A-Mark’s Acquisition of Stack’s Bowers: The Cost of Industry Consolidation for Collectors and Investors

A-Mark’s Acquisition of Stack’s Bowers: The Cost of Industry Consolidation for Collectors and Investors

The numismatic and bullion industry continues to undergo rapid consolidation, with A-Mark Precious Metals’ recent acquisition of Stack’s Bowers Galleries (SBG) being the latest in a series of moves reshaping the marketplace. While A-Mark touts this as a strategic expansion, for collectors and investors, this acquisition raises serious concerns about market concentration, higher costs, and reduced competition within the precious metals and rare coin markets.

What This Acquisition Means for the Industry

A-Mark’s purchase of Stack’s Bowers Galleries represents a handful of major corporations’ further monopolization of the bullion and numismatic space. A-Mark’s vertical integration strategy allows it to control multiple precious metals supply chain layers. With the addition of Stack’s Bowers, A-Mark expands its control over numismatic auctions, retail sales, and high-end collectible coins.

At first glance, this move will likely benefit A-Mark’s bottom line by providing cross-selling opportunities into the luxury markets to buyers who aren’t effected by higher premiums. However, it raises red flags about the increasing difficulty of finding fair pricing and a competitive marketplace for retail buyers, collectors, and smaller dealers.

Consolidation Leads to Less Competition and Higher Costs

The precious metals and numismatic markets thrive on competition, which helps maintain fair pricing, reasonable premiums, trustworthy customer service, and a diverse selection of coins and bullion products. A-Mark’s acquisition of Stack’s Bowers Galleries effectively removes one of the few independent, large-scale auction houses from the market and folds it into the umbrella of a major bullion distributor.

A-Mark already owns some of the most influential online bullion dealers, including:

A-Mark has established unprecedented vertical integration. It sources raw bullion, refines metals through SilverTowne Mint, supplies blank planchets to the U.S. Mint, distributes to wholesale and retail markets, operates some of the largest online precious metals retailers, is one of the largest Authorized Purchasers of bullion from the Mint, and now controls a premier numismatic auction house.

This creates a scenario where the ability of smaller independent dealers and collectors to compete is significantly weakened, ultimately leading to higher costs for individual buyers.

What This Means for Investors and Collectors

  1. Higher Premiums: Fewer competing dealers mean A-Mark can control pricing on both the wholesale and retail level, lifting wholesale premiums to smaller dealers, forcing dealers to raise premiums to retail investors for bullion and numismatic coins.
  2. Reduced Market Options: With fewer independent auction houses, collectors will have fewer choices when selling or acquiring rare coins.
  3. Increased Fees on Numismatic Transactions: Under A-Mark’s ownership, the cost to buy or sell through Stack’s Bowers’ auction platform may increase.
  4. Price Standardization: A-Mark’s control over multiple online bullion retailers allows them to set pricing trends without external competition.

For those looking to invest in gold and silver bullion, the concern is whether prices will remain fair and competitive or whether consolidation will drive higher premiums.

The Bigger Picture: A Growing Trend in Precious Metals Consolidation

A-Mark’s acquisition of Stack’s Bowers is just the latest move in consolidating the precious metals and numismatic markets.

Over the past decade, private equity firms, major wholesalers, and large online retailers have increasingly absorbed smaller independent dealers. This has created a less competitive environment where a few dominant players control pricing, availability, and premiums on gold and silver products.

One of the most striking examples of how consolidation is changing the landscape for retail bullion buyers is the growing relationship between MKS PAMP, APMEX, and Costco.

In September 2023, MKS PAMP GROUP, one of the largest conglomerates in precious metals refining and trading, announced a strategic investment in APMEX.

That was the same time Costco entered the bullion market, selling PAMP-branded gold bars to its members. While this might seem like an opportunity for consumers, the reality is more complicated.

APMEX, under MKS PAMP’s control, handles the fulfillment for Costco’s bullion orders, shipping directly from its Oklahoma facility. The widespread availability of PAMP gold bars at Costco—while convenient—does not necessarily mean lower prices for consumers.

Instead, this model benefits the corporate entities that control production and distribution, squeezing out smaller dealers who cannot compete with the purchasing power of a major retailer like Costco.

Other Recent A-Mark Acquisitions in the Precious Metals Space

The continued corporatization of the bullion and numismatic industry means that individual buyers have fewer choices, and competition is becoming scarce.

What Can Buyers and Collectors Do?

For those concerned about rising costs and fewer options, there are still ways to find better pricing and avoid overpaying.

1. Use Price Comparison Tools

Websites like FindBullionPrices.com allow buyers to compare real-time prices on gold and silver bullion from various independent dealers, ensuring they find the best deals without falling into price traps set by major corporations.

2. Support Independent Dealers and Auctions

Rather than relying solely on Stack’s Bowers and A-Mark-controlled companies, collectors should seek out independent auction houses, coin shows, and smaller dealers to ensure fair pricing and maintain a competitive market.

3. Be Aware of Market Manipulation

With fewer competitors, pricing control becomes easier for large companies. To avoid overpaying, collectors and investors should stay informed about market trends, price fluctuations, and dealer markups.

Final Thoughts: The Future of the Precious Metals and Numismatic Industry

While A-Mark’s acquisition of Stack’s Bowers may be a strategic move for its corporate growth, the continued consolidation of the precious metals industry is a growing concern for collectors and investors alike.

With fewer independent competitors, the likelihood of higher premiums, limited buying options, and inflated numismatic pricing increases. The impact of this acquisition will unfold in the coming months, but it underscores the importance of staying informed, comparing prices, and supporting independent dealers whenever possible.

For those looking to invest in bullion or numismatic coins, using a price comparison tool like FindBullionPrices.com remains one of the best ways to ensure you’re not paying excessive premiums and getting the best deal from trusted dealers in an increasingly consolidated market.

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