Silver's Role in Portfolio Diversification
Silver serves multiple functions in investment portfolios: diversification from traditional assets, industrial exposure, inflation hedge, and monetary metal characteristics. These benefits don't depend on bar size.
Conventional wisdom suggests 5-15% of a portfolio in precious metals. The allocation between gold and silver depends on your outlook. Silver offers more industrial exposure and potentially higher volatility.
100 oz bars become appropriate when your silver allocation reaches meaningful levels, typically $6,684 or more. At this threshold, premium efficiency becomes valuable.
100 oz Bars in Practice
Consider an investor with a $200,000 portfolio targeting 5% precious metals allocation ($10,000), with half in silver ($5,000). At this level, one or two 100 oz bars could capture the allocation with good premium efficiency.
Larger portfolios might hold multiple 100 oz bars. The premium savings over smaller bars become increasingly significant as positions grow.
For smaller allocations, 10 oz or 1 oz bars might better match your investment size. Scale your bar size to your allocation.
Physical Silver vs Other Silver Exposure
Portfolio allocation decisions involve choosing between physical silver, silver ETFs, and mining stocks. Each serves different purposes.
Physical 100 oz bars provide direct ownership with no counterparty risk. You hold actual metal, stored where you choose. For wealth preservation, physical silver is compelling.
Silver ETFs offer liquidity and convenience but represent claims on silver held by third parties. Many investors use ETFs for trading and 100 oz bars for core physical holdings.
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Monex silver investment strategies