# Buying Gram or Smaller Size PM Bars.



## k0xxx (Oct 27, 2011)

Short version: Junk. Don't waste your time or money.

Long version: As someone who buys and sells gold and silver locally from individuals, I've been contacted a couple of times in recent months asking about buying 1 gram (and smaller) "bars" of PM's as a way to get into buying PM's cheaply. While it's true that the dollar amount spent would be low, the idea of doing so stinks on ice.

Today you can find almost any metal imaginable being sold as bullion, in the form of one gram and one grain bars. While collecting these metal bars can be interesting and fun, they a terrible "investment". The minting and marketing costs add too much to the price, to make these a realistic purchase. Gold, platinum, and silver come the closest to being the exceptions, but only if you can purchase them near enough to their actual melt value. As an example one gram of silver, with the current spot price hovering around $27.60 per ounce, is worth about $.89. With silver 1 gram bars currently being sold for $2 - $4 per gram, you would need to see an increase in the price of silver of 250 to 500 percent just to break even. The cost to value ratio is much worse for the grain sized bars. A grain is approximately 1/15 of a gram, making the value of one grain of silver in the above example, about 6 cents. While profiting is certainly possible, the actual cost to value ratio does need to be considered before making the purchase.

There are many other "bullion" bars out there, including aluminum, copper, brass, iron, nickel, palladium, titanium, niobium, tantalum, columbium, german silver, tin, and zinc. If you're considering purchasing any for for the sake of collecting, then great! However, if you are thinking of them as investments or bartering, you will be disappointed. Most of these gram bars have a value of just a few cents, some less than even 1 cent. Even if one of these happens to explode in price, who would you sell it to? I have spoken with or e-mailed over a dozen metals dealers, and none of them would even consider purchasing some of these small bars, unless you had thousands of them. As for barter... most people have no idea what gold or silver is worth, much less forthese other metals.

The point that I am trying to get across is that when purchasing these gram and grain bars, do so with the knowledge of what they are actually worth, and they are mainly just novelty items. The smaller the unit purchased, the less value you will be getting for your money, so stick with known types of gold and silver coins or bullion.


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## ComputerGuy (Dec 10, 2010)

Wouldn't it be just more prudent to collect junk silver instead of these small bars, etc for barter?


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## BillS (May 30, 2011)

I would be very suspicious of any bullion. I don't care how it was stamped or what kind of certificate of authenticity comes with it. I've enough counterfeit software to be unimpressed with things like that. To me, junk silver is the way to go because you know the coins are real so the metal content must be real. It's not only good for bartering after the collapse but it's a hedge against hyperinflation. Back in the day you could buy a gallon of gas with 2 90% silver dimes. The market value of 2 90% silver dimes will still buy you a gallon of gas today.


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## Immolatus (Feb 20, 2011)

While I could see buying a gram of gold, the thought of buying a gram of silver never entered my pea brain, it just dont make sense. Paying $3 for something worth less than a buck just aint smart.


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## oldwindrow (Jun 25, 2012)

done with a place promoting illegal fantasies that will hurt people


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## oldwindrow (Jun 25, 2012)

done with a place promoting illegal fantasies that will hurt people.


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## oldvet (Jun 29, 2010)

oldwindrow said:


> done with a place promoting illegal fantasies that will hurt people.


If you are done knocking our site and are done as a member, then why are you still signed in? if you dislike this forum so much then please do us all a favor and log out and truly stay away.


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## UncleJoe (Jan 11, 2009)

oldvet said:


> If you are done knocking our site and are done as a member, then why are you still signed in? if you dislike this forum so much then please do us all a favor and log out and truly stay away.


 Seriously!!

Since 4:18 (EDT) this morning you have made 9 posts with the same message. " I'm done here. Don't have time for a place that 'promotes illegal fantasies/activities.' You seem to have found 2.5 hours to tells us all you're outta here.

If you don't like it here, by all means, move on. :wave: We don't really have time to listen to all your whining. :gaah:


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## oldvet (Jun 29, 2010)

UncleJoe said:


> Seriously!!
> 
> Since 4:18 (EDT) this morning you have made 9 posts with the same message. " I'm done here. Don't have time for a place that 'promotes illegal fantasies/activities.' You seem to have found 2.5 hours to tells us all you're outta here.
> 
> If you don't like it here, by all means, move on. :wave: We don't really have time to listen to all your whining. :gaah:


Thanks UncleJoe, glad to see that I'm not the only one. I wish this person well, but I also wish him/her gone.


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