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 Replies: 24 / Views: 2,570 |
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Pillar of the Community
Canada
3692 Posts |
At what point in your stacking do you think it's necessary to switch over to larger bars? I mean you start off with .900 and the ilk, then to 1 ounce rounds. After how many 1ozt rounds do you think one should go over to 10ozt or kilo or 100ozt bars? Should one consolidate their one ouncers into large bars? How many one ouncers should one have on hand since they are not even that valuable on their own? (For example, I wouldn't sell an ounce to pay off a phone bill.)
Pretty general question. No specifics in mind, just babble.
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Pillar of the Community
Canada
1502 Posts |
If one have to sell silver to pay for bills then it's not the time to be investing in silver (unless your silver costed $8/oz and you are retired)
I think it all depends on what you can afford and what you fancy. If all I have is $3000 to spare I wouldn't put it in kilo bars, but add an 0 to that and i'll be buying larger bars. Makes little sense to consolidate what I already own unless I can make a dollar doing so. All that said, I like 1oz coins and bars and my preference for it trumps all other reasoning.
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Bedrock of the Community
13014 Posts |
Depends why youre buying the silver
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Bedrock of the Community
 United States
12819 Posts |
You may find a bullion dealer who's willing to "color up" your silver into larger bars but there's no incentive for them to do so unless they can make money on the transaction - so be wary of paying to consolidate. I don't have a strong preference, but 1-oz .999 rounds/coins are the easiest to deal with and liquidate if needed IMO. In other words you could sell a few rather than having to sell a 10-oz ingot and have a bunch of cash on hand. They also stack nicely in tubes. I do have a few 1, 5, and 10-oz bars hiding out in the ol' safe and those are cool and fun to handle. It's generally what I feel like buying at the time and what my bullion guy has in stock. And there's no harm in saving junk 90% as well. Well that wasn't much help, sorry.  |
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Pillar of the Community
 Canada
3692 Posts |
baseball: Can you expand on that at all? It's a good answer but it's unfinished.
Edited by Libertad
02/18/2013 7:09 pm
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Pillar of the Community
United States
2543 Posts |
I think basebal means, are you collecting for long term security ? Or for short term profit or liquidity ?
If it is long term investment, then silver is silver no matter what the size. Storage would be my only consideration ? Larger bars take up less room than many rounds or tubes. It is like Las Vegas, if you are not going to make bets with it , then trade up to larger chips. ( color up as Celtic says [;D] )
If you need the liquidity larger bars are a lot harder to move than smaller rounds. Everyone has $35 to buy a round. How many have an extra $3500 to buy a 100 oz. Smaller the bar the bigger your resale base.
Now buying art bars or old pours for an investment of silver plus premium, is another whole story.
Edited by denco7
02/18/2013 7:27 pm
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Pillar of the Community
Canada
1723 Posts |
If you are buying to hold long term then it doesn't really matter what form you want to hold your silver in. Kilos are fine to stack for 30 years down the road. If you are wanting to buy and sell along the way, then you may want to stick with 1oz and 10oz that way you are able to break up the silver and sell it around. Some can be sold at auction, others for a BIN...craigslist or any other means that you choose. When you are stuck with a kilo bar, you close a lot of doors...since many average people would not have the funds to buy. Not saying you cant get it sold, but the average Joe is usually the best buyer. For me I have my stack spread out over different sizes and forms. JMHO. Here it is. https://goccf.com/t/136778Edited by samsnate
02/18/2013 7:28 pm
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Pillar of the Community
United States
1200 Posts |
Virtually none of us will ever stack such a massive amount of PM that the size of our hoard will mandate converting into 100oz bars. In addition to that:
1--100oz and kilo bars don't have the liquidity that 10oz bars and smaller pieces have.
2--Coins and rounds can be easily and efficiently stored in tubes and monster boxes, so the inconvenience of storing 1oz pieces is minimal.
3--CoinSafe Tubes just came out with a tube for 20 1oz bars, so 1oz bars now also have the same storage ease and efficiency that coins/rounds have.
Because of these things, I don't think there is any point when it becomes necessary to convert into those big bars for almost any of us. As for those very few
who have arrived at that level and do have that problem--congratulations and good for you! I envy your accomplishment and I wouldn't mind having your problem.
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Bedrock of the Community
13014 Posts |
Quote:
baseball: Can you expand on that at all? It's a good answer but it's unfinished. Like Denco mentioned basically what I mean is the size and type you should have/would be best largely depends on what your end game with the silver is/why youre buying it. If its purely investment, sell the silver and buy paper silver. If you just like silver and like having it get whatever you like. If youre a prepper and want it as a back up plan you want 1 oz with maybe a few 5 oz. 1 or 2 10 ounce would be ok but no more. If the goal is to use it as money the larger your piece the more youll over pay for an item. If some guy has food and you need it hes not going to be giving you change. If its as a hedge/diversifying any size under 1000 is fine. 100 is the largest I would ever consider going but personally I would stick to 10 as the largest. Yes the 100 sell but it is a limited buying base and they sell pretty close to spot. If you needed to sell 100 ounces its real easy to find 10 people that want a 10 ouncer where people may not always be in the market for the 100 or more specially your 100. If its all those things than designate percentages of your stack for each. Have the 1 ounce bars, sell some of it off for the paper silver, have some of stuff just because you like it ect. Just add to each as you get more over time to make sure your stash keeps the percentages you want in each category |
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Pillar of the Community
United States
1200 Posts |
@bb21--- "...sell the silver and buy paper silver." ---?!?!?!?
WOW! You're infinitely more trusting than me. I recognize the investment ease of paper silver, but my lack of trust in that game precludes my ever being daring enough to do that.
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Bedrock of the Community
13014 Posts |
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WOW! You're infinitely more trusting than me. I recognize the investment ease of paper silver, but my lack of trust in that game precludes my ever being daring enough to do that. Your only buying and selling the price of it not actual silver with those so your not ever going to ask for it. With Etrade and all of those things even if the fund was a fraud that was going to come crashing down a simple sell order not to far behind the current price will save you from getting MF Globaled on the way down. You cant beat the ability to buy and sell in seconds though for 10 bucks. Its really just a stock with the word silver in it, just have to pay attention to it like your other ones and have the safe guard in place just in case Forgot to mention I agree with you about the 100 ounce bars. 100 ounces is 100 ounces if you stacked the 1 ounce bars like a 100 the size difference is marginal at best. The only real advantage to the 100 is that its easier to move and keep track of how much is there, but like you said I don't think any of us have a bank sized stash. Having 1 would be cool to say you do but that's about it. Edited by basebal21
02/18/2013 8:29 pm
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Pillar of the Community
Canada
3692 Posts |
Paper silver doesn't really come into this discussion because I am obviously talking about physical lumps of silver. I get that the bigger the bar the lower the price on buying and selling but the market is smaller. 1oz though I hate paying the premiums for them so I may have to switch to buying the dreaded buffalo round, which I distrust because they look cheaply made and thus make me think that a counterfeiter would have little trouble making his own. 1ozers are easier to break down and distribute, so I may just stick to these for now. As for art bars, I'm not going to get into those because I just don't appreciate them.
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Bedrock of the Community
13014 Posts |
I didn't think you feel into the paper silver crowd, but there are some people who do buy physical solely as an investmest which is a mistake imo.
The 1oz do have a bit higher premium but if you save up and get them several at a time you can lower their price with more of a bulk purchase. You mentioned the 100 oz bars so I would assume you have the ability to get rolls which cost less per coin. Even if you just buy a couple a month you could save up the silver funds until you have enough.
In the us the maples are slightly cheaper than the ASEs as well, not sure in canada but the reverse may be true for you guys if you like those. The good thing about the premiums for the 1 ounce though is if you resell they don't lose that premium.
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Pillar of the Community
United States
648 Posts |
I always see folks mention liquidity around larger bullion bars. For some I understand it might be hard to let it all go at one time (locally). I believe bullion liquidity is a subjective phrase. There are multiple dealers in the area who would buy 1000 oz's in their sleep. I personally would buy whatever I feel like buying because I like stacking it all. Best bang for the buck? 100 oz bars (if you have the cash up front). Next would be 10 oz THEN 1 oz bars. But many will tell you to get 1 oz bars & rounds etc. due to variety & liquidity. I totally understand it. Just not my strategy at the moment as I'm in this for the weight first. Then collect pretty silver bullion. Disclaimer: I do indulge in ASE's / Maples / Kooks and hard to find Engelhard's during my stacking journey. It keeps things interesting. It's a matter of what is your stacking strategy from a $ perspective both short and long term. Easier said than done. Good luck. Edited by tripncoins
02/18/2013 9:42 pm
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Bedrock of the Community
13014 Posts |
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here are multiple dealers in the area who would buy 1000 oz's in their sleep. Fair point but youll be lucky to even get melt selling it that way. Part of being liquid to me is youll get at minimum face value for it and as close to the going rate as possible. If your willing to take 90 percent of melt or what ever the dealer/refiner would offer even the largest bars are very liquid. If you got them for 5 10 dollars an ounce they may not be an issue but if you bought at todays rates youll be losing a few hundred bucks between their offer and the premium you paid to get it large bars |
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Valued Member
United States
456 Posts |
To the OP's original question, I don't think I'll ever expand beyond 10 oz bars. Most of what I buy is 1 oz coins and bars up to 10 oz bars. I understand those that buy 100 oz bars due to their low premium, but I'm not at a place to be buying 100 oz at a time. Perhaps more importantly, I'd rather have the option to sell any number of ounces I would like rather than being stuck selling in 100 oz intervals. Just my personal preference.
Also, I agree with basebal, that any space savings with larger bars wouldn't be significant. For me, the best way to store my 1 oz bars is to stack bars 10 high and wrap with parafilm, effectively turning them into 10 oz cubes. Take two of those and stack them on top of each other, and they sit perfectly in one of those cheap red 2x2 coin boxes, and you could store around 150 oz's per box. Then, even these 2x2 boxes could easily stack on top of each other. For me they're the perfect size, easy to know how many you have, easy to move/store.
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Replies: 24 / Views: 2,570 |
Posted 02/18/2013 6:46 pm
