Buying silver is a popular and cheaper way for people to hedge against inflation. Silver comes in different forms and in different quality. There might be different kinds of silver but all of them share specific properties that set them apart from other precious metals. The quality of silver is often expressed in terms of fineness.
What is silver’s fineness
The grading system for silver’s purity is known as Millesimal fineness. Investment grade silver is 99.9% or it is expressed as .999 fine. This is also referred to as three nines fineness. It is usually stamped with a hallmark to certify its quality. For example: Sterling silver that is usually used to make jewellery has a purity of 92.5% and will therefore carry a stamp of 925. Most coins that are circulated contain 80 to 90 percent pure silver. The only silver products that have what is considered the purest silver are silver bullion bars and coins. These have a fineness of .999. The only coin with the highest silver purity is the Royal Canadian Mint’s Maple Leaf Silver bullion coin which has a fineness of .9999.
What Items are Made with Fine Silver?
Bullion products are made with fine silver. It is not used to make other items like jewellery because it is too soft. You can buy silver bullion products that weigh 1-oz, 5, 10 and even 100 ounces. Silver bullion coins are a more popular investment choice. They command a high premium because they are complex to mint and they are usually minted in limited numbers. Bullion bars can be minted everywhere and in any quantity. Bars do not have a numismatic value which is why their value appreciates.
Most countries have mints that produce their own signature silver bullion coins. The Perth Mint produces Silver Kangaroo coins, the Royal Canadian Mint produces Silver Maple Leaf coins, the US Mint issues America Silver Eagle coins, the London Royal Mint has its own signature silver coins and so on and so forth.
There are other reputable Non-government mints that issue silver bullion products. Bars and rounds have a low premium. They have no face value and cannot be used as legal tender anywhere. They are high grade silver products and are often just used purely for investment purpose.
How is Fine Silver Created?
Silver often occurs in different other metal ores mined from the earth. It is rarely found in nugget form. After being mined it is taking through various processes to remove impurities. Extraction processes such as electrolysis and other different forms.
Once the silver has been refined to 99.9% purity, it can be used to make coins, bars, ingots and rounds. Silver coins are made by cutting out blank rounds and then stamped. The best way to buy bullion is to choose silver products that meet the good delivery criteria set by the London Bullion Market Association. The good delivery standard is used in a number of countries across the globe from Hong Long to Melbourne. It is also a standard that a lot of bullion dealers will offer.
You should buy silver and hold onto it for as long as you can. Silver might be said to be “Gold’s poor cousin” but in the grand scheme of things, silver is superior to gold and other metals. This is because there is more of it available in the world but the industrial demand for silver is always going up. With a growing demand, you can be sure that when you buy silver today, you will be able to sell it for a good amount.