Hello peoples, there is a difference of approx 8516 between a one kg gold bar in the uk compared to 1000 one gram gold bars. Ie, it would cost me approx 8516 more to buy 1000 one gram gold bars This can't all be minting costs? So how much would you guess is profit on one gram bars given the above difference? Thanks Ps I'm not thinking of buying one gram. Smelting info really
It looks like it would cost you about 8.52 per bar which is probably mostly minting and packaging and profit. Its about 16 percent premium which is not bad for a 1 grammer but youd think youd get a better spread buying 1000 units. I personally dont buy bars under 5 grams due to premium.
Well if you'd like to sit there and do 1000 transactions wouldn't you like a little extra? Or are you in that something for nothing crowd
Thanks, yeah I figured the math ok, I was thinking of smelting and doing my own 1 gram bars. I've got a contact who does 1 grain and larger bars at ACB in the states. Lots of investigation and advice needed before I start up. Any smelting advice or other is always welcome. Thank you
But if youre buying 1000 units at once thats one transaction If u intend to resell the only way you can recover any of that 16 percent premium would to fo 100s of transaxtions which sounds like a pain. Im not a person who wants to do nothing and get something but I certainly want to make sure if I do something I dont end up with nothing.
I would need to be able to smelt 1 kilo into 1000 bars for less than 8.51 ( costs excluding the gold price ) per bar whilst also factoring in selling fee's / costs. If I held out and sold at the next new high or close to it, it just might work. I could sell direct online and avoid paypal and ebay etc fee's. Not something I will rush into but worth further consideration.
Frankly it sounds as though you'd be better off with a grinder and some little bags . You are basing a business model with a*very* hefty front-end cost on an assumptive valuation of an end-product you have no experience in manufacturing, and which attracts a premium for a number of reasons including the quality of manufacture. Dodgy. Don't get me wrong - but I strongly suggest that you start with Silver first - at one fiftieth of the cost and with a proven premium for interesting castings on this site. Get creative, understand your true costs, ramp up your gear (and get skilled), and only then start buying big lumps of expensive stuff
Not really worth the effort I reckon... Also have you considered you might have issues reselling your 1g gold bars since they will not come from a reputable mint. Realistically you will not be able to sell your bars for a price close to what a mint bar sells for. Seems to me the operation would yield only minimal - if any - gain at the cost of 1000 transactions. The question you need to ask yourself is: what is the opportunity cost of doing such an operation? In other words, if you invested the time you intend to spend on this in another venture, would you be able to generate more profit from that other activity? And I think the answer is yes in this instance. Food for thought.
Or you could take a 1kg bar to the machine shop & get them to mill it into shavings & sell 1 gram of 999 shavings for 5 pound over spot all done in an hour with a nice thin sliver for yourself to keep as part of the profit
The more smaller pieces you buy, the more expensive it will be. The 1 gram bars are some of the worst from "price over spot" point-of-view. I personally wouldn't go below 10 grams. Instead of owning 1 big piece of 1 kg, you should diversify, split-up into 100 gram, 50 gram, 1 oz, 50 gram, 20 gram, 10 gram. As you like. But the many small pieces will cost you more than 1 big 1 kg "gold soap"
