Huge Premiums on 10 oz bars! Might as well buy Coins!

1for1

1for1

Well-Known Member
I have noticed the difference between a 10oz bar and 10x 1 oz coins has been shrinking steadily the past few years where it is now a only a small extra cost to get the 1 oz rounds over a PM 10oz bar..

To me this is ridiculous.. when i check a week back i could spend an extra $10 bucks and get a roll of 20 individually capsulated 1/2 ounce lunar dragons..

The bummer for me is im looking to get out of coins and buy bars.. but with coins comparitively so cheap (and looking at the premiums i can turn around and sell them for) i am having a severe case of cognitive dissonance pulling the trigger on bars.

Why would there be a $3 premium over spot per ounce for a snotty 10 oz bar? Or alternavitely.. how come the premiums on coins/rounds have come down so much..

I think its due to coins being a fiercely competitive market... but arent bars?

Anyone have the answer? agree, disagree?

to me its an anamoly in the silver world and i would expect either the premium to come down or for the coin/round premiums to increase

1for1
 
agreed. But that is how it is, premiums fluctuate based on the demand of the cusotmers.
 
Maybe it's just that the idea of having a 10oz bar is cooler than having a 1oz coin. :D
I know when I talk to folks that know nothing about precious metals most associate bullion as being in ingot or bar form and not coins or rounds.
 
I wonder how much time is involved in producing a 1x10oz bar, versus 10x1oz coins?

If the time is negligible, then why should a coin demand a premium over a bar?
 
ironwood said:
Maybe it's just that the idea of having a 10oz bar is cooler than having a 1oz coin. :D
I know when I talk to folks that know nothing about precious metals most associate bullion as being in ingot or bar form and not coins or rounds.
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I think your correct.
Anyone i talk to that is uneducated in the bullion world thinks that bars are the only bullion around. Maybe the dealers are wising up to this and trying to slog them for every last dollar?
NTR Metals are the only 10oz bar sold localy in my town that has very little premium attached, everything else is too over priced. Thank goodness i found this website with people willing to sell at prices that are reasonable.
 
Hi, BB is doing 1/2 dragon rolls for under $350 for the 20 .. its very cheap and the premium over spot considering the cost of design, minting and capsuling invididually should add value (or at least this is the reason PM claim to have such premiums).. i just wonder how then they can justify the premium on bars when none of the above is needed for a 10 oz bar.. the cost of making one should be 5%-20% less (at a guess).

I agree it must be demand.. im glad fellow SS are selling coins but holding bars.. i am doing that also.. could that be the reason? secondary market is tight? and if so just mint more PM and drop your prices so we start buying them... as the price is whats turning us off.

Im almost thinking sell all my bars now at outragious premiums while no one else is selling at less than PM, then buy back when the premiums vanish.. but ill need to think that through

1for1
 
hotel 46 said:
if you have limited space the rounds take up more than the bars.

the rounds are encapsulated needing even more space.

the coin needs love and attention so it is not damaged.

when you want to sell the year or marking wont be the flavour of the month.

try sellin 20 x 10oz koalas 2009 and 20 x 10 oz pm bought in 2009 and see what sells the best, bars will be gone just like that, coins are for a different market when it comes to bulk.

when you look at it from a bullionpoint of view i think your bars will sell easier than the rounds, they just good old pm bullion.
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Exactly why im thinking of dumping my UGLY QE2 coins.. but is now a good time when bars are carrying such a premium - although i want bars for the above reasons it dosent cancel out the premiums.. oh well i have time on my side.

1for1
 
kevalie said:
RetardedMonkey said:
I must admit, given the option of a 10oz bar, or a 10oz coin being the same price, I'll take the coin.
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+1
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+1

Last time I bought a 10oz coin was when the dragons were released and it was worth a few extra dollars to get a 10oz Dragon. Not sure I would bother with a 10oz Snake though, it would probably be easier to sell a 10oz bar.

Does anyone add the cost of a capsule into the cost of selling a coin? Could I ask for a discount if I just take the coin and not the 'free' capsule it came in from the mint?
 
dollars said:
Possibly people have become aware of the provisions that the coins can be recalled quite easily by the treasury under the current legislation. (Unlikely)
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If this happens, my coins will be melted into bars pretty quickly...... problem solved. :D
 
Coin $6 over spot.
Bar $3 over spot.

Half the premium sounds about right for getting metal in a different shape...

TBH I'd probably pay a premium to not have a year stamped on metal if it was up to me.
 
PM 1/2 oz dragon and PAMP 1oz dragon was/is on sale/clearance/special at a couple of dealers. So maybe that's what it is?
 
dollars said:
A few possibilities to consider

Possibly people have become aware of the provisions that the coins can be recalled quite easily by the treasury under the current legislation. (Unlikely)

Many more coins have been purchased over the last few years relates to mostly coins for sale in the secondary market.

They all melt the same so they can be used in industry i.e. 10 oz bar = ten oz coin
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more info about this coin recalling legislation,please..
 
It seems that whenever any 10 oz bars come on here for sale they go very quickly.The coins can hangaround due for "fashion"
 
silversearcher said:
I've noticed this also. No point in buying 10 oz bars ( except for ease of storage )... Buy the coins for now. If the difference between bars and coins drop then change to buying bars. A point that's not mentioned is labor intensity. If bars are hand poured then you would have to assume it would cost more than a machine stamping away on a blank disc. Are Perth mint bars hand poured ? I have no idea.... Regards
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There is definitely a non-scalable factor in cast bar production - whereas a mint press can be operated by an individual. Cast bars require shot to be weighed, placed in moulds and heated to melt - whereas a mint press takes pre-prepared planchets and simply strikes them a number of times until the desired strike quality is reached.
 
on BB

PM 10 oz bar aud $334.81

10 x 1 oz Maple $ 343.58

I reckon having bars and coins is the go.

Coins have an advantage as you can sell odd amounts .Maybe someone only has $ x and this will only buy 7 oz.

People understand coins.

Bars are easy to stack

B.
 
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