10 oz Silver Bar Question

after a few months of contemplating on bullion investing and reading the various
Posts i have decided to start investing in 10 oz silver bars through JM Bullion have
Heard allot of positives from other members so i think i am going to go with them
My main goal is 1oz Gold coins like Krugerrand,s but got allot of projects going on
around the house but can take $200 a month to invest.

Back to the main question why is a 10oz Silver bar differ in price greatly just went
om to JM bullion,s site and ther is a $36 dollar differences between the cheapest
New slab and the most expensive yet the silver content is the same, since there
is no premium on the bar itself, why is the price diff and why would you pay more
for the same thing ??

 

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To answer your question it is simply that some people are willing to pay more for brand names in the hope that they will be easier to sell later. I don't buy into that myself and usually get the cheapest.

As to 10oz bars, I am not so sure that is the best idea. Bars seems to have a higher premium than rounds. Right now that is also true on the selling end. But will it always be so? I do have some bars but I prefer to buy rounds because they cost less. In the end it is all silver.

 

So its all in the name? but still 1oz, of silver though, is there a premium or commission on when you sell ?

 

We're back to the big problem with high-denomination PM's -- down the line, if you want to acquire something inexpensive, like batteries or a first-aid kit or a pair of shoes, etc., who is going to "make change" for that 10-ounce bar, without imposing a heavy discount?

When a merchant-trader or speculator offers 80% of spot for your big silver bars or gold eagles, take it or leave it, you can remember this day. I noticed a new sign at our local Dairy
Queen -- "We do not accept bills larger than $20," and that has nothing to do with legal tender.

This is why you pay a 15% to 20% premium for 1/10th ounce gold, weight for weight, compared to 1 ounce gold. However, I'd much rather have 90% dimes and quarters.

And I DO. I have exactly zero rounds, bars, or ingots. Just my opinion.

 

With those commission rates it would be really tough to turn a profit just by the
silver content alone will have to rethink my decision on that one !

 

For the most part I agree with this, but not totally. I think a mixture is best. Absolutely you should have some junk if you think there is ever a time when you think you may have to use it to barter with. But you should also have some rounds and bars of various sizes.

If you expect that the only way you will ever have to get rid of is it so sell it when the price goes up then it doesn't really matter what size you buy: the bigger it is the more efficient for storage. But it is also possible that other scenarios will arise and you need to be prepared so a mixture of 1oz, 5oz and 10oz is appropriate. 100oz can also be considered if you are buying a lot.

If you are talking about very large amount then gold may be easier than silver, but it is not going to be useful in a barter situation. Again, a mixture of sizes, primarily on the low end is appropriate.

 

I steered away from 10oz bars when I figured out it wasn't saving as much space for storage as I would have liked. They have the plastic bags around them and that is kind of standard these days. If I was still into them though I would go for the cheapest generic I could find. The high premium ones don't get much consideration from a dealer if you need to liquidate. I stick with ASE's, Rounds, and lots of Junk 90%. I will admit though, bars are cool to look at all stacked up on each other.

 

.999 silver and .999 pure silver is there a difference ?

 

"...the bigger it is the more efficient for storage. But it is also possible that other scenarios will arise and you need to be prepared so a mixture of 1oz, 5oz and 10oz is appropriate."

Have you really thought this over? The prime consideration IS how can I sell my PMs in an emergency? Nothing else matters, including storage space. True, you wish not to overpay, but at the present time, there's not much danger of overpaying, with 90% "dead in the water" right now.

There is no point in stacking at all if you do not have a sensible plan for getting out. As I acquired my 90%, however, I did pull out anything I thought would be worth 50%+ over spot, like AU Mercury Dimes, etc., and kept them separate.

I should probably follow my own advice and sell all that stuff ($67 face) and plow the funds back into "common" 90%.

In any case, that "too-good-for-bullion" would be the last thing I sell.

 

for "Bear," --- no difference, it's just gee-whiz marketing baloney.

 

I have seen some cases where Junk 90% has had low premiums. Other dealers are selling it at $2.00 over and same thing online. Where have you been seeing it go flat? Shows?

 

The word "pure" is the sellers advantage to get that extra buck from those who know no better.

 

For Bman: When there is no economic crisis, and PM prices are relatively calm, the price of 90% depends on how bad somebody needs money. I have 3 individuals I buy from, rarely a company or eBay, and in turn, each has some favorite customers who try to trade silver. I could probably buy for 12.6x today.

I do not like buying silver through the mail, even from a major seller like Apmex. Face-to-face suits me better.

 

I paid 12xFace last night at my coin club for $22.00 worth. That is where I get my best deals but it's only once a month.

 

I can offer no explanation why a bar with Johnson Matthey on it sells for more than one with a design. I will say that I have purchased 10 oz bars when the price of silver is low, and sold them when the price has gone up. I did not buy them with any idea that when the "chaos" begins, I will need them to buy bread. That's what the AR-15 is for. No, I buy them because they are an easy way to take advantage of low prices and an easy way to cash out. Deal with the larger bullion dealers, you will have no problems. Easy to store, easy to ship, easy way to "invest". What's the barter value of a slabbed dime with a CAC sticker?

 

According to Patrick Hellers latest monthly newsletter, currently 90% silver coin has the lowest premium of only 3.2%. He list 10 oz bars at 6.2% and Silver Eagles at 15.6%. The best play right now would definitely be "junk silver".

Also, there are only 3 basic reasons to own precious metals.
1. To be used as Alternative money (in case of fiat collapse).
2. Wealth insurance (inflation protector).
3. Investment (growth of capital).

Almost all major financial planners now recommend that you should have 5% to 10% of you net worth in precious metals.

Myself tend to follow Wealth insurance, in 1964 a quarter would buy a gallon of gas. 53 years later, that same silver quarter will still buy a gallon of gas.

 

I started with 10 oz bars years ago. They're a great, cheap way to store silver for investment. However, I don't think they're nearly as much fun as coins. Even though I do this for investment purposes, it's also partially become a fun hobby for me. I like getting mail and I like looking at my stuff from time to time. That's why I also buy silver coins and haven't purchases bars in a very long time.

If you are interested in just buying and storing, go for it. But if you are also interested in precious metals as a hobby, mix it up and get coins too.

 

hearing allot of excellent ways to proceed here and its much appreciated !!

 

this is all part of your hare brained doomsday fantasy twaddle though. Not everyone lives their lives as scared as you do.

 

Dream on, Junior.