Some frequent questions new precious metals investors ask are :
- Which online bullion dealer is the best?
- Which online bullion dealer has the best prices?
- Which online bullion dealers are reputable?
- Does anyone have experience ordering from XYZ dealer?
Choosing which online bullion dealers to order from can be confusing for those just getting started in precious metals. It’s important to trust the online bullion dealers that you buy from because there have been a lot of well publicized scams and there are lots of counterfeit products floating around out there.
How do you choose which bullion dealer to buy from?
There are a variety of factors to consider when choosing which online bullion dealers to buy from. All of the major, reputable online bullion dealers carry many of the same products. Oftentimes, the pricing on what is the exact same product vary greatly from dealer to dealer.
Reputation and Trustworthiness
The best way is to conduct thorough online research to identify well-known bullion dealers. Look for established dealers with a solid reputation in the industry. You can research customer reviews, ratings, and testimonials on trusted review websites like TrustPilot, the Better Business Bureau and FindBullionPrices.com. There are also many existing threads on online forums and social media platforms like /r/SilverBugs and others on Reddit.
Pay attention to feedback regarding reliability, order processing times, shipping times, customer service, and overall customer satisfaction. Verify that the dealer accepts your chosen payment method. Many will have minimum order amounts for wire transfers and some other payment methods. Crytpo payments are an option for some dealers as well, making it easy to exchange digital tokens for physical metals.
Consider dealers with a history of transparent and ethical business practices.
Customer Service
How dealers handle issues that arise is one of the biggest differentiators in how to choose which bullion dealers are best for you. Some questions to ask yourself when evaluating
- Does the dealer have a track record of handling complaints and responding quickly to even minor inquiries?
- Does the dealer have open inquiries with the Better Business Bureau?
- What’s the dealer’s TrustPilot rating?
Product Selection
Online bullion dealers will carry a wider product selection than your local coin store. The product selection offered by online dealers will always include a wider selection of sovereign government bullion coins from numerous countries in addition to a large volume of generic silver bars and rounds in many sizes and weights.
Once you’ve identified a reputable dealer, browse their online inventory to explore the silver products available. Look for different types of silver, such as coins, bars, or rounds, and consider factors like weight, purity, and design to find the products that best suit your preferences and investment goals.
Pricing and Dealer Premium
Pricing and dealer premium are important factors to considered when choosing which online bullion dealers to buy from. When you buy silver and gold bullion, you are likely buying it as an investment or as a way of storing wealth or saving money for the future.
No matter what reasons you have that lead you to buy silver bullion, price will almost always be a top factor. The amount you pay above the current spot price when you buy silver is called the “dealer premium”. This is the markup that the dealer charges that will cover the dealer’s overhead costs, the dealer profit and in cases of free shipping, the shipping charges. The dealers that offer free shipping with a low minimum order typically have higher per piece premiums which can be of particular to note when making bulk purchases.
You always want to pay the lowest possible premium over spot price when you buy silver. In most cases, the spot price will have to rise higher than the price that you paid, including the dealer premium in order to profit from your investment.
Prices on precious metals are relatively stable and rise and fall slowly over time. It can take months or years before the spot price rises to an amount above what you paid in order to turn a profit on your investment, if that is one of your goals. The lower the dealer premium on the items that you buy the faster your investment becomes profitable.
Some items, such as American Silver Eagle coins will always cost more than silver spot price. One reason for this is because the US Mint charges wholesalers and dealers a premium over spot price in order to cover the cost of production and distribution. That premium gets baked into the cost is always past along to investors.
The US Mint has been experiencing ongoing production problems that began during the pandemic with supply chain shutdowns. In recent months, it’s been reported that the procurement of raw planchets continues to be an issue for the mint. The mint has been unable to keep up with the demand from investors, which has resulted in higher wholesale premiums and market prices.
Part of this premium can be recovered when selling Silver Eagles as dealers tend to pay above spot price. But you can’t always count on that.
Buying Silver Online
One of those deals is from Money Metals Exchange. They have a silver starter kit that comes with both a random year American Silver Eagle and a random year Canadian Silver Maple Leaf. The kits also comes with a one Troy ounce generic silver round, plus a half ounce fractional round and five 1/10th ounce fractional rounds. Together this starter kit comes with 4 Troy ounces of silver, including the two premium government bullion coins. Money Metals Exchange ships the starter kit for free.
The Money Metals Exchange silver starter kit price does fluctuate with the silver spot price.
This silver starter kit includes high premium government minted silver bullion, and 6 fractional silver rounds. With free shipping included it’s hard to pass up this offer at such a great price.
There are only a handful of wholesale bullion dealers in the country, most of the online bullion dealers are buying from the same sources. For the most part, they are also paying the same prices. Some of the larger dealers may get volume discounts, those may be offered as discounts to their customers.
Placing an Order with an Online Bullion Dealer
Once you’ve selected the dealer and the silver products you wish to purchase, add them to your cart. Most dealers will lock in the spot price that is used to calculate the order total for a few minutes while you continue browsing.
When you’re ready to check out, review your order in the cart to ensure accuracy and check the total cost. Verify the spot price, the lock-in time remaining, any applicable state sales taxes and shipping fees. Proceed to the checkout page and provide the required information, such as your shipping address and payment details.
Follow the instructions provided to complete the purchase. Verify all the details before finalizing the transaction. Some dealers may require additional steps, such as identity verification for larger purchases, as part of their compliance with anti-money laundering regulations.
After completing the purchase, you’ll receive an order confirmation screen followed by an email that will contain the order details. The dealer will then process your order and prepare it for shipment. Depending on the dealer and your location, shipping times may vary. Most dealers will provide you with notification of when your order ships and a tracking number may be provided.
Once your silver order arrives, carefully inspect the package for any signs of damage or tampering. Ensure that the contents match your order. If you have any concerns, contact the dealer immediately.
Sales Tax Varies by State
The reasons for states charging sales tax on bullion can vary. Some states have chosen to exempt bullion purchases from sales tax as a way to promote precious metals investing and attract bullion buyers. The specific sales tax policies on bullion vary from state to state, so it is advisable to consult the tax laws of your specific jurisdiction or seek professional advice regarding tax implications for bullion purchases.