educate me on silver art bars?

Discussion in 'Silver' started by 6adam7, Apr 10, 2011.

  1. 6adam7

    6adam7 Member

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    So Ive started stacking ,

    Im revved up and am looking all over the net at all things silver related and I come across these "art" bars...
    some say "1TROY oz .999 fine silver" from old defunct US refineries and they are selling below spot.

    what gives?

    Steve
     
    6adam7, Apr 10, 2011
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  2. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

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    They have no value other than the silver, and it will cost money to convert it to a recognized investment form.

    They would need to be melted, assayed (possibly refined if even one out of 100 turns out to be a fake) granulated, recast, and stamped. And then it would be worth spot.

    Hence the reason why scrap silver needs to be significantly under the spot price to make its purchase worthwhile. You would expect to buy them below spot, by at least $70 a kilo.
     
    Captain Kookaburra, Apr 10, 2011
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  3. 6adam7

    6adam7 Member

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    Ah, that clears that up, Ive learnt some more.....

    All silver isnt Silver...

    Saw some on eBay US asking crazy prices!, like up there with Pamps! and was a bit miffed..

    Thanks CK for educating me...


    Steve
     
    6adam7, Apr 11, 2011
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  4. Blockhead

    Blockhead Active Member

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    that's a pretty harsh assessment, they're still fine silver in 1oz form. Some of them even have collector's premiums. I regard them basically the same as bullion rounds. They should still command a modest premium above spot. We're not talking about sterling queen's birthday teaspoon sets, three 9s is still three 9s..
     
    Blockhead, Apr 11, 2011
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  5. 6adam7

    6adam7 Member

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    Well, thats what miffed me-some sellers (fleabay) are asking crazy "buy it now prices" on these bars, but then you can see the same item somewhere else with 1 day to go and one bid at 12bucks or something..

    I'd be coming to the conclusion, for myself, ( obvious for you guys,..) that its best to buy the big guys, (kooks, eagles, maples etc) - future shortages, then they attract the highest premium.....Mr Malhony talks about eagles becoming rare....

    ponderous.....
     
    6adam7, Apr 11, 2011
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  6. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

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    For small stacks they are a great way to get started. I happily buy them and trade them.

    Just can't do it in bulk, because the bulk silver is for SMSFs, which can only take certain kinds of silver.

    Hence the requirement for recasting.

    You cant have granules in a SMSF for instance, yet I prefer them to bars, as you can sell them at a bigger premium to Jewelers.
     
    Captain Kookaburra, Apr 11, 2011
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