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How Do I Buy Silver Bullion?

Silver bars are one of the most effective forms of silver investment. As tangible assets with strong liquidity, silver bars can help you preserve your wealth amid inflation. 

In some cases, and only in terms of premium paid over spot, silver bars can cost less than silver coins. Some suggest silver bars are easier to store, providing investors with a simple and easy way to accumulate different amounts of pure silver. Some say that bars offer more silver per square inch. 

Silver bars are produced up to 1,000 ounces, which are often bought by banks, exchanges, and ETFs. The price of silver bars are determined by their silver content. Whereas silver coins are oftentimes produced by National Mints, silver bars are most often produced by private entities.

The silver rounds produced by national mints include the American Silver Eagle, The Canadian Silver Maple Leaf, The Austrian Philharmonic, The Chinese Silver Panda, the British Silver Britannia, and more. There are also many private sector silver coins available on the market today. A popular silver round is the Indian Head round. There is also junk silver, which generally refers to US coins pre-1965, which are comprised of 90% silver.

You can buy silver through local retailers. Pawn shops will often times have a bit of bullion set aside. You can also buy items online, such as APMEX, Money Metals Exchange, Silver Doctors or JM Bullion. 

Especially if you’re new to buying silver coins and bars, be sure to purchase bars and rounds priced on their actual melt value and not any subjective numismatic value.

The most commonly purchased 1-ounce silver coins are often American Silver Eagles, produced by the US Mint, as well as private silver rounds. Many investors prefer silver bars from reputable silver dealers, because of their backing from a sovereign state or central government. 

You might ask if I am going to buy silver, and I want to buy the least expensive option, shouldn’t I go for a 1,000 oz bar? The answer is yes if you are buying many thousands of ounces. However, when most people go to sell that bar, the retailer will need to analyze it before purchasing, which would perhaps entail cutting the bar in half. 

In Europe, silver bars are subject to VAT. There is a non-VAT option, with the Royal Mint gold bars and coins, which are not subject to VAT for certain person. In many US states, there are tax rules on physical silver bullion purchases. 

There is a wide variety of silver products offered by mints and refineries.  There are also other financial products available, in which investors can hold silver, such as buying an ETF, which is much different than owning physical silver outright, and in self-storage. There are of course with any investment risks, and the same is true with silver. 

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