Often, dealers will buy entire portfolio or a collection from an individual investor that is divesting all or some of their portfolio. This is often driven by dealer buy back offers, but also the trade with local coin shops, pawn shops and other retailers.
In some cases, the dealer will then offer these items for sale, sometimes listing them on their website as random generic silver bars.
At the retail level, silver bars that are in good condition are oftentimes sold back to distributors instead of being sent to the refinery.
Secondary market silver bars come from a dealer buying them from a third party source other than the original mint.
The amount and purity of the silver in these silver bars is the same as buying from the original source. The difference is that secondary market bars may show some signs of wear, including tarnish, dings, scratches or other marks that show they’ve been handled.
Investments in secondary market precious metals can be advantageous when comparing with primary sourced silver bars. Online bullion dealers will often have the prices on these with a premium that can be substantially lower than those on newly minted silver bars.
Secondary Market Silver Bars are Cheaper
There are several reasons why you should buy random generic silver bars. Below are just a few of those reasons.
- Dealers buy silver bars from individuals. Often paying below spot price. This allows them to price these products with a lower premium than primary market products.
- You can sometimes find harder to find vintage silver bars such as Engelhard and Johnson Matthey
- Prices after often lower due to wear or signs of being scruffy or tarnished.
- It is a good way to get begin to buy silver bars because the premiums are often lower.
While these are just a few of the reasons people buy silver bars from the secondary market, investors have a large variety to choose from that are high in quality and offer great value.
