Silver is a precious metal that has been used as currency and for jewelry and other decorative items for thousands of years. Today, silver is still prized for its monetary value as well as its industrial applications. Silver is commonly traded and invested in the form of bullion bars, with the kilogram (kg) being a popular weight for larger silver bars. But the troy ounce is the standard unit of measurement used in precious metals markets globally. So a common question investors have is how many troy ounces are contained in a one kilogram silver bar?
What is a troy ounce?
The troy ounce is the unit of measure used specifically for precious metals like gold, silver, platinum, and palladium. One troy ounce equals 31.1034768 grams. This is different from the more common avoirdupois ounce used in the United States and elsewhere to measure other commodities, which equals 28.3495231 grams. The use of the troy measurement for precious metals dates back to the Middle Ages in Europe, originating in the city of Troyes, France. The troy ounce is roughly 10% heavier than the avoirdupois ounce.
What is a kilogram silver bar?
A kilogram (kg) silver bar contains 1,000 grams of 99.9% pure silver. Kilogram silver bars are produced by mints and refineries as investment-grade silver bullion. The most common dimensions for a 1 kg silver bar are approximately 117mm x 51mm x 32mm. However, since kilogram silver bars from different producers can vary slightly in size and thickness, the exact dimensions can range. Kilo silver bars contain no impurities, only .999 fine silver, and make an appealing investment option for buyers due to the low premium over the value of the silver content.
Calculating Troy Ounces in a Kilogram of Silver
To calculate how many troy ounces are in a kilogram silver bar, we need to know that:
- 1 kilogram (kg) equals 1000 grams
- 1 troy ounce equals 31.1034768 grams
With simple math we can determine:
Grams to Troy Ounces Conversion
1000 grams / 31.1034768 grams per troy oz = 32.1507466 troy oz
So there are 32.1507466 troy oz in 1 kilogram of silver.
We can double check this with a unit conversion calculator:
1000 grams equals 32.15074656 troy ounces
Therefore, a 1 kilogram silver bar contains approximately 32.15 troy ounces of pure silver.
Buying Silver Bars
Investors looking to buy kilogram silver bars have many options online and from local coin dealers and bullion retailers. Major government mints like the Royal Canadian Mint, Perth Mint, and PAMP Suisse produce kilo silver bars. Other popular options are the kilogram bars from Sunshine Minting, Asahi Refining, and Johnson Matthey.
When buying kilo silver bars, investors should expect to pay a slight premium over the current silver spot price. This premium will depend on the mint that produced the bar, as well as market supply and demand factors. However, the premiums on kilo silver bars are generally lower as a percentage vs. smaller weight bars and coins.
Some key things to consider when buying 1 kg silver bars:
Brand/Mint
Sticking with well-known government and private mints ensures you receive the stated silver purity and weight. Reputable mints like the Royal Canadian Mint and Sunshine Mint guarantee the silver content and quality of their kilo silver bars.
Certification
COA – Certificates of authenticity from the mint provide further validation of the bar’s weight and purity. The certificate numbers should match the stamped serial numbers on each bar.
Security Features
Quality kilo silver bars will have anti-counterfeiting measures like markings in the silver, raised edges, or unique designs. Opt for bars with multiple layers of security to avoid fakes.
Pricing
Shop around between online bullion dealers to find competitive pricing on kilo silver bars. Most dealers will sell at small premiums over prevailing silver spot prices. Calculate total cost including insurance, shipping, and any sales taxes before purchasing.
Storage
Make sure you have a secure way to store the large silver bar before buying. Consider a home safe, bank safe deposit box, or insured bullion storage facilities. Don’t leave kilo silver sitting out unattended.
Reasons to Invest in Kilo Silver Bars
Here are some of the main reasons why investors choose to buy kilogram silver bars:
- Lower Premiums – Kilogram silver bars carry lower premiums as a percentage of spot price compared to smaller silver coins and bars, improving cost efficiency.
- Easier Storage – Storing a few large kilo silver bars can be easier than storing many smaller silver ounces to get the same total quantity of silver.
- Impressive Size – The bigger size of the 1 kg silver bars provides a sense of substance and tangibility to silver’s value for investors.
- Reputation of Mints – Major sovereign and private mints stake their reputations on producing exact kilogram silver bars of .999 purity.
- Easier Pricing – The per unit pricing of silver is straightforward, only needing to account for the spot silver price rather than individual smaller item premiums.
- Silver Content Value – A 1 kg silver bar contains a full 32+ troy ounces of investment grade .999 fine silver bullion.
Downsides to Buying Kilo Silver Bars
While kilogram silver bars have some advantages, there are also disadvantages to consider:
- Large Quantity of Silver – Buying such a substantial amount of silver in one bar represents a larger investment and higher risk compared to smaller bars or coins.
- Lower Liquidity – A kilo silver bar may be harder to sell or trade compared to popular coins and rounds. Large bars may require finding a buyer willing and able to purchase such a sizable piece.
- Less Divisible – The large size makes a kilogram silver bar less divisible than having the same silver weight in smaller pieces. If you wanted to sell just a portion of your investment, it is easier with smaller silver units.
- Counterfeit Potential – Though small, there is risk of counterfeited bars, putting emphasis on buying from trustworthy sources and knowing how to spot fake silver.
- Bulkier to Store – The size and weight of the 1 kg silver bars makes them less convenient to store and handle securely than smaller silver products.
Frequently Asked Questions
Why are precious metals measured in troy ounces instead of avoirdupois ounces?
The troy ounce was adopted for precious metals to provide a standardized measurement in Europe and eventually globally. With gold, silver, platinum, and palladium commonly crossing borders in trade, bankers and merchants needed an accepted weight system. The troy ounce differences also help to prevent confusion between say a 5 ounce bar of silver and 5 ounces of an industrial metal measured in avoirdupois ounces.
Are kilogram silver bars a good investment?
Kilo silver bars can definitely be a good investment, especially for long-term silver investing. The large size contains substantial silver value while still being practical to store and use as an asset you can physically control. For diversification, some investors might allocate a portion of their silver holdings into kilogram bars alongside coins, rounds, and smaller bars.
Are kilo silver bars cheaper than smaller sizes?
Yes, in most cases the premium paid over spot silver prices is lower for kilogram silver bars compared to smaller weights. The manufacturing and distribution costs on a per ounce basis is less with the larger kilo bars. However, smaller silver coins and bars can sometimes be found at comparable costs per ounce.
How can you tell a real 1 kg silver bar from a fake?
Ways to ensure authenticity include buying from reputable dealers, verifying certificates of authenticity, checking for proper markings and serial numbers, looking for intricate designs, examining the edge and finish. Performing a ping test or magnet test can also help identify fakes. Real silver bars will have a distinct ping sound when struck or tapped on a hard surface.
How are kilogram silver bars packaged and shipped?
Kilo silver bars come packed securely from the mint or refinery in either plastic sheets or protective cases. Bullion dealers then ship the kilo silver bars well-packaged in boxes with padding to avoid damage. Signature confirmation and insured shipping provides protection. Private delivery services like Brinks offer enhanced delivery security for high value silver bar orders.
What is the largest silver bar produced?
The largest standard silver bar regularly produced is 100 troy ounces. Silver bars can also be custom made in larger sizes such as 1000 oz bars. But most investors looking for substantial silver weight prefer to acquire it through kilogram (32+ oz) bars or standard 400 oz bars rather than extremely large custom bars. Anything over 100 ounces has very limited pricing transparency and liquidity when it comes time to sell.
Conclusion
A kilogram silver bar contains 32.1507466 troy ounces of pure silver bullion. This makes the kilo silver bar an attractive investment option for buyers looking to acquire a sizable quantity of silver in one bar. While kilogram silver bars have pros and cons compared to smaller bars and coins, they remain popular with many silver investors who value the lower premiums and substantial silver content of the kilo size. When shopping for kilo silver bars, be sure to use reputable dealers, scrutinize security features, and always account for shipping and insurance costs. Carefully storing the bars and understanding liquidity considerations allows buyers to properly balance kilogram silver bars within their investment strategy.
