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.