Wholesale gold markets - Where does one actually sell larger gold bars?

[Silverlocks]

To hear the likes of the chap who does the Strategic Wealth Preservation videos, people think nothing of stacking 1kg bars of gold in the Cayman Islands, but -

You can buy them from dealers easily enough, but where does one actually sell a 1kg gold bar?

I'm pretty sure you can't just trot down to the London Metal Exchange with a couple of 1kg gold bars and go "Who wants some gold?"  Are the people buying such bars just expecting to sell them back to their dealer, or are there actually places where you can buy or sell this sort of thing.  Alternatively, are they really just traded in vaulting facilities?

Unfortunately my google-fu isn't really turning up much in the way of satisfactory answers.  What does the market for gold in this range - bigger than ordinary schlebs like thee or me can afford and smaller than banks trading pallets of good delivery bars - look like?

 

Edited October 25, 2022 by Silverlocks

[Kookaburracollector]

Atkinsons Bullion can easily take several kilos in one go…not a problem. One TSF member put this to the test a while ago, and all went smoothly. I did half a kilo over the counter…and got paid straight away. Hope this info helps…

[LawrenceChard]

43 minutes ago, Silverlocks said:

To hear the likes of the chap who does the Strategic Wealth Preservation videos, people think nothing of stacking 1kg bars of gold in the Cayman Islands, but -

You can buy them from dealers easily enough, but where does one actually sell a 1kg gold bar?

I'm pretty sure you can't just trot down to the London Metal Exchange with a couple of 1kg gold bars and go "Who wants some gold?"  Are the people buying such bars just expecting to sell them back to their dealer, or are there actually places where you can buy or sell this sort of thing.  Alternatively, are they really just traded in vaulting facilities?

Unfortunately my google-fu isn't really turning up much in the way of satisfactory answers.  What does the market for gold in this range - bigger than ordinary schlebs like thee or me can afford and smaller than banks trading pallets of good delivery bars - look like?

 

Kilo gold bars are classed as "small bars" by the LBMA and others.

Basically "small" is anything smaller than Good Delivery Bars, which are approximately 400 ounces or 12.5 kilos.

I doubt whether many people stack or store gold bars in the Cayman Islands. More likely in Switzerland, London, or other places, via Cayman Island accounts or companies.

@ChardsCoinandBullionDealer in provincial Blackpool are happy to buy gold kilo bars, or any other size for that matter. We pay same day by bank transfer, and there is no real limit on quantity, although we would prefer not to buy more than 25 at a time, at least until we get our lift repaired. Even then, we would still take 50 or 100 at a push.

Big gold investors would buy Good Delivery bars, and these mainly stay in storage somewhere.

For smaller investors, although kilo bars command low premiums when buying, they are not quite as easy to sell as coins or smaller bars, and will generally be bought at a discount, whereas coins can often be sold at spot or small premiums.

London Metal Exchange primarily deals in non-precious metals rather than precious metals.

I don't know why people think of Birmingham when it comes to gold bullion dealers. I can't think of any there who are bigger and better than in Blackpool!

Although now I remember seeing one of our mates from Metalor, at the 2022 LBMA/LPPM Precious Metals Conference in Lisbon last week.

😎

Edited October 25, 2022 by LawrenceChard

[Tn21]

@mr-dead 

@LawrenceChard how would you break down the market share of Chards and other well known dealers ?

Back to the topic thread even when looking at a 100g+ bar  in gold is a push for 90% of this forum in my opinion. 

[LawrenceChard]

2 minutes ago, Tn21 said:

@mr-dead 

@LawrenceChard how would you break down the market share of Chards and other well known dealers ?

Back to the topic thread even when looking at a 100g+ bar  in gold is a push for 90% of this forum in my opinion. 

I don't really pay much attention to market share statistics, although I probably should do.

I think you are right about 100 gram gold bars being a push for most, but not all, TSF members, but we do get people buying kilos by the half dozen, rather like oysters. 

😎

[Silverlocks]

16 minutes ago, LawrenceChard said:

Kilo gold bars are classed as "small bars" by the LBMA and others.

Basically "small" is anything smaller than Good Delivery Bars, which are approximately 400 ounces or 12.5 kilos.

I doubt whether many people stack or store gold bars in the Cayman Islands. More likely in Switzerland, London, or other places, via Cayman Island accounts or companies. [ . . . ]

I think the chap doing the video I saw was mainly selling services to American customers.  According to the video he runs a vaulting service based in the Cayman Islands.  I didn't get the impression that they ran any sort of exchange or brokerage service, rather just the vaulting, although it's certainly possible they deal in the bullion as well.

Basically he was talking about recommending 1kg bars to his customers, but it did beg the question of where his punters were expecting to sell them.  By the sound of it, the transactions seem to be expected to be mostly to and from a dealer rather than through some open market.  Maybe they don't think about exit strategy too hard.

 

 

6 minutes ago, LawrenceChard said:

I don't really pay much attention to market share statistics, although I probably should do.

I think you are right about 100 gram gold bars being a push for most, but not all, TSF members, but we do get people buying kilos by the half dozen, rather like oysters. 

😎

Having seen the prices in the oyster bars in Heathrow, I'd just about be able to buy the gold bars in preference.  Sadly, I can remember the days when you could buy a dozen Bluff oysters at the local chippie for about $1 NZD each. 

Edited October 25, 2022 by Silverlocks

[Silverlocks]

13 minutes ago, Tn21 said:

@mr-dead 

@LawrenceChard how would you break down the market share of Chards and other well known dealers ?

Back to the topic thread even when looking at a 100g+ bar  in gold is a push for 90% of this forum in my opinion. 

It certainly seems like you start running into problems with liquidity much above the 1oz mark if you try to sell privately on internet forums.  It seems like the larger bars mainly go to and from dealers unless there's some other mid-size gold market that I've never heard of.  What I was really asking is whether there's something I'm missing or is that really how this sort of thing works?

Edited October 25, 2022 by Silverlocks

[Tn21]

I am sure you can use kilo bars as barter or any weight of gold for that matter. 

[James32]

3 minutes ago, Tn21 said:

@mr-dead 

@LawrenceChard how would you break down the market share of Chards and other well known dealers ?

Back to the topic thread even when looking at a 100g+ bar  in gold is a push for 90% of this forum in my opinion. 

 

1 minute ago, LawrenceChard said:

I don't really pay much attention to market share statistics, although I probably should do.

I think you are right about 100 gram gold bars being a push for most, but not all, TSF members, but we do get people buying kilos by the half dozen, rather like oysters. 

😎

I personally think its more psychological than affordability, obviously not everyone, but a high number on here could afford a 100g gold bar over the next 12 months. Cut backs on spending and obviously saving towards it. However this hobby is rather addictive and if I had to wait 12 months for my next and only purchase for the year, I'd likely loose interest and never buy another item.

 

[Tn21]

But James your the 1% never mind the 10%

[LawrenceChard]

11 minutes ago, Silverlocks said:

I think the chap doing the video I saw was mainly selling services to American customers.  According to the video he runs a vaulting service based in the Cayman Islands.  I didn't get the impression that they ran any sort of exchange or brokerage service, rather just the vaulting, although it's certainly possible they deal in the bullion as well.

Basically he was talking about recommending 1kg bars to his customers, but it did beg the question of where his punters were expecting to sell them.  By the sound of it, the transactions seem to be expected to be mostly to and from a dealer rather than through some open market.  Maybe they don't think about exit strategy too hard.

 

 

Having seen the prices in the oyster bars in Heathrow, I'd just about be able to buy the gold bars in preference.

Most American salesmen talk big, but probably have small penises.

Most Americans don't think too hard.

We once took a quantity of Krugerrands to Grand Cayman, because our customer could not find any local suppliers, and no American dealers were interested.

Who would buy oysters at an airport? Go to Whitstable where the "natives" are friendly.

😎

Edited October 25, 2022 by LawrenceChard

[Silverlocks]

5 minutes ago, LawrenceChard said:

Who would buy oysters at an airport? Go to Whitstable where the "natives" are friendly.

😎

I'm not sure who actually buys oysters at oyster bars at the airport - oligarchs maybe?  For the low, low price of £7,000 you can also buy a tin of caviar.

In related news, as mentioned on Q.I.  -

 

Edited October 25, 2022 by Silverlocks

[LawrenceChard]

Is everyone on TSF nocturnal?

I'm off to bed!

😎

[Silverlocks]

1 minute ago, LawrenceChard said:

Is everyone on TSF nocturnal?

I'm off to bed!

😎

Nighty night!

[Ukbullionfan]

Just logged on. Hi!

[danieldorkins]

7 hours ago, LawrenceChard said:

Is everyone on TSF nocturnal?

I'm off to bed!

😎

Could it be that you will not be boring the "other half" with gold and silver talk? or could it be the retail therapy itch is more easily scratched as the brain is not functioning properly and purchases are easier (bit like ebay deals that are then regretted next morning)?

[MonkeysUncle]

20 hours ago, James32 said:

 

I personally think its more psychological than affordability, obviously not everyone, but a high number on here could afford a 100g gold bar over the next 12 months. Cut backs on spending and obviously saving towards it. However this hobby is rather addictive and if I had to wait 12 months for my next and only purchase for the year, I'd likely loose interest and never buy another item.

 

Despite being of an age where we were decimalised and metricated before I arrived on planet Earth, I had to look up what 100 gram was in English before I knew what it would cost!

This Dinosaur likes ounces. And inches. And feet. If the feet are stocking clad and on the end of a nice shapely leg attached to a delicious lady then even better...