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. And like other investments the price of silver will go up over time. I think that way of thinking is foolish. Dollar-cost-averaging is great, assuming that the value of your investment is going to rise dramatically over time. Silver just does not historically perform that way.
Buying silver at spot price is like the holy grail for silver stackers. Buying silver at spot price avoids paying the premiums that dealers charge over spot. The premium on silver is where the dealers make their money. It’s the reason why the price of an ounce of generic silver bullion varies from dealer to dealer.
One bullion dealer, “Dealer A” might sell a one ounce Sunshine Mint silver bar at 59 cents over spot. While another bullion dealer, “Dealer B”, might sell the same Sunshine Mint one ounce silver bar for $3 over spot.
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.
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.
