Silver investing is on the roll right now, and there seems to be enough articles and news pieces to read about the prospects of investing in silver over gold.

Of course, gold IS money; but silver is so undervalued right now (around 60:1 against gold, way below the all-time average of 12:1) that it makes a great investment.

To me, the whole idea about silver investing is to buy silver and when the silver-to-gold ratio approaches the all-time average, turn it into gold.

When you have made your decision to invest more in silver, the next question is most likely this: Which kind of silver will you invest your currency in?

I personally stay away from junk silver coins, numismatics and ETFs – partly because I don’t have the knowledge; so, the two options left are: Silver bullion coins and bars.

Silver bullion coins

Silver bullion coins are typically come in the size of 1 oz. coin. There are several popular, Internationally-known choices, such as the American Eagle, Canadian Maple Leaf and Vienna Philharmonics. It’s all about personal preference, really. One thing you should know about silver bullion coins is that there is a premium added into the coin prices. Please note that the premium stays intact when you sell the coins back to your dealers.

Here is the list of popular silver bullion coins: http://en.wikipedia.org/wiki/Bullion_coin#Silver

Silver bullion bars

Silver bullion bars are typically come in the size of 100-ounce bar. There are several popular choices, such as Johnson Matthey and Royal Canadian Mint. Bars will give you the most silver for the price you pay, as there’s no premiums charged over your bars.

Here is the list of popular silver bullion bars, comes in various sizes typically 1, 10 and 100 oz. Some of the most well-known producers are Royal Canadian Mint, Johnson Matthey and Engelhard. Also popular especially in Asian region is Perth Mint, which has been operating since 1899.

Coins or bars?

So, the next question is: Which silver bullion should I buy? To answer the question, let the silver expert guide you. Here is the explanation from David Morgan:

Takeaway

I have to agree with David. It’s only common sense: Bars carry a lower premium compared to coins, and bars will give you the most silver for your investment. However, coins are great as they are easier to trade with goods (when fiat currencies fail – eventually.) Investment-wise, instead of selling your silver in bulk (in bars,) you can opt for selling coins in pieces when you decide to sell your silver and buy gold in an incremental basis.

As David Morgan said, your choices depend on your needs. So, you might want to get started by asking this to yourself: Why do you want to buy silver? What will you use the silver for?

Photo credit: Eric Golub