Hey guys, Im new to collecting silver and was trying to figure out why some pieces are going for more than others. I am mainly looking at ebay for prices right now. For instance; A Johnson Matthey 1 Troy Oz .999 Finse silver bullion, the bid is already up to $57. Why would the bid be that high if silver is only worth about $44? Also an Engelhard 1 Troy Oz silver bar seems to go for around $50. Most online and places seem to charge $2 over spot. Why would people purchase these for more than $6 over spot? Does this have something to do with the mine that they came from? Any help will be greatly appreciated! If you have any links that have any information on this subject please post them. Also, the Troy oz seems to be slightly larger than a real oz, so when they say the price of silver is about $44 is this for a normal oz or a Troy oz? Thanks! Kifeter
Hey there. Welcome. Some refiners are more reputable than others, and command a premium. You'd be ok buying a random round, probably, but Englehard, etc. are trustworthy pieces. And precious metal spot prices are in Troy ounces. Other metals, like copper, are in AV ounces.
Thanks Lon Chaney. Does you happen to know what would be a reasonable price for the more reputable refiners? And what the list of reputable refiners are? Thanks
Well, you mentioned them. Engelhard and Johnson Matthey are probably the top, I think. I don't know a ton about bullion, really. Also, of course, governments are probably the best producers of bullion, and command the highest premiums (American Eagles, Canadian Maple Leafs, krugerands, silver pandas, etc). I'd say try to buy as close to spot as you can, but a few dollars extra for one of these rounds is normal.
If you're looking for silver bullion, you may want to read some of the threads in the Bullion forum. Generally, I feel that the 0.999 fine stuff (ASEs, Pandas, Maple Leaf's, Philharmonics, and various art/bullion bars) is overpriced. People pay a premium for it that is largely unjustified unless they are at or near capacity for secure storage. If you still have room in your safety deposit box (and don't need to pay extra just to add storage capacity) then I would suggest shopping for 90% silver coins and sterling (92.5%) medals or rounds. While 0.999 often commands a 5% premium, sterling often sells at a discount to coin silver. Does that make any sense? ASW (actual silver weight - often measured in troy ounces) is ASW.
Well, I'm pretty sure that's because random sterling rounds or whatever has an unknown alloy, usually. 90% and 40% silver coins are well known, because they're all made the same, and by the government. They all contain the same mixture of silver and copper. And .999 rounds are obviously pretty much solid silver, with just an incredibly tiny bit of copper in them. But, sterling doesn't follow those guidelines because many pieces are different. Of course it's .925 silver, but the .075 is sometimes a mystery. Hence the lower price.
Sterling has always had a discount due to trouble refining it. I would not buy sterling unless at least a 10% discount to ASW. Junk coins, 90%, or rounds are better stores of silver for you.
