Big Bars vs Small Bars long term as an investment

K

Kawa

New Member
Just wanting to get ideas on the above topic.I have started off recently buying smaller premium bars because I had the view that liquidity was a good thing should prices rise.My PM investments are only small at present and I will increase as I go and my motive is essentially hedge in nature.

However I'm keen to hear what seasoned SS have to say about premium bars performance in the various cycles that have occured in the past .

Also what about mixing up with some small Gold Bars?
 
Yeah a proportion of gold would be sensible, but it does'nt come cheap.
 
The larger the bar is the harder it is to move though, even at spot.

Recall a few months back mr self imposed exile had a 5kg silver bar to sell and he couldn't shift it at slightly below spot.
 
It is easier to sell, in the current market, smaller bars than larger.

Imagine what the liquidity will be like selling an 100 oz bar if the price gets to say $100? It will sell, but it may not be as quick as say selling a 1 Kg bar.
 
Funnily enough right now we're selling heaps of 100oz bars. Depends on the client - people dropping five+ figure sums per sale are picking up the lowest premium stuff they can get.

There's hope yet for that 1000oz bar in the safe :P

Moving lots of 10oz gold bars as well - while people are happy to drop $16k or more on a single gold item, I don't think the serious private investor is too concerned about the liquidity of 100oz bars in the future. Liquidity in the secondary market will never be as good as 10oz bars though - but there's a massive market for these larger bars we just don't see trading through the forums here.
 
goldpelican said:
Funnily enough right now we're selling heaps of 100oz bars. Depends on the client - people dropping five+ figure sums per sale are picking up the lowest premium stuff they can get.

There's hope yet for that 1000oz bar in the safe :P

Moving lots of 10oz gold bars as well - while people are happy to drop $16k or more on a single gold item, I don't think the serious private investor is too concerned about the liquidity of 100oz bars in the future. Liquidity in the secondary market will never be as good as 10oz bars though - but there's a massive market for these larger bars we just don't see trading through the forums here.
Click to expand...
"Depends on the client " I think that says it all :)
 
goldpelican said:
Funnily enough right now we're selling heaps of 100oz bars. Depends on the client - people dropping five+ figure sums per sale are picking up the lowest premium stuff they can get.

There's hope yet for that 1000oz bar in the safe :P
.
Click to expand...

Ive actually been looking at buying the 15kg bars from Anslie i think it was, or another eastern state bullion dealer.
I buy only 100oz bars for the fact the premium is lower then if i was to buy 10x10oz bars. So more silver for my buck!!
and as for liquidity, if i need to sell small portions....well ive got a grinder hahaha :D
 
Personally I dont buy anything over 1kg for Silver and one ounce bars for gold/platinum

Dave Morgan puts it this way
- when you buy a thousand ounce bar you really have one decision to make and you better be right. If you buy one ounce rounds over time, you have up to a thousand decisions to make and you can afford to be wrong some of the time and right some of the time.

He advocates cost averaging

For resale - I know that anything bigger than 1kg will need to be assayed, to avoid that I buy no greater than 1kg
 
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