Hello with a question

Discussion in 'Welcome New Members' started by Elf, Jul 12, 2011.

  1. Elf

    Elf New Member

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    Hi, I inherited my father's silver (and some gold) collection... I don't know what I'll do with it, but I'll hang on to it until I feel comfortable and knowledgeable enough to offload it or continue to add to it.

    Anyway, my question is; the spot price at the moment is around $33 AUD/ounce, and I would expect traders to sell it at spot + a certain percentage mark up. Why then, can you buy a 1kg (1100 grams) coin for $1190 on bullionbourse.com. Which works out to be $30.60/ounce. Which is below spot price?
     
  2. fishball

    fishball New Member Silver Stacker

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    It's troy ounce, not ounce.

    So 32.1507466 troy oz = 1kg whereas (we use this for talking Silver/Gold)
    35.2739619 ounces = 1kg (you may be thinking of this)

    So a $1190 kilo bar is actually $37.013137355883362285589971338333 per troy oz which is above spot rate of $33.28 (as of now)

    Welcome by the way :)
     
  3. goldpelican

    goldpelican Administrator Staff Member

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    Hi Elf,

    Sorry to hear of your father's passing (particularly if it was recent).

    May I recommend you read the following book? http://forums.silverstackers.com/to...sting-in-gold-and-silver-michael-maloney.html

    It's a brilliant introduction to precious metals and might just convince you to hang on and build upon the wonderful legacy you've been left.

    Should you decide to part ways with the collection, PLEASE seek advice here first on how to do so in the most beneficial fashion (and beware of lowball offers via private message - unfortunately there's a few folk who might see this as an opportunity to try and buy out from under you cheaply).

    regards
     
  4. Elf

    Elf New Member

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    Oh so all all silver dealings are done in troy ounces?
     
  5. goldpelican

    goldpelican Administrator Staff Member

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    Yep - troy ounces.
     
  6. silversardine

    silversardine Member

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    Welcome - nice choice of name!

    Also to add to above, once you get up to a kilo the premiums reduce so a kilo will be closer to spot price (per ounce) than a one ounce coin.

    For example, you might pay $39-$45 dollars, at present, for one ounce depending on what the quality of the coin is like. Eg: Perth Mint coin v Buffalo round.
     
  7. Elf

    Elf New Member

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    Thanks goldpelican, fishball. you guys reply so quickly ha.
     
  8. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Hello elf, welcome.

    There is one member though who likes to do all deals in blue undies - but you don't want to know about that. :)
     
  9. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    Well it depends, one of the last lots I bought was from a market seller who weighed it in normal ounces, multiplied by the price per troy ounce and didn't take into account that it was only stiring silver not 100%. Needless to say I got a surprise when I got home to weight it, got a good discount on the next lot though!

    It never hurts to get the weight in grams as well, just as a double check.
     
  10. Maggie

    Maggie New Member Silver Stacker

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    Hello and welcome
     
  11. RhythmDoctor

    RhythmDoctor Active Member

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    Welcome Elf. Feel free to ask for assistance from your local neighbourhood Gipsy - I'll make sure you don't get ripped off by anyone else.

    Lots of very knowledgable people around here, specialists in every field of bullion and numismatics, whatever your flavour, people will be able to advise you on the value of anything you have, plus good places to move in if you wish to add to your collection.

    Listen, Discuss, Learn and Evolve. Stack it high! :D
     
  12. Butch

    Butch Active Member Silver Stacker

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    As you can see Elf there are a number of dodgy participants on this forem just waiting for newbiees such as your self.
    But fear not as help is readily at hand. Welcome to "Silver Stackers"
     
  13. pixha

    pixha Member

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    A kilo is 1000 grams ... don't know where you got 1100 from...

    Sorry for your loss. But don't sell!! Stack it and Stash it hehe
     
  14. XB

    XB Active Member Silver Stacker

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    Welcome Elf
     
  15. errol43

    errol43 New Member Silver Stacker

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    With a name like Elf, you would have to be a banana bender of state of origin fame.

    Welcome aboard Elf, everyone here is too clever by half...What do we stack here, we stack silver, heaps loads of silver, we make fiat moving silver around. :)

    Regards Errol43
     
  16. Elf

    Elf New Member

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    Stash it yes. Currently organising something more secure than a dozen shoe boxes scattered throughout his house...
     

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