What's a good price to pay for a small amount of 90% silver?

ajaan

Let's say $20 face value. Is 13x face delivered too much? TIA.

guitarwes

That's a good price delivered right now.

roadrunner

<< <i>Let's say $20 face value. Is 13x face delivered too much? TIA. >>



Considering there's someone on the BST offering to pay 13X face for any quantity, and 13.2X for >$250 face, I'd say 13X is a very fair deal. You probably couldn't get it priced that low from any major dealer.

OPA

<< <i>

<< <i>Let's say $20 face value. Is 13x face delivered too much? TIA. >>



Considering there's someone on the BST offering to pay 13X face for any quantity, and 13.2X for >$250 face, I'd say 13X is a very fair deal. You probably couldn't get it priced that low from any major dealer. >>



How true...let me know if anyone is willing to give you that deal.

cohodk

So ASEs are about $20/oz.
90% is about $18.25/oz
1 oz round is about $16.75/oz
Paper spot price is $14.60

Talk about a contrived market.

secondrepublic

<< <i>So ASEs are about $20/oz.
90% is about $18.25/oz
100 oz bars are about $15.75/oz

Talk about a contrived market. >>



LOL. What's the spread between (1) the commodity market price of coffee; (2) a can of Taster's Choice; and (3) a Grande coffee at Starbucks?

cohodk

Do you actually think that is a similar comparison?

perkdog

I stack 1 ounce rounds and bars when Im not picking up 90%, my thought process is it will be easier to liquidate smaller portions rather than try and move all or nothing amounts.

Baley

<< <i>

<< <i>So ASEs are about $20/oz.
90% is about $18.25/oz
100 oz bars are about $15.75/oz

Talk about a contrived market. >>



LOL. What's the spread between (1) the commodity market price of coffee; (2) a can of Taster's Choice; and (3) a Grande coffee at Starbucks? >>



>>Do you actually think that is a similar comparison? <<

It's not too bad a comparison.

How about a pound of copper plumbing fittings, a pound of copper pipe, or a pound of pre-1982 pennies?

cohodk

<< <i>

<< <i>

<< <i>So ASEs are about $20/oz.
90% is about $18.25/oz
100 oz bars are about $15.75/oz

Talk about a contrived market. >>



LOL. What's the spread between (1) the commodity market price of coffee; (2) a can of Taster's Choice; and (3) a Grande coffee at Starbucks? >>



>>Do you actually think that is a similar comparison? <<

It's not too bad a comparison.

How about a pound of copper plumbing fittings, a pound of copper pipe, or a pound of pre-1982 pennies? >>




Well, if I were to compare to second republic's example I would say something like...

1. The spot price of silver as this would be a direct comparison.
2. A bag of silver shot as this would need to be "manufactured" or "value-added" into a consumable product like the coffee beans would.
3. A Tiffany sterling silver necklace as this would represent a high end consumer product just like the Starbucks coffee.

My scenario listed 3 end products mostly likely to be in their final form. His did not. The unit of measure is also consistent in my example--ounces. His example goes from pounds, to a can , to a "grande".

I did go back and edit my original post as some might not think a 100 oz bar is not a final consumer product. I also added paper spot so the the value added component of manufacture from the raw material is apparent.


To me, a cup of coffee is a cup of coffee. Some choose to pay more for the same cup apparently. AMPM coffee, vs k-cup coffee, vs Starbucks coffee would have been a better comparison to my example.

So what is a good price to pay for a cup of coffee?

Sorry ajaan, a little derailed, but I thunk you question revolves around price discovery and personal consumer preference.

jmski52

<< So ASEs are about $20/oz.
90% is about $18.25/oz
100 oz bars are about $15.75/oz

Talk about a contrived market. >>

Seems like a completely realistic market to me. I really can't figure out what you're trying to say. Are you getting some other (better?) prices from somewhere?

If you are, you should make it known so that we can have a "more efficient" market. Correct?

As you well know, the fabrication costs and distribution costs are different for each of the above. Why do you reach so far to try and make a point (an incorrect one at that)?

Don't you believe what the physical market is saying? I guess that's your point.

cohodk

My point is that an ounce of silver is an ounce of silver. If you think that's wrong then so be it. I'm comfortable and confident in my opinion.

What is the physical market saying if one ounce is 16 or 20? I notice the "bid" price is still in the $14's. So what is the physical market saying?

rawteam1

<< <i>My point is that an ounce of silver is an ounce of silver. If you think that's wrong then so be it. I'm comfortable and confident in my opinion.

What is the physical market saying if one ounce is 16 or 20? I notice the "bid" price is still in the $14's. So what is the physical market saying? >>


Cmon coho, that's some bs you know that, an oz of silver is only an oz of silver, only when thee owner has bought it at a substantially higher price like 50-200%+...😜... It then has reached its nirvana of being actually an oz...

TwoSides2aCoin

<< <i>

How about a pound of copper plumbing fittings, a pound of copper pipe, or a pound of pre-1982 pennies? >>



If two come with a plumber there's a big difference.

BBN

If anything, I think it just shows you what customers prefer. I know people love 90%, but will still pay the extra premium for SAEs.

BAJJERFAN

<< <i>My point is that an ounce of silver is an ounce of silver. If you think that's wrong then so be it. I'm comfortable and confident in my opinion.

What is the physical market saying if one ounce is 16 or 20? I notice the "bid" price is still in the $14's. So what is the physical market saying? >>



It's saying different strokes for different folks. There is room for different players. Some prefer the extra "measure of security" they believe is afforded by ASEs. There is a difference in cost basis too.

Even at 40+ million coins per year, ASEs are a drop in the bucket of the silver market, so why do people here chastise others who apparently don't buy like they do?

rawteam1

Wow, just when you think you have heard it all, lol, bajjer come up with, silver Eagles offer security... Crazy... Lol... Oh and that's extra security...???... Lol...

piecesofme

How about a pound of copper plumbing fittings, a pound of copper pipe, or a pound of pre-1982 pennies? >>



If two come with a plumber there's a big difference

How funny you say that. My plumber allows me to pay him in silver. My electrician has accepted it once too.

Baley

So what is a good price to pay for a cup of coffee?

It depends on the ambiance of the location, how much work I have to do to get the cup of coffee, the quality of the ingredients, the quality of the equipment, and the skill of the crafter of the cup of coffee.

I can and do make it myself in my kitchen for a dime, and I can and do pay north of $5, both willingly and happily, depending on the circumstances.

So what is a good price to pay for an 8 oz steak?

Same analysis, anywhere from less than $5 to well over $50.

My point is that an ounce of silver is an ounce of silver. If you think that's wrong then so be it. I'm comfortable and confident in my opinion

An ounce of silver is most definitely NOT an ounce of silver. High quality 1802 draped bust half dimes are one of the most expensive ways (per oz.) to buy silver.

1000 oz bars are one of the cheapest.

And there's everything in between.

BAJJERFAN

<< <i>Wow, just when you think you have heard it all, lol, bajjer come up with, silver Eagles offer security... Crazy... Lol... Oh and that's extra security...???... Lol... >>



Some folks have a better "comfort" level with ASEs than other forms. What's so hard to understand about that? I guess they aren't all like you which is probably a good thing, lol!

rawteam1

So what is it then? Security or comfort???...

rawteam1

You want comfort? Then go to a Comfort Inn...

BAJJERFAN

<< <i>So what is it then? Security or comfort???... >>



Use them interchangeably.

rawteam1

Roll Tide...

BAJJERFAN

<< <i>Roll Tide... >>



Do you think that your team would have fared any better? What they are paying their coach is like putting a $100 premium on a silver eagle.

rawteam1

<< <i>

<< <i>Roll Tide... >>



Do you think that your team would have fared any better? What they are paying their coach is like putting a $100 premium on a silver eagle. >>


I didn't know the coach played in the games nowadays...

cohodk

An 1802 half dime is to a bicycle as a 1000 oz bar is to 18 wheel car hauler.

I don't chastise anyone for buying ASE's. I just don't see a relative value vs other types of collectible silver. With spreads as wide as they are today, one can acquire 20+% more ounces via bars over ASE's. If ones objective is to acquire the mist ounces, then bars are clearly the way to go.

BAJJERFAN

<< <i>An 1802 half dime is to a bicycle as a 1000 oz bar is to 18 wheel car hauler.

I don't chastise anyone for buying ASE's. I just don't see a relative value vs other types of collectible silver. With spreads as wide as they are today, one can acquire 20+% more ounces via bars over ASE's. If ones objective is to acquire the mist ounces, then bars are clearly the way to go. >>



That's true, but it seems like that's not necessarily everyone's objective. I figger everyone here pretty much knows that.

BAJJERFAN

<< <i>

<< <i>

<< <i>Roll Tide... >>



Do you think that your team would have fared any better? What they are paying their coach is like putting a $100 premium on a silver eagle. >>


I didn't know the coach played in the games nowadays... >>



He doesn't, but he's responsible for the players that do.

CYA in about a month!

rawteam1

Lol....

rawteam1

<< <i>

<< <i>An 1802 half dime is to a bicycle as a 1000 oz bar is to 18 wheel car hauler.

I don't chastise anyone for buying ASE's. I just don't see a relative value vs other types of collectible silver. With spreads as wide as they are today, one can acquire 20+% more ounces via bars over ASE's. If ones objective is to acquire the mist ounces, then bars are clearly the way to go. >>



That's true, but it seems like that's not necessarily everyone's objective. I figger everyone here pretty much knows that. >>


Lol, yea the jig is up, most ozs only if you run a leper colony, a quarantine camp, original jewelry manufacturer or small Ag use manufacturer...
All else is a dog n pony show, a roulette game of premiums...

rawteam1

Make that a Russian roulette game...

cohodk

<< <i>

<< <i>An 1802 half dime is to a bicycle as a 1000 oz bar is to 18 wheel car hauler.

I don't chastise anyone for buying ASE's. I just don't see a relative value vs other types of collectible silver. With spreads as wide as they are today, one can acquire 20+% more ounces via bars over ASE's. If ones objective is to acquire the mist ounces, then bars are clearly the way to go. >>



That's true, but it seems like that's not necessarily everyone's objective. I figger everyone here pretty much knows that. >>



What other objective is there?

gsa1fan

Roll Tide done Rolled last night

BAJJERFAN

<< <i>Roll Tide done Rolled last night >>



Well it wasn't totally unexpected by those who follow either team.

roadrunner

Methinks the physical bullion market is making a point about liquidity. All markets sell less liquid and lower demand items for discounts. Just because ASE's (BU and proof), circ common Morgans, and 90% sovereign silver are high on the list for premiums paid, doesn't mean the buyers are nuts for paying it. Most bars are not very liquid when compared to the above items which are easily recognizable and authenticated by most bullion buyers. I've never been comfortable with bars of any sort, esp. 10 oz, 100 oz, and 1000 oz silver bars...which are not easily handled (or divisible) like a 1 oz ASE or a simple 1964 Roosevelt dime. The bigger bars more closely approximate the paper price of silver in the futures markets where 1000 oz good delivery bars are "traded" daily between computers. If you want the real stuff in your hand, and in a format that is easily handled, authenticated, divisible, beautiful, somewhat collectible, etc....then you're going to pay a premium, sometimes a very large premium. Compared to the total above ground silver in the world, the % that is ASE's, circ Morgans, and even US 90% is probably very small. How many paper silver futures contracts are traded each year? Figure approx 1% of all those contracts result in actual delivery.

If you count otc silver derivatives we're talking $76 BILL notional....or about 5 BILL oz of equivalent silver (6X annual world production). If you want to know why paper silver is "cheap" look no further. 44 MILL oz of ASE's from the mint each year (equal to 4 hours of the annual US budget) kind of pales next to 5 BILL "leveraged paper" ounces. You can pay the 20-30% ASE premiums or stand in line with those holding the $5 BILL in otc silver derivatives. As in any market....you get what you pay for. Even the premiums for silver Maples, silver Libertads are up there, though not on par with US ASE's. Easy recognition counts for something, especially from your own country. To quote one forum member, "show me an (otc silver) derivative's contract." Exactly the point. I'll take a pile of ASE's before a paper "contract" that exists up in some cloud. Still, that doesn't keep those paper derivative's contracts that are tied into actual silver futures from seriously affecting the markets....and helping to keep paper silver all that much cheaper.

A 100 oz silver bar is about as interesting as a silver future's contract. No surprise their prices are quite similar.

What kind of liquidity would a $500 or $1,000 FRN have today if they started printing those again? Would J6P rather have a stack of $1's or $5's than a single $500 or $1,000 bill? Which works best during his normal daily transactions? In a currency crunch, you'd probably see the larger bills selling for large discounts just due to liquidity. Why would one expect anything different for 100-1000 oz bars?

During the 2008 crash, even silver bars were fetching 20-30% premiums. The ASE's were up to $7-$8 premium (75-90%). If silver continues to head down, I would expect similar premiums showing up again.

Baley

<< <i>

<< <i>

<< <i>An 1802 half dime is to a bicycle as a 1000 oz bar is to 18 wheel car hauler.

I don't chastise anyone for buying ASE's. I just don't see a relative value vs other types of collectible silver. With spreads as wide as they are today, one can acquire 20+% more ounces via bars over ASE's. If ones objective is to acquire the mist ounces, then bars are clearly the way to go. >>



That's true, but it seems like that's not necessarily everyone's objective. I figger everyone here pretty much knows that. >>



What other objective is there? >>



1) capital gain after the holding period
2) pride of ownership (appreciation of art, history, rarity, etc) during the holding period.

piecesofme

I don't know what you should buy it at, but I bought it low enough to make it worth while selling the same day for $13.30 locally. Premiums are very strong right now, I prolly could've gotten $13.50 but I didn't want to get greedy because the dealer treats me right.