Secondary market metals are like the used car market for silver and gold bullion. Newly minted bars, coins, and rounds are sold by online dealers, local coin stores, and pawn shops shortly after they are manufactured.
When bullion investors decide to divest their holdings, the precious metals are often sold back to a local coin shop, pawn shop, or online bullion broker.
Sometimes, the bullion is returned to a refinery, where it is melted and recycled into another form.
The bullion is often resold to other investors as-is and becomes part of the secondary market.
This does not change the quality of the metal, and there is very little difference from when it comes from the source.
Investments in secondary market metals hold the same value as similar newly minted bars; the primary difference is the source of the precious metals.
The primary driver for buying gold and silver bullion from secondary markets is the lower price, particularly when looking for the cheapest premiums over the spot.
Cheap Silver and Gold
You should look to buy precious metals from the secondary market for several reasons. Below are just a few of those reasons.
When brokers buy precious metals from individual investors, they often pay a price slightly below the melt value, allowing them to price these products lower than newly minted products. Often, you can often vintage 10 oz silver bars and are a variety of backdated gold coins that are harder to find.
Secondary market bullion is priced lower as the pieces may show signs of wear, such as scruff marks, small scratches, or tarnish. It is an excellent way to start Precious Metals investing because the premiums are often lower.
These are just a few reasons people buy secondary market metals. Investors have a large variety to choose from that is high quality and offers excellent value.