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 Replies: 16 / Views: 2,979 |
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Valued Member
United States
50 Posts |
Could someone explain to me why a 5 oz bar of Engelhard or JM is 50 to 60 dollars more than say the Silvertowne,Apmex or other brands? I have a hard time buying a bar of silver that is 50 to 60 dollars more because of the name... Can someone please help me understand? Thanks in advance!!
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Valued Member
United States
404 Posts |
Why do people spend $1.29 on a 2L bottle of CocaCola instead of a Wegmans 2L for $.69?
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Valued Member
 United States
50 Posts |
I understand what your saying, you could also use that same arguement to ask Why pay for drinking water when the earth is 70% water. But since we are concern with taste and health issues we make our choices based upon what we prefer....However when making an investment why spend more on the same item? Is the quality better in one than the other? Is one easier to sell later on? Honestly, what is the benefit in this case? Just curious....
Edited by jcd390
06/05/2012 12:26 pm
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Pillar of the Community
Canada
834 Posts |
JM and Engelhard have always commanded a premium like that. They are well recognized and in my opinion easier to sell, I've sold a few JM 2oz bars for over $140 recently because they are rare. They are some what the Mercedes of silver refineries... But in the end of the day silver is silver buy what you want and go from there.
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Valued Member
United States
50 Posts |
swrbxxx, will you typically recover the premium?
Edited by jcd390
06/05/2012 2:08 pm
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Pillar of the Community
United States
2120 Posts |
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Why do people spend $1.29 on a 2L bottle of CocaCola instead of a Wegmans 2L for $.69? Wow. /thread. That's easily the best representation of that question I've ever seen. I'm totally using that. Oh, the answer is Labels... People pay more for recognized labels. |
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Pillar of the Community
United States
808 Posts |
Reputation. Perception. Differentiation. All are critical for any commodity to stand out from the rest. Engelhard (as well as J&M) tend to perform well when in comes to earning their premium.
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Pillar of the Community
Canada
4944 Posts |
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will you typically recover the premium? Yes, when you buy bars like JM and Engelhard you will always get a premium when you sell. |
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Valued Member
United States
50 Posts |
Thanks guys, I appreciate the quick feedback!
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Pillar of the Community
United States
1454 Posts |
Differences in mintage would be another reason for the price increase. People pay big premiums for rarity.
JM puts an essay number on its bars, correct? The other brands don't. In which case, forgers might shy away from replicating JM bars but not the others.
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Valued Member
United States
404 Posts |
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Yes, when you buy bars like JM and Engelhard you will always get a premium when you sell. You may not recover the premiums if you resell on ebay. Yes you do get a premium over spot for Engelhards and JM's, but the FVF's and paypal fees will kill any profit. Silver may double in value, but the premium won't. |
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Pillar of the Community
Canada
1502 Posts |
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Silver may double in value, but the premium won't exactly, so it doesn't matter if you pay the premium for engelhard or not for a more generic brand. At the end of the day, the profit or loss you make will be on the silver content if you sell privately or on ebay ( ebay fees are fixed, whether you sell an engelhard or a silvertowne) The 2 differences are, 1) you have to be smart enough to sell at a premium as well. Engelhards and JM bars are more recognizable but it does take a bit more time for takers if you are looking to recover all of the premium you paid for one. And 2) if you are in a pinch and had to sell to a dealer, depending on the dealer, silver may just be silver and you might loose out on the premium you've paid for a E or JM bar. |
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Valued Member
Canada
178 Posts |
I have a local dealer that sells these for 15% over spot when they have them. Guess I should grab a couple more.
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Pillar of the Community
United States
745 Posts |
One reason for premium on Engelhards is that Engelhard NO longer makes silver, these have some collector value to them too!  ... I like to collect Fractional/less than 1oz Engelhard Silver, so if someone has a 1/2 oz Engelhard Silver Bar; sell or lets trade for it.   I'm not sure if they still make JM bars, but the Silvertowne & APMEX can & keep producing new bars now  so there is no end to supply & no collector value. Edited by Penny4Me
06/05/2012 9:32 pm
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Pillar of the Community
United States
3670 Posts |
Rick an the old man did NOT even give those Engelhard bars a 2nd glance, as to testify to the trust they demand. While the odd marked bar with a lesser known name got a deep drill hole which did prove it was real.... Akane an Nam nailed it, just that simple.... I could go to K-mart an get some unknown label polo, and most likely it would never make a difference either way. Or I could go to the mall an buy a high dollar Polo shirt made by Ralph Lauren an pay a ridiculous premium, perhaps as much as three times what I would have paid at K-mart.... The Engelhard bar may not help a player pick up a lady at the night club, minus her being way smarter than your typical night club patron, but the Polo shirt might, lol. Compared to the K-mart cheaply made no name brand.... But like PoboxW said, takes longer to move higher premium products, as every Tom, Bob, an Hairy is looking for BETTER deals on running auctions, an often their competitive greed leads to stupidity, an higher prices paid on running auctions, where as they could have bowed out an went an bought the buy it now item for LESS.... So like anything there is pros an cons to ever way you chose to approach it, via generic verse higher premium name brands.... Everyone has to decide which path is best for their personal situation.... Edited by Silverhawk74
06/05/2012 9:35 pm
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Pillar of the Community
United States
4008 Posts |
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Why do people spend $1.29 on a 2L bottle of CocaCola instead of a Wegmans 2L for $.69? Don't know about Wegmans (regional brand?) but I once tried a cheap bottle of pop from Walmart and it tasted so bad I dumped it down the sink. The coke definitely would have been a MUCH better buy at 2x the price. At least, it was drinkable. :-/ |
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Replies: 16 / Views: 2,979 |
Posted 06/05/2012 12:12 pm
