram to 5,000 grams (5 kilograms) or more. Private refineries produce nearly all the silver bullion bars on the market. Two exceptions are the Royal Canadian Mint and the Perth Mint of Australia. They both offer silver bars besides their bullion coins. Silver bars are cheaper than legal tender bullion coins of the same weight and purity.

Silver bullion bars come in two basic forms: poured and minted. Poured bars are individually made by pouring molten silver into molds. Minted (or pressed) silver bars are cut from bar stock and stamped with a design, much like silver coins and rounds. It is much faster and simpler to make pressed silver bars than poured ones. That said, many people will pay a little more for the individual, rustic look of poured bars.

SILVER BULLION ROUNDS

Silver bullion rounds may look like coins, but there are several major differences. The best way to think of silver rounds is that they are coin-shaped, or disc-shaped, silver bars. Silver rounds have no seigniorage charge, so they sell for much less than bullion coins. Silver rounds are made by private mints and refiners instead of the government. Because of this, they are not covered by a nation’s anti-counterfeit laws. Production of fake silver rounds is of course still a crime, just like making fake silver bars.

No one is going to confuse a big 1 oz silver Buffalo Nickel or Mercury Dime design silver round with the real thing. The situation changes, though, with silver rounds bearing the Walking Liberty or Morgan Dollar designs. Some people were confusing these rounds with the real thing. The situation wasn’t helped by shady sellers hiding the fact that they were not coins.

Purity of Silver Bullion

The most important aspect of silver bullion is its purity. The market definition of silver bullion is silver of at least .999 fineness (99.9% pure). Most of the world’s silver is traded through either the COMEX or London Bullion Market Association (LBMA) exchanges. COMEX futures contracts and London Bullion Market Association spot contracts both specify .999 silver. The retail silver bullion market follows this same standard. Some silver bullion items may have a purity as low as 90%, but buyers prefer the .999 fine/1 troy ounce standard.

SILVER: THE WORKING MAN’S GOLD

Silver has been called “the working man’s gold” for centuries. From ancient times, the only way a regular person could save silver was by buying silver coins or jewelry. Today, buyers have an unprecedented number of choices when investing in pure silver. Silver bullion is available in a form and at a price to meet anyone’s budget.