Michael writes:
Hey Doc, I am seriously considering doing my part of removing physical from the cartel by buying a 1000 “COMEX Deliverable” bar. I already have a good stack over 1000 oz’s which includes a number of 100 oz, 50 oz, 25 oz, 10 oz, 5 oz bars along with Maples and Constitutional Silver.
So my question is, how difficult do you think it would be to sell “When needed” this size bar if and when sh*t hits the fan.
Thanks for the feedback and keep up the great job of keeping us informed!
Michael, great question.
Reselling a 1,000oz bar would be much, much more difficult than reselling (or using as currency) rounds, 10oz bars, or even 100oz bars. Most dealers will not repurchase a bar like that without an assay sample (drill the bar first). Also the size rules out reselling to most investors, so you would be looking at reselling it to a refinery most likely, at well below spot (probably ~1.50- $2.00/oz under spot).
The truth is, any silver purchase in physical form does the same damage to the cartel. Buying 1,000 new buffalo rounds or Eagles or Maples results in the mints having to source 1,000 oz to meet your order, which takes away available physical inventory from the COMEX and the cartel. Buying 1,000 oz in Constitutional silver prevents that silver from ending up in a refinery and being melted into a good delivery COMEX bar. A massive global market like silver flows like water. If you are trying to empty your swimming pool with a bucket, it really doesn’t matter if you take the bucket of water out of the deep end or the shallow end.
Also, while the reports have yet to be substantiated with silver as with gold (tungsten filled), there have been rumors circulating of fake 1,000oz silver bars filled with molybdenum.
I personally considered purchasing 1,000oz bars during the 2008 panic (I remember almost pulling the trigger on a 1,000oz bar for under $9,000) but decided against it for the above reasons among others. As you mentioned, during a SHTF scenario, you will want silver in small denominations such as 1oz coins/rounds, or fractional constitutional quarters and dimes.
Personally, I think Constitutional silver and Silver Buffalo rounds are two of the best silver products available from SD Bullion for your fiats. We currently have Constitutional silver as low as .89/oz over spot, and buffaloes as low as .99/oz over spot.
The main thing is that taking 1,000 oz of physical silver off the market in any form removes 100,000 ounces of paper leverage from the cartel.
Keep fighting the war and stacking physical silver in any form.
-Doc
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I used to worry a bit about how easy it would be to sell silver in a pinch. Then I saw an episode of Pawn Stars in which a guy walked in with a huge assortment of coins, rounds, and bars of various size. He walked out with over $110,000. The shop owner (I forget his name) stated that he would buy silver all day long if he could.
All Silver bar and coin in the USA is poured from a COMEX bar? I thought the producers bought directly from the mine. I agree, keep it all in 1oz form, and you’ll never need “change” back. And let the millionaires battle the COMEX. We the common investor are like hyenas around the carcass. Just watch and wait for our turn.
Doc is right, stay away from 1000oz, if your not well supplied with Junk silver, your better off with pre-64 and my favorite(even with the premium) as far as re-sell are American Eagles, Tust what I say, I’m 100% in!! love living this way, sell only enough to pay bills. Tatall Collapse around the corner.
PS. Doc, get spell check so i don’t look like such a dummmmy
Michael
I concur with Doc and others on this subject. I was going to buy some 1,000 ounce ingots and decided to go with 100 oz NTR bars. A few people I spoke with told me the same thing as Doc notes. These bars are good for companies that print coins but smaller investors are going to find that a 62 lb brick of silver will be hard to manage, or lift for the matter. Unless you need some door stops. Each oz oyu buy takes 100 oz or more from the physical inventory so you are leading the charge by buying physical. Besides which, anything other than personal private ownership, self stored, is unwise to the maximum given the nature of the rigged casino markets we see in action every day.
BTW I like silver rounds and JB A single 50 caliber metal ammo can will easily hold 720 ounces of silver. That can be removed for safe keeping in an moment’s notice and the steel ammo can will protect your investment from extreme heat.
I believe Jason Hommel setup some deal with a refinery and mint during the last shortage. He started taking delivery of 1000 oz. bars from the COMEX and sending them through his private mint to make what ever smaller items were in demand at the moment. If somebody knows more about this, it would be good to jump in with the details.
But the point is, bigger players are already setup to drain the COMEX if the demand for the smaller items exists. I just wish the regulators would shut off the draining of SLV into the COMEX.
Hunkered
That is what Jason did as far as I know. I visited his mint and talked with his father in law about being a supplier of silver with a small mark up and quick delivery. My thoughts in buying 1,000 oz bars was to provide some of the local mints in NV and CA with just in time inventory of 1,000 bars. I planned to be able to deliver a set number of bars to mints if they needed some inventory quickly. Shortages did not crop up at the time and prices dropped. Additionally, Jason’s buy price was better than mine so I shelved that idea With a price drop of $5 an ounce in the intervening months, holding physical inventory of that sort would have been a money loser. Trading silver for a commercial profit could easily cut both ways and I did not want to hedge purchases like this. The entrepreneurial idea of silver trading would be difficult at best in this volatile market so I decided just to stack for the future. Much more information regarding rigging of the PM markets made buying to trade became even less of a good idea so I now just stack at the lower prices.
One of my first purchases was a hundred ounce bar, but after that I always went for the smaller ten ounce bars and even lower sizes just as everyone else here recommends and for the same reasons. However, I do still see the ten ounce bars as a good idea as well. They stack and store very easily, and let’s face it.. Until we get to the point where silver is valued above three digits, there will always be trades that you can make for your ten ounce bars that will make even those worth while having in a SHTF scenario! I’m 100% “all in”, and have my stash split up as 40% ten ounce bars, and the balance in one ounce bars and rounds and ASE’s, with a little over 10% of the total consisting of pre-65 90% constitutional silver coin.
In attempting to maintain the most agile and all round best posture, I have confined my purchases to 1 oz Silver Coins, in Govt Issued, or Sanctioned forms. For me this has meant American Silver Eagle Coins and
Canadian Maple Leaf Coins. They are the most common in my area, and best known. I am sure Austrian, Australian and Mexican versions would be almost as
good, but if per-chance I were mobile and had to liquidate thru a deal in Montreal, Chicago, Winnipeg, Denver, Edmonton, Seattle, Dawson or Fairbanks, I think I’d make out best sticking to ASE’s and CML’s.
In terms of mobility and negotiability that works best for me. I think you could easily fit 150 coins X 5 high stacked inside a standard .30/’06 metal ammo can ( single cartridge width ), you’d have 750 coins or 600 with only stacked 4 tubes high. So lets use 27.50 for a price, you’d have about 16K worth of silver in one box, easily stowed 600 coins, and that would be 600 oz.
For me this is the best solution. For wealth preservation, I think you have to find Gold or Platinum coins for stashing. Again, I don’t bars are where its at. Having stashable 1 Oz coins lets me diversify where and how much I keep in a stash.
http://www.denaliguidesummit.blogspot.ca
Set up an account with BullionVault.
I’m curious Denaliguide. With those constraints, why not junk silver? You could just pour a bag of junk silver into your ammo can and stash it where ever you want. The junk silver is government issued and easily recognizable by anybody for what it is. Most people have not ever seen a Silver Eagle. But they would recognize a dime, quarter or half dollar that was pre-1965.
Stick with U.S. Constitutional silver eagles. They’re recognizable and very easy to prove genuine. Also, and this could prove to be big, 11 states currently have legislation to make gold and silver eagles spendable public money. What this means is if this legislation is adopted and I think it will because of public pressure when the financial system locks up, there will be no taxable “capital gains” on your gold and silver eagles because they a spendable public money. That’s huge. Other forms of bullion will not have this favorable tax treatment because they are not constitutional money. Comments…
Superb metaphor of the silver market being liquid, like a swimming pool. I’ve spent most of my powder, over 99% actually, but today I managed to hit the local coin shop, and scoop up some pre-65.
By the way guys, the store owner told me the ratio of sellers to buyers was heavily lopsided in favor of sellers. Furthermore, the few buying were small-fry buyers, only picking up a few ounces, but the sellers were big players, bringing in large quantities. I told the owner smiling, “I’ll take the other side of that trade.” I’m always happy to hear of the number of sellers being so high…..we’re very near a historic bottom in silver. Please don’t be like those idiots who just jumped out of the Ark, as soon as the rains started. Those people are all going to drown.
And by, “the Ark” I mean their silver positions. Because a Great Flood is coming, not with waves of water, but waves of debt defaults, that will annihilate the world’s wealth. Don’t be among the victims, stay in the boat, even if it takes on a little water.
HUNK -
A/ That mode does not fit my M.O.
B/ Mercury Dimes and Franklin or earlier halves are the GAS MONEY I keep
on hand, for local purchases.
C/ Where I come from, people recognize Canadian Silver Maples.
D/ This method fits my accounting and how I diversify my stash(es).
E/ As much Silver as I save for Investment Leverage is denominated and
cached this way.
Personally, I am against buying large block of silver.
Cleburn 61 I’m with you on the decelerattion of the FIAT and debt. There was an article on ZH and echoed on Harvey Organ, said to be the most important post of the day, Friday Augut 3 The Fed did a small repo of about $210,000,000 Apparently the assumption was a bank needed liquidity But this action was said to be ‘a test’ to make sure this system would work. This repo was the first since late 2008, just when the world liquidity was collapsing. This may be that small hole in the dam that expands with cracks that break the dam. I am guessing the the commenter was correct. Liquidity at $1.6 trillion? And they need $210 million. Seems small but if you read the article it seems that there are problems in the system that the Fed is trying to paper over but they are also setting up for something bigger if their moist words are to be believed. Nothing to see here—-move along sheeples Got phyzz?
I agree with you Tony:
Heres the You-tube on that Fisch, which detects fake gold and silver coins. Useful if any of you guys buy second hand coins off dealers.
http://www.youtube.com/watch?feature=player_embedded&v=LYQ4y99WIwY
silver psycho…I checked out the Fisch web site. Foolproof little pocket gadget to authenticate gold and silver coins. Thanks for the info. I’ll be ordering a few.