So, do silver investors with a little more cash then collectors buy 100oz bars over coins/kilos etc? If silver is a long term game wouldnt this be the only thing worth getting, even if it means saving a little longer to get? Is the the lack of glamour that puts people off? Harder to sell? Lack of numismatic value? Right at this moment its *100oz PM Bar @ $2456 or *100oz 1kg PM Bars @ $2491 or *100oz Kooks @ $2803 or *100oz (1/2 oz) Lunars @ ~$3000 Give me $30,000 to invest. 1221 ounces of 100oz bars 1200 ounces of 1kg bars 1070 ounces of kooks 1000 ounces of 1/2 oz lunars If you want to exit silver with over 1000oz's is the only realistic buyer a dealer? Would they pay numismatic value for the coins? If not, wouldn't the large bars be the best go? Unless you want to make 1000 separate sales (or maybe 50 selling 20 rolls)
One problem people think about is liquidity, bigger bars = liquidity problems, if your happy to sell back to a dealer at spot or less than spot then bigger bars are fine
imo 10 oz or 1 kg bars are where its at for pure investment bullion 100 * 10 oz bars @ $249.24 = $24,824.00 or 32 * 1kg bars @ $796.50 = $25,488.00 rather forget discount for bulk
No liquidity problem for 100 oz bars - everything sells when priced right relative to spot. I've seen them fly out of the SS sale threads here. Only problem is they tend to be as boring as bat 5h!t. And it also means you can't just sell a little bit.
From a dealer's perspective, kilo bars are the most popular - but then it only takes one or two whales to come along and buy 100oz bars in quantity to dwarf the month's cumulative kilo bar sales. I like the guys that ask "got anything bigger?". Given the number of 10oz and larger gold bars I see selling, I would never be worried about the liquidity of a 100oz silver bar if you're happy to sell back to a dealer.
Hey GP, Can you enlighten me on the process of selling back to dealers? If your selling in bulk how does a dealer determine the price per oz? Is it a negotiation? Is it a set price? Is it per bar? ie. Do they take into account the brand of silver (ie: PM/Geiger/Ainslie/Englehard)?
Mate, I'll give you a higher price than what any dealer would pay and I'ld take bulk. Dealers don't pay very much when they buy back. You will get a lot more selling elsewhere. They have a set price based on spot, ring or walk in. I do not think you would get anywhere negotiating unless it is something they are looking for and really want / need.
This will vary greatly from dealer to dealer. I've often directed people to selling on Silver Stackers when they've brought in nicer stuff - but sometimes they will insist on selling anyway because they don't want to deal with the unknowns of meeting strangers for cash or doing postal deals. When people ask what they should buy, we always ask "how do you want to sell it in future". Makes a big difference to the answer. The businessman in me says to flog the highest markup items but realistically if someone says they are going to be selling back to a dealer we tell them to buy the lowest spread items, which is usually kilo or 100oz bars depending on their budget.
Thanks GP, this is what has me thinking. If someone is holding large quantities of physical silver, ie: 1000's of oz's and they want to sell out of their position, especially if the market has made a significant move, who is going to be in a position to buy this physical if not a dealer? I mean, someone who has 10 x 100oz bars compared to someone with a mix of bars and coins of varying degrees of numismatic value, I know who would find it easier to sell when the time counts right? We are all holding on for this silver to the moon to happen (broadly speaking obviously) however if it does move agressively, how are you going to capitalise on a large position unless your stack is uniform and your selling in one transaction. Unless we get to a point where we can trade silver realistically (pretty big if), are SLV / Silver trusts a better option? Gots me thinking... Whos going to have an easier time selling? This guy: http://www.youtube.com/watch?v=l5P4cA35oKk or this guy: http://www.youtube.com/watch?v=stqOXR2B43M
