The touch, the feel, the weight. A few weeks ago, I was visiting a depository and was able to get my hands on a 1000 ounce silver bar.
My mind got to thinking..."Is this bar of silver worth the investment over other common bullion items in Boise, Idaho?"
There will always be the price speculation of silver, gold, or other metals, but for the sake of this discussion, let's consider the ease of movement, storage, shipping, and demand.
Six Questions Asked - Six Questions Answered
- How do 1000 troy ounces convert to pounds?
- What is the cost of shipping?
- What is the market for buyers?
- Is it usable if the dollar fails for barter and trade?
- Are there other options for silver with the same premium?
- Where to buy silver?
How do 1000 troy ounces convert to pounds?
One troy ounce is equal to .06857 pounds or 1.09714 ounces.
Knowing this, 1000 troy ounces coverts to 1097 ounces or 68.57lbs. There is a difference between troy ounces and ounces. This is important because 97 ounces is a pretty big deal. If you don't understand, this is a difference between troy ounces and ounces. Troy ounces use an avoirdupois ounce equals 28.35 grams, and a troy ounce weighs 31.10 grams. The troy system uses pounds and ounces, which are similar but different. One troy ounce is equal to about 1.09712 avoirdupois ounces. An avoirdupois ounce equals 28.35 grams, and a troy ounce weighs 31.10 grams. The term "avoirdupois" first appeared in English in the 15th century. It carried a meaning of "goods and sold by weight," which is also the meaning of its Middle English predecessor, "avoir de pois." "Avoirdupois" most commonly refers to the system.
Are their price differences per state or region or things to consider when buying silver?
Each area and region has a different market for silver; and some areas are higher and others lower. In Boise and Nampa, Idaho, we service 1000 to 5000 ounces a month, and typically with 100-ounce bars and smaller.
Silver prices change often, and buyers are dependent on the spot price, price movement, stock market, and dollar value. Smaller quantities of silver are more manageable to liquidate than larger ones. Dropping over 25k on a one-ounce silver bar versus 25k on a 975 one-ounce silver bar allows you to spread your buying and sell out over time.Consider Diversifying
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 dollars, bullion coins, silver coins, and other types of physical silver. What are the different kinds of silver you should be considering investing in? There are several options for buying silver, like silver bars, silver coins, silver rounds, and 925 silver jewelry. Like stocks and other investments, diversifying your purchases across several different types of silver makes good sense. The supply and demand change the type of silver bullion people buy and sell. For example, American Eagles have a premium of $10 over the spot price, whereas a silver generic Buffalo is hovering around $3.50 over the spot price.Premium
The premium is the additional cost that helps silver buyers, like the pawnshop and other exchanges, cover the cost of doing business.
Where to Buy Silver?
Always source locally when possible. In Boise and Nampa, Idaho, we regularly sell silver rounds, silver coins, dollars, bars, bullion, and other precious metals. 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, place a deposit on a larger order while we source it for you, and pick up your silver when it arrives. It is a simple process with experienced Silver and Gold bullion buyers like Idaho Pawn & Gold. Owning silver bullion is a wise investment, but shop a diversified type of silver and compare the premiums to save money and have an opportunity to make more money in the long run when you decide to sell.
Is silver bullion usable for barter or trade should the dollar fail?
While a 1000 ounce bar is usable for barter or trade, the person or company that wants to trade it may differ. This is because the ability of a non-dealer to verify the silver bar's authenticity is low. It takes special devices and technology to ensure the bar is not filled with other metals. It would be silly for someone to assume that a bar that is silver in color and weighs 68.57 pounds actual silver unless it is tested.
As this article updates, silver is hovering around USD 23.05 an ounce. Remember, the market price of silver ebs flows with the market. If silver hits USD100.00 an ounce, the 1000 ounce bar I was able to touch, feel, and experience will be worth over USA1000.00. With the value of silver going up, a 1000 ounce bar will become harder and harder to barter and trade simply because the price of the bar will be so high that most people won't have enough resources to make a fair exchange. With the added need for additional verification of such a large bar, remelting and pouring the bar into smaller bars such as 100-ounce bars and smaller ones. The equivalent weight in silver coins or bars will adjust with price changes at the same ratio, but the smaller size will help you liquidate via barter, trade, or selling when you are ready.
Suggested Options for Storing
Keep in mind that when you are buying silver bullion or any other precious metals, you have to consider where you will store your investment safely.
Storing physical silver can be accomplished by having the silver placed in a dry place like a waterproof container and stored in a safe at your residence. You may consider keeping the valuable silver at a precious metals depository. A precious metals depository is a third-party storage facility where customers can store their precious metal bullion. You would need to pay for shipping your silver to the depository, and in the event you want to sell it, you would have to pay to have it sent back to you.Precious Metals Depository
Another option is to consider utilizing a trusted depository to invest in more significant amounts of silver. They will store the silver for you after you purchase it, and this will save you shipping costs, or you can buy silver, and then you will have to pay the cost of shopping. Another consideration when you are weighing your option of depository storage, make sure you inquire about any fees charged, interest rates, and insurance.Shipping Costs For Silver and Other Precious Metals
When liquidating silver bullion, silver bullion bars, and other physical bullion, shipping costs need to be considered. Shipping costs are dependent on how you are liquidating. If you sell silver or buy it in large quantities, shipping costs will vary. The shipping cost for a 1000 ounce bar will range from 200-500 USD depending on shipping ground or overnight and the amount of insurance you buy to cover the value of the silver. You may find that the buyer of your silver bar may cover the shipping price if they are a significant metals exchange. The larger exchanges can often negotiate a special shipping rate with carriers due to the volume of shipping they conduct regularly.The shipping cost may make a difference in how you determine to sell locally or through an out-of-state exchange.
Based on the history of my pawnshops, Idaho Pawn and Gold. Shipping may be the difference in offering a better price on silver. I have found that we can provide clients with a very competitive price based on the market price of silver to any online buyer or precious metals exchange simply because I can leverage the shipping rate we get.
Idaho Pawn and Gold Offer Buying, Selling, and Pawning Services for Silver - With Free Valuation Services, You Get a Fair Silver Price.
The shiny metal catches the eyes of many investors. Gold, silver, silver half dollars, silver coins, silver bullion, bullion coins, silver bars, silver jewelry, American silver eagle coins, and other precious metals are sought after by pawn shops. If you have any items to sell, go by Idaho Pawn and Gold.
Idaho pawn and gold is aware that exchanges and online buyers may have precious metal experts and are ordinarily honest; however, be mindful of the 'hustle.'
Once Upon a Time, We Were Hustled?
A few years ago, I decided that Idaho Pawn and Gold needed to get into the silver, gold, and precious metals market so we could serve the communities of Meridian, Boise, and Nampa, Idaho.
With all change, there is something that is the catalyst. The catalyst for my decision was when I discovered that a local precious metals dealer was undercutting their payout to us when liquidating silver Morgan Dollars. This occurred over and over again. I was told each time, "The weight is shy of what it should be, and I will adjust the price because something doesn't feel right with these." I would believe them each time and continued to do business with them for a few years until I decided to network with other gold and silver buyers and do some research online about silver bullion. Much to my dismay, Idaho Pawn and Gold were getting hustled. For a minute, I was mad; for another minute, I was in disbelief, and then I just thought, "how much did we lose? I talked to some other folks and precious metal dealers and was happy to find out we could get more money on payouts and pass that along to our clients. My store would be able to make a few more dollars, and silver investors would see us as a place to buy silver, and sellers would see us as the place to sell silver for more money since I could offer more. I was hopeful that people with a silver coin or two in their jewelry box or those who owned physical silver bullion would see Idaho Pawn and Gold as an excellent place to complete their business.Lessons Learned From the Silver Market
As time went on, I looked back and smiled when I thought we were hustled. Because of the catalyst that caused the change, I built and created long-term relationships that continue to generate a few more dollars per ounce of silver.