Buying silver bars and coins are often viewed as a strategic investment aimed at preserving wealth and hedging against inflation. Irrespective of the reason for investment, these products make great additions to any investor’s portfolio.
Silver has been used for thousands of years in India now. The demand for the precious metal primarily comes from the industrial sector and the regular consumer. Silver has plenty of industrial usage owing to its amazing properties including high conductivity of heat and electricity, malleability, ductility and in general being a cheaper alternative to gold. Silver rates in India are affected by industrial trends pertaining to the large scale usage of silver.
From a consumer investment point of view, silver is purchased as a form of long term investment. Physical metal is purchased with intention of storing the metal for the near or further future to hedge against economic volatility and inflation. Silver bars and coins are quite popular with the Indian populace, especially the rural population.
Silver Bars and Coins for Purchase
Silver is available in the forms of bars, coins, jewellery, ornaments, utensils etc. Silver bars are generally available in high purities. These bars are traded at base rates of silver and are cheaper than other physical forms of the metal such as jewelleries or coins. Silver bars are commonly available in the form of bullion, which is basically investment-specific variety that’s valued in terms of silver content. Silver bullion can be purchase in bar, triangle or round forms, worth according to the weight of silver in the particular form. The only reason for the different shapes is storage requirements of investors. Bullion bars are available from .995 purity and higher. Weights include 1, 5, 10, 100 ounces or Kilos as per the seller.
Silver coins are available in lower quantities. Coins are generally priced higher than the same value in bars and are available from banks and jewellers, apart from private dealers. Coins are mostly meant for gifting or religious purposes and are ingrained with the mark of the seller. Banks generally sell coins at a higher premium owing to the assured quality of the metal. Coins are sold in ounces, tolas, grams and other metrics. Silver coins are a form of art bars which are mostly used as a collectible with different depictions such as religious or historical.
Silver Bars and Coins Investments
Buying silver bars and coins is a good tactic in building long term wealth as well as preserving it. The trick to buying is that investors should look at the purpose behind buying silver instead of the form. For instance, if you are given the option between new shiny silver bars and coins and second hand bars and coins, then the second hand items will be more economic than the new items. Any respectable dealer will have checked the purity and content of silver in the bar or coin before selling, and second hand items are generally cheaper than new items and are available at slightly higher prices than spot rates.
The reputation of the dealer of your choice is an important factor when buying silver bars or coins. Silver rates in India vary between states and even within states. As such, a trusted dealer selling silver items at higher prices is still a good option due to the assured quality.
A good way to approach silver purchase in physical form is to research offerings and prices online and compare the available dealers and their items. This will ensure that you have chosen the best product and there is no issue of cheating involved.
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