Hello everyone been looking to purchase silver, been doing research and hope you guys can help me out please. Sorry, I know this is a noob question. I just do not understand. Ok , my question. >Currently silver is at 19.41 AUD. > A 0.5 Kg ABC Silver Bar costs $365.05. http://www.australianbullioncompany.com.au/abc-500gram >Based on this calculator the Price for 0.5kg should be $ 288.62. http://www.silverrecyclers.com/Calculators/ster_calculator.aspx SO If it follows spot price why is it more expensive. It's more than $100. I'm confused and can't get an answer. Thanks for all your help.
You have to pay for the time and labour costs involved in taking that lump of metal put of the ground and turning it into something you can buy. It's called 'fabrication cost'. You'll very rarely buy at spot from a dealer but they'll buy it at that or a Lipitor less. The more you buy the closer you'll get to spot price.
Yes all dealers charge a couple of dollars over spot per oz to cover themselves and cover costs etc. Goldstackers have low premium 1oz bars for $22.20 where as spot is $19.44 as I type this. (Thats AUD obviously )
Also the picture on the coin or bar looks like it has more value. Why does this even matter? If I buy a coin or bar that is not recognised as some other will they want to buy it from me?? For example the ABC bar is not sold in America only here. how would this work?? Thanks guys
It matters a lot A lot of the coins are more that silver value & are actually collectable If you want to pay close to silver price ,your up for 100 oz bar & larger 1 oz coins are always going to get a premium
So you be looking at a bar in australia at AUD, then looking at a USD spot price calculator? http://www.perthbullion.com/shop/detail/lpso1/ fwiw I've been getting sbss variants and last batch was some "ant shield". all new coins.
Well to my knowledge (I am fairly new to the scene as well) the "high premium" bars and coins have collector value due to limited production runs or the quality of the finish or the famous mint name etc so command a higher price. Low premium would sell for spot or melt value for those who don't care about fancy names or pictures on their rounds or bars and just want to accumulate the metal.
https://www.bullionlist.com.au/silver/more-silver-bullion/15kg-silver-bar-industrial- That is as close to spot as you will get buying industrial silver
Check out the link in House's signature A great place to start, it will answer most of your questions and even a few you haven't though to ask yet.