What are the disadvantages of investing in or owning silver ingots (silver bars)? This is probably the second question the potential silver investor will ask after reading or hearing that silver ingots are among the most popular forms of physical silver to invest in or to own, especially among silver investors who have an appetite for silver bullion bars (silver bars), but who simply do not have enough money to acquire or buy silver bullion bars (silver bars) in sizes bigger than 10 troy ounces at a time.

The truth be told, there are not many disadvantages when it comes to investing in or owning silver ingots or silver bullion bars (silver bars) of 10 troy ounces or less:

Buying: Silver ingots can sell at substantial percentages or premiums above the melt value of the silver contained in the relevant silver ingots.

The above is not a major disadvantage, especially if one considers that in countries such as South Africa, silver bullion bars (silver bars) with no or very little collector’s value tend to sell at much higher premiums than silver ingots ordered from overseas (at the time this was written). To pay a premium for collector’s value is not a bad thing as such, especially if the silver investor considers the “double play” in terms of the investment prospects. The secret to successful silver investing or silver ownership in this regard is to never overpay for collector’s value. When the silver investor buys initially, it’s important that the collector’s value doesn’t outstrip the melt value of the silver contained in a relevant silver ingot. To avoid any possible confusion, assuming that the melt value of the silver in a silver ingot is $30, you don’t want to pay more than $60 for the relevant silver ingot since then the perceived collector’s value will certainly outstrip the melt value of the silver. Yes, later when he/she finds a willing buyer, it will be perfectly fine to sell even if the collector’s value outstrips the silver melt value by a million times or more, but when you buy or acquire a silver ingot(s) initially, the smart thing to do is to not overpay for collector’s value.

Selling: Complications might arise the day the silver investor wants to sell his/her silver ingots. Some silver dealers or even private buyers won’t buy silver ingots without a chemical analysis to determine the silver purity of the relevant silver ingots. However, this is in most instances only a problem when silver bullion bars (silver bars) exceeding 10 troy ounces in size need to be sold.

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 some instances, silver dealers, especially silver firms, will refuse to set a price until the silver ingots have been delivered to their offices or depositories for inspection. Needless to say, this can result in unnecessary risks to the silver investor. 

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