Posted 8th December 2022

A complete guide to silver bullion

silver bullion 999 ag bars

This article provides a guide to understanding silver bullion, exploring the size of the market as well as the different products available to bullion buyers and collectors.

Understanding Bullion

Originally, the primary purpose of silver was as a currency with the metal used as the basis for trading across the world. However, the metal was displaced by gold, before it too was replaced by the current fiat system. As such, the attraction in holding silver bullion physically comes from the collector value they provide, as well as them being an investment class.

With bullion therefore ascribed to silver meeting this purity qualification, the difference between silver coins and bars is not the metal they are made of but the different investment approaches they offer. Fundamentally, the weight of the bar or the coin is the predominant driver of the price it will achieve, with the price fluctuating in line with the movements of spot silver.

Bars are a stable asset class, recognized worldwide and easy to trade, offering a direct physical asset that tracks the silver price. Coins too are subject to the fluctuations of silver’s movement on global markets but have the added appeal that certain particularly decorative, historic or rare coins can trade at a significant premium to their underlying weight value.  

bullion market

The Bullion Market

bars and coins bullion

Purchasing Bullion

Silver bar and coin bullion are available to buy in a vast range of sizes and with the price of silver significantly lower than the price of gold, investing in silver bullion has a much lower entry point than for gold.

The most popular coins include those from the Sovereign, Britannia and Queen’s Beasts ranges, with a 1 oz coin available to purchase for little more than $20. In the US, the official silver bullion coin is the American Eagle. At the same time, the Kinesis Bullion store produces and manufactures a range of minted fine bullion coins featuring the Egyptian goddess Ma’at, struck in the highest quality of investment-grade silver (9999) available at competitive prices.

While the many different sizes provide a great range of options for a potential investor, the best prices are available for the largest sizes due to the benefits brought by economies of scale. As such the smallest size bars and coins can often cost many multiples of their underlying weight and are more items for gifting purposes rather than as an investment.

Take a look at the Kinesis Bullion collection

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basi