Silver is where most people start with physical metals, and for good reason. The entry price is a fraction of gold, the product range is wider, and a meaningful holding can be built gradually.
It also behaves differently from gold in ways worth understanding before you buy.
How silver differs from gold
Three differences matter practically.
Silver is more volatile. Roughly half of silver demand is industrial, used in electronics, solar and manufacturing. That ties silver to the economic cycle in a way gold is not, and it produces sharper moves in both directions.
Silver premiums are proportionally higher. The cost to strike, package and ship a one ounce coin is broadly the same whether it is gold or silver, but silver is worth far less per ounce, so those fixed costs represent a much larger share of the price. This is arithmetic rather than markup.
Silver is bulky. This is the one people underestimate most. Because silver is worth a small fraction of gold per ounce, any given amount of money buys a great deal more physical metal. A holding that would fit in your hand as gold fills a substantial box as silver. Plan storage accordingly.
What to buy
Silver comes in the same three formats as gold, and the trade offs run the same way.
Coins are government minted and legal tender. We carry the Canadian Maple Leaf, Austrian Philharmonic, Britannia, Australian Kangaroo, American Eagle, South African Krugerrand and the Pacific Sovereign. Sovereign coins are recognised globally, which makes them the easiest silver to sell.
Rounds are privately minted with no face value, which usually makes them cheaper per ounce. We stock the NZ Mint Silver Fern and Walking Liberty rounds, including fractional sizes.
Bars deliver the most metal per dollar. We carry 5oz and 10oz Scottsdale bars, 500g and 1kg cast bars. The larger the bar, the lower the cost per ounce, because fixed production costs spread across more metal.
Our guide to bars, coins and rounds works through the trade offs in detail.
Purity
Modern bullion silver is almost always 999 fine, meaning 999 parts silver per thousand. Some products are 9999. Sterling silver, at 925, is a jewellery alloy rather than bullion and is a different thing entirely.
The fineness is struck into the face of the bar or coin. If it is not stated, ask.
A practical approach for a first purchase
Start with recognised products. A Maple Leaf or a Philharmonic is identifiable by any dealer anywhere, which matters when you come to sell.
Mix your unit sizes if the holding is going to be reasonably large. Some one ounce pieces give you the ability to sell in portions. A kilo bar does not.
Factor in the total delivered cost rather than the headline premium, and ask how the dealer prices a buy back before you commit. The gap between buying and selling price is your real round trip cost. We cover this in the premium over spot.
Sort out storage before the parcel arrives, remembering the bulk point above. Our storage guide covers the options.
Frequently asked questions
What purity is silver bullion?
Bullion silver is normally 999 fine, or 99.9 percent pure. Some products are 9999. Sterling at 925 is a jewellery alloy, not bullion.
Why are silver premiums higher than gold premiums?
Production and shipping costs are similar per coin regardless of metal, but silver is worth far less per ounce, so those fixed costs are a much larger percentage of the final price.
Are silver bars or silver coins better?
Bars give more silver per dollar. Coins are more widely recognised and easier to sell in small amounts. Many buyers hold both.
Does silver tarnish?
Silver tarnishes on the surface through contact with air. This does not reduce the silver content. Cleaning or polishing can damage the surface and is generally best avoided.
Can I buy silver in person in Christchurch?
Yes. Our showroom is at 124 Peterborough Street, Christchurch.
Browse silver
We stock silver coins, rounds and bars from recognised mints and refiners. See the range or visit us at 124 Peterborough Street, Christchurch. If you are weighing silver against gold, our gold buying guide covers the other side.