I have gotten started in buying silver and have been for a while. I pretty much spend a little bit of time every night trying to learn more. But there is something I cant seem to find a direct answer for anywhere. Why do some compaines sell 1 oz bars for more then others when they are worth the same for there weight? For example i saw a pamp suisse for like $45 for 1oz and the apmex one or the silver towne was like $35. Im only investing for what it would be worth for melt value. Is it because of the brand name or is it actually worth more even though they are both 1oz. Like i said im not investing in it for looks or anything. Just for long term.
Yes, the brand name is what makes some bars worth more than others. If you wanted to look at another comparison, an iPhone 5 sells for more than a generic Android phone, even though they've both got a very similar set of features. All silver is worth the same when it comes time to throw it into the melting pot, but before that happens there are some products which the market - the manufacturer, the investors, the dealers, the random people on eBay - says are worth more than other products. What you buy should be determined by who you plan on selling it to later.
Easy answer is by analogy: why does a bottle of coke cost different amounts to a bottle of pepsi in some stores but not others and is a different price in the vending machine and bakery outside the supermarket compared to 20 metres away inside?
it's really a name thing. like you i will get the cheapest bars possible. I normally buy either NTR Recycled 1kg Silver bars or 100oz bars. I get smaller 1oz once for easy liquidation but mainly get the above for the long term outlook. The bigger you go the cheaper it is...
maybe i worded it wrong. I understand that some compaines are worth more then others i just want to know in the end if i bring all my silver in and sell it as a whole for melt or whatever. it doesnt matter what kind it is they are only going to give me what the ounce is worth at that time right. thanks for the responses though.
1 ounce bars generally cost more because they're smaller and take more effort to make im assuming. PAMPS are recognised world wide and come with a certificate for every bar that they make which is why they are such high prices though im pretty sure.
To extend on the Coke analogy, add that a 600ml bottle costs more than a 1.25L or even 2L bottle. Just like metals you have to buy larger sizes or quantities to get the best bang for your buck.
we ran a busy milk bar and 375ml coke cans sold 400:1 compared to 2lt bottles. which is ideal as there's 200%+ profit in a can, it's always fresh as it's turned over all the time so no dead stock. it's like everything, buy an acre and subdivide into 8 blocks, buy a cake for $20 or buy one slice for $5, or buy a slab of beer for $40 or a 6 pack for $18, many stores are in business because most people buy the 6 packs.
Unallocated silver is my current choice, it is he cheapest way to buy silver. You dont pay any extra for branding or barring and sotrage is free.
Go for pool allocated. Perth mint publish their list of pool allocated silver bars. Almost the same as unallocated but they charge a storage fee. I'm almost certain they actually have the product on hand. Some would say otherwise - but then those people may like to hold all their stash in their hands as the ultimate proof / security. I think the mint almost promise that there is no hypothecation/re-hypothecation - but some will never believe. I'm comfident mine will be there for me when i want/need it. Bill
OK so tell me where can anyone buy one ounce of silver for spot. Or is this spot figure just a misleading indicator used by no one.
On here (occasionally) http://forums.silverstackers.com/topic-29898-1oz-silver-year-of-the-snake-at-spot.html
You can't, and it's not misleading. There's no "official" spot price recognised worldwide - but in laymans terms, spot is the price of silver if you buy a contract for delivery (generally 5000oz) off a commodities exchange. Don't confuse the "spot" price and "retail" price. Retail prices are derived from the spot price, with an allowance for the fabrication, shipping, insurance etc costs of a dealer acquiring stock, as well as a commercial margin. Not much of a business model in buying at wholesale (which is never "at spot" as some people seem to think), and selling it at the spot price.
