Coins vs bars cost

[Bartho]

According to most comparisons that I read, bars have a lower premium than coins. But I was no able to observe this in actual transactions, coins like maple leafs and britannias are often posted at a much lower price per oz than 10-20oz bars.

Any idea why that is? Would you need to go really big 1kg/100oz to achieve a better price per oz than coins? And at those sizes is it still safe buying on second hand market or is the chance that it will be filled with tungsten quite high?

[sixgun]

A 1 kg bar is not really big, it is pretty standard. A 100 oz bar is big.
It seems there was a time when silver bars were drilled out and tungsten put in - but it has never been during my time of buying bars. It certainly is an issue with gold bars and one of the reasons I don't buy them. Perhaps one day we will see tungsten filled silver bars again.

Basic bullion coins like Maples and Britannias are at the cheaper end of the price range. Maples have had a bad rep in the past as they almost always would develop milk spot. I haven't followed this too closely but a few years ago the RCM said they had altered their production process to stop this. Stackers generally don't like milk spot and so a coin that is very likely to develop it won't command the same price. It ceases to be a collector type coin. Britannias also have milk spot problems. 

There are loads of Brits and Maples in the hands of members - there is nothing special about them - unless you are looking at one of the basic bullion type coins that have something special about them then why would anyone want to pay extra.

Personally i am keen on different silver bars - especially vintage bars. When i have the spare cash i like to get them - i collect them. 

The 100 oz and 5kg silver bars are quite a price. This means fewer members have the spare cash to buy. The prices won't go so high as there is less competition.

The relative price of bars to coins has fluctuated over time. Bars used to be cheaper here - then they get a bit more expensive. On average I wouldn't say the difference is big but at the moment it would not surprise me if you have seen the smaller bars going for higher prices. Perhaps its the fashion. 

[ccfcpaul]

On 14/04/2024 at 08:32, Bartho said:

According to most comparisons that I read, bars have a lower premium than coins. But I was no able to observe this in actual transactions, coins like maple leafs and britannias are often posted at a much lower price per oz than 10-20oz bars.

Any idea why that is? Would you need to go really big 1kg/100oz to achieve a better price per oz than coins? And at those sizes is it still safe buying on second hand market or is the chance that it will be filled with tungsten quite high?

What I think I have noticed is that premiums difference on coins and bars fluctuate heavily depending on the weight.

I.e. 1oz coins are generally cheaper than 1oz bars but 10oz+ coins are more expensive than 10oz+ bars. I am presuming this is due to scarcity! 
 

[Bartho]

30 minutes ago, ccfcpaul said:

What I think I have noticed is that premiums difference on coins and bars fluctuate heavily depending on the weight.

I.e. 1oz coins are generally cheaper than 1oz bars but 10oz+ coins are more expensive than 10oz+ bars. I am presuming this is due to scarcity! 
 

Agreed, I have observed the same thing. But even though 10oz bars are cheaper than 10 oz coins, they are not cheaper than 1 oz coins, which is a strange concept to me!

[ccfcpaul]

34 minutes ago, Bartho said:

Agreed, I have observed the same thing. But even though 10oz bars are cheaper than 10 oz coins, they are not cheaper than 1 oz coins, which is a strange concept to me!

I believe it's about the supply and demand equation.

 

There's a huge volume of 1oz coins which drives the price down. Especially when you buy 25 but only want to keep 1 for the collection. People then have 24 coins to sell.

 

Whereas if you're buying a 10oz coin, you'll only be buying 1 for the collection.

[Bartho]

I see, that makes sense I guess

[JohnA1]

On 14/04/2024 at 08:32, Bartho said:

Any idea why that is? Would you need to go really big 1kg/100oz to achieve a better price per oz than coins? And at those sizes is it still safe buying on second hand market or is the chance that it will be filled with tungsten quite high?

An ultrasonic tester can be below £100 and can verify the uniformity/thickness of the metal in question. If it has something else in it (or bubbles) the thickness will come out wrong - just make sure the bar has at least two opposing parallel surfaces. Other shapes  may not work with such a testing method.