Silver bar – larger or the smaller one?
With the global economic fluctuations coming up every now and then, people are losing faith on the government and the paper form of money. This has led to an increase in the buying of precious metals like gold and silver. Depending on their economic capabilities they are buying these in various forms like coins and bars. A silver bar is one such which is like hot favorite for most of the buyers today.
Not everyone can buy a bar of gold but a silver bar is in the reach of an average man with an average income. There is a wide discrepancy between the amount of silver and gold deposits that are left over in the world and the rate prevailing. The actual ratio is about 1:18 whereas the prevailing ratio is about 1:70. So this ratio eventually will come to ground reality someday and so when that happens, anyone holding a good stock of silver will reap very high returns on the money invested.
If you are planning to buy a silver bar, then you first will have to know the spot price of silver. This is what exactly controls the value of the silver bars and it will be the price at which anyone can buy silver for that particular day. Silver bar can be made out of various standard weights like 10 Oz, 20 Oz, half a kilo and one kilo of bars. All these are made up of silver with 99.99% purity. The more silver you buy at once, the lesser will be the cost price of each ounce of silver. This is because of the fact that each silver bar, whether small or big needs to be worked on like any other bar and hence the labor charges will be levied on the price of the bar. So if you buy a bar of 100 Oz and a bar of 10 Oz, then the 100 Oz bar will have lesser price by about 9 labor and making charges. Another reason is that smaller bars are more difficult to make and needs precision while making hence they will cost a little more per ounce.
In spite of knowing this fact people still tend to buy smaller bars for two main reasons. The first being liquidity and the second one is handling issues. Smaller bars can be easily carried around even in your pocket buy if it’s a larger bar you cannot lug it around that often. If you are in need of money suddenly and need to liquidate some of the silver stock then if you have smaller silver bar, you can easily sell it off but if you are having a larger one you are stuck with it and will have to sell the whole of it. So people who are planning to buy a silver bar should consider these factors and decide if they should pay the extra premium for the smaller bars.
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