Gold & Silver bars: Do wear marks or slight damage matter?

Jmsb

Do scratches, nicks, etc., decrease the value or desirability of gold and silver bars? I'm mostly relating this to 10 oz silver bars and 1 oz gold bars.

Weiss

I'd liken marks and "wear" to not having original packaging.

They might not decrease value (at least not by much). But as a buyer, given the choice between bars with marks and bars not sealed in original vinyl, and those without marks and still sealed in their original packaging, I'm going to pick the original sealed and undamaged bars first by a long shot.

Barndog

<< <i>I'd liken marks and "wear" to not having original packaging.

They might not decrease value (at least not by much). But as a buyer, given the choice between bars with marks and bars not sealed in original vinyl, and those without marks and still sealed in their original packaging, I'm going to pick the original sealed and undamaged bars first by a long shot. >>



same here. In fact, I regularly pass on bars that are messed up. And I do not buy one ounce or smaller gold bars outside of the original package

derryb

anyone wanting pristine metal should pay the premium for the bullion collector coins.

Weiss

<< <i>anyone wanting pristine metal should pay the premium for the bullion collector coins. >>



...or be a little discriminating and avoid opened, beat up bars and coins.

It doesn't take much effort to be selective. Especially if there is no difference in premium between original, unmolested product and abused product--why would anyone want the abused product?

The contents might be the same. But there is a reason for scratch & dent sales, there is a reason why floor models sell at a discount over the unopened box on the shelf. And whether it matters to you is only half the equation. Because when it comes time to sell, it might matter a lot to the person you're selling to.

1970SilverArt

It depends on the bar in question. If, for example, it is a regular 1-oz Engelhard silver bar (with the "Big E" on the front), then any marks or slight damage will not matter because there is no collector value in it. If it is an old silver art bar, then it might matter to some depending on how picky the collector is and depending on what type of silver art bar is. Another example that I can give is that if a silver bar that has wear marks or slight damage to it is a holiday-themed silver art bar, then it may not matter very much (in most cases) but if it is a rare and hard-to-find Coca-Cola bar, then condition will play a bigger factor in the value of the bar as well as demand for it because even though Coca-Cola silver art bars technically bullion bars, they are "collectible bars" with collector premiums attached to them. Generally speaking, gold and silver bars are different from numismatic coin collecting in that numismatic coins that have been cleaned or damaged in any other way will affect the value depending on what grade a TPG (Third party grader) gives it if they decide to grade it. Most gold and silver bullion bars are not graded by a TPG and the value of most generic bullion bars are tied more to the value of the metal than it is to condition and collector value. Wear and damage marks will play a much bigger factor for numismatic gold and silver coins than it does for regular generic gold and silver bullion bars.

PerryHall

<< <i>Do scratches, nicks, etc., decrease the value or desirability of gold and silver bars? I'm mostly relating this to 10 oz silver bars and 1 oz gold bars. >>



Heavy marks are undesirable and do adversely effect their saleability. Some marks are to be expected on the older poured bars due to handling since they were never made with any protective wrapping or cover so allowances should be made for these bars. I personally avoid any beat-up bars.

OnlyGoldIsMoney

When I am buying strictly as bullion I will avoid damaged, scratched and abraded items. If it is pre-1933 US gold I want pieces that would grade as problem free at PCGS. Since 1 ounce gold and 10 ounce silver is common I will bide my time for attractive examples unless price is too low to pass up.

Old poured bars often show cleaning, scratches or other damage simply because they were made 40 plus years ago as industrial products. Very scarce old poured bars are seldom available; marks and/or slight damage amount for little. That said, a really nice old poured bar will attract more interest.