Silver bullion is often by investors looking for a long term hedge against fiat currency price inflation. The history of silver prices and silver’s use as money makes it a go-to choice for many.

Many world commodity futures contract exchanges (e.g. COMEX silver) only use .999 silver bullion in futures contract deliveries.

These are but some of the major reasons why most silver investors most often prefer .999 pure investment grade fine silver bullion products for their silver investments over less pure silver investment plays.

Let us begin by defining what ‘Fine Silver’ or pure silver means in the silver bullion industry.

FINE SILVER Definition

Fine Silver - (n) pure silver means an item contains 999 of 1000 parts silver. In the modern silver bullion industry most silver bullion coins, bars, and rounds are made with .999 fine silver

Who makes Fine Silver?

Many modern government bullion mints produce .999 fine silver bullion coins.

Also various privately owned silver mints also produce .999 fine silver rounds and silver bars.

The most popular modern fine silver bullion product in terms of sales volumes and overall demand remains the 1 oz American Silver Eagle Coin.

You can take a quick tour of the US Mint’s pure silver coin production and operation in the video below.



Why do investors often prefer pure Fine Silver?

First and foremost, three nine fine silver is what is required by the largest segment of yearly physical silver demand: industrial usages.

There is a huge industrial demand for silver, which helps to bolster and set a floor on its price. Silver mine production has often failed to meet industrial and commercial demand since the early 1990s, and this factor often helps drive up and maintain silver’s value.

Instead of having to pay a silver refinery to melt less pure silver (e.g. 925 sterling silverware or older 90% US silver coins), into a more industry ready .999 fine silver form. Silver investors could simply opt for the pure fine silver bullion products right from the start.

History shows for instance, in the 1980 silver bull market top, there were large bid discounts paid at -30% below silver spot price back then. Those who were selling .999 fine silver bullion products received way more for their products.

As well more recently, in the fall of 2008, fine silver bullion coins performed better in price than did the older junk silver coins some investors purchase and or collect.

In the following chart 1 oz American Silver Eagle coins yielded prices of +80% above the then silver spot price while 90% silver coins eclipsed only the +40% price premium threshold.

.999 Fine Silver Premiums vs 90% Silver Coin Premiums

.999 Silver Coin Price premiums vs 90% Silver Coins Price Premiums Chart

Fine silver bullion coins, bars, and rounds have been a popular investment choice for decades.

So much so that in 1977, the US Congress approved the allowance of fine silver bullion investments in Individual Retirement Accounts (Silver IRAs).

In the 21st Century, many US citizens now hold fine silver bullion within their highly protected bullion IRA investment portfolios.

Almost all of SD Bullion’s silver bar, round, and coin inventory is certified with .999 fine silver purity and many of the silver bullion products we carry can also qualify for your silver IRA.

Hopefully you now know what makes fine silver different from other less pure silver assets.

Thank you for visiting us here at SD Bullion.


← Previous Next →
We can't find posts matching the selection.
James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...