Review of counterfeit silver and gold coins and bars

Where to buy

Bank measured silver bars are made from finished metal with a purity degree of 99.99%. Thus, these bars have a purity of 999.9. According to GOST requirements, they are trapezoidal in shape, weighing 28–32 kg. Scope of application: technical purposes and interbank settlements.

“The steadily increasing purchases of gold bullion by central banks suggest that another bull market – the silver bullion market – is likely on the horizon.”
Anderson, analyst

Banks also offer the precious metal in the form of bars to individuals as a long-term investment. But in this case we are talking about measured products weighing from 50, 100, 250, 500 and 1000 g.

The cost of a silver bar directly depends on its mass. For those who intend to invest in them, it should be understood that this investment is not for a short period.

If you want to quickly sell a product, you risk financial losses instead of income. The difference between the purchase price and the acquisition price may be insignificant, or even lower. Moreover, upon sale you will have to pay tax.

Transactions with precious metals in bullion are carried out in banks. For these purposes, a financial organization acquires a license from the Central Bank, specially equips a storage facility and recruits trained specialists.

“Silver is not as resistant to corrosion and has a significantly higher storage cost.
Since the metal is more than 100 times cheaper than gold, the same amount of silver will require a hundred times more storage volume” Alexey Kiriyenko, managing partner of EXANTE

Sberbank: conditions and purchase process

It is this financial organization that is considered the leader in the white metal market. But the transaction can be completed in offices of only 25 Russian cities.

Measured bars of 50–1000 g are subject to sale. A citizen only needs to present an identification document and have the required amount.

With a bar of bank silver, he receives a certificate and cash documents confirming the fact of the transaction.

Reference! When selling back, you will have to pay personal income tax if the bullion was owned for less than 3 years.

It is better to store the purchase in a bank safe deposit box. When selling, you will have to provide a safe rental agreement, a passport and a certificate for the precious metal. You can sell bullion that was stored at home. But then the bank will check the product being sold especially carefully. The same applies to silver purchased from another financial institution. If the condition of the bar is unsatisfactory or the certificate is unreadable, the cost may be reduced.

Table 1. Purchase/sale prices of measured silver bars in Sberbank as of 14:06 03/23/2020

Source: Sberbank website

Reference! The metal exchange rate can even change several times a day. Sberbank offers to track quotes on the website or in the client’s personal account.

Other banks

Not all Russian financial institutions work with special investment silver for the population.

Table 2. Sales prices, according to information from banks’ websites, rubles.

Sources: RSHB, Gazprombank, smpbank.ru

They are also offered for sale by: Promsvyazbank, FC Otkritie - prices are formed daily based on changing quotes. Many organizations, both those that trade in bullion and those that do not have storage conditions, offer clients to open impersonal metal accounts.

What does 999 silver mean?

Of all the possible standards of silver used for branding products, 999 standard is the highest. Judging by the designation of the purity of the precious metal, it accounts for 99.9%, and the remaining 0.1% is alloy additives. However, silver that has such a hallmark is considered pure. Since it is practically impossible to ensure 100% purity of the precious metal, in order to minimize the reputational risks of manufacturers, it was agreed to provide for the possibility of the presence of 0.1% impurities in 999 silver. Consequently, the price of a silver product depends only on how much a gram of high-grade silver costs.

It is generally accepted that all noble metals are inert. However, the inertness of silver is conditional: even a silver-containing ingot free of impurities darkens slightly over time. True, this happens so slowly and imperceptibly that it is difficult to see the changes with the naked eye.

The cause of darkening of silver-containing products is not oxidation.
And this happens due to sulfidation - a combination of argentum with sulfur contained in the air and giving it a black tint. Silver-containing products with a small proportion of impurities have the physical and chemical properties inherent to this element. They practically do not react with oxygen in the surrounding air. But there is one big problem: a precious metal of such purity is characterized by high ductility, which has a bad effect on the wear resistance of products. Due to their softness, they are susceptible to chips and scratches during daily wear. Therefore, the minimum ligature in the composition of high-grade silver materials makes them practically unsuitable for making jewelry. Today they cannot be seen on the shelves of jewelry stores.

How the price changed

According to the Bank of Russia, a gram of silver in the Russian Federation at the beginning of 2021 cost 35.48 rubles. By March 24, 2021, it had fallen slightly in price - already 32.84 rubles.

Chart 1. Change in the accounting price of silver in Russia, rub. per gram in early January. Source: Central Bank

According to information published on the INVESTFUNDS website, the cost of an ounce of this precious metal on the London (interbank) bullion market has decreased over the past 10 years.

Reference! 1 ounce of silver is equal to 31.1034768 grams.

As of March 23, 2010, it was $16.78. After 10 years, March 23, 2020 – $12.51. But during this period, a historic price jump was recorded to $48.70. This happened at the end of April 2011. The cheapest silver was traded on March 19, 2020 – for $12.01.

Cost per ounce, $ per unit. Source: INVESTFUNDS with reference to the London (interbank) bullion market

“If the situation with coronavirus is reversed in the first half of 2021, the price of silver may recover to $15-16.5 per troy ounce”
Alexey Kiriyenko, managing partner of EXANTE

Compare how gold prices have changed.

During the Soviet period

GOST 48-78-83, published on July 1, 1983, set out uniform requirements that guarantee the competitiveness of products on the world market. Silver bars were then produced in two grades: SrA-1 and SrA-2. With the introduction of GOST 28595-90, approved. By Decree of the USSR State Standard dated June 27, 1990 No. 1919, a new brand appeared - SrA-3. Moreover, the mass fraction of silver was:

• SrA-1 – 99.99;
• SrA-2 – 99.98;
• SrA-3 – 99.90.

The production of bars was organized exclusively for the manufacture of alloys, industrial products, etc. Money made from white precious metal was much more widespread. It is from them that one can judge how much the white metal was valued in the USSR.

Change coins in denominations of 10, 15, 20 from silver of 500 standard, 50 kopecks and 1 ruble - 900 in the Land of the Soviets were put into circulation in 1924. Each fifty-kopeck piece contained 10 g, and in the ruble - 20 g of precious metal In low-grade silver coins:

• 20 kopecks – 3.6 g;
• 15 kopecks – 2.7 g;
• 10 kopecks – 1.8 g.

Before World War II, the price per ounce dropped to $0.25. By 1960 it had risen to $1 and continued to rise.

In the 1970s it traded for no more than $5. Since 1978, the price of the precious metal began to soar. By the fall of 1979, it exceeded the $10 mark, and in January 1980, the market recorded a record of $48.90. A couple of years later, the metal was again below $10 per ounce (goldtraders).

“Look at the price movements of silver in the 1970s and early 2000s and you can see just how dramatic the ups and downs can be.”
Anderson, analyst

Standard gold bars (silver, platinum, palladium) and their purity

Standard bars
are precious metal bars manufactured and marked by Russian (until 1992 - Soviet) refining organizations in accordance with current state and industry standards, which have the following weight and fineness denominations:

For clarity, I will provide images of products of OJSC Krasnoyarsk Non-Ferrous Metals Plant named after V.N. Gulidov", as well as their denominations of mass and fineness:

1. Gold in standard bars, GOST 28058-89.
   The content of the main component is 99.99%, the weight of the ingots is from 11.0 to 13.3 kg. Gold in standard bars
2. Silver in standard bars, GOST 28595-90.
   Main component content 99.99%; weight of ingots from 28.0 to 32.0 kg, it is possible to obtain metal of higher purity and any weight Silver in standard ingots
3. Platinum ingots, GOST 12341-81, 14837-79.
   The content of the main component is from 99.95 to 99.98%; It is possible to obtain metal of higher purity. Platinum bullion
4. Palladium ingots, 12340-81, 14836-82... Main component content from 99.95 to 99.98%;
   It is possible to obtain metal of higher purity. Palladium bullion

Country overview

A large number of mints and refiners around the world produce silver bars in different shapes, sizes and designs.

goodfon.ru/ Ivan-chirko

When determining the price, they are guided by current quotes per ounce.

Table 3. Cost of a 1 ounce bar at 16:40 on March 23

Source: silverprice, exchange rates as of March 23 – kurs-dollar with reference to Forex

• Great Britain.

The Royal Mint produces three types of silver bars that are the perfect addition to any portfolio or collection: 100g, 500g and 1000g. They are made from 999 fine metal. Each is stamped with The Royal Mint logo, as well as weight, year of manufacture and serial number.

• Canada.

The Royal Canadian Mint (RCM) is respected throughout the world. It produces some of the finest silver bullion. RCM produces various types of them. The most popular is 10 ounces, with mid-range sizes ranging from 100 to 1000, each with the RCM logo and the serial number, weight and purity.

• Australia.

The Perth Mint is the country's largest precious metals production facility. The quality of Perth Mint products is of the highest standards.

The 1 oz 999.9 Fine Silver Kangaroo Bar is an elegant bar with the Perth Mint logo and weight and purity notes.

Photo: Kangaroo ingot

The silver bar will remain a symbol of reliability for a long time, and its investment potential will be high. According to GOLDPRICE, their prices today are among the best among precious metals.

Author: Demidova Marina. April 7, 2021.

How much does a gram of 999 silver cost?

For both pure gold and silver of the highest 999 standard, the price per 1 gram today depends on the London Stock Exchange rate. Every day, during a telephone conference, the value of the silver fixing is established, with the help of which the price is formed.

The very first silver fixing took place in the Wilkinson office at the end of the 19th century.

According to the results of fixing carried out in March 2021 for 999 silver, the price of 1 gram today is slightly more than 30 rubles. However, the current price can be obtained by focusing on courses from commercial institutions. Because we shouldn’t forget that all banks and jewelry stores sell silver at a premium, while pawn shops, on the contrary, buy it at a discount. The difference between purchase and sale in different institutions can be 10-15%.