What is Bullion?

Posted by ukbullion on September 15th, 2016

Precious metals in their purest form are referred to as bullion. Bullion can be in the form of coins, ingots, bars or rounds.  Buyers must be aware that not all bullion coins are created equal. To make wise purchases you must be aware of the differences.

Silver bars and silver rounds are generally the lowest cost effective way to buy silver. Rounds are usually a popular choice over bars because they are minted in the form of a coin. This tends to provide greater flexibility when it comes to selling your silver.  In addition, buying a single one-hundred ounce silver bar compared to buying multiple rounds of the same weight means in the time of needing to sell you are restricted to sell the entire bar whereas rounds allow the flexibility of selling any number.

 How to buy Silver?

Investors have often seen Silver Bullion as a popular first time choice of investment before building their confidence to invest in other high value metals. Investing in bullion usually follows with the added incentive that it is highly unlikely that any capital gains tax will be payable.

Silver Coins?

Coins generally come graded as Brilliant Uncirculated (BU) condition.

For anyone looking to specifically invest in silver, it may be wise to invest in bullion coins. Bullion coins also provide a numismatic value for the investor. 

The most popular coin in today’s market is the American Eagle. It is recognised worldwide as a silver bullion standard. These particular types of coins generally come at a high premium and for anyone looking to amass ounces of silver coins, this would not be the recommended best option for you. However, the American Eagle coin is probably the most liquid form of silver available and is generally easy to sell and buy.

 Monster Boxes

Minted bullion coins are bought individually, in mint tubes (usually 20 or more) or in a big monster box. Monster box is a popular term used to describe a bulk purchase of precious metal coins. Each Monster box generally contains 500 one Troy ounce coins, unless you are buying coins produced in China when you will find 600 per Monster box. A Monster box with 500 coins is equal to 500 ounces of silver.

Monster boxes are generally produced and packed at the issuing mint and therefore contain traceable, uncirculated coins packed within security-sealed plastic tubes of 25 or 20 coins depending on the source.

When buying silver coins individually you tend to pay the most. Manufacturing can be a lengthy process with a lot of time, labour and skill that goes into the making the coin, from mining the metal to striking. Therefore, the more you buy in bulk the lower the premiums become.

Ukbullion.com a leading UK based bullion dealer offer a wide range of precious silver bars and coins all at extremely competitive prices. The variety of silver coins available include 5, 10 and 20 rounds, Britannias, Kookaburras, Maples, Pandas, Diwali rounds and many more.

Silver Bars?

Silver bars is another option for investors. Bars are generally better value for money because the cost to make them is cheaper than coins. Bars are available in a variety of sizes from 1g,1oz, 10oz, 100oz, 1000oz and even 5kg.

Safe Storage?

Another consideration when buying silver is storage. Even storing in a safe at home is still considered a risk. Ukbullion.com offers a fully insured, high security vaulted storage option for customers. Customers also have the option to view real-time values of their stored assets as well as request sell back or delivery to your home.

Buying Online?

Reputable dealers like ukbullion.com offer real time pricing of silver to provide customers with an idea of how much premium they will be paying. If you are a first time buyer, then buying from a recommended reputable dealer is always advisable.