Confused noobie

Discussion in 'Silver' started by josiponline, Oct 1, 2014.

  1. josiponline

    josiponline New Member

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    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.

    :):)
     
  2. House

    House Well-Known Member Silver Stacker

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    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.
     
  3. ucwepn

    ucwepn New Member

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    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 :p)
     
  4. josiponline

    josiponline New Member

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    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 :)
     
  5. spannermonkey

    spannermonkey Well-Known Member Silver Stacker

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    here there everywhere
    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
     
  6. nsw2206

    nsw2206 Member

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    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.
     
  7. ucwepn

    ucwepn New Member

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    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.
     
  8. volrathy

    volrathy Active Member

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  9. House

    House Well-Known Member Silver Stacker

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    Low premium would sell for a lower premium but you'll always pay that little bit extra ;)
     
  10. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    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.
     

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