Credit: Flickr / Sprott Money / CC-BY 2.0

Want to invest in silver? There are many options, and taking time out to consider various options can help make your buying decision. These decisions should be grounded in knowing the different categories and factors.

Here are a few reasons why people buy silver:

• Transforming currency into tangible, physical assets.
• Storing silver to see it grow in value and selling for profits later.
• Preserving silver as money likelihood of economic turmoil.

With a myriad of reasons to buy silver, including the ones listed, here is how you can evaluate silver categories based on a few factors. The factors are premiums, liquidity, storability, and recognition. Premiums are the charges over silver melt value. Liquidity is the readiness of being converted into cash. Storability considers the storage of silver investments. Recognition is the degree of authority of the mint produced.

Next, the different categories are 90% U.S. silver coins, .999 fine 1-ounce bullion bars & rounds, large .999 fine bullion bars, and silver rounds.

90% U.S. Silver Coins

U.S. 90% silver coins (known as junk silver) has 90% silver and 10% copper and were produced by the U.S. Mint. The premiums range around $2-5. They have good liquidity and very easy to sell. However, storage poses some issues but is easily recognised.

.999 Fine Bullion (1 oz Bars and Rounds)

Plenty of private mints producing pure silver bullions; note that privately minted bullion can be cheaper and come with diverse design patterns. Still, the government-minted bullion has more authenticity to the silver content. The premiums range around $1-5, have high liquidity, and are easy to store. The government-made bullion is more widely recognised than the privately minted bullion.

Pure Silver Bars (5 oz, 10 oz, 100 oz, and 1 kg)

Fewer mints produce heavy silver bars. When it comes to premiums, they range around $0.25-$2. They are difficult to sell and straightforward to store. When it comes to recognition, only experts will differentiate authentic bars (so the risks are high when it comes to investment.)

Silver Rounds

Silver rounds are non-monetary bullion objects made in the same size and shape as bullion coins and without monetary amounts or government, minting indicated. APMEX (the American Precious Metals Exchange), Sunshine Minting, Inc., Highland Mint, and other firms are into the silver round market. Silver rounds have high liquidity and low premiums and make a good investment.