investing – American Coin Stash

Some precious metal collectors prefer rounds and others swear by bars, but what makes one better than the other?

Rounds got their name from their round shape. They look like coins, but are usually bigger depending on the weight. (Coins usually refers to metal backed by a government for circulation.)

Bars are rectangular blocks of precious metals. Picture the classic image of bars of gold, although bars are made for copper, silver, and palladium as well.

Rounds

2018 Silver American Eagle – 1 Troy Ounce, .999 Pure
from: Money Metals Exchange

Pros of Buying Rounds:

Rounds often come with attractive and intricate designs. These designs and to the eye-appeal of the metal, and also add to the security of the coin. It is harder for forgers to replicate intricate designs.

Cons of Buying Rounds:

Although rounds are attractive, the extra work needed to design and polish the coins makes rounds more expensive to produce than bars. Rounds usually carry a premium over the spot price, thankfully, they will also sell for above spot.

Bars

100 Oz Silver Bars
from: Money Metals Exchange

Pros of Buying Bars:

The best part about bars is that it is a much cheaper way to buy silver in bulk (usually). The premiums on silver rounds drive the price up when buying in bulk.

Cons of Buying Rounds:

Rounds are fake fairly often. Since they are so expensive, I would make sure to purchase from reputable dealers.

Silver Bar – 1 Kilo (32.151 troy ozs), .999 Pure
from: Money Metals Exchange

Buyers Guide:

I would recommend choosing between bars and rounds based on how many ounces you are looking to buy. If you are buying a couple ounces of silver at a time, then I would buy rounds. For larger purchases, I would buy bars.

Here is what I would recommend for each weight:

Less Than 1/2 Oz: Bars

1 Gram Gold Bars
from: Money Metals Exchange

These are just adorable little bars. They are really cute, but carry huge premiums!

1/2 to 5 Oz: Rounds

Silver Round – Random Design – 1 Oz .999 fine silver
from: Money Metals Exchange

5 ounces is the cut off point for where I would decide between bars or rounds. A 5 ounce round is a very satisfying and hefty coin, whereas a 5oz bar feels lacking.

Greater than 5 Oz: Bars

10 Oz Gold Bars
from: Money Metals Exchange

Larger bars have a really satisfying feel and can be cheaper than buying that many ounces of rounds. Plus, bars are more compact for storing.

Final Thoughts

Of course, like any hobby, there is no right or wrong answer. Many people prefer one or the other just for the looks. Most people have a mix of both. Personally, I buy whatever is cheapest!

Interested in becoming a silver stacker? Read “What Is A Silverbug? How To Start Silver Stacking!”

Buy Bargain Bin Silver (Best Place to Purchase Low Premium Silver)
from: Money Metals Exchange

How do you prefer to buy bullion, bars or rounds? Add a comment and vote in the poll below!

I’m an affiliate with Money Metals Exchange through Share-a-Sale. Any purchases made through links help support my site. Thanks!

There are many different types of silver stackers just as there are many different reasons to start silver stacking. Many collectors spend a premium to buy higher quality bars. The premium is the price of a piece of silver above the spot price.

While buying attractive silver can be a fun way to get valuable art, if you want to have lots of silver, the premium adds up to a lot of money. If you buy silver with a 10% premium and spend $100, that means you will have only $90 worth of silver.

Now, some silver with high premiums retain their value, but not all of them do. Buying silver with high premiums is speculation because you are guessing that the silver will still retain the value above the spot price.

Someone looking to invest in silver should buy silver close to spot as well as nicer rounds. One of the best ways to buy silver is to look for silver in spare change or bargain prices online.

Bargain Bins

Money Metals exchange has a great bargain bin to attract customers. These aren’t the prettiest rounds or bars, they may have milk spots or patina’s, but it is a great way to get cheap silver.

Buy Bargain Bin Silver (Best Place to Purchase Low Premium Silver)
from: Money Metals Exchange

Even a bar with a patina still retains its spot price. The spots do not affect the metal content.

In fact, some collectors look for older bars when purchasing. That older Engelhard bar in the featured image for the silver bargain bin deal would probably command a premium if sold online. Engelhard bars are very desirable to silver stackers.

The reason most online dealers like Money Metals Exchange can sell these items for cheaper is because it saves them time. Instead of creating a page to sell each bar of gold or silver they buy, they can sell them in lots for a small discount.

If you are a gold stacker, you are in luck, because there is also a bargain bin for gold! This could be gold that has been melted, holed, or scratched.

Bargain Bin Gold – .999+ Pure
from: Money Metals Exchange

Random Design Lots

Another great way to buy cheap silver online is to buy “random designs”. This is usually where companies get rid of overstock silver. I have used random lots to buy cheap silver and I received 6 beautiful looking Scottsdale Silver Lion rounds! (See the featured image at the top!)

Silver Round – Random Design – 1 Oz .999 fine silver
from: Money Metals Exchange

Another fun aspect of buying silver this way is that it’s exciting to open the package when it comes in! It feels like Christmas getting a package and not knowing it’s contents.

Just looking at all this silver makes me want to put more in my stack!

How do you find cheap silver? Have you had good luck with these bargain lots before? Share your experience!

I am an affiliate of Money Metals Exchange, so I make a commission on any products purchased through links on my site. This helps keep my site updated regularly. Thank you for the support!

Tag: investing

Bars vs. Rounds: What is the Best Way to Buy Bullion?

Bargain Bins: One of the Best Ways to Buy Silver Online