Silver Bullion

Silver is a metallic chemical element with the chemical symbol Ag (Latin: argentum, from the Indo-European root, arg- for “grey” or “shining”) and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal. The metal occurs naturally in its pure, free form (native silver), as an alloy with gold and other metals, and in minerals such as argentite and chlorargyrite. Most silver is produced as a by-product of copper, gold, lead, and zinc refining.

Silver has long been valued as a precious metal, and it is used to make ornaments, jewelry, high-value tableware, utensils (hence the term silverware), and currency coins. Today, silver metal is also used in electrical contacts and conductors, in mirrors and in catalysis of chemical reactions. Its compounds are used in photographic film and dilute silver nitrate solutions and other silver compounds are used as disinfectants and microbiocides. While many medical antimicrobial uses of silver have been supplanted by antibiotics, further research into clinical potential continues. Recorded use of silver to prevent infection dates to ancient Greece and Rome, it was rediscovered in the Middle Ages, where it was used for several purposes, such as to disinfect water and food during storage, and also for the treatment of burns and wounds as wound dressing. In the 19th century, sailors on long ocean voyages would put silver coins in barrels of water and wine to keep the liquid pure. Pioneers in America used the same idea as they made their journey from coast to coast. Silver solutions were approved in the 1920s by the US Food and Drug Administration for use as antibacterial agents.

Silver, like all precious metals, may be used as a hedge against inflation, deflation or currency devaluation. The currencies of all the major countries, including ours, are under severe pressure because of massive government deficits. The more money that is pumped into these economies the less valuable the currencies become. Silver is a “Double Play” investment. Not only is it a hedge against inflation it is extremely valuable as a industrial metal.

A traditional way of investing in silver is by buying actual bullion bars. Physical silver, such as bars or coins, may be stored in a home safe, a safe deposit box at a bank, or placed in allocated (also known as non-fungible) or unallocated (fungible or pooled) storage with a bank or dealer. Silver can also be used in a Self Directed IRA. Silver is traded in the spot market with the code “XAG”. When settled in USD, the code is “XAGUSD”.

Various sizes of silver bars:

• 100 oz troy bars – These bars weigh 6.8 pounds (3.11 kg) and are among the most popular with retail investors. Popular brands are Engelhard and Johnson Matthey. Those brands cost a bit more, usually about 40 cents to 2.00 dollars per troy ounce above the spot price, but that price may vary with market conditions.
• Odd weight retail bars – These bars cost less and generally have a wider spread, due to the extra work it takes to calculate their value and the extra risk due to the lack of a good brand name.
• 10 oz troy bars and 1 oz troy bars and Silver “rounds” (311 and 31.1 g)