Buying ONLY 100oz silver bricks

[eyoung]

What are the drawbacks of purchasing only 100oz silver bars? Why should we be more diverse in our purchases?

My uncle who is now retired, has all his money stuffed in his home safe because he has never trusted banks. About a month ago he got into PM…and is now a self appointed expert. He says you should stay away from coins or any polished silver. That bricks are the only smart investment when dealing with silver.

I tried to tell him every type of silver purchase has its advantages and disadvantages but to buy only 100oz bricks is not smart. But because he’s “The Expert”, he would not listen to me. He has now got my cousin buying only bricks.

It’s my plan to talk to my cousin and try to explain why he needs to invest in other types of silver other than just brick…and I want to make sure I have all the facts.

[TheLoneRanger]

Smartest thing to do is to buy your own silver and let others buy their own silver, or not, as they see fit. Especially when it comes to family members.

[Goldbrix]

I like my life REAL spicey.
Some from Column A/B/C and D ( just no paper silver of any kind).
Personally, I see a liquidity issue with 100 ouncers if the USD goes the way of the Papiermark of Germany or something more current the Zimbabwean Dollar.

But YOU may be able to benefit via arbitrage. Let them keep doing what they do. You keep stacking with your plan. When the above happens you could be an outlet for their "Bricks" at 85-90% of spot.

"You can lead a horse to water, but you can't MAKE him drink".

You've done what you can. Be ready to assist them picking up the pieces

[Sakata]

1. 100oz bars may not be pure silver. The risk is much less with smaller bars.
2. When silver is $100/oz you cannot sell a 100oz bar to anyone who had less than $10,000.
3. Following on from 2, if it comes to needing to barter (a remote but distinct possibility), most people will not me able to make change for a 100 oz when you need bread. They will be able to make change for a 1 oz bar or a 90% quarter.
4. Smaller amounts will be in greater demand in a crisis and so resale premiums may be higher.

Need any more? Those should be convincing.

[eyoung]

1. 100oz bars may not be pure silver. The risk is much less with smaller bars.

How do you know this? If not pure what are they?

[eyoung]

What about when you want to cash some 100oz bars in?

Will you have problems taking a half dozen bars into a coin shop? How many will they buy? What if you did not purchase the silver from them?

[Sakata]

How do you know this? If not pure what are they?

Search this site for the words molybdenum and tungsten and you will see what I mean. I am not saying it is a big problem and at present it is not one to be overly worried about. But as the FRN decreases from the present 1/17th toz Ag to 1/100th toz Ag I think it might become a bigger concern.

[Sakata]

What about when you want to cash some 100oz bars in?

Will you have problems taking a half dozen bars into a coin shop? How many will they buy? What if you did not purchase the silver from them?

Will you really want to sell 600 oz at once at the local shop? I doubt it.

[eyoung]

Will you really want to sell 600 oz at once at the local shop? I doubt it.

If all the "ifs" in life go your way, the only time you would ever need to sell is if silver goes way up and you want to sell a bit to celebrate. However there are times in everyone's life when he/she needs lots of cash fast.

My thinking is that unless you purchased the 100oz silver bars, where you are trying to unload them, the vendor will say no thanks. If you are in need of fast cash and you take multiple bars to the place you bought them they will not be able to take them all back at once (I'm talking local coin shop here). He will end up taking them to pawn shops where he will get a really lousy deal.

[Sakata]

If all the "ifs" in life go your way, the only time you would ever need to sell is if silver goes way up and you want to sell a bit to celebrate. However there are times in everyone's life when he/she needs lots of cash fast.

My thinking is that unless you purchased the 100oz silver bars, where you are trying to unload them, the vendor will say no thanks. If you are in need of fast cash and you take multiple bars to the place you bought them they will not be able to take them all back at once (I'm talking local coin shop here). He will end up taking them to pawn shops where he will get a really lousy deal.

Buy them from APMEX. They will buy back what you get from them.