10 Oz Silver Bars
Should You Invest in 10-oz Silver Bars?
One of the biggest misconceptions people have about money is not knowing the difference between saving and investing. Saving is setting aside money for a possible future spending. Investment, however, is using that saved money for a possible return in the near future.
This is no secret that all investments run in cycles. You want to have a secure future, and you want your assets to grow. You think about investing smartly and with silver bars, nothing looks too gloomy. As with anything volatile in the market, investing in silver bars has both pros and cons. A buyer needs to understand that something that is appealing to one investor may not be a good choice for another.
Even though silver had a relatively flat year in 2019, its price got a spike toward the end of the year. This prompted smart collectors to rush to online stores. So, should you buy silver bars for a fruitful return? First, let’s see if coins are better or worse than bars when it comes to investing in silver.
Silver Coins or Bars?
A 10-oz silver bar contains a 0.999 fine silver in its composition with an average size of 76 mm in width and 38 mm in height. With the weight of 1 troy ounce (311 grams), a 10-oz silver bar is manageable to store and keep. Due to its smaller size and larger value, 1oz silver bars for sale and 10-oz bars are all the rage among silver collectors.
Silver coins have more intricate designs, forcing their premiums in the market to shoot sky-high as compared to silver bars. Premiums are halved or even a third of the price of coins.
Why Choose 10-oz Silver Bars?
By now, you will have understood why it is important to choose silver bars over other bullion shapes to invest in. The next important deciding step is to figure out what sizes and weights of the bars are optimum for investing.
A general rule of thumb is the bigger the bar, the smaller the premium. This does not necessarily mean that buyers should opt for bigger silver bars. Here’s the caveat: smaller bars are more practical to sell off. With 1000 ounces of silver in possession, the buyer usually does not want to sell all of it in one go. This is also a huge advantage of silver over gold.
10-oz silver bars are ideal investment commodity for those serious investors who want to invest in a bulk of silver. Also check out 100 oz silver bars if you are looking for something bigger.
What About Secondary Market Silver Bars?
Secondary market silver bars can be purchased at a lower premium than newly minted precious metal bars, making them a cost-effective option. Despite having a 0.999 fine silver, these used bars might contain the baggage of their previous owners’ treatments. They might have signs of wear, nicks, scratches, toning or surface marks. Some sellers have their bars in perfect mint conditions as well.
Even with all the damage the bars contain, because the precious metal market is volatile, their value still holds and they retain their buying power.
Reasons to purchase ten-ounce silver bullion bars from secondary markets include the following:
- Buyers can often acquire harder-to-find antique silver bullion bars
- Price is lower because of wear or other rundowns
- It is a good way to get started into investing due to low premiums
Do You Need Silver IRAs?
So, you see you are nearing your retirement age and besides investing right, you want a little bit for your children to kick-start their lives. This is where you need to save your ten ounces of silver bars in an IRA.
Like any IRA, there are a few pros and cons you need to understand to ensure your retirement funds remain secure over time:
Advantages of Silver IRAs
- Protection against chaos
- Retain value
Protection against chaos means that your investments safeguard your savings against all odds. They also enable you to retain your purchasing power in the market, even if the markets are extremely volatile such as during times of inflation.
Retaining value means the silver value of a 10-oz bar retains well over time, unlike paper assets. There is no risk of losing the value of a metal bar if the stock market were to crash. IRAs allow owners to have collectibles that are 99.9 percent pure. You can easily obtain pure bars from renowned and trusted mints and refiners.
Despite having advantages of starting a silver IRA, there are some cons to the whole idea as well.
Disadvantages of Silver IRAs
- Returns on IRAs are restricted to capital gains
- Restrictions on IRA custody
It is self-explanatory that silver investments do not yield rent, interest or dividends. The only gains that you obtain from a silver IRA is from high silver prices. Silver is a volatile market, and a guarantee of high prices is not always a given. If the prices happen to be low when you decide to liquidate, you might end up getting less money than you paid for the bars in the first place.
Chances of Government Confiscation
Sure, you can go for 10-oz gold bars, but that problem is that gold investors are always worried about gold confiscation. This fear is legitimate, given how the US government tried to ban gold bullion trade in the 1930s. The reason for this is the correlation of gold with dollar while trading.
However, with silver trade, there is no backlog in relation to a currency that can bring the whole economy to a halt in any unfortunate circumstance. There is also no historical precedent for silver confiscation.
In Conclusion
Now you know why it is smart to invest in small silver bars to consolidate for a guaranteed better tomorrow. If you want to be a serious investor with a smaller budget, you will get the most value for your dollar with low 10-oz silver bars prices. Just a few bars make a significant investment. These bars can be easily stored almost anywhere.