I made my first bullion purchase yesterday 2 x 1Kg silver bars, I bought them from Adelaide exchange Jewelers for $996 each. One question I have is that some other brands sell for much more do you pay a premium price for these name brands and if so why?. The bars I purchased are stamped with the jewelers name and .999+ I was just wondering why the price difference. I am going back to get a couple more today along with some gold 1 oz bars.
A few reasons. 1. Some are elegantly designed and therefore attract interest. 2. Also like many things, a named brand tends to attract a premium over a no-name brand eg. "Coke" over "no name". 3. But probably most importantly a strong name brand like Perth Mint or PAMP shows quality and confidence in the product. ie its not a fraud. The jeweler in Adelaide, no offence to them, but do they command worldwide recognition of confidence in their silver quality like the Perth Mint does? So when it comes time to sell, to be honest, if you offered me a Perth Mint 1kg bar at $996 or bar stamped with a jeweler's name, I'll take the Perth Mint bar thank you very much. That's essentially why if you have an opportunity to buy a known brand over an unknown (or little known) brand you stick to the known brand unless there is a compelling reason ie price, to choose the other.
Yes I got them over the counter and no ID required, looks like I might have to get a mix of "brand" names and local bars, thanks for the info
I also recently started buying silver/gold. What botheres me is that I think I mightve got into the market too late. The prices of silver/gold quadripled since 98. There are debates as to whether we're in phase 2 or 3. This makes me scared that as a relative newbie I may miss the period when you have to get your silver sold before the big crash of the prices. I did alot of researching and alot of graph comparisons. And silver's graph looks exponential for last few months. It looks like phase 3. Phase 3 which is most violent and quickest phase. Do other people feel the same. Do they sell off right now fearing that the prices might crash. At the same time silver is nowhere mainstream yet. It is not mentioned on the mainstream news, gold does have very weak coverage, and it's still negative toned. The fundamentals seem to dictate that silver/gold will be raising in price. The condition of the world economy suggest that gold will keep raising. But it is rising at a such steep rising level that it must worry alot of investors. Alot of investors must be thinking about selling off their reserves. Hey, theyve tripled their money, why not sell off and be safe? As an insurance not to get into freefall mode. On the other hand I'm still young and I am treating this as a learning experience, eventhough this is the most money I have ever thrown at anything in my life which is not much mind you. So even if I end up losing the cash, I guess i'll jsut become wiser. Any comments on this appreciated.
Thanks Mattew, Thanks for that info. Earier I had Purchased a 1oz PAMP for $47 at the ABS Bullion (Sydney) and had felt ripped off as the silver spot price is about $30. Now, I understand it's more for the brand name. Cheers Terry
When it comes to selling, mostly brand won't matter. Silver is silver. There is no real snob value when selling. AEJ have a $2k/day limit before asking for ID. The price may have seemed cheaper because yesterday the price of silver dropped, but it would have for other brands too. Example Perth Mint 1Kg for $998 at KJC in Sydney. You could pay more plus freight, but it's still silver all the same. Terry, I would say you were ripped off.
Silver is the long term investment mate. The fundamentals for silver support a much higher top than where we see today. Is your neighbour talking about their IP investment or silver investment? The mainstream news? Even paid financial advisors? Considering the amount of silver that's out there to buy, in conjunction with the underlying fundamentals of silver on both their commodity and financial vectors, I think you're still getting it for a song today. In a couple years' time, I am almost certain that we'll lament the days of $30 silver as the 'good old days'. I started actively stacking in Feb this year @ $16-$17 US silver. I just bought another 40 ounces this week @ $30 prices. My attitude is, whilst people are still willing to buy your fiat paper with Silver and Gold, you're getting a good deal.
Terry, if that the most you ever overpay in your silver buying, then you have done well. We all make mistakes.
Hey, thanks everyone for the support. I don't feel so bad now. I'll treat it as a $7 leasson 2ds you are right it so nice and shiny.
10 years from now that $7 will be insignificant to the spot price and you will be glad you bought silver at that ridiculously cheap price way back in 2010.
