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 Replies: 23 / Views: 3,351 |
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New Member
United States
37 Posts |
Working with ounces and grams is pretty easy. I'm sure most people handle it fine. The trouble comes in when you're dealing with two different types of ounces!! There are 31.1 grams in a troy ounce, but 28.3 grams in a regular ounce.
I wonder how many people use the 28.3 conversion when buying PM and think they're getting a great deal? Imagine this hypothetical situation.
Lets say the spot price of gold is $1500. Now, you sell 3 10-gram bars for $1500 ($1447 for the 0.965 troy ounces of gold and the rest "premium"). If the buyer uses the 28.3 conversion factor he would think he's getting 1.06 ounces of gold for the $1500 (that'd be like buying below spot).
I'd never intentionally prey on someone like that, but I'm sure this happens more often than we would think.
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Valued Member
United States
200 Posts |
It happened with me. Bought 90% coins thinking troy oz but got regular oz. When I got them, something felt out of place. Found out the two different ounces. Couldn't do anything as the seller never mentioned troy oz and the total amount was not much. Learned a valuable lesson for a small price. I am much more comfortable with grams. A gram is a gram is a gram.
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Valued Member
 Australia
491 Posts |
Interesting comments thank you! Hi miggs Quote:
The number you wrote is exactly, the actual gold content in a British Sovereign I like collecting KGV items and tripped over my tongue when I saw a heap of Uncirculated 1911-1931 King George V Gold Sovereigns but I do not know what country they were from. The price of gold frightens me and I went back to a bulk silver buy I have been chasing. |
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Bedrock of the Community
Australia
21788 Posts |
Although it is a bit confusing, I like the Portzebian weights and measures system as published in the MAD magazine, about 40 years ago.  ------------------------------------------------------------------------------------------------------------------- Helen Of Troy was by some, considered to be the most beautiful woman that ever lived, the face of whom launched 1 thousand ships. What amount of feminine pulchritude required to launch ONE ship? That would be rated at ONE milli Helen.  Edited by sel_69l
02/25/2013 06:15 am
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Pillar of the Community
United States
1721 Posts |
Many of my customers weigh their PM's on a postal scale before coming to see me. You want to sell me 16 ounces of PM as a troy pound? OK with me . When you explain the difference, some people give you a blank stare  or they act like you are trying to snooker them. |
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Valued Member
Canada
281 Posts |
kg5, Although gold Sovereigns coins are inherently British since the Renaissance, in early 20th century, they were minted by Canada,Australia,India and South Africa for each a short period.They have a mint mark representing their respective country. I was afraid of the gold price back in 2007 but after extensive research, I realized the paper money printing around the world was and still is out of control. Gold is not an investment but a hedge against inflation. Ask me if I regret paying $700 an ounce...  The gold price is manipulated but will still go much,much higher. |
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Valued Member
Australia
491 Posts |
Interesting miggs! To tell the truth we bailed out of most of our shares when we found out about the USA housing market about 12 months before the crash in 2008. After much thought we went for a collectable that was not classified as an asset in Australia and that has proven to be a great move on our behalf. We have been selling this pool of collectables that we have gathered over the last 15 years and it adds nicely to our monthly cash flow. Our stock is large and will last many years and we can keep topping it up and nothing else is going to give us the same return. We have some very expensive non asset collectables that we have put to an auction house to move them as our environment is no longer suitable for there storage and we do not want to loose the value we have in them. Next place for this money pool is gold and collectable coin Sovereigns or the plain Sovereigns or just in oz are all in our consideration. Your info is great stuff! Quote:
Although gold Sovereigns coins are inherently British since the Renaissance, in early 20th century, they were minted by Canada,Australia,India and South Africa for each a short period.They have a mint mark representing their respective country. |
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Valued Member
Canada
281 Posts |
kg5, Dumping your shares in 2007 Collecting collectables = no capital gains tax Sovereigns are nice but comes with high premiums. If you're going to diversify with metals, check out those Valcambi combiBars. It's bullion,divisible and with reasonable premiums. |
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Valued Member
Australia
491 Posts |
I have been looking at gold and can not figure why gold is at the price it is with the general way the world currencies are. The Australian Dollar is still 25c plus in the dollar too high to most of the major currencies.
I still have 6 weeks till I need to look at reinvesting and buying and selling through our business has to be the best increase to our investment but...
50g Valcambi CombiBar Gold Bullion Bar (Brand New Bars)LBMA and COMEX Approved Good Delivery Brand. AU$ $2520.10 ea. That is AU$50.4 a gram!
I am very glad I can not do anything at the minute because I still think buying gold now is like buying shares in 2007.
But what do I know...........?
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Pillar of the Community
Canada
2805 Posts |
It's funny because $1 is pretty close to 1 gram of silver. If only we could start a metric silver standard...
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Valued Member
Australia
491 Posts |
At the same Bullion House!
1gram PAMP Suisse Minted Gold Bullion Bar (Brand New Bars)1 to 24 for $59.57 ea.
Why is a combi bar AU$50.4 a gram and a PAMP bar AU$59.57 per gram?
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Valued Member
Australia
491 Posts |
Hi nalaberong Quote:
It's funny because $1 is pretty close to 1 gram of silver. If only we could start a metric silver standard... Yes I grow up with lbs and ozs but that is 37 years ago since the change over to grams etc. I have become and like very much to work in grams now. So yes I would like to see silver in grams. And here it is! I might just buy a couple of these! 10 X 10g Valcambi CombiBar Silver Bullion Bar (100g) (Brand New)LBMA and COMEX Approved Good Delivery Brand. For AU$135.16 ea. So that is AU$1.35c per gram for silver. |
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Valued Member
Australia
491 Posts |
Now why are they charging so much for silver?
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Pillar of the Community
Canada
2805 Posts |
I'm a bit leery about CombiBars because you could get marginally more or less than 1 gram if the break is uneven. But then I've never actually broken one, so I'm just extrapolating this from my chocolate-breaking skills.
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Valued Member
Australia
491 Posts |
Hi nalaberong. Quote:
I'm a bit leery about CombiBars because you could get marginally more or less than 1 gram if the break is uneven. Very interesting and I can very much see your issue. At first it made me think that it is not a good idea as well to buy Combibars. But I am sure a bullion dealer would adjust a payment for a difference of 50c or so, either way in weight. They are by far the best buy in Gold that I can find at the minute. I am going to follow things for another 6 to 8 weeks. Another area that interests me is Australian silver coins. This bullion company is selling nothing by looking at the number of lots they have on offer. The coin one has been the same for over 2 months now. 1kg Bags of Pre 1946 Australian Sterling Silver (92.5%)is AU$850.97 A week or so ago they were AU$980 KG From 1910 to 1945 (known as Pre) Australian currency was struck and issued in sterling silver (92.5% pure) in the following denominations: Florins, Shillings, Sixpences and Threepences. |
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Replies: 23 / Views: 3,351 |
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Posted 02/24/2013 4:08 pm
