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Q&A With The Doc: Should I Do My Part & Buy a Good Delivery Bar to Drain the COMEX?

from Silver Doctors:

Hey Doc, I am seriously considering doing my part of removing physical from the cartel by buying a 1000 “COMEX Deliverable” bar. I already have a good stack over 1000 oz’s which includes a number of 100 oz, 50 oz, 25 oz, 10 oz, 5 oz bars along with Maples and Constitutional Silver.

So my question is, how difficult do you think it would be to sell “When needed” this size bar if and when sh*t hits the fan. Thanks for the feedback and keep up the great job of keeping us informed!

Michael, great question. Reselling a 1,000oz bar would be much, much more difficult than reselling (or using as currency) rounds, 10oz bars, or even 100oz bars. Most dealers will not repurchase a bar like that without an assay sample (drill the bar first). Also the size rules out reselling to most investors, so you would be looking at reselling it to a refinery most likely, at well below spot (probably ~1.50- $2.00/oz under spot).

The truth is, any silver purchase in physical form does the same damage to the cartel. Buying 1,000 new buffalo rounds or Eagles or Maples results in the mints having to source 1,000 oz to meet your order, which takes away available physical inventory from the COMEX and the cartel. Buying 1,000 oz in Constitutional silver prevents that silver from ending up in a refinery and being melted into a good delivery COMEX bar. A massive global market like silver flows like water. If you are trying to empty your swimming pool with a bucket, it really doesn’t matter if you take the bucket of water out of the deep end or the shallow end.

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1 comment to Q&A With The Doc: Should I Do My Part & Buy a Good Delivery Bar to Drain the COMEX?

  • Choo Hader

    I don’t think selling a 1000 oz bar will be terribly hard except in total SHTF scenario I live in a medium sized city and there are several coin/pawn/jewelry places in town that will buy all the .999 silver you’ve got on the spot usually for about 3% under spot and they will resell it to refiner before you get home. Then there are big dealers like Amex, Tulving, Provident that will pay you a fair price if you don’t live near a big metro area.

    But seriously, nothing wrong with buying smaller bars, the markup over spot is $2-3 less than most coins. generic 1 oz rounds are cheap And Constitutional silver is great. I personally dont like 90% coinage because its old and worn and I believe you lose a little silver because of wear, so that negates the low premium Any silver you buy is taking silver off the market. After all small retail silver is constructed from 1000 oz delivery bars so it’s all the same. 1000 oz bars are a pain in the ass to lift and move. Even for a strong young man.

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