Can anyone give 1st hand info on the long term value of Ainslie .9999 12-16kg silver bars pls ? Long term value in comparison to lower denominations, whats the best size for resale? Most profitable way to resell the bigger size ? If buying a substantial amount of physical silver for retirement fund, is this large block the best option for value and resale ?Cheers.
If the decision is to go with larger bars, insisting on LMBA good delivery bars might be a good idea although I don't know why one would need to go over the 1kilo or 100oz form factor. LMBA bars put you in the range of 750 to 1100 troy ounces (approx 23-34 kilograms). Bron Suchecki can likely provide some feedback regarding the popularity of sizes for Perth's large investment buyers. http://www.lbma.org.uk/pages/index.cfm?page_id=4
you will pay near on spot for such a beast and you would sell it the same. no real premium to be had, I'm sure a dealer would have it back
Dealers are paying 5% under spot to buy back such things (as reported on this forum). At present, I'm melting them into 1kg and 1/2 kg bars for members. Indicative cost is $60/kg to do it. It's a little less cost effective with SPOT so much lower, but even now represents good value. For example : SPOT per kilo is $1060ish ... You can get $1007 per kilo from a dealer offering 5% below spot. Thats $53 / kg under spot If you spent the $60/kg to make it into 1kg bars, then you can easily sell those for $40-80 over spot. (There is a big line of people wanting bars from this next pour) Working on $40 over SPOT, you are $30/kg better off. Which multiplied by 15 is $450 difference.
Other than Captain Kookaburra's approach,would avoid really large bars. For example at Ainslie, there's a $10K limit per person per day to sell, so selling a 15Kg monster needs two 'signatures'. Other than dealers is pretty hard to flip anything over 5Kg as Spannermonkey mentioned. I prefer to be able to sell to the majority of buyers than just a few dealers. The premiums you pay on smaller sizes are returned when you sell anyway. AUS spot might say $33 but you cant get a business round for less than 25% premium currently (i.e $42 to $44) Personally my biggest size is 1Kg... Just my thoughts...
Agree almost totally.... (I prefer 10oz bars) Haven't heard about this $10k limit thing? Is that just a cash thing or does it apply to Direct Deposit as well?
@ Captain Kook - sorry cash thing Thank you for correcting and pointing out...this $10K limit is for those wanting Fiat. I'm not how the limits work if receiving both physical and Fiat? I prefer 10oz bars too but seem everyone else agrees with us - tougher to get these days...
Extra large bars will limit your resale options if you are not entirely comfortable with certain authoritive departments monitoring transactions over $10.000 .
If you are in for the long term, I'd say that metal is metal and I would prefer bar bullion at anytime against coins.....no matter of size As this silver bull market develops, you will always find a buyer..... not small mickey mouse investors..... I'm talking industrials and big investors....and "black market"... I also like the idea of the old "multiplication" factor..... in 5kgs or 1kg bars..... I do agree with SirMoz..... LMBA bars are a good way to go if you want larger chunks... cheers
Thanks for the informative advice. My friendly bullion dealer is able to trade a few of the large blocks for a mix of 1kg bars and kookaburra coins. Can anyone give advice on how one might resell the 12-16kg silver blocks to industry.... is this possible? do I need a commodities broker?
