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Why are 8 ounce silver rounds and bars devalued?

TennesseeDaveTennesseeDave Posts: 4,722 ✭✭✭✭✭
edited April 13, 2023 2:50AM in Precious Metals

I have been watching on JM Bullions website at their buyback prices. They are offering $6.50 over melt for SAE's or $32.28
but for some reason they are offering $190.24 or $2 per ounce below melt for 8-ounce silver rounds and bars. Can someone enlighten me as to the reason? Thanks in advance.

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Comments

  • VanHalenVanHalen Posts: 3,768 ✭✭✭✭✭

    Doubt if they get many takers at $2 under melt.

    My guess is that most 8 ounce pieces are marketed as 1/2 advoirdupois pounds. A weight that can cause confusion using the Troy system.

  • PerryHallPerryHall Posts: 45,192 ✭✭✭✭✭

    @VanHalen said:
    Doubt if they get many takers at $2 under melt.

    My guess is that most 8 ounce pieces are marketed as 1/2 advoirdupois pounds. A weight that can cause confusion using the Troy system.

    A half avoirdupois pound is eight avoirdupois ounces which is certainly different than eight Troy ounces. I bought a poured 8 ozt silver bar made by "Prospector's Gold and Gems" from someone on the BST a couple of years ago and I sure as hell didn't get it that cheap. :D

    Worry is the interest you pay on a debt you may not owe.

  • TennesseeDaveTennesseeDave Posts: 4,722 ✭✭✭✭✭

    These say 8 troy ounces on them.

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  • rickoricko Posts: 98,724 ✭✭✭✭✭

    @TennesseeDave... The first reason that comes to mind, is that product is not as 'liquid' (meaning it does not sell well) as SAE's.... Cheers, RickO

  • tyler267tyler267 Posts: 1,232 ✭✭✭✭

    I'm would guess low demand. I think most people like putting things in nice neat piles, so most buyers want 1 oz, 10 oz, and 100 oz and to a lesser extent 5 oz and 50 oz. 8 oz is a strange weight for a modern bar.

  • blitzdudeblitzdude Posts: 5,282 ✭✭✭✭✭

    Gutter metal. RGDS!

    The whole worlds off its rocker, buy Gold™.

  • JBKJBK Posts: 14,519 ✭✭✭✭✭
    edited April 15, 2023 5:17AM

    @TennesseeDave said:
    These say 8 troy ounces on them.

    My guess is that this photo answers the question.

    It may not be a bias against 8-ounce bars so much as a bias against the form that most 8-ounce bars come in. These "silver banknotes" are presumably an acquired taste with a more limited appeal. They're sort of huge "art bars".

  • TennesseeDaveTennesseeDave Posts: 4,722 ✭✭✭✭✭

    We can't change history. If that's what you're talking about.

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  • meluaufeetmeluaufeet Posts: 746 ✭✭✭
    edited April 15, 2023 1:41PM

    Could it be that it says 'Will pay to the bearer on demand Fifty Dollars". I thought that was a no no. Kinda like the NORFED silver rounds.

  • TennesseeDaveTennesseeDave Posts: 4,722 ✭✭✭✭✭

    @meluaufeet said:
    Could it be that it says 'Will pay to the bearer on demand Fifty Dollars". I thought that was a no no. Kinda like the NORFED silver rounds.

    It has nothing to do with this bar in particular. I was just saying that JM Bullion is offering $2 less than melt per ounce for 8-ounce silver bars and rounds of any kind.

    Trade $'s
  • JBKJBK Posts: 14,519 ✭✭✭✭✭

    @TennesseeDave said:

    @meluaufeet said:
    Could it be that it says 'Will pay to the bearer on demand Fifty Dollars". I thought that was a no no. Kinda like the NORFED silver rounds.

    It has nothing to do with this bar in particular. I was just saying that JM Bullion is offering $2 less than melt per ounce for 8-ounce silver bars and rounds of any kind.

    But what do most 8-ounce silver bars look like? My guess is that they usually look like this bar.

    I always understood (but could be wrong) that much or even most bullion that is purchased by dealers is not melted but rather is resold in its existing form. Maybe these "banknote bars" are not very desirable and must be melted and then restruck or recast into another form.

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