GOLD & SILVER BULLION DEALERS. Do they pay spot when they buy from a MINT.

[Sourdough]

Do they get a bulk discount from a mint....???

When the bullion dealer that sold you product, purchases it back from you, do you get a premium or spot or discounted price below spot.....???

 

[Mountain trapper]

When you sell PM's to a bullion dealer they always pay below spot, how much depends on the dealer. When you buy PM's you always pay above spot, again it varies on the dealer. I started buying PM's from Kitco over 30 years ago; gold, silver and palladium. Just recently I started buying silver and copper from JM Bullion. They have specials on silver at $2.49 or less over spot for any quantity. Gold is about $68 over spot. Kitco is buying silver for about a buck under spot and gold about $100 under spot. These prices are dependent on quantity and quality and if they are running low on inventory of a certain type and mint mark.

 

[Sourdough]

When (what time of day or days) is spot price posted. Does it get updated every hour or every minute or second.

 

[Magus]

My old dealer got bulk discounts on rounds and ounces.

 

[Mountain trapper]

When (what time of day or days) is spot price posted. Does it get updated every hour or every minute or second.

I think it's updated every few minutes. It's important that your dealer is using the latest spot price.

 

[Rick]

Historically they have offered me below spot but that was years ago, before the spread between spot and physical silver in possession had become so large. I have seen 8 dollars above spot in retail of name brand coins.
Easily a third of spot price for some one ounce coins now.
So I am confident I could get a couple of dollars over spot for my coins, or maybe even my rounds.

 

[Mountain trapper]

Historically they have offered me below spot but that was years ago, before the spread between spot and physical silver in possession had become so large. I have seen 8 dollars above spot in retail of name brand coins.
Easily a third of spot price for some one ounce coins now.
So I am confident I could get a couple of dollars over spot for my coins, or maybe even my rounds.

Good luck with that. I've never seen any dealer pay over spot for PM's. The best that I've seen is $1.00 under spot for silver.

 

[Mountain trapper]

JM Bullion is running a special on 10 oz silver bars at $1.49 over spot. They're also running a special on select gold coins at $24.99 over spot. I'm going to put in an order for some 10 oz bars soon.

 

[Rick]

Good luck with that. I've never seen any dealer pay over spot for PM's. The best that I've seen is $1.00 under spot for silver.

Same here but we simply are not in that old market anymore.
A Canadian maple leaf which could ahve eben ha din the past for as little as a buck fifty over spot to buy is now $5 over spot.
If a dealer now where to offer me $1.00 over spot he'd still make a greater profit per ounce than he did back in the day when he offered spot for these coins.
Rounds were always under spot. I remember as much as 2 dollars under spot, when a Buffalo round was one dolla rover spot for a delta of 3 USD.
But now even Silver Buffaloe rounds are 3.90 USD above spot if bought in quantity.
If I accepted the same price as before 2 dollars under spot the guy would have nearly 6 dollars profit for every single ounce he buys.
I think he will take 3 dollars of profit like he used to back in the day, especially when so few are selling physical silver, which would be 90 cents over spot.

Full disclosure in the past I only dealt in larger quantities with a well reputed wholesaler, who would not accept less than 200 ounces of exact same bullion in a single one transaction.
So I know i got hugely better prices selling than I would at a pawnshop.

 

[Mountain trapper]

Same here but we simply are not in that old market anymore.
A Canadian maple leaf which could ahve eben ha din the past for as little as a buck fifty over spot to buy is now $5 over spot.
If a dealer now where to offer me $1.00 over spot he'd still make a greater profit per ounce than he did back in the day when he offered spot for these coins.
Rounds were always under spot. I remember as much as 2 dollars under spot, when a Buffalo round was one dolla rover spot for a delta of 3 USD.
But now even Silver Buffaloe rounds are 3.90 USD above spot if bought in quantity.
If I accepted the same price as before 2 dollars under spot the guy would have nearly 6 dollars profit for every single ounce he buys.
I think he will take 3 dollars of profit like he used to back in the day, especially when so few are selling physical silver, which would be 90 cents over spot.

Full disclosure in the past I only dealt in larger quantities with a well reputed wholesaler, who would not accept less than 200 ounces of exact same bullion in a single one transaction.
So I know i got hugely better prices selling than I would at a pawnshop.

Please tell me where a dealer will pay over spot for any amount of silver and I'll sell tomorrow. Even 30 years ago there wasn't a dealer around that would pay over spot when buying silver. Dealers are set in their premiums. I'm not talking about a seller with only a couple of one ounce rounds to sell. Dealers do have a little room on their spot prices for sales of 100 ounces and above.
I do realize that I'm far from a large seller or buyer of PM'S so if you're dealing in multiple 1,000 ounces purchases or sales that's in a total different category than I'm in.

 

[Rick]

Please tell me where a dealer will pay over spot for any amount of silver and I'll sell tomorrow. Even 30 years ago there wasn't a dealer around that would pay over spot when buying silver. Dealers are set in their premiums. I'm not talking about a seller with only a couple of one ounce rounds to sell. Dealers do have a little room on their spot prices for sales of 100 ounces and above.
I do realize that I'm far from a large seller or buyer of PM'S so if you're dealing in multiple 1,000 ounces purchases or sales that's in a total different category than I'm in.

There is (was?) a place vicinity of (but not in ) Wash DC.

I do not want to link to it to reduce my chance of doxing.
Where you show up with 200 or more Silver coins, that has in past years given me almost Spot per ounce.

When back then the markups in retail where only 2-3 dollars over spot.

Now the markups are 5-7 dollars over spot in retail, so I am confident I could get a dollar over spot for a Canadian Silver Maple leafs just to name one exmaple of a coin.

Dont deal with pawn shops they seek huge margins because they mostly deal with deadbeats and criminals trying to fence ( where there is a chance they may have to return the goods to cops in future) and thier business risk culture and margin demand is influenced by that.

I once had a pawnshop offer me 50% of spot (laughter),

PMs are zero-risk currency to the buyer. Just like exchanging foreign currency. You wouldnt accept a 20% haircut when changing US dollars to Euros would you?
And thats exactly what you do ( or worse) if you accept below spot for quality bullion coins in a market thats 5 dollars over spot for retail physical silver.

Find a well established wholesaler in your area; Show up well dressed/groomed, ideally with printed receipts in hand where you bought the silver and make sure you have at least 200 ounces of quality bullion (ideally coins but the more well known rounds tend to do a bit better too) to sell at the same time and you WILL get a better deal.

You could also try to sell to JM Bullion (online) which is easiest fastest if you bougth your stuff there but even if you didnt they are not a pawnshop so you will get better prices.

EDIT: Understand, I am referring to Bullion Coins such as Maple leafs or Silver Eagles which will demand a premium when re selling. With bars and the like yes you will never get over spot

 

[Rick]

1) They have specials on silver at $2.49 or less over spot for any quantity.

1) Thats a super deal. This must be for rounds/bars not minted coins right? I have not seen under 5 USD over spot retail sale for Silver minted coins. such as Silver Eagles and maple Leafs.

2)Gold is about $68 over spot. Kitco is buying silver for about a buck under spot and gold about $100 under spot. These prices are dependent on quantity and quality and if they are running low on inventory of a certain type and mint mark.

2) This is why in past couple years I have switched from buying Silver to purchase Gold. the %age markup over spot is much smaller.