Buying Silver Bullion on eBay

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The major online silver bullion dealers all have eBay Stores as well. Silver deals can be found on eBay from trusted and reputable sellers. Most of the time the prices offered by the major dealers on eBay are comparable to the credit card prices for the same items listed on their websites. When combined with special offers such as eBay Bucks or periodic eBay 10-15% discount coupons it is possible to get great deals on silver bullion below spot price.

The best deals for buying silver on eBay come at times when eBay is offering a promotion. Periodically throughout each financial quarter, eBay runs promotions involving their eBay Bucks program which increase the eBay Bucks earning to as much as 10% on qualified purchases. At other times, eBay may offer a one-time use discount coupon that could be as much as 10% or 15% of a single purchase.

Buying Silver on eBay During Promotional Periods

Buying silver on eBay during promotional periods is almost like getting a 10% discount on silver bullion. eBay Bucks is a rewards program that acts similar to the way cash-back credit card programs work. Normally, eBay Bucks earns a 1% reward on qualified purchases.

When eBay runs an eBay Bucks promotion the increase in the cash-back reward can be as high as 10%. The cash-back rewards accumulate through each financial quarter and become eligible and must be spent during the first month of the subsequent financial quarter.

When shopping for silver and gold bullion on eBay the prices and premiums often seem unrealistically high, even from trusted and reputable dealers. This is partly due to the fees eBay charges sellers for listings. As well, PayPal fees are typically incorporated into the cost as well. Combined, these fees can make the cost of some products up to 10% to 15% higher than they seem on bullion dealer websites.

However, not all silver bullion purchases will be eligible for earning eBay Bucks or for purchasing with a discount coupon. Items that are specifically or cross-listed in “Bullion” categories are automatically ineligible. Just as gift cards are typically ineligible as well. This is due to a combination of anti-money laundering laws relating to untraceable cash equivalents as well as specific eBay Policies regarding discounts of items in certain categories where sellers are often provided with discounted fees.

Comparing eBay Prices to Those Found on Dealer’s Websites

When comparing prices on eBay for Silver and Gold bullion it’s important to make sure that you’re comparing it to the Credit Card/PayPal price that is listed on the dealer’s websites. This is the closest comparable price.

In addition to the normal fees that PayPal and other credit card processors charge the dealers, eBay tacks on as much as 10% or so in additional fees for each item sold through it’s platform. In some cases, each dealer has a negotiated contract which provides them with lower fees because of the large volume of purchases.

In some cases, the dealers will absorb the extra fee and in some cases it is passed on to the customer with a slightly higher premium than the dealer would charge on their own website.

Typically, dealers like APMEX, Bullion Exchanges, Liberty Coin and BOLD Precious Metals will sell silver bullion on eBay that is eligible for eBay Bucks and other promotions. Dealer’s are aware of when the promotions are running and will often adjust their pricing on eBay accordingly knowing that savvy buyers are looking for a good deal.

During the promotion periods it’s common to find both foreign silver coins and Pre-1933 US Gold coins available for close to or below spot price when factoring in the promotional discount or earned eBay Bucks.

 

Buy Bullion on eBay and eBay Bucks

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View our list of eBay Bucks Eligible Bullion Items

eBay has become an excellent place to buy silver and gold bullion. Almost all of the major, reputable bullion dealers have set up eBay stores as another channel for selling their products. Buying bullion on eBay gives you the added benefit of the eBay and PayPal buyer protections that are in place. Additionally, the eBay cash back rewards program, eBay Bucks, provides a way to offset and lower the price you pay for silver and gold bullion. However, there are a couple of things to consider.

Bullion Pricing on eBay

Products being sold by major dealers are often priced differently than the same products on their own websites. Often they are more expensive. This is primarily due to the additional fees that eBay and PayPal charge sellers as part of their selling service.

Another reason the pricing may seem more expensive is that eBay encourages sellers to offer buyers free shipping. The cost of free shipping isn’t free and will be factored into the price of the product. Depending on the dealer and the product and order size this can make the cost lower than buying through the dealer’s own website.

Almost every major, reputable bullion dealer advertises the cash price on their website and will add a surcharge when purchasing via credit card, debit card or PayPal. When buying bullion on eBay, the advertised price is the price you pay when using a credit card or PayPal. Those fees are also incorporated into the price.

For these reasons, the advertised price of a bullion item on eBay is more representative of the true cost you pay for a product when factoring in payment surcharges and shipping. While at first glance the price may seem higher than on the dealer’s own website, factoring in these additional costs makes the price comparable. When you also consider other incentives such as the eBay Buyer Protection and eBay Bucks, the practicality of buying silver and gold bullion develops into a more compelling case.

Incentives for Buying Silver and Gold Bullion on eBay

Knowing the true cost of what your buying when factoring in credit card surcharge and shipping fees is a good reason for considering eBay when buying silver and gold bullion. However, there are a couple of other compelling reasons as well.

Bullion and PayPal Purchase Protection

All investors in silver and gold bullion are aware of the large amount of counterfeit products prevalent in the marketplace. With the large amount of counterfeit bullion products being produced en masse in China many of those counterfeit items have made their way to eBay.

It is always recommended to buy from major, reputable dealers on eBay to reduce the risk of buying counterfeit products. Getting a counterfeit product is always possible. In the event it does happen, you are protected by both PayPal and eBay. If a product is counterfeit, simply opening a case with eBay and PayPal will result in an investigation. If the product is counterfeit, the buyer will be refunded their money and the seller will likely receive some punitive action.

eBay Bucks and Silver and Gold Bullion

A much bigger incentive for buying silver and gold bullion on eBay is a cash back rewards program that is offered by eBay called eBay Bucks. eBay Bucks provides a 1% cash back bonus on certain purchases made through eBay.

eBay Bucks cash back rewards accrue on a quarterly basis. At the beginning of the following quarter eBay issues a certificate code that can be used just like a gift card when making purchases. The certificate code applies the earned cash back rewards to the purchase price of an item which essentially reduces the price of an item.

Throughout the quarter eBay will have promotions that allow you to earn higher rewards. Typically the promotions have boosted the cash back earnings from the base 1% to 8% to 10%. In one instance earlier this year eBay boosted to the cash back earnings to 15% on purchases. When that promotion was active buyers earned $15 cash back towards a future purchase for every $100 spent. The benefit of being able to apply the cash back rewards to bullion purchases can reduce the cost bullion to below spot price which can greatly reduce the overall dollar cost average of your investment.

How can I sign up for eBay Bucks

Signing up for eBay Bucks is pretty straight forward if you already have an eBay account. Instructions for opting in to the eBay Bucks program can be found here.

Caveats of eBay Bucks

There are a couple of caveats that come with the program.

You can’t earn eBay Bucks when buying silver and gold bullion that is listed in the bullion category. eBay discounts their listing and selling fees for bullion dealers that list products in the silver and gold bullion categories. As a result, bullion purchases are excluded from earning eBay Bucks cash back.

There are some exceptions and workarounds. Many dealers will list products in alternate categories. Some products that are considered bullion can also be categorized as coins or collectables. Dealers will often list these products in alternate categories that do earn eBay Bucks. At times when eBay is running an eBay Bucks promotion that earns a higher cash back amount, buying items in these categories can earn a significant amount of cash back.

Another caveat to the program is that there are some limits on earning. The most you can earn on a single purchase is $100 in eBay Bucks. At normal times, this means that you’d need to make a purchase of $10,000. However, when eBay is running eBay Bucks promotions the amount can be greatly reduced. If eBay is running a promotion that earns 10% cash back, purchasing a single American Gold Eagle from a dealer that has one listed in an non-bullion category would easily hit the maximum amount earned per transaction. This is something that needs to be considered.

The program also has an earning limit of $500 per quarter. This limit applies to both regular cash back rewards and at times when eBay is running eBay Bucks promotions.

Finding silver and gold bullion that qualifies for eBay Bucks

Searching through categories on eBay trying to find silver and gold bullion that qualifies for eBay Bucks can be time consuming and tedious. FindBullionPrices.com makes this process a bit easier.

We maintain a list of eligible item listings that are regularly available for earning eBay bucks. The list contains silver and gold bullion items, junk silver currency, pre-1933 gold bullion and other items that are listed in categories that are eligible for earning eBay Bucks.

Additionally, subscribers to our newsletter will receive alerts when eBay Bucks promotions are running that include direct links to eligible product listings.

When will eBay run their next promotion?

In the past, eBay has run bonus promotions several times throughout the quarter. Running the promotions is probably a way for them to increase buying activity on their site and boost sales.