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Wondering Why Some Assets Cost More Than Others?

 

Let's try and answer a frequently asked question or two here by explaining that, in general:

1. The larger the bar, the cheaper it is [relative to its smaller siblings or its coin cousins]

This makes sense - the manufacturer of precious metal investment assets would rather stand at the machine pouring the metal into one large cast, than fiddle around pouring it into more than one smaller cast.

The premium rises as the time and effort to make the investment asset increases

 

2. The easier the metal is to 'work with', the cheaper it is [relative to metals that are harder]

This makes sense - it takes the manufacturer of precious metal investment assets less time to refine, heat up, pour and cool gold (the most easily 'worked' metal of the four major metals) to the approprite millesimal fineness than it does to do the same with silver, platinum and palladium. 

The premium rises as the time and effort to make the investment asset increases

 

Which might leads us to ask the question: Why buy coins?

a. They might be viewed as crossing into the 'collectibles' market - many buyers are looking for something special on their coins which they hope will carry an 'numismatic interest' premium in the future.

b. They come in smaller denominations for greater flexibility and ease of sale, gift, inheritance or, come the revolution, use as currency.