Unallocated actually sounds like a good way to play the GSR (and still have it physically backed, not just paper) without having to deal with selling/buying/going to a dealer.... You just call GP!
GP - just one more Q: If one were to want to redeem unallocated for physical? Let's say i wanted to redeem my 100kg unallocated silver as 100 x 1kg PAMP bars, and your PAMP bars were selling at say (SPOT + $60)/kg? How would my unallocated then be valued for the sake of the swap? (SPOT + $30) or SPOT? If (SPOT + $30) then i'd have to pay in 100 x $30 = $3000 in order to redeem for PAMPS, else if only at SPOT i'd have to pay in $6000!?
Your $30 per kg is counted as prepaid premium. Think of the current retail value of your unallocated as an available store credit towards a physical purchase - so you might only have 99kg of unallocated, but can buy 100kg of physical using the value of the 99kg as a credit towards it. Or part of it. Or buy 98kg and put the excess towards the extra premium. We're pretty flexible. Same GSR swaps rules apply though if you wanted to redeem unallocated silver for physical gold. Really should put all of this into a product information brochure.
Exactly, there are fixed costs involved in making a 1kg bar regardless of the spot price such as pouring/casting, transport and warehousing.
hi all ..... new here ....... great site i am going to take the plunge in the next day or two depending if i can get 10oz bars what would be better to buy 1kg or 10oz not looking at anything major either 10 x 10oz or 3 x 1kg cheers steve
Oilfrated: If they are near enough in price i would go the 10x10oz as for me they are easier to store, and supposedly they are also easier to sell (i am new as well thus havent attempted any selling). IF the premiums on the 10oz bars you are looking at make them cost quite a bit more than the 1kg bars (per ounce of course) then i would go the 1kg route. Others will tell you different. There is no right or wrong really. Personally i go for low premium stuff in the event i want to sell them quickly one day. For those more patient in selling, have better knowledge on the best places to sell etc, then maybe the bars with a higher premium may be good for you.
Agree re fixed costs. However, the premium wasn't reduced when spot was closer to $30 either (admittedly it was a while ago ). Therefore the skimming theory still holds, to a greater or lesser extent.
lol, today saw someone holding like $50,000 in CASH buying with both hands in Gold. I got a couple of PAMP Kg Silver bars.
so the GSR is going to 8/1 now ? i like your optimism yip .If only i could get a few kilos of optimism at spot
