With all of this talk about the "spot price" being a lot lower than the physical price. I am not talking manufacturing costs here it is obvious to all that there is significant premiums/retail price to be able to hold physical silver. Coinciding with this is the kind of wide spread belief that the large amounts of "paper" trading keeping the silver price lower than is should be and also considering how fast the Southern Cross bars moved even at a premium. I am wondering why someone hasn't taken advantage of this? This is just a thinking thing so please pick holes in this theory as it is nutted out without flaming me too bad lol So if the 5x1000oz spot price is so much lower than what the average stacker can get hold of it for, if a cooperative was able to get together and offer 10oz bars with a similar quality (maybe not mirror finish etc) to the Silver Stackers and Southern Cross bars had say half the premium of the average retail mint and could turn them over wouldn't this be perfect to take advantage of the "artificially" low spot price that the paper traders are "artificially" keeping low? for example: * A group of like minded silver bugs get together and stump the cash for a single contract at the exchange and stand for delivery. * Once delivered, the 1000oz bars are melted down to a similar thickness and width to the SS and SC bars. * A CNC Machine is used to cut them to the exact shape/dimensions/detailing as what is required with the shavings remelted down to make use of the waste. * An shebang there are 500x 10 oz bars on the Silver Stackers forum ready for purchase. So what is the big pitfalls in this? Cheers Chris
There was a big thread on this very recently. It got ended pretty fast when bron said you can get 1,000 oz bars from the perth mint via him for very close to spot. No need for all the extra hassle, money exchange, transport, risk etc.
there was a lengthy discussion about this not very long ago, it was established that it would be cheaper to buy lbma blocks from the Perth Mint and get them refined by SBA. Not sure where the thread is but it's around here somewhere..
It is a good idea. However, I would not put a cent up to buy a contract as its dependent of some shyster to fulfill their delivery obligations. The house of cards could fall any day/week/month and I wouldn't want to be caught with my pants down during this time.
Transport / insurance cost from the exchange to you. Transport to the refiner. Refining cost. Transport cost back to you. Postage to each individual. I don't know what else. Maybe it's one of those things that sounds great in theory but would be more hassle than it's worth in real life.
As has been mentioned above, I think you'll find that all of the costs involved in taking delivery and refining etc, add up to more than the current physical market premium (it is probably only economical on a massive scale - ie a mint).
