Silver shot, also known as silver grain, is a silver product that resembles small ball bearings, nuggets, shots or grains. There are advantages of investing in this type of silver, and of course disadvantages. Shot is generally only recommended as an investment vehicle for the most experienced investors. We will see why later.
Silver Shot Pricing
Pricing of silver shot is very good relative to other physical silver products. There are low mark-ups, if any, making this type of silver very close to, at, or even below spot price. Investors are always looking for silver that is able to provide the best value. But value is more than just the price that something is bought at. It includes the characteristics of the product… and supply and demand too!
Not A Great Investment Vehicle
Silver grain is not a common investment tool, although there are people that choose it over other silver investments. It is far more difficult to verify the silver content in silver grain than for most other silver investments. Bars can be bought from reputable sources, coins are clearly identifiable in most cases, but silver grain has no markings and is more difficult to authenticate. On top of this the number of grains that make up a bag makes it is extremely time consuming to go through each “shot”, one by one, in a verification process.
There are reputable sources to buy from for silver users, but investors are wary of shot. There are very real concerns about .999 pure shot being mixed with lower quality silver. There are numerous stories in forums of silver investors who bought silver shot and have been unable to sell it for a long, long time.
Selling Shot
The silver could be melted down to form bars professionally, but this will cost quite a lot. DIY bars are not the best solution, as buyers will regard homemade non-assayed bars with skepticism. Re-sale potential is a vital characteristic of any investment decision and shot is perhaps the worst form of silver on this front.
Dimensions and Uses
Shot is normally about ¼ of an inch in diameter. This makes it ideal for use by jewelry makers and industry. It can be melted and worked at the exact quantities desired. Indeed, shot is an excellent form of silver for industrial purposes.
Summary
In general silver investors should steer clear of silver shot. As soon as shot has hit the public it is somewhat of an unknown quantity. People are wary of this form of silver, which can make it very difficult to sell. An asset that cannot be sold has limited value, no matter how cheap the initial price may be.
Jewelers and industrialists can access reputable companies to source their silver. If the silver is being used and does not need to be resold then shot can be great value silver.