Silver granules have limited investment appeal

Why private investors should avoid silver granules

With investing in precious metals becoming a more favoured option, some investors may feel silver granules look like a promising investment. However, while the savings compared to the purchase of investment bars are touted as an advantage, a closer look reveals a different picture – i.e. silver granules only have limited value as a form of investment.

Silver granule production

Silver granulate is pure fine silver rendered in a coarse or fine-grained format. It is created via a simple manufacturing process: liquid silver is poured into cold water through a heat-resistant sieve. In the process, it forms silver particles of different sizes which are almost round in shape. These particles can range in size from very small nuggets through to something the size of a small cereal grain. Generally speaking, the production of silver granulate takes place in refineries, who sell the product on to industrial clients and precious metal dealers.

Image of silver granules
Silver granules are pure grains of silver.
© Alex Razvan -

The uses of silver granules

Silver granulate is mostly used by silversmiths as a processing material and in industry for the manufacture of various products. In such applications its granular form is a great advantage, because the fineness of the silver then makes it much easier to arrive at any precise weighting which may be required. This attribute is of great value when it comes to producing certain components or particular pieces of jewellery. Silver granulate is even used in the production of some refrigerators.
As a product, silver granulate is traded and transported in bags which are sealed immediately after manufacture and usually weigh more than 20 kilograms.

Silver granules as a form of investment?

Many private investors are starting to wonder whether silver granules now represent a good investment alternative to silver coins and bars. This growing interest in silver granulate is largely due to the fact that at first glance it appears to be a cheaper option. However, the following points should be noted carefully:

Six compelling reasons to avoid silver granules

Silver bars and silver granules
Silver granulate forms the raw material for several products, including silver bars.
© vladk213 -

Silver granules: an overview

Four silver bars weighing 250 grams each
Silver bars provide an interesting investment opportunity.
© vladk213 -