When precious metals come in bulk, they are considered to be bullion and are often traded in the market. Silver bullion is one form and is generally minted into coins and can also be cast into ingots. A bullion coin is often kept as an investment instead of being used as everyday currency. What makes bullion valuable is its mass and purity.
Precious metals like silver are sought after during inflation and economic downturns because of their value. Many people invest in silver coins because they want a "hedge" against currency inflation. Bullion coins have become popular collectibles because of their affordability and compact size. They are also uniform in size and easy to maintain and store. Unlike gold and platinum, silver is more of a collectible and they experience higher value compared to their actual bullion value.
Some examples of bullion coins are the American Silver Eagle, Mexican Silver Libertad, Chinese Silver Panda and the Canadian Maple leaf series. Bullion coins can be found in various weights and because of their small size, they sell for a high price over the market price of the metal on the Commodities Exchanges. The cost for manufacturing, storing and distributing bullion coins also affects their premium price.
The 100 oz bars are currently the most popular silver investments and are convenient for buyers because of their uniformity and a low weight of 6.86 lbs, making them easy to handle. Four brands of silver bullion bars have been taking over the market. These include Johnson Matthey, Engelhard, Wall Street Mint, and Sunshine Minting. What differentiates these silver bullion bars are their dimensions and the way they are produced.
Investing in silver dates back to the 1970s where inflation drove people to buy silver for financial security. This tradition still continues even in the current economic downturn with people looking into bullion investments.
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