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selling large silver bars


craig12

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read a bit about it being harder to sell big silver bars, and better to buy in 1  0z  bars,, just had a web chat with a guy from atkinsons  who tells me there always buying 10 oz, 100 oz, 1kg  100kg bars daily as buy back  he did say after 100kg he would have to see if it was possible , but surely  couldn't you buy the 10 oz bars  based on that

im sure atkinsons wouldn't just say that would they

ive been put off buying larger bars as I hear they might be harder to offload

or are people meaning  harder to offload in a currency crash

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They buy back at something like 97-98% of spot then sell them at say spot + 5-10% premium so they know they can make a profit on them at some point.

 

You're enquiring if you would have trouble selling it on, of course they would say there is no trouble selling onwards, they're a business out to make money (and there's nothing wrong with that) so naturally would not recomment not buying a certain product.

 

so bear in mind that you would get a better and more accurate response asking the secondary market what the secondary market likes. i.e the forum :)

 

The market for smaller bars is larger than that of larger bars, that's why people prefer smaller, it's because of the larger secondary market.

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I think whilst big bars are good value, the downside is the bigger the bar, the smaller the market for it. Buying a massive bar will almost certainly force you to sell to a dealer when you want to offload it. Have seen plenty of stacker videos with 10oz bars so this wouldnt be a bad size, but yeah for that price difference, I'd take the 20x 1oz as well.

 

Atkinsons markup is horrendous on some of their silver bars; it pays to shop around.

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It's not so bad, just looked up 20 sunshine 1oz bars, including VAT it's £16.31 per bar which seems reasonable for the UK.

 

As a comparison, 20 ASE from ESB including delivery = 15.93 per coin.

 

I know bars should be cheaper than coins and that the difference is because it's UK compared to Estonia, but still, £16.31 per oz is not bad at all for 1oz sunshine bars IMO.

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£18/oz on a bar with vat is as far as you really want to go.

Bars will always be more expensive than coins because of the VAT.

If you wanted bars, then 10oz, 250g and 500g would be my suggestion. With 10oz being the ideal. Anything bigger really has to go to a dealer who will give you less than if you sold privately.

Also, if you're stacking for just the scrap value, you might want to look into used bars.

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Interesting. I did some quick calculations. Bullion Store currently have 1kg silver bars at just over £492 inc VAT (approx 15.82 per oz) which is about £20 cheaper than Atkinsons for the same size bar. You'd need the silver spot price to improve by 40% or more before you even think of selling it. That 40% improvement is required just to sell at break-even, assuming the dealer gives you 97% of spot. Its definitely not a short-term investment.

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Be aware that there's a shed load of fake sunshine mint bars in circulation. Easily identifiable because of the sans serif font, the overwhelming smell of pennies etc etc but just exercise extra caution when buying. I bought one listed as solid silver because the guy didn't realise he had been scammed and was trying to resell. I'm sure you are all very careful but thought it worth mentioning

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Bars will always be more expensive than coins because of the VAT.

 

 

Really? I'd always been told that if you took a 1oz bar and a 1oz coin that a coin would - typically - be the more expensive option because the production costs of a coin are higher than that of a bar

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Really? I'd always been told that if you took a 1oz bar and a 1oz coin that a coin would - typically - be the more expensive option because the production costs of a coin are higher than that of a bar

On a like for like, then yes, the coin will be more expensive.

But when bars are all subject to VAT in the EU whereas coins can be 0% or a marginal %, then there will be a VAT variance depending on were you buy.

You would have to be buying very small qty if you're buying coins in the UK with VAT. Once you hit 10 oz or so it's generally cheaper to buy from outside of the UK once postage has been accounted for.

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just seen on atkinsons that 20 x 1 oz bars is only about 50p dearer than 2 x 10 oz bars no brainer really get the 1 ounces

If your buying 20oz in one go have a look at silver to go. It's probably a lot cheaper that atkinsons for his size of order, considering there is no VAT from silver to go, and shipping is very reasonable.

In regards to your initial question about how easy it is to sell a large bar. You can be pretty sure that you will find a buyer at 97-100% of spot price for any size of bar. So if your plan is to sell to dealers then you can buy the largest sized bars and pay the least premiums without worrying about resale. I am also sure there are people here who would buy larger bars at spot price.

If selling in the UK You won't get as much for your silver from a dealer compared to selling on the secondary market. This is because of VAT on silver. Which is why gold is good to purchase in the UK.

If selling on the secondary market it depends where you are selling, I have seen a lot of stackers in Australia stacking 100oz bars, and trading them relatively easily. The best size bars for resale in the UK secondary market in my opinion are the 10oz bars, these are nice and small size, easily can find a buyer and they are large enough to be classed as a bar in my opinion (I don't regard 1oz bars as true bars, more like rectangular rounds), 10oz bars are a nice size to stack if stacking bars.

I have some 1kg sized pieces of silver, I am collecting some of the Perth Mint kilo coins. But from people's comments on the forum here, it seems that most people here prefer the maximum size or their silver to be in the form of 10oz.

Also more that bars attract higher tax in Europe than silver coins do. Silver coins tend to be much better value for money and cheaper ounce for ounce compared to bars in Europe.

My posts are my personal opinions, they do not constitute advice or financial advice.

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