Is a 1000 Ounce Silver Bar Worth the Investment?

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A few weeks ago, we were visiting a depository relationship of ours and were able to get our hand on a 1,000 ounce silver bar. While a 1,000 ounce silver bar is not anything rare, we got to thinking.

“Is this worth the investment over other common bullion items in Boise”.

Taking aside the price speculation of silver, gold, or other metals, let’s consider the ease of movement, storage, shipping, demand, and 6 key points.

  1. How do 1,000 troy ounces convert to pounds?
  2. What is the cost of shipping?
  3. What is the market for buyers?
  4. Is it usable if the dollar fails for barter and trade?
  5. Are there other options for silver with the same premium?
  6. Where to buy silver?

How do 1000 troy ounces convert to pounds?

One troy ounce is equal to .06857 pounds or 1.09714 ounces. With knowing this, 1,000 Troy Ounces coverts to 1,097 ounces or 68.57lbs. This is important to know because 97 ounces is a pretty big deal if you do not understand there is a difference in Troy Ounces vs Ounces. Keep in mind, most spot prices, and listing prices for silver are based on troy ounces.

If you ever have a question, feel free to reach out to us. Storing physical silver can be done at your place of residence by leverage a depository. You may consider using a trusted depository to invest in larger silver quantities, where they store it for you and you save on the shipping cost.

What is the cost of shipping?

Shipping costs can range on silver bullion depending on how you are liquidating or what the purpose is for selling or buying your large quantity of silver. With 1,000 ounce bars, it is safe to say shipping will range from 200-500 USD depending on if you are shipping ground or overnight, and the amount of insurance.

You may find, the buyer of your silver bar, such as a large exchange, may cover the shipping price because of their negotiated rates with carriers from the volume of shipping they conduct. This price difference in shipping may help you determine if it is just better to sell the bar locally, because of the cost of shipping. We often find that buying these bars off clients, is very competitive and we can compete with any online buyer or precious metals exchange.

What is the market for buyers?

Depending on your area, and region, the market is likely slim. Here in Boise and Nampa Idaho, we service 1,000 to 5,000 ounces a month, and typically with 100-ounce bars or smaller. With silver prices changing often, the market for a buyer is heavily dependent on the spot price, price movement, stock market, and the value of the dollar.

The local buyers understand the ability to liquidate smaller quantities is easier. Dropping over $25k on 1 Bar versus $25k on 975 1 Ounce Silver Bars allows you to spread your buying and selling out over time. You may also consider diversifying the $25,000 across several types of silver products, such as silver coins, other precious metals, silver bars, silver royal mints, morgan dollar, and all types of silver bullion.

Is it usable if the dollar fails for barter and trade?

While a 1,000 ounce bar is definitely usable for barter or trade, the ability for a non-dealer to verify its authenticity is low. It takes special devices and technology to ensure the bar is not filled with other metals.

Silver is hovering around $24 dollars an ounce as we write this article. In the future if and when silver hits $100 dollars an ounce, a 1,000 ounce bar will now be worth over $100k. With price adjustments in the value of silver, a 1,000 ounce bar will become harder and harder to barter and trade with.

With the added need for additional verification, most likely remelting and pouring the bar, we recommend sticking with 100-ounce bars or smaller. The same ounce silver coin or bar will adjust with price changes, but with an easier way to liquidate via barter, trade or selling when you are ready.

Are there other options for silver with the same premium?

There are several options when you are buying silver. The main types are; bars, coins, rounds, 90%, and jewelry 925 silver. Just like stocks and other investments, it is a great idea to spread your silver buying across several types in order to diversify.

The supply and demand changes on the type of silver bullion you buy. Take for example American Eagles. Right now the premium is $10 over the spot price, where a Silver Generic Buffalo is hovering around $3.50 over spot price.

Where to Buy Silver?

Always source locally when possible. Here in Boise and Nampa Idaho, we regularly sell silver rounds, silver coins, silver dollars, silver bars, silver bullion coins, and other precious metals. You will find our prices are the same if not better than online sellers, with guaranteed authenticity and delivery.

Show up, buy the silver we have on hand, or place a deposit on a larger order while we source it for you, and pick up your silver when it arrives. It is a very simple process with experienced Silver and Gold bullion buyers like Idaho Pawn & Gold.

How We Were Hustled?

We remember just a few years ago after deciding to get into the silver & precious metals market, to step up our abilities in order to service our local clients in Meridian, Boise and Nampa Idaho. It all really started when we found out a local dealer was undercutting their payout to us when liquidating silver Morgan Dollars. We were told this same story every-time,

“The weight is shy of what it should be” and “I am going to adjust the price because something doesn’t feel right with these”.

We believed this company and did business with them for a few years. At some point along the lines, we decided to network and learn more about bullion. We were surprised to find out, we were getting hustled. That never feels good and wondered, “How much did we loose?”, “How much can we get and can we up our payouts to our clients”, along with several other things.

Long story short, we were able to build and create relationships to generate a few dollars more per ounce on silver, put the company who was hustling us went out of business and we were able to get the top prices paid for silver and gold to our clients. We moved from buying just a couple thousand dollar a month in silver and gold to generating over a million dollars annually in revenue from silver and gold with very small premiums. By developing relationships, resources, and processes, we are able to keep our cost low in order to move a sizable volume of bullion.

Keep us in mind for your silver, gold and other precious metals buying and selling needs around the Meridian, Boise, Nampa, Kuna, Star, and Treasure Valley areas. We build personal relationships with our clients and work to help service your physical metal investment needs.

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