How Do We Make This Simple Low Cost Savings Solution Work for You?
The Allocated Bullion Exchange (ABX) has created an innovative solution that helps to reduce the premium placed on the physical silver you buy. The ABX has arranged with their liquidity providers (refineries and mints) to supply all and any unwanted silver bars they have lying around into the vaults as long as they all meet the minimum fineness of 999. These 'knick-knacks' are used to help seed the pooled accounts.
How Does This Help You?
Normally a bullion provider invests their capital into a single 1000 oz silver bar after which they then wait for investors to buy into it. These bars are in high demand and so can hold a higher premium than the silver bars that aren't so highly sought after so it creates an unnecessary capital investment burden on the bullion provider.
By taking in the smaller unwanted bars that the refineries have lying around, the ABX's pooled silver has a lower premium placed upon it and so costing you less to buy, thereby making it easier to get invested into physical bullion.
So Where Does the 1000 Ounce Bar Fit Into All of This?
Once you have accumulated 1000 pooled silver ounces in a single market location, you can then withdraw it from the vault if you wish. When you request a withdrawal, one of the liquidity providers will swap out 1000 ounces of knick-knack silver bars and replace it with a single 1000 oz silver bar, which is then sent to you.
The method of using small silver bars to seed the pooled accounts in no way undermines the quality of what you are buying and there is always 1:1 amount of metal bought and held for you in the vault (100% allocation).
This style of innovative investing into low premium pooled physical silver is a great, simple and reachable way to help people achieve a dream of buying into precious metals that may not otherwise have been affordable.