Wednesday, March 6, 2013

Hunting for the Perfect Silver Bullion Bars

Contrary to popular belief, there are actually some silver bullion bars and rounds that are worth more than their weight as the old saying goes.  For example, I have accounted on numerous occasions the times that I have searched through a scrap/generic bullion box at my local brick & mortar, only to cherrypick a couple key pieces that I know for sure are worth so much more on the secondary market.  But wait a minute, aren't all bullion bars worth what the melt value is for that point in time?  Not really, there's actually an elite grouping of collectible bars that exist in the marketplace.  Being able to discern those pieces out of the bunch will not only net "flip sellers" the opportunity to make some extra money, but will enable the true collectors of these "one off" bars to fill an empty hole in their collection.  Here are three of the top brand labeled bars to keep an eye out on.

*Royal Canadian Mint Bars- They're built no differently than any other .999 bar in the market today, so what makes the RCM bar such a great bar to resell in the market?  First and foremost, the aforementioned bar has been discontinued for production since 1988.  This is significant because most pieces have been bought  and melted during the ramp up of silver prices back in 2008.  There are less available in the market and they are truly rare because the RCM has been the only mint at the time to produce their own generic branded bars.  With a sample spot price of $28, these would command over double of what the melt value is.  Definitely one to keep and eye out on.

*Johnson Matthey Bars- So what's the deal, these are still produced  at a regular rate, so the JM bars shouldn't be on the list?  Or should it?  Well, there's a reasonable explanation to the number two listing of uncommon bars, and it has nothing to do with the generic one ounce flavors.  As you can see from the photo reference, the odd ball sized bars are what drives that healthy secondary market.  So anything in the single gram, 1/4 oz., 1/2, 2 oz., 5 , 10 and 20 ounce bars apply to the cherrypicks of the bunch.  Collectible for the variety of sizes along with the scant numbers due to millennium melting has placed these bars high on the "profit" pole.  In conclusion, with attractive designs and great quality finishing, JM bars have a multitude of attributes that make it a great bar to find and sell.

*Coca Cola Art Bars- What more can be said about any collectible with the storied Coke brand?  Anything with the Coke branding is a gauntlet in the collectibles marketplace, so it's only natural that a silver bar designed by Coke would be a no-brainer choice to search for.  These have phenomenal profit margin potential as I've seen the common one ounce bars sell in excess of $100 or more.  While the JM and RCM bars are an easier cherrypick, the Coke bars won't be much so.  They're a target of dealers when they come in from a sale and are easily recognizable as a profit vehicle.  With that said, just be mindful of what the Coke bars are in the collectibles community.  They are a runaway hit every single time and they don't lose value in relation to a bearish metals market.  Die hard Coke collectors will overpay every single time and feel good about it.

*Honorable Mention-  Engelhard Prospector Rounds, Late 90's Britannia's, 1996 American Silver Eagles, Un-carded Credit/Pamp Suisse bars

Good luck hunting!


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