I was curious to see how much I would save buying 100oz bars over 1KG bars, and used W. Davis's live prices to base my calculations on. I found that W. Davis pays more for per ounce with 1Kg bars than per ounce with 100oz bars. Is that just W. Davis, or is it normal to pay more per ounce for 1Kg bars over 100oz bars?
It is perfectly normal, and would be surprised to see any different when selling. Most dealers pay the same spot regardless of form factor, so he is offering an incentive to get easier to sell items.
Why is that? I thought the larger bar you go, the more profitable it is trading. He sells 100oz cheaper than 1Kg, but buys them back relatively higher. If I was to deal with just W. Davis for buying and selling, it would be more profitable for me to trade in 1Kg bars over 100oz bars. That doesn't sound right?!
Oh, I see. I read 100oz bars were the most popular traded bar out though... I guess that's how it is in America.
Depends on the buyer, but 1oz/10oz/100oz. Talking about the US. In Australia 1kg blows away every other size in both overall quantity and volume.
Well, I am an investor, so I am looking for the best bang for my buck. Like I said with W. Davis for example, buying the largest sized bar is the best way to save money from a buying point of view, but selling back gets less money over a 1KG bar. Most dealers are delusion with bullion and think one branded bar is worth more than another, so almost none advertise their exactly buy price, so I have an issue comparing the whole buy-sell process with W. Davis against other dealers. I might have to do some ringing around to determine who can give me the best price for a given quantity of metal to compare.
What I found out I can do, is buy 100oz bars from W. Davis, and go across the road to Gold Buyers Melbourne and sell to them and profit $11.51 more per 100oz bar than if I was buying and selling 100oz bars back from and back to W. Davis. This also out performs buying and selling 1Kg bars. Has anyone ever done business with Gold Buyers Melbourne? Do you reckon if I rocked up there with 10 x 100oz bars they wouldn't want to buy them all? Basically, I am worried that I will go to a dealer with a more than normal amount of bullion, only for them to turn around not wanting to buy it.
I want an unbiased opinion form people who have dealt with them, GBM are hardly going to shoot them self in the foot and tell me their weaknesses.
Gold Stackers are currently paying $1803 for 100oz bars as at 4:15pm 13th November. Current prices on Gold Buyers Melbourne Web-site are not up do date at the moment.
Just an observation - it appears that you intend to trade PMs by buying and selling physical back and forth on a regular basis with dealers. The first time you lug 1000oz up and down Collins St, you will appreciate the logistical hassle that this is, and the premium spreads on silver aren't the kindest to trading in and out on a frequent basis. You need spot to move a couple of dollars just to break even before you can book a profit. Taking delivery of physical metal, and day trading the spot price, are kind of mutually exclusive activities. People buy physical as an investment because they are anticipating a capital gain over a period of time - if you're simply looking for frequent trading opportunities, products such as CFDs or options are much more efficient. Unallocated with a dealer is another alternative that is a kind of middle ground - no storage/movement/OH&S concerns on your part, with physical redemption or cash withdrawal alternative exit paths, and usually at lower premiums than physical. 1000oz buybacks at spot are usually a walk in the park for most dealers. Right now I would love someone to walk in the front door with fifty 100oz bars to sell back. You can spot them easy enough - the Red Ryder wagon and the sweaty brow are a giveaway. Re different prices for different brands - if it's new inventory, this simply reflects the different wholesale cost of each brand. Dealers don't get their retail bars from mints or refineries at spot. Some dealers focus on distributing new inventory bought from mints and manufacturers, some just trade metal they buy back from the public, and have inventories that are at the whim of the selling public. Disclosure - I'm one of the owners of Gold Stackers.
I looked at both websites, but couldn't see the arbitrage, Are you sure? (and if so, both proprietors are members here so its may disappear quickly) Edit I see the other threads now mention the buyback prices may not be live at the moment
how did you find that out? goldenpelican, I don't plan on trading silver as a day to day basis. Like you said, you need it to fluctuate $2 to break even. In this case, trading silver on a day to day basis won't happen. I'd check the silver price once per day, and when I'm ready to sell, get down to Collins Street and dump it all, then just wait until it drops again and repeat. I disagree that CFD's are efficient. CFD's takes away your control, and basically becomes pure gambling. Unallocated with a dealer worries me. What happens if the business goes bust. There would go my silver, right? Oh I see about the wholesale cost pass-on. Thanks for letting me know that. It all makes sense now. Your prices are allot less competitive than what I remember a couple of years ago in regards to your 'low premium' bars. You use to be almost on pair with W. Davis... What happened? Why? Is he totally out of stock? http://www.goldbuyersmelbourne.com.au/sell-silver-bullion.php http://www.wdavis.com.au/live-price-list.html They were live at the time I did the calculations.
