I was browsing some metals and noticed that some pure gold and silver (for the same oz) have different markups to buy. For example, there was a higher markup for buying 1 oz of silver in a coin shape over a 1 oz bar shape. Do metals have different value depending on their shape?
Yes if you buy silver eagles or Canadian maples and some others like pandas and such you pay more. Most of the time I just make sure it is .999 and get the best price I can find. Every so often I love a coin so much for its design that I will buy a few even if I pay more.
Ah, but the value is just asthetic right?Originally Posted by PeacePlan
No, its not just asthetic, after all people ARE willing to pay more because of the design. But it's marginal for sure.
"This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children." -Dwight D. Eisenhower, April 16, 1953
gold is gold. there's no such thing high or low quality gold. if there are other metals mixed into the gold coin or bar, that means it's not 100% pure gold... but the gold content within the coin is the same as the gold in a 100% pure gold coin. sometimes they mix other metals into the coin to make it stronger since gold is very soft and easy to dent and damage. for example, the 1oz canadian maple leaf is 99.999% pure gold... whereas the Gold Eagle has some other metals mixed into the coin, so the coin is only 91.67% gold.... however, both coins contain the exact same 1oz of gold (but the Gold Eagle weighs a little more than 1oz because of the other metals mixed in)
it's not like a diamond where some diamonds are better quality than others even if they have the same weight.
the only thing with silver is that it tarnishes... so i suppose an ounce of untarnished silver is better than tarnished silver.
The design of the coin makes it worth more to some. But, if you are just after gold, then bars are your best deal. It takes more to make a coin than a bar as well. A coin requires expensive stamping machine, and a bar is just cast, hell, I could make a bar of gold no problem, if I had the gold.
"Anarchists oppose the State because it has its very being in such aggression, namely, the expropriation of private property through taxation, the coercive exclusion of other providers of defense service from its territory, and all of the other depredations and coercions that are built upon these twin foci of invasions of individual rights." -Murray Rothbard
Coins are easier to liquidate and harder to counterfeit
There is also Numismatic value. The design of some coins can become collectors items, and be worth more if they become rare. Not likely with an Eagle design since those are fairly common. The Ron Paul coins likely will be valued far above their metal content because there are so few of them. Expect to see a huge Numismatic increase in their value after the good Dr's death.
CPT Jack. R. T.
US Army Resigned - Iraq Vet.
Level III MACP instructor, USYKA/WYKKO sensei
Professional Hunter/Trapper/Country living survivalist.
Stores are sometimes more willing to take something they and their customers recognize, which explains some of the markup of eagles, leafs, etc.
Good example!
On Saturday, I exchanged two silver Liberty Dollars for FRNs.
Both were minted by Sunshine Mint.
Both were the exact same size, shape and weight of 1 troy ounce .999 Ag.
One sold for $20
One sold for $70
Anyone want to venture a guess as to which one bore the visage of Ron Paul?
Peacefully Engaged in Domestic Economic Terrorism Since 2004.
Audit Fort Knox so we will know how much Tungsten backs the FRN!
Are tarnishes permanent? Silver would be awful to own if this is true because it tarnishes so easily.
Silver tarnish is Silver Sulfide. In order to tarnish, silver must come into contact with Sulfur. The most common form is sulphur dioxide (the rotten egg smell when you fart) which is present in the air, particularly in kitchens with all the decomposing vegetable matter which is why kitchen silver needs such frequent polishing. To keep your silver from tarnishing, keep it in an airtight container such as an airlock food storage bag like those made by the brand name "FOODSAVER".
It is a permanent chemical reaction, and while the silver can be cleaned, each cleaning will remove part of the silver reducing the weight of the item each time by microscopic amounts.
CPT Jack. R. T.
US Army Resigned - Iraq Vet.
Level III MACP instructor, USYKA/WYKKO sensei
Professional Hunter/Trapper/Country living survivalist.
So tarnished silver will always sell below market oz/$ value? By how much? This is scary. Why anyone would want to invest in silver with such a high risk.
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