What is Silver Bullion and Why Is It So Expensive?
Jakarta, Pintu News – Silver bullion, whether in the form of bars or coins, has become a popular choice for precious metal investment, offering long-term returns as a hedge against inflation and economic uncertainty. However, many are still confused about what silver bullion is, why it is relatively expensive, and how to invest in this form.
This article will take a comprehensive look at silver bullion, the factors that affect its price, and how to buy and invest in silver bullion in Singapore and Indonesia!
What is Silver Bullion?
Silver bullion is the physical form of pure silver produced as an investment metal, usually in the form of bars or coins with a high purity of around 99.5-99.9 percent silver, so its value is almost entirely dependent on its metal content and not its numismatic or collectible value.
The term bullion itself refers to precious metals that are refined to a high standard and used as investment assets rather than everyday circulating currency. Silver bullion includes silver bars as well as coins designed specifically for the purpose of investing in precious metals.
Silver bullion products are difficult to compare with regular jewelry because jewelry often has alloys of other metals and different artistic values, while silver bullion focuses on the intrinsic value of silver itself. Silver bullion can be purchased through authorized dealers or investment platforms, stored in vaults or storage facilities, and is generally easy to trade back on the precious metals market.
Why is Silver Bullion expensive?
The price of silver bullion is determined primarily by the spot price of silver in the global market, which is influenced by investor and industry demand, as well as macroeconomic conditions such as inflation, interest rates, and geopolitical uncertainty. Silver is a safe haven asset that is often purchased as a hedge against inflation and economic risks, so investor demand can drive bullion prices to high levels.
Also read: What is 75% Gold Grade?
In addition, the silver bullion price also includes a premium over the spot price, which is an additional price related to the cost of refining, minting, transportation and distribution of precious metals. This premium differs between silver bullion bars and silver bullion coins as well as between market countries such as Singapore silver bullion and other countries, due to logistics costs and tax rates.
Products with well-known brands or smaller sizes generally carry a higher premium, so the final price investors pay can be more expensive than the spot price alone.
How much does Silver Bullion cost per 1 gram?
Silver bullion price per gram fluctuates with the international spot price which is usually quoted in US dollars per troy ounce (≈31.1 grams). In physical markets such as Singapore silver bullion, the price per gram is based on the latest rates and dealer premiums, and investors can check these prices online in real-time through trusted dealer platforms. For example, some silver bullion coins with a fineness of .999 or .9999 have buy and sell prices that reflect the price per gram plus premium.
In silver bullion Indonesia, the price per gram is usually calculated based on the global spot value converted to rupiah with additional spreads and distribution fees, and may differ between bars and coins. Silver bullion bars generally offer a price per gram that is closer to the spot price due to a lower premium compared to silver coins, allowing investors to get more silver for the same amount of money.
Read also: How much is 1 gram of gold pawned? Here’s the full explanation!
How to Buy and Invest in Silver Bullion
Investors can purchase silver bullion through authorized dealers, either online or offline. In Singapore, dealers such as Silver Bullion Pte Ltd provide Singapore silver bullion buying options in the form of bars and coins with secure storage and resale facilities. Many platforms also offer physical storage services in regulated vaults with high security provisions.
For investors in Indonesia, silver bullion purchases can be made through local or international bullion dealers who ship products to Indonesia or through vaulting services that store the physical metal in secure facilities.
It is important to pay attention to premium fees, storage fees, as well as the liquidity of the purchased product as some silver bullion coins have collectible value in addition to their metal value.
The silver coins vs bullion bars comparison also weighs premiums, liquidity, and investment objectives – bars are usually closer to spot prices, while coins can have additional appeal as collectibles or portfolio diversification efforts.
Conclusion
Silver bullion is a form of physical investment in high-purity pure silver used to store value or diversify a portfolio. Silver bullion is expensive as it is subject to global spot prices and dealer premiums, and is influenced by market demand, production costs, and economic conditions.
The price per gram of silver bullion varies in silver bullion Singapore and silver bullion Indonesia, generally cheaper on bars than coins. Investors can purchase bullion through authorized dealers, subject to costs, liquidity levels and clear investment objectives.
Tokenized Silver ETF (SLVon) as an Alternative Commodity Asset in the Crypto Ecosystem
Tokenized Silver ETF is a digital token issued by Ondo Global Markets and designed to follow the price movements of iShares Silver Trust (SLV), the world’s largest silver ETF managed by BlackRock.
Each SLVon has the equivalent value of an SLV share (1:1), so its price moves up and down according to the global silver price in troy ounces. Through SLVon, investors can gain exposure to the silver market on-chain in the form of an easily accessible digital asset.
Follow us on Google News to stay up to date with the latest in crypto and blockchain technology. Check Bitcoin price, usdt to idr and tokenized nvidia stock price through Pintu Market.
Enjoy an easy and secure crypto trading and crypto gold investment experience by downloading the Pintu crypto app via Play Store or App Store now. Also, experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro.
*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.
Reference:
- Commonwealth Vault. Silver vs Silver Bullion: What’s The Difference?. Accessed February 13, 2026
- TavexBullion.co.uk. Silver Bullion Coins vs Silver Bullion Bars. Accessed February 13, 2026
- Featured Image: Bankrate
