Silver Grain

[chilangoblues]

Hello all,

I've lurked here for a couple of days enjoying the forum content and would like some advice on silver grain as opposed to silver bars.

I live in Mexico City (about 3 miles from the silver capitol of the city) and recently went and purchased a small amount of silver grain just to see how it felt more than anything else. There is a Peñoles distributor in that main plaza and they distribute the grain to different middlemen who then sell the grain to all the jewelers who have their shops all around the downtown area.

The grain I purchased, according to the middleman dealer, is .9999 pure from Peñoles, although it is sold separately (per gram) so there is no sealed bag or stamped bullion. I would like to know, if some of you could point me in the right direction, the pros & cons of purchasing silver bars compared to silver grain, and whether there is normally a market for individual investors to sell the grain.

I assume the silver is legit, although I wouldn't know one way or the other. While I was there buying the other day, two jewlers from that plaza went in and made purchases so that made me feel better. It was also clear they all knew everybody there. At another plaza (one block away), there is a guy who offers to melt silver into ingots of any size you prefer. This person is located on the top floor of a 7-floor building and it seems many of the jewelers there buy from him as well. However, it struck me as odd that the sell price the woman gave me (she sold me 1 kilogram of silver grain in a plastic bag) was a tad below what I thought it would be. I paid $4,880 Mexican Pesos for the 1,000 grams, which worked out to ~$10.45/oz. after figuring in the USD to MXN exchange rate for that day. The international Ask/Bid that day was ~$11.00.

Anyway, a warm hello to members of this forum. I've enjoyed reading up on current events and I'm excited about the potential of silver. Thanks for reading and please let me know if I can contribute in any way. :)

[SilverHawk]

Hello all,

I've lurked here for a couple of days enjoying the forum content and would like some advice on silver grain as opposed to silver bars.

I live in Mexico City (about 3 miles from the silver capitol of the city) and recently went and purchased a small amount of silver grain just to see how it felt more than anything else. There is a Peñoles distributor in that main plaza and they distribute the grain to different middlemen who i suppose then sell the grain to all the jewelers who have their shops all around the downtown area.

The grain I purchased, according to the middleman dealer, is .9999 pure from Peñoles, although it is sold separately (per gram) so there is no sealed bag or stamped bullion. I would like to know, if some of you could point me in the right direction, the pros & cons of purchasing silver bars compared to silver grain, and whether there is normally a market for individual investors to sell the grain.

I assume the silver is legit, although I wouldn't know one way or the other. While I was there buying the other day, two jewlers from that plaza went in and made purchases so that made me feel better. It was also clear they all knew everybody there. At another plaza (one block away), there is a guy who offers to melt silver into ingots of any size you prefer. This person is located on the top floor of a 7-floor building and it seems many of the jewelers there buy from him as well. However, it struck me as odd that the sell price the woman gave me (she sold me 1 kilogram of silver grain in a plastic bag) was a tad below what I thought it would be. I paid $4,880 Mexican Pesos for the 1,000 grams, which worked out to ~$10.45/oz. after figuring in the USD to MXN exchange rate for that day. The international Ask/Bid that day was ~$11.00.

Anyway, a warm hello to members of this forum. I've enjoyed reading up on current events and I'm excited about the potential of silver. Thanks for reading and please let me know if I can contribute in any way. :)

Pretty good english for someone living in Mexico City. If you just wanted to see how the stuff felt, why didn't you just ask to hold it? And a smelter on the seventh story of a building? I guess there's no fire code on this? Also, .9999 silver from mexico? Hummmmmm

[chilangoblues]

Pretty good english for someone living in Mexico City. If you just wanted to see how the stuff felt, why didn't you just ask to hold it? And a smelter on the seventh story of a building? I guess there's no fire code on this? Also, .9999 silver from mexico? HummmmmmHi silverhawk.

I purchased the silver grain through a plexi-glass window that looked much like a movie theater ticket booth. I'm originally from the states but have been living here for 11 years. I don't know what to tell you about the smelter on the seventh story but it's there if you'd like to see it.

It's Calle Palma #5, Colonia Centro, Mexico, Distrito Federal. It's on the 7th floor of that building and the phone number is +525555123512. I have no answer to your question about the purity of the silver I purchased, but rather have questions of my own. If anyone could help I would greatly appreciate it. I am no stranger to online forum culture, and I'm confident the admins of this site can easily verify the legitimacy of my Mexico IP address.

I'm here to learn more about a subject that I don't know a lot about. Thank you all for your time and I look forward to contributing in a positive way. :)

[SilverHawk]

Being in the position you're in, I'd buy Silver Onza's. And if I were you, I'd get the heck outta there ASAP.

[sunsetcliff]

I know nothing about silver grain... and therefore would not buy it.

[clr8ter]

There is another thread here that deals with siler shot VS other forms. My opinion is that I would not buy it because how do I, (and therefore anyone else I wanted to sell it to in the future), know it's what it says it is? Your situation sems to be different in that it seems to be a locally accepted form of silver. I would hold it for a while, and then go back to where you bought it from and see what they'll give you for it. (Which would obviously be less than what they would be charging for it that day.) That should tell you all you need to know.......

[hiyosilver]

I assume the silver is legit, although I wouldn't know one way or the other. :)


and neither would anyone else!......Unless it were assayed......That's the reason I won't buy silver grain.

Buying it will always leave the thought in your mind: "Did I get screwed?"

and maybe you did.....

[podrag]

Silver shot is to be avoided unless it is from a HIGHLY reputable dealer and even then you should only get it if you plan to melt it. And, generally, if you want to melt stuff into ingots you should buy a 1000ozt brick anyway. Shot is for making jewellery, not for investors.

If you want to buy small denominations of silver cheaply then buy 40% halves. If you want to melt stuff buy bricks. If you want to make pretty necklaces then buy shot.

[Godcopp]

If I may, I don't believe SilverHawk questioned your veracity, only the doubtfulness of trusting .9999 silver from a no-name dealer in Mexico. Most silver you see on the street in Mexico is .925 Sterling because that is the most common purity for jewelry.

That being said, stay away from anything not from a known mint or mine. The resale on your grain would be horrible, if you could even move it at all. To get the best price, your buyer needs to be certain that he is getting the weight and purity he thinks he is buying. Go with SilverHawks idea and find a source of Onza's.

Welcome to the forum!

[Argentum]

Hey, don't forget Libertads!