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.
Kilo bars become appropriate when your silver allocation reaches meaningful levels, typically $1,000-$5,000 or more. Below these thresholds, smaller bars may better balance entry cost with ownership benefits.
Kilo Bars in Practice
Consider an investor targeting a few thousand dollars in physical silver allocation. A single kilo bar captures this allocation efficiently with competitive premiums.
Larger allocations might involve multiple kilo bars. The premium savings over smaller bars become increasingly meaningful as positions grow.
For smaller allocations, 10 oz or 1 oz bars might better balance premium costs with position sizing flexibility.
Physical Silver vs Other Silver Exposure
Portfolio allocation decisions involve choosing between physical silver, silver ETFs, and mining stocks. Each serves different purposes.
Physical kilo bars provide direct ownership with no counterparty risk. You hold actual metal, stored where you choose. For wealth preservation, physical silver is unmatched.
Silver ETFs offer liquidity and convenience but represent claims on silver held by third parties. Many investors use ETFs for trading and kilo bars for core physical holdings.
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Monex silver investment strategies