Why Do Prices Differ for Equal Weight?

[Alfakhro]

Hello,

I'm new to the world of purchasing silver bullion. Recently, I decided to convert some of my bank savings into silver. As a beginner, I'm eager to receive your advice. I have a specific question that I'd like to discuss. I've observed that silver bars, even when they have the same weight, differ in price. For instance, I acquired a few kilograms of Scottsdale silver at a reasonable price, but I've noticed that Metalor silver bars of the same weight are priced higher. Similarly, Royal Mint Refinery bars also seem to have a different price point. I'm curious about why this is the case. To me, a kilogram of silver is a kilogram of silver, so why do these variations in price exist?

Thank you for your insights.

☺️

[Bigmarc]

Just two companies trying to make a profit. Same principle as a bottle of water. They are not all priced the same but the product is. So a company that produces each bar or coin need to pay their employees, running costs, transportation cost, ect. 

This is why premiums on silver coins are high as a percentage but low on cost and with gold it's low on a percentage but high in cost yet the journey each coin has to make from being mined to Being sold is pretty much the same.

 

[Earthmetal]

Just to hi-jack this thread I've always thought it odd that bars are more expensive than coins. With the exception of really big bars that are I agree cheaper per ounce than coins, all the smaller ones, 1oz, 100g, etc. work out more expensive than coins. Even poured bars. Yet coins need the expensive stamping machines, and engraved dies.
Most peculiar and the reason I have very few bars, as weight is cheaper to acquire in coin form.

[Petra]

Silver bars are like some other products, for whatever reason people get a liking for a particular make and these always appear to have a higher premium than others. This is particularly so for older bars. JM bars are an example of this🤔

[pmbug]

I can think of a few possible reasons:

1. Private Mint vs. Government Mint - Government Mint products might carry a slightly higher premium because of a favored legal status (nominal legal tender status on coins) or just trust / name recognition.  They may be easier to trade in times of market illiquidity - especially to folks who are n00bs to metals markets.
2. Production Cost - Some bars include security features like serial numbers, laser micro engraving, radial lines, holographic images, etc.  The fancier the features, the more expensive the production costs and the higher the initial premium from the Mint.
3. Purity - Some might be .999 (3 nines fine) and some might be .9999 (4 nines).  The extra purity requires a more stringent refining process.
4. Art - Some bars might just look nicer, be stackable or otherwise have greater appeal to the market