April 15th, 2020
The below references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
In 2014, the Royal Canadian Mint released their first 99.99% pure silver 10 oz. bullion bar. For many stackers, the whole point of stacking bullion bars was to avoid the premiums associated with sovereign mints. After half a decade of production, we will take a look at the benefits of purchasing these RCM 10 ounce bars, and if the premium you pay is actually worth it in the long run.
Most bullion bars do not come with serial numbers; especially modern bullion. The RCM 10 ouncer comes not only with serialization but quite a unique font. The Geiger 10 oz. Edelmetalle silver bar comes with a serial number, but in the form of a sticker. This separates RCM 10 oz. bar from its contemporary competition. Collectors are willing to pay higher premiums for low or unique serial numbers. Furthermore, for security reasons, they can act as an identifiable means on insurance claims. The serial number separates it from the average run of the mill bullion bars.
This is a feature that is often overlooked when purchasing bars. The serrated edges of the RCM bar assure the purchaser that the bar has not been tampered with. By examining the edges of the bar, we are certain it has not been tampered with or altered.
When you hold an RCM bar next to a generic bar you instantly notice the finish is quite different; Almost appearing to have sharp straight vertical lines from top to bottom. While the purity of 99.99% vs. 99.90% has no real monetary difference in value, it mainly acts as a level of distinction in the Royal Canadian Mints favor. They are really trying to be the greatest mint in the world; even with their production of bullion bars. They have to make the best product.
Almost every Canadian stackers' first 10-ounce bar purchase was likely the Silvergoldbull 10-ounce bar. Silvergoldbull's promotion limiting one per household at spot price is too good to be true.
Yes, silver is silver, and yes, they both contain the same amount, but if I show these bars side by side to someone, people always reach for the RCM bar. The brand of the Royal Canadian Mint is renowned the world over when it comes to precious metals.
If you are taking the time and effort to resell your silver through a private channel like eBay, Kijiji or a silver forum, the RCM branding will be a great bargaining chip to get a much higher value. While I am not a fan of reselling on eBay due to their 13% sellers cut; we can explore their site for an idea of how well the RCM 10-ounce bar does on the aftermarket compared to the silvergoldbull 10-ounce bar.
Note: These results were taken on Wednesday April 15, 2020 from eBay.ca. Prices are in CAD. These prices indicate what they sold for and on what date. This was just a comparison between silvergoldbull and RCM 10-ounce bars, other generic bars might sell for much more or less than RCM 10 ounce bars depending on their rarity and demand.
The above image shows that RCM 10 ounce bars are selling consistently and in demand well above spot. While the below image reveals that the generic silvergoldbull bar sells less frequently and at a much lower price.
If your only goal is to stack silver as cheaply as possible, to one day sell hassle free, then maybe the RCM 10-ounce bar is not for you. However, if you see yourself becoming active in the silver community and reselling your silver privately through various mediums, then I would definitely recommend stacking RCM 10-ounce bars. Their design, recognition, and security features legitimize the premium associated with them, and are highly coveted by silver stackers.