Just a thought..... And an action.

SilverBaron

Over the past few months, I have sold most of my 100 oz. silver bars .....

.... and have replaced them with 1 oz Prospectors and 10 oz. Engelhard & JM bars.


I have done this for 1 reason ..... As the value of silver continues to rise ..... and it will ....

I am just thinking about what a dealer will be able sell the most of, and there by be willing to purchase in the future with silver at $50 +.

If the average person purchases $200 - $1000 at a time, it would seam to me that 100s may be a bit touger for your local dealer to handle.

At $50 + ...... This is where 1 oz - 5 oz - 10 oz bars and 90% will have the highest demand!!


Just throwing it out for thought.


Keep on stack'n!!

Rooster1

Silverbaron, I believe you are spot on.

mkman123

I agree with you!

jmski52

Your logic makes perfect sense to me, SB.

keepdachange

PreTurb

How much of a percentage hit did you have to take to accomplish this?

OnlyGoldIsMoney

I own a great many bars but I will not consider purchasing 100 oz.

Its 10 oz bars for me.

BBQnBLUES

Silver Baron;

I hate to be the only one going against the flow... but I'd rather have 100 oz bars stashed away than a bunch of 10 oz'rs cluttering up the safe !

In Jan. I "hope" to add an Englehard poured 100 oz bar to my nestegg.. That is IF I can trade my 10 oz'rs for 1 big chunk.

roadrunner

Should the 1099 issue remain, sales of 100 oz bars will automatically be tracked.

I think the smaller bars and coins make more sense too.

roadrunner

KUCH

so now we'll have to exchange our 1 oz gold for 10 - 1/10th ozs.

morgantype

I believe this concept of smaller units to trade/sell in the future is referred to as the "Gecko" theory.

For what it's worth, I saw the logic when Gecko converted the panda collection to 1/4 oz American eagles. Therefore I have been buying 1/10 oz for my gold purchases since. Most I picked up on the last major dip (gold at 1160/1180) and have not necessarily enjoyed paying the premium but I do enjoy the smaller fractional sizes.

Lately I have been focusing on accumulating silver, as my GSR in terms if dollars is weighted heavily towards gold and I am trying balance it out with recent silver purchases (still have a long way to go)

So I guess what I am saying is: I agree with silver baron.

Now, if this 1099 thing is repealed I am going to feel pretty foolish.

1jester

<< <i>Silver Baron;

I hate to be the only one going against the flow... but I'd rather have 100 oz bars stashed away than a bunch of 10 oz'rs cluttering up the safe !

. >>



I don't see how 10 10 oz. bars takes up more space than one 100 oz. bar.

That being said, I think Silver Baron's reasons are legitimate, and I did the same thing with my 100 oz. and 5 kg bars over a year ago for the same reason, trading them for gov't bullion 1 oz. rounds. I took about an 8% hit but it was well worth it even then, and now the price of silver has far outstripped any trading losses at the time; they've doubled in value since then. I still have plenty of kilo bars and kilo fractionals, but the one ouncers comprise the bulk of my wee hoard. I figure the price of silver will shoot far past $50/oz and even $100/oz in the near future (1-3 years) and possibly much, much higher. Then how many people are going to have "money" lying around to purchase 100 oz. bars?

tydye

I agree
I sold most of my 100oz and even my 50 and 25 oz over the last year. All 1, 5 and 10s now.

jmski52

Notwithstanding the fact that the reporting requirements might become a major hassle, I've always like smaller units anyway. It's not like the premium between 100 oz. bars vs. 1 oz. bars/rounds/coins is going to disappear anytime soon. There is always be a premium structure and there will always be arbitrage between quanitity and availability. I like the smaller units because they are more utilitarian in a variety of situations and eventualities.

I sold my 100 oz. bars around 1988. They were Sunshine Mining cast bars. I do miss them from time to time.

gecko109

<< <i>I believe this concept of smaller units to trade/sell in the future is referred to as the "Gecko" theory.

For what it's worth, I saw the logic when Gecko converted the panda collection to 1/4 oz American eagles. Therefore I have been buying 1/10 oz for my gold purchases since. Most I picked up on the last major dip (gold at 1160/1180) and have not necessarily enjoyed paying the premium but I do enjoy the smaller fractional sizes.

Lately I have been focusing on accumulating silver, as my GSR in terms if dollars is weighted heavily towards gold and I am trying balance it out with recent silver purchases (still have a long way to go)

So I guess what I am saying is: I agree with silver baron.

Now, if this 1099 thing is repealed I am going to feel pretty foolish. >>








I own no piece of silver larger than a 10oz (150 in 1's, 450 in 5's, and 200 in 10's) and as you pointed out, I recently transformed my gold holdings to reflect a size thats much more appealing to a broader audience. In retrospect...and I have no real regrets, but maybe I should have gone to straight tenths instead of quarters.

greatnortherncoin

your right !

BBQnBLUES

Another reason I like "Big Chunks of Silver" is the fact that they're rather _impressive to hold in ones' hand.... but eventually will end up going to my survivors to **fight over** after I'm gone....

Bear

Sooo, you are saying that my 1000 Kilo bars of silver are passe?

OPA

<< <i>Sooo, you are saying that my 1000 Kilo bars of silver are passe? >>



Not if you use them as protection in a bomb shelter

Ciccio

Meanwhile, I bought 2 x 5g Engelhard bars...

SilverBaron

How much of a percentage hit did you have to take to accomplish this?




It worked out to just a few percent. It would have been much worse .....

except that I worked a deal with my dealer. I would leave a couple of 100's

with him ..... with instructions that when they sold, to immediatly put me into

Prospectors or 10's. This way, he did not have to purchase the 100's outright,

and I got a break on the 1's and 10's. This deal also put me instantly back

into the silver after a sale .... no worries about a market turn increasing the

cost of the trade.


Now, if this 1099 thing is repealed I am going to feel pretty foolish.


Not at all .......... With the price of PM's going ever higher, most dealers can

only stock what their customers can afford. Smaller units will definatly be more

affordable / in demand.


so now we'll have to exchange our 1 oz gold for 10 - 1/10th ozs.


Something to think about.

Except for the gold bars that are in my core collection,

I have traded out of my bulk / common 1/2 oz and larger bars for 1/10 ths.



Keep on Stack'n !!!

gsa1fan

Did you swap out for all quality bars & Prospectors?

SilverBaron

Did you swap out for all quality bars & Prospectors?


All Prospectors, 5 & 10 oz. Die Struck Engelhard & JM's.

gsa1fan

fantastic!

Weiss

Rock solid logic all 'round.

But if you're 1099ing and SHTFing your silver stack, I believe US 90% is the eventual destination on that continuum.

jmski52

But if you're 1099ing and SHTFing your silver stack, I believe US 90% is the eventual destination on that continuum.

My first forays into pms were via bags of halves. Ever since, it's pretty much been a diverse mixture. I figure a mixture of denominations/sizes provides the most versatility - for large conversions or small ones. I'd hate to dump a half bag of silver dimes on someone when a few gold 1 ozers will do as well.

DoubleEagle59

I agree with the logic.

I guess if you own the 1000 oz ingots, then you should give them away