Buying silver at a spot price is like the holy grail for silver stackers. It avoids paying the premiums that dealers charge over the spot. The silver premium is where the dealers make their money. That’s why the cost of an ounce of generic silver bullion varies from dealer to dealer.
Many articles you may read online talk about not worrying about spot price when you’re buying silver. The reasoning behind that way of thinking is that buying silver is an investment. Like other investments, the cost of silver will go up over time. Dollar-cost-averaging is excellent, assuming that your investment is value will rise dramatically over time. Silver just does not historically perform that way.
One bullion dealer, “Dealer A,” might sell a one-ounce Sunshine Mint silver bar at 59 cents over the spot. Meanwhile, another bullion dealer, “Dealer B,” might sell the same one-ounce silver bar for $3 over.
What is Dealer Premium?
Why is there so much difference in price between Dealer A and Dealer B?
Even though they are the exact same product, Dealer B can charges more for that product because they can. However, operating costs, overhead, suppliers and other factors typically impact the premium. While dealers like JM Bullion and APMEX offer a large selection of products, these large companies often have higher operating costs which get factored into the price of each item.
Smaller dealers usually have a smaller variety of products that are available at a better price. Many silver stackers tend to be a loyal to two or three different online dealers, regardless of whether that dealer offers the best prices for the same products. The main reason is trust.
Spot Price Deals
There are some bullion dealers that do offer some products for sale at spot price. They do this as a way to lure new customers to try their product and their service. Some of them are newer bullion dealers that are trying to establish themselves in the marketplace. Others are established dealers looking to lure customers from their competitors.
Whatever the reason, buying silver at spot price from these dealers is an opportunity to get a decent amount of silver bullion for the lowest price possible.
Use FindBullionPrices.com to find the deals to buy silver at spot price.