Choosing which online bullion dealers to order from can confuse those just getting started in precious metals. It’s important to trust the online bullion dealers when buying silver because there have been many well-publicized scams and counterfeit products floating around.
How do you choose which bullion dealer to buy from?
There are various factors to consider when choosing which online bullion dealers to buy from. All the major, reputable online bullion dealers carry many of the same products, but the pricing on the exact same product often varies 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 dealer directory. Many threads exist 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 other payment methods. Crypto payments are also an option for some dealers, 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 choosing 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 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 always carry a wider product selection than your local coin store. Online dealers will always offer 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 premiums are essential when choosing which online bullion dealers to buy from. When you buy silver and gold bullion, you are likely buying it as an investment, a way of storing wealth, or a way of saving money for the future.
No matter what reasons you have that lead you to buy silver bullion, the price will almost always be a top factor. The amount 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 their overhead costs, profit, and in cases of free shipping, the shipping charges. Dealers that offer free shipping with a low minimum order have higher per-piece premiums, which can be of particular note when making bulk purchases.
You always want to pay the lowest possible premium over the spot price when you buy silver. In most cases, the spot price will have to rise higher than the price you paid, including the dealer premium, to profit from your investment.
Prices on precious metals are relatively stable and rise and fall slowly over time. If you want to turn a profit on your investment, it can take months or years before the spot price rises to an amount above what you paid. 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 because the US Mint charges wholesalers and dealers a premium over the spot price to cover the cost of production and distribution. That premium is baked into the cost and is always passed along to investors.
The US Mint has been experiencing ongoing production problems that began during the pandemic due to supply chain shutdowns. In recent months, there have been reports that the procurement of raw planchets continues to be a problem for the mint. The mint has been unable to keep up with investor demand, 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 with a random-year American Silver Eagle and a random-year Canadian Silver Maple Leaf. The kit also includes a one-troy-ounce generic silver round, plus a half-ounce fractional round and five 1/10th-ounce fractional rounds.
Together, the starter kit comes with four troy ounces of silver, including the two premium government bullion coins. Money Metals Exchange ships the starter kit for free.
The price of the Money Metals Exchange silver starter kit fluctuates with the silver spot price.
This silver starter kit includes high-premium government-minted silver bullion and six fractional silver rounds. With free shipping, it’s hard to pass up this offer at such a great price.
Most of the online bullion dealers buy from the same wholesale sources and pay the same prices. Some of the larger dealers may get volume discounts, which they may offer 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 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, to comply with anti-money laundering regulations.
After purchasing, you’ll receive an order confirmation screen and an email with the 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 notify you when your order ships with a tracking number 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 exempt bullion purchases from sales tax to promote investing in precious metals and attract bullion buyers. The specific sales tax policies on bullion differ from state to state, so it is advisable to consult the tax laws of your particular jurisdiction or seek professional advice regarding tax implications for bullion purchases.
