Silver-Ounce
Silver Ounce

I want to talk about how you can collect silver. Like any precious metal, silver can be used for investment purposes. For thousands of years, silver has been highly valued and even used as money. Today, it’s no longer accepted as legal tender in many counties. However, the demand for silver is still very high.

Silver is on the rise

With all the unstable federal governments and economies, silver is certainly on the rise. As the dollar becomes less and less stable, silver becomes more valuable to investors. Today, silver is a better buy than gold. It’s also undervalued relative to gold. Those who feel gold is too expensive are looking to purchase silver. All of these reasons combined are pushing the price of silver higher. For those of you looking for stability and security, collecting silver is definitely the way to go.

One Troy Ounce

Silver is sold by the troy ounce. One troy ounce weighs 31.1 grams, which is more than the 28.35 grams you would call an ounce of milk. Therefore, one troy ounce is approximately 10 percent more than a regular ounce. When buying silver, it’s very important to know about the troy ounce, as dealers will refer to silver prices by troy ounce.

Numismatic vs. Bullion

When purchasing silver, you have the option to choose between numismatic or bullion. Generally speaking, numismatic coins are for experienced collectors. Their value is determined by things such as the date they was issued, rarity, condition, even the mint where they were produced. Bullion, on the other hand, is valued by its silver content. There are two main types of bullion: coins and bars.

Choosing Between Coins and Bars

Not all silver bullion is created equally. You should know the differences between silver coins and bars in order to make educated purchases. Many people prefer to buy coins because they offer greater flexibility when it comes time to sell. For instance, if you buy a 100-ounce silver bar you will have to sell the entire 100-ounces at one time. But, if you buy 100-ounces of silver coins or rounds, you could sell any number of rounds at anytime.

Silver Bars Are Cost Effective

While coins provide you with greater flexibility, silver bars are generally more cost effective. Because they are not minted, they are often much cheaper than coins. They come in sizes such as one, ten and 100-ounce bars. They also sell at spot, which means they do not include premiums that coins such as Silver Eagles can have. If you are a beginner or if you are just trying to protect your wealth and buying power of your money, then I suggest you invest in silver bars.

Gary Dyner is the owner of Great American Coin Company. Connect with him on 

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Great American Coin Company