Silver bullion is simply silver that is in a form that indicated its weight and silver content, as opposed to a coin. Bullion will clearly indicate the silver content in weight, and the purity, of the metal that composes the bullion item. The most common bullion items are silver bullion coins, silver bars, and silver rounds.
Coins are usually minted with a monetary value printed on the face. For example, the Unites States mints the beautiful American Silver Eagle coins. The denomination value is clearly indicated as “ONE DOLLAR”, however he real value of the silver in the Silver Eagle itself is far greater than the printed denomination value. Therefore, it would not be a coin, but rather bullion. Another example, the Morgan Silver Dollar, minted at a time when the real price of the silver content of the coin was worth less than or equal to a dollar, is a real coin. When it was made, it the face value printed on it was less than or equal to the real value of theprecious metal inside it.
Bullion items are not assigned a true denomination value of any kind. They are created to indicate the amount and purity of the precious metal contained within the item. For example, a common silver bullion bar would be created and stamped with the weight is “one troy ounce” and the purity of “.9999”. This means that the silver contained in that bullion bar weighs exactly one troy ounce, and that the one troy ounce of silver is 99.99% pure silver.
Silver bullion coins are considered bullion, and not really coins. They are like coins in that they indicate a denomination value and they are round in shape. They differ from coins in that they are created in a standard bullion weight such as one troy ounce, and that the face value denomination, if one is indicated, is far less than the real value of the silver in the “coin”. These coins are not used in day-to-day life for purchasing things, but rather are used as a store of value or investment. If one were to need cash for purchases, these silver bullion coins would not be fit for the job, however they could be “cashed in” for standard currency and then the cash would be used to make purchases.
Silver bars are created in standard weights and purities, and are typically rectangular in shape. They are crated in weights from 1 gram up to over 1000 troy ounces or more. Bars are used as a store of value, and not used in cash transactions. They never have a denomination value printed on them because they are a simple store of metal, in a clearly indicated weight and purity. For example, a common bullion bar would indicate a weight of “10 troy ounces”, and a purity of “.999 fine silver”. This means that the content of precious metal in the bar is exactly 10 troy ounces, and the purity of the metal is 99.9% silver.
Silver rounds are round, as the name indicates, but they are not necessarily coins. Unlike coins, rounds do not have a denomination value, such as a dollar amount, stamped into them. Similar to bars, rounds do have the metal content weight and purity stamped on them, and they may or may not have a decorative design and reeded edges. So they are basically silver bullion bars in a round form, and although they might be called coins by some people, they are more specifically called silver rounds.
The owning of a precious metal is the owning of “real money”. The real money has value in and of itself, because it is made of a precious metal. The standard money that we use today contains little or no value in and of itself, because it is made of materials that are close to worthless. The paper money, coins made of zinc or other low-value metals, cannot be considered to have intrinsic value. In other words, the money is worth nothing in and of itself, and its only true value is what we the people agree its value is. For example, if we citizens all agree that a round rock is worth a loaf of bread, and if we all commit and believe in that value, then we can comfortably and with confidence accept those round rocks as payment for our labors, and then use those rocks to buy bread. As long as everyone agrees that the rock is worth a loaf, then the “money” has “value”. It is not real value, it is agreed upon value of a worthless item. People feel confident accepting the rocks, because they know they can buy bread, and the bakers accept them because they are confident that they can hire employees and pay them with rocks, because everyone values the rocks. This is called fiat money, and this fiat money system is what we use all over the world today. It is dangerous, it ALWAYS suffers from inflation, and that inflation is a real and true tax on everyone that uses money. Buy you are smart, and you are investing in silver, which is inflation-proof. You are exempt from the tax of inflation.
Protect against inflation. Read more here. Once you know about inflation and how that evil trick works, owning silver becomes a no-brainer. Protect yourself by owning REAL MONEY, and use the worthless fiat money for daily transactions. Trade in as much of the fiat money as you can, and turn in into precious metals. Saving this way is the ONLY way to stop the fiat money system from robbing you blind.