One miner gets it right by selling their own silver bars

I think I mentioned in a earlier post that First Majestic Silver was going to allocate some of its silver production to a mint in order to bring their own branded rounds and bars to the market and capitalize on the discrepancy between paper and physical prices. Now I admit I was not paying very good attention and apparently the product and site was launched some time ago without me noticing, ooops;)

As you can see from the pictures above they are offering a selection of quite attractive proof rounds in 1, 2, 5, and 10 ounce sizes as well as a lower quality "business strike" rounds all made by Northwest Territorial Mint.

At this time the prices are based on $14 dollar silver with $1-3/oz premium on the proof pieces but at least they do have the 1, 2 and 5 ounce sizes in stock Unfortunately I missed out when they hit the market because I probably would have bought the minimum 20 round tube of the business rounds, which are currently sold out. I also think the display set of the 4 sizes of proof rounds would have been worth buying just cause it's pretty.

For the average investor the important products are those marked coming soon, a 5oz, 10oz and 1kilo ingot bar which are popular sizes that are nearly impossible to find. The other plus is they appear to be selling only product they actually have in hand and are not taking orders they will not be able to fill for months, hence the sold out status of several products. This is the kind of honest business practice and I expect from all dealers.

I applaud First Majestic for doing something that everyone else should be jumping on and I hope this prompts others to do the same. Of course current mint capacity may not be up to it but maybe the increased demand will drive some expansion. Even better why not get a bunch of mid tier companies together and creating a minting cooperative. Or why doesn't Silver Wheaton do something value added to the discount silver they buy?

I should note that Pan American has sold rounds and bars at Northwest Territorial Mint for a long time slightly closer to spot prices that these products, however due to market conditions you must wait months for delivery. So it's up to you, how much will you pay to get what you want now, vs. paying for it now and waiting months for delivery. With the instability in the markets I don't like leaving my money with anyone for months at a time with promise of delivery later. The current premium asked on these products is quite fair considering some of the prices I've seen on eBay I would definately buy these.

I hope this is useful to anyone eager enough to pay the premium. If any of my friends or family are reading this, anything offered by Majestic will do just fine for Christmas. One once of silver is worth infinitely more than more sweat shop clothing or a gift card from a company verging on bankruptcy. Of course a grain mill, column still or hobby farm will be accepted willingly as well.

Now that the business rounds are back in stock I've just made a modest purchase, I hope to report a trouble free transaction and delivery. You might also note the 5,10, kilo bars are also available