Silver Bullion

Silver Bullion

The term Bullion traditionally stands for silver and gold bars as well as other precious metals bars or ingots.The word bullion originates from the old French word bouillon (which meant boiling) and was a term used for a mint or melting house. Bullion refers to precious metals in bulk form which are these days usually traded in the commodity markets. The value of bullion is typically determined by the value of the metals content, which is defined by its purity and its mass.

Silver bullion, either coins or bars will increase in value if the world silver market moves higher and will decrease in value if that same market moves lower. Precious metalsare bought and sold worldwide using the troy ounce which is 31.10 grams. This may be a bit confusing because when weighing anything other than previous metals the world standard is the avoirdupois ounce which is slightly more than 28 grams. In other words the troy ounce used to weigh metals is about 10% heavier than the avoirdupois ounce.

Silver Bullion Bars

Silver Bullion bars can commonly be purchased in a variety of sizes, from 100g, 250g, 500g, 1 kilo, 5 kilo etc to the ever so much larger 1000oz bars. Many mints produce bullion bars in various sizes and there are a few independent producers of these. Silver bullion bars are a more cost effective way of investing in silver than buying individual coin. There are three different manufacturing techniques are used to produce silver bullion bars of various sizes, minting, casting and extruding.

Minting or striking small silver bars from solid sections of silver bullion, silver bullion coins are manufactured in a similar way. Casting which involves pouring liquid silver into molds to form silver ingots, and extruding is the process of forcing heated silver bullion sections called billets through rectangular shaped dies. Silver bar prices are closely tied to the silver spot price or spot silver price for one troy ounce of silver.

Silver Bullion Coins

A bullion coin is a coin struck from precious metal and kept as a store of value or as an investment, rather than used in day to day commerce. Bullion coins are also typically available in various weights, these are usually multiples or fractions of 1 troy ounce. Bullion coins sell for a premium over the market price of the metal by dealers. This is due to their comparative small size and the costs associated with manufacture, storage and distribution. Investing in silver bullion coins represents the easiest area an investor can get started with precious metal holdings and still make profitable gains.

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A Selection Popular Silver Bullion Coins

Collecting silver bullion coins can be fun and rewarding as an investment, with a bit of planning, and proper storage, a investor can build quite a collection. There are many mints around the world producing silver bullion coins like the Perth Mint, Royal Canadian Mint and also the US Mint, a number of these mints release different bullion coin series, like the Australian Kookaburra series, and the Canadian Maple Leafseries for collectors.

The benefits of choosing silver bullion coins is that the coins can be viewed as art, and have the potential of becoming very collectible. Quite a number of different bullion mint release coins which have very low mintages or unique designs.

Silver Bullion Rounds

Silver bullion coins like the American Silver Eagles and Canadian Maple Leaf are issued by governments and are legal tender for the amount stated on each of the coins. Despite having legal tender status they are not expected to be used as money because their silver value exceeds their face value. Silver rounds are privately minted for investors and collectors, they often have designs that resemble famous coins, people and places. Typically most silver rounds sell for a lower premium than government issued silver bullion coins. Silver bullion rounds are available in both brand name and generic, silver bullion rounds are a safe, low cost and convenient way to buy and own silver.


Further Coin Information

More information US silver bullion releases can be found at the US Mint.

More information Australian silver bullion releases can be found at the Perth Mint.