OK, so educate me. How much is this, how much is "spot", and how does one find this out for oneself?
Thanks.
So, this IS a good deal?
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Gold and silver prices are down
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So, this IS a good deal?
Varmint
NES Member
Spot price you can find by googling, it’s the current price of physical silver in large (1000 oz etc) bars. There’s also the futures price which is like the predicted price a month out. I’d ignore that.
Price of these walking silver coins is typically like $30/oz I think, or $5 over spot. That very high historically and is due to the low supply and high demand for retail silver coins (which is a small market compared to 1000 oz bars).
Varmint
NES Member
What is the price?
richc
NES Member
I've not seen any silver bars near spot. Even 1000 ounce bars. Got a link?
Varmint
NES Member
The premium for large bars is typically like $0.25 over spot. Looks a little higher here like $0.50/oz. They probably paid spot +$0.25 or something and mark it up a little for retail sale.
Buy 1,000 oz Silver Bars (Bulk) I Lowest Price Guaranteed
Buy Silver Bars in Bulk buy picking up 1,000 oz COMEX Silver Bullion Bars shipped directly to you or your depository.
sdbullion.com
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richc
NES Member
Double check this bars. They are all different weights and none teach 1000 ounces. The markup over spot of more than you thinkThe premium for large bars is typically like $0.25 over spot. Looks a little higher here like $0.50/oz. They probably paid spot +$0.25 or something and mark it up a little for retail sale.
Buy 1,000 oz Silver Bars (Bulk) I Lowest Price Guaranteed
Buy Silver Bars in Bulk buy picking up 1,000 oz COMEX Silver Bullion Bars shipped directly to you or your depository.
Varmint
NES Member
It’s a retail reseller, you can get it cheaper from the Comex.
smokey-seven
NES Member
PLEASE.... what is the price?
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Varmint
NES Member
Cheaper direct from APMEX but even then it’s $8 over spot which is crazy. I’d just wait for the silver shortage to ease, maybe 6-12 months.
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richc
NES Member
From what I've been able to find COMEX deals in futures contracts. I could not find a link to buy silver.
Do you have a link?
Thanks
Rich
Varmint
NES Member
You would need a futures account on the Comex and then stand for physical delivery. Think the minimum would be 5 1000 oz bars. That’s the cheapest way to get physical silver. Otherwise you have to deal with a reseller who has to add their cost. I’d call someone like Miles Franklin if you want to buy 1000 oz bars at the best price.
Why Miles Franklin | Miles Franklin
www.milesfranklin.com
richc
NES Member
You would need a futures account on the Comex and then stand for physical delivery. Think the minimum would be 5 1000 oz bars. That’s the cheapest way to get physical silver. Otherwise you have to deal with a reseller who has to add their cost. I’d call someone like Miles Franklin if you want to buy 1000 oz bars at the best price.
Why Miles Franklin | Miles Franklin
Wouldn't that require paying premiums on future's contracts?
Me thinks it's either pay me now or pay me later. Premiums on contracts or premiums on physical silver.
Although I'd certainly like 5 shiny new 1000 ounce silver bars that ain't happening...
richc
NES Member
I found the process. There are additional costs involved, potentially including a trip to NY.
There's no free lunch....
If you have the cash you can take delivery of silver at the spot price.
It is not difficult, here is how you do it:
There's no free lunch....
If you have the cash you can take delivery of silver at the spot price.
It is not difficult, here is how you do it:
- Make sure you have the cash to purchase a full contract. Silver contracts are 5,000 ounces… so if silver is $26.00 today, you will need 26.00 x 5,000 = $130,000 to pay for the silver.
- Call a commodities brokerage firm (Google “commodities brokerage firm”) and ask them “If I set up an account and then pay in full for a silver futures contract, can you get me the warehouse delivery receipt?” -If the answer to this question is no, call another firm and find someone who knows how to get you the warehouse delivery receipt. Many brokers have never done this so you will need to find a broker who knows the process.
- If the broker tells you they can get the warehouse delivery receipt, then open an account, fund the account with enough money to buy the silver futures contract, place an order to buy the contract, and wait for the receipt to be delivered. Placing the order will cost you a commission and there are some fees to get the receipt. All in, the expenses will be $300-500 depending on the firm.
- Once you receive the warehouse delivery receipt (about 30 days or less) then you read the receipt. On the receipt are the name and phone number of the warehouse. Call the warehouse and make an appointment to pick up your silver from the warehouse. The warehouses are all in New York City, New York.
- Show up at the delivery warehouse on time for your appointment. For each contract, you purchased they will have five 1000oz silver bars waiting for you. No, there are no other sizes available. Yes, they will all weigh a little more or less than 1000oz. Yes, the bars weigh 62.5 pounds each so you need to make sure your car or truck can carry the weight. No, the warehouse to not offer delivery service nor will they ship your bars.
- That’s it, you are done. Go home, post pictures of your Comex bars on Reddit, and serve up some Tendies!
Varmint
NES Member
Yeah I think a Miles Franklin would be a cheaper and easier route. They should have better prices than a vendor like APMEX.
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Lol...
richc
NES Member
Has anyone purchased from Miles Franklin? How was the experience?
They are not showing any prices online, just saying "call for prices". That's often a bad sign...
Is that the definition of "spot price"? If not, what is? If not, what differentiates them?
richc
NES Member
The trip to NY to pick up the silver. The premium over spot for the COMEX contract.
They're all costs associated with acquiring physical silver in this way.
Varmint
NES Member
The founder is a frequent guest on KE Report that’s how I know of them. Never tried them cause I’m a nickel and dime buyer of PMs.
So then, what is "spot price"? Can it be purchased at that price anywhere? If not, what is its function?
richc
NES Member
Great question and I'm not sure of the answer these days.
Varmint
NES Member
It’s the current price of the raw metal- you can’t buy it at that price because someone has to acquire the metal and make bars or coins out of it to sell you. So there’s a markup.
The price is more of a tool for the futures market and metal producers, buyers etc. to plan around.
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The market is also controlled as to whom is allowed to buy it. I don't think you can buy bulk Ag at spot even if you want to invest a few $mil. Searching for good delivery bars (Au) I see those are priced at about $39/oz above spot.
smokey-seven
NES Member
Spot is the, "paper price" and what you will get when you sell physical. Spot + premium is what you will buy it for. It's the spread, like over / under in sports betting.
So, it is not an actual price of anything. Why would you buy "at spot + anything" and sell minus the premium? Who would do that and why? I want to sell at a premium. This makes no sense.
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Try to find a willing buyer to pay you a premium when you wish to liquidate a non-trivial (say $10K or more holding), and try to do it today, now, when you like the spot price.
What you "want to sell for" is irrelevant. The only relevant thing is what a willing buyer will pay you, and if you are willing to sell at that price.
Win
NES Member
The spot price may become increasingly irrelevant and divergent from the physical market. I really don’t care what the electronic price of PMs are. If I just wanted to buy spot, electronic PMs, I might as well just buy cryptos - same amount of physical possession
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