Silver Bullion

Silver Bullion

Precious metal including silver, gold, palladium and platinum in bulk form is known as bullion and is most commonly cast in the form of a bar. Silver and gold can also be available as coins, and gold can also be bought and sold as small grains. Buying and selling silver bullions can seem daunting to a new precious metals trader, yet quickly becomes straightforward after learning the basics.

Silver Bullion vs. Gold

When the topic of precious metals trading is raised, most people think of gold trading. While silver is not as valuable as gold, it is nevertheless in high demand as silver bullion bars have the potential to increase in value at a much faster rate than gold.

Silver History vs. Today

Historically, silver has long been associated with tradable currency. In many parts of the world, silver coins were one of the first types of currency. Today, silver is most commonly traded as silver bullion or round silver bullion coins. The international standard of silver is set at 999.0+, which means that silver bullion and other silver tradable products are at least 99.9 per cent pure silver.

Silver Bullion vs. Silver Coins

Silver bullion are popular largely because their cost of production is lower than coins, and because they are a convenient way of trading silver in bulk. On the other hand, many people prefer coins over silver bullion as coins are more portable, more easily recognised and easier to trade on the international market. Another consideration when trading silver internationally is whether your target country considers silver bullion to be a taxable commodity. There are some instances in which silver coins are considered legal tender, and therefore not taxable, while silver bullion are not.

Silver Bullion as An Investment Strategy

Silver bullion is considered a worthwhile investment for many people who are looking to diversify their investment portfolio in a relatively low-risk way. As with most other investments, silver bullion trading involves the ideal strategy of buying when the price is low and selling when the trading price is high. With precious metals like silver bullion typically regarded as a long-term investment, and since metals can often move in a different direction than other commodities, silver bullion is a way for investors to hedge their losses against other investments.