SECONDARY MARKET METALS VALUE

copperhead

copperhead

Active Member
The term
SECONDARY MARKET METALS
In reference to 100 oz silver bar from APMEX are priced well
are SECONDARY MARKET METALS just another way of saying they are, previous handled - used - scuffed -
Bottom line - - reselling SECONDARY MARKET METALS - - is still just silver and priced based on spot ?
so 100 oz silver rounds or 100 oz bar same value ?

Reading the sales pitch of APMEX's SECONDARY MARKET METALS almost sounds like hiding something

https://www.apmex.com/education/investing/what-are-secondary-market-metals


 
They are spot based with smaller premium.

1 they are damaged be it physical or spots and lost original premiums aka spotted Perth mint lunars
2 they never had real premiums like generic rounds or people are not interest in them and hence lost premiums they could be new or buy backs with signs of handling

100oz bar and 100 coins have same price. But each have pluses and minus

A. 100oz bar is smaller in volume, but no real fast way to sell ie not many people have the money nor want a 31 kilo bar. Express Postage is usually to ecpensive.

B. Easier to handle and you could sell it faster in smaller lots.
 
Goes back to my original view , secondary market is not such an issue if it's 1oz coins
100 oz bar regardless if secondary or Brand new you need people with the money or want a 31 kilo bar
Any time I sold off silver 1oz rounds brand new or scratched up = same pay out .
A 100 oz bar , For a stacker such as I would be quintessential accomplishment to own
but probably a more risky way to have with worry if economic situations led to hunting out
buyers with enough money.
 
Chances are a caual thief wouldn’t want a 31 kilo bar. Just melting it would need an industrial furnace.

A secondary 1oz coin would be better classed as low demand.

A used series 1 Perth mint 1ounce mouse would be above $70usd to a collector.
 
it was talking about resale, not pre-owned bars
there must be fewer collectors for the bigger bars, but there are demand coming from re-melting them
100oz is >3 kilos
 
This is a term widely used here in the US to describe metals previously owned. In other words, Apmex buys them from collectors, other dealers, etc, and re-sells them. The bars are not straight from the manufacturer like a "new" bar might be.

I buy all of my foreign silver semi numi stuff in the "secondary market" because that is the only way I will buy it. Someone buys a cool proof coin from the mint, etc, and pays a fortune. After some time they need money and dump it at the coin store for melt or maybe a buck or two over, and I come in and buy it from the store for a buck or two more. Same coin, bar, etc that the original owner had, but I pay based on silver not numi value.

Some buyers want pretty new bars and rounds and pay a little extra. Here, my local guys sell "secondary market bars" for less than new ones because the bars are toned, scratched, not in original plastic cover, etc. If someone sells them brand new looking bars that appear perfect, those don't get sold as "secondary market" bars even though they are technically. Usually dealers here pay less for bars/rounds that appear "used" or "circulated", etc.

Since were are not talking about cars, electronics or other machines that wear out, there is no downside buying these if you know what you are buying.

PS Most coin dealers in the US will pay a seller (customer off street, etc) LESS than what they have to pay another dealer when buying silver. So if Apmex is buying stuff from a wholesaler coin dealer (most likely brand new stuff) they will have to pay more for it than when they buy stuff from a guy off the street. What they buy from the guy off the street will be the "secondary metals". Since they pay less for them than wholesale, they can sell it for less than they might charge for new bars or rounds they just bought from a national wholesaler.

Many coin dealers wholesale much more stuff than they retail in their stores. Since they have to make a profit, they can't pay customers off the street wholesale prices, because the dealer has to wholesale the stuff to get rid of it if they aren't going to retail it.
 
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In large quantity purchase's, trying to get the most silver possible per dollars spent seems a direction one should go
considering when buying 20 ounce per month eventually after years equals a quantity purchase Naturally I am leaving Numismatic
coins out of this discussion as that is another view .
It seems SECONDARY MARKET could at time's offer best value
I think I may have to ask some question of the buyers of silver in my community and ask some hypothetical
questions
Not looking at the SHTF scenario that a 100 ounce bar would kinda Large
Simply put , what I purchase at a price to equal more to resell
 
copperhead said:
In large quantity purchase's, trying to get the most silver possible per dollars spent seems a direction one should go
considering when buying 20 ounce per month eventually after years equals a quantity purchase Naturally I am leaving Numismatic
coins out of this discussion as that is another view .
It seems SECONDARY MARKET could at time's offer best value
I think I may have to ask some question of the buyers of silver in my community and ask some hypothetical
questions
Not looking at the SHTF scenario that a 100 ounce bar would kinda Large
Simply put , what I purchase at a price to equal more to resell
Click to expand...

That's a good strategy. I've been trying to do that here by looking at past trends (when metals here hot) and hope those come back. For instance, I have been buying a bit of AU Peace Dollars common years recently since one of my guys has been unloading them cheap. I am paying quite a bit over melt, but premium-wise am getting them cheap compared to just a few years ago. I've been getting AU Peace Dollars that I get to cherry pick from rolls of them for $17.50 to $18 each. Many of them I am finding are ungraded MS 61 and 62 in that the guy at the store grades hard. The BUs I've purchased for $20 (bought far fewer of these) are really great too but the AUs are a better value right now.

If demand never comes back on these (I believe it will) then I am f'd on value since I'm paying a bunch over melt. But if premiums come back like in the past I will be golden. I am only getting these to diversify for when I do shows (not everyone likes my cool foreign stuff here locally).

Also, I try to get cool art bars cheap when they come in because there is a cult of followers for these and I can unload them at shows and make some $$$ - like the kind made in 70s and 80s, etc.

You can check the buy/sell spreads in your area to see what is your best bet, but these spreads can change over time so it might be different in a year or five, etc.

Generally, I've found that cool looking stuff cheap always is better than non cool looking stuff for the same price. When people say "silver is silver" that is only true if the price is rushing up to $50 or more. At that price, premiums will evaporate like they did last time. When price is languishing and moving sideways gotta buy smart in case you need to sell at current prices and don't want to take a loss.
 
Jim4silver yes you seem to be building a diverse stack . I've met stacker's in coin shop who only want currency silver,
condition unimportant .I should get past my sensibility of visual austerity , as any time I had a purge it was those art bars or art coins I sold off first .
That view of art silver is just me & I should have an open mind to them .

Lately I've been considering a concept's .
The real future :
1) silver is a very important industrial metal
2) Stacker's desire of silver helps create a market of extra value - may or maynot be real
3) ETF's attract drove's of investors to the silver market & extra value - may or maynot be real

If future ...... I-phone , Snap Chatting , Xbox playing , Face-book obsessed , YouTube Faze gamers
of future generation's develop into COMPLETELY not interested in stacking silver . Investors follow same sentiments of silver ETF's
with non interest .
Our Silver stack's will be Industrial value or jewelry need of higher value then copper but akin to copper bullion that you would need ton's of it .
Historically silver has proven strong but I do wonder .
 
Whenever I want to add more generic silver to my stack I always buy "Secondary" as it is cheaper and I am only after the value of the silver anyway. It is also nice to have a bit of a surprise when opening the packet and seeing what they chose for me.
 
Secondary market is used quite a bit in collector circles. A company will sell a pack of trade cards for a nominal fee and then the opened cards may get sold on the secondary market for more money. The original manufacturer isn't allowed to sell cards on the secondary market.

I have heard 'second hand' silver referred to as "buy-backs". and they can be in any condition.

I would imagine that a dealer would buy brand new items from a mint and then sell them. This would be the secondary market as the items were not sold to you direct from the manufacturer. The items would still be in perfect condition and may even sell for more if the mint runs out or if they are limited edition items. The items may also be over stock which the mint couldn't shift, in which case they would still be brand new, just unpopular, and therefore cheaper.

Not sure if the terms are used int he same way though.
 
Jislizard said:
Secondary market is used quite a bit in collector circles. A company will sell a pack of trade cards for a nominal fee and then the opened cards may get sold on the secondary market for more money. The original manufacturer isn't allowed to sell cards on the secondary market.

I have heard 'second hand' silver referred to as "buy-backs". and they can be in any condition.

I would imagine that a dealer would buy brand new items from a mint and then sell them. This would be the secondary market as the items were not sold to you direct from the manufacturer. The items would still be in perfect condition and may even sell for more if the mint runs out or if they are limited edition items. The items may also be over stock which the mint couldn't shift, in which case they would still be brand new, just unpopular, and therefore cheaper.

Not sure if the terms are used int he same way though.
Click to expand...

Buy back (Australia) = Secondary market (US).
 
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