Disadvantages of investing in or owning silver bullion bars (silver bars)
What are the disadvantages of investing in or owning silver bullion bars (silver bars)? This is probably the second question the potential silver investor will ask after reading or hearing that silver bullion bars (silver bars) are among the most popular forms of physical silver to invest in or to own, especially among silver investors who have substantial amounts available to buy or acquire physical silver and who simply don’t care about collector’s value or have very little regard for it.
Silver Bullion is of the opinion that investing in or owning silver bullion bars (silver bars), have despite advantages, several disadvantages attached to it, especially if you choose to invest in or own silver bullion bars (silver bars) for survival purposes:
Divisibility: Silver bullion bars (silver bars), unlike silver coins which are relatively small and standardized measures of silver purity and weight, are not easily divisible between the beneficiaries of an estate. Yes, silver bullion bars (silver bars) can also be standardized measures of silver purity and weight, but due to its bulkiness or size for that matter, it’s not that easy or always possible to divide it equally between the beneficiaries of an estate, especially if there are only one or two bars that need to be divided between three or more beneficiaries.
In addition to the above, to divide it fairly and equally, the silver bullion bars (silver bars) that form part of an estate must be standardized measures of silver purity and weight of the same or equal sizes. E.g. assuming that two silver bullion bars (silver bars) form part of an estate, the one is a 100 troy ounces in size and the other a 1000 troy ounces in size. Now it must be clear that even if there are only two beneficiaries of the relevant estate, it’s going to be extremely difficult if not impossible to equally divide the relevant silver bullion bars (silver bars) between the two. No, you don’t want to sit with a situation where you have to sell the silver bullion bars (silver bars) in an estate or exchange it for non-redeemable paper notes (fiat currency) in order to divide it equally between beneficiaries. It is much easier and more cost-effective to buy silver that is divisible from the beginning, and then we’re not referring to paper silver, we’re rather referring to physical silver, especially in the form of 1 oz silver bullion coins (American Silver Eagles, Canadian Silver Maple Leafs, Mexican Silver Libertads, Chinese Silver Pandas, Australian Silver Kookaburras, Australian Silver Kangaroos, British Silver Britannia and Austrian Silver Vienna Philharmonics).
The silver investor simply doesn’t want to force the beneficiaries of his/her estate into a situation where they have to cut a silver bullion bars (silver bars) in half or are being forced to sell it in order to divide the fiat currency proceeds between them, especially during times of rampant silver market manipulation and while the “paper gimmick” is still pretty much at the order of the day.
Portability: Silver bullion bars (silver bars) are too a relatively large extent not really portable. Portability refers to “the quality of being light enough to be carried” (WordWeb) or to be transported from one place to another
Silver bullion bars (silver bars), especially from a 100 troy ounces and up, are not light or small enough to be carried in a wallet or purse and are not easily transportable from one place to another, especially cross border. Silver coins on the other hands are light enough to be easily carried or transported from one place to another. In fact, it can be taken almost anywhere in the world.
Collector’s value: Silver bullion bars (silver bars) have little if any collector’s value attached to it. This means that chances are great that the silver investor who wishes to go for a “double play” in terms of investment potential will not find a suitable companion in silver bullion bars (silver bars), except of course for the high worth investor who have to go for more than one option, including silver bullion bars (silver bars).
Despite the above, silver ingots, classified by Silver Bullion as silver bullion bars (silver bars) of 10 oz or less, in many instances tend to have some form of collector’s value attached to it, especially if one considers the beautiful artwork on some.
High budget silver investing: Silver bullion bars (silver bars) afford high net worth individuals with the opportunity to buy or acquire relatively large quantities of silver, physical silver that is, quickly and relatively cost-effectively depending on location and other factors. Although this indirectly benefits the small silver investor or owner of silver, because physical silver ownership is what we’re aiming for here, silver bullion bars (silver bars), especially from a 100 troy ounces and up, are simply out of reach for most average silver investors or the Average Joes like us.
Silver bullion bars (silver bars), like mentioned above, are out of reach for the average silver investor. The simply reason for this is because silver bullion bars (silver bars) are expensive in the sense that more silver is packed into a silver bullion bar (silver bar) than a silver bullion coin for instance. It should after all not be a secret that for every extra troy ounce of silver that’s packed into a silver bullion bar (silver bar), you as the silver investor can expect to fork out extra money in the form non-redeemable paper notes or fiat currency. Yes, like in many instances, you can definitely save on the cost per troy ounce when you buy silver in bulk, but most folks simply cannot afford to buy in bulk and thus in many instances pay more per ounce. It must however also be mentioned that in countries such as South Africa, it’s actually more cost-effective to order silver bullion coins from overseas than to buy or acquire silver bullion bars (silver bars) locally (at the time this was written).
Silver storage: Silver Bullion Bars (Silver Bars) are bulky; this is great in terms of all the silver that is packed in there, but less great in terms of the challenges the silver investor can face in terms of storage, especially in terms of home office storage.
Yes, the silver investor can have access to external silver storage space if needed, but it normally comes with a price tag and a whole lot of unwanted risks attached to it. Be sure to pay a visit to our silver storage section for more details.
Selling: Complications can arise the day the silver investor wants to sell his/her silver bullion bars (silver bars). Some silver dealers won’t buy silver bullion bars (silver bars) without a chemical analysis to determine the silver purity of the relevant silver bullion bars (silver bars).
The chemical analysis mentioned above is called an assay and in most instances the silver investor has to foot the bill for the process. In many instances, silver dealers, especially silver firms, will refuse to set a price until the silver bullion bars (silver bars) have been delivered to their offices or depositories for inspection. Needless to say, this can result in a lot of unnecessary risks to the silver investor.