Secondary market metals are like the used car market for silver and gold bullion. Newly minted bars, coins are rounds are sold by online bullion dealers, local coins stores and pawn shops shortly after they have been manufactured.
When a bullion investors decides to divest their holdings, the precious metals are often sold back to a local coin shop, pawn shop or online bullion broker.
In some cases the bullion is sent back to a refinery where it is melted and recycled into another form.
Most of the time the bullion is resold to other investors as-is and becomes part of the secondary market.
This does not change the quality of the metal. And there is very little difference than when it comes from the original source.
Investments in secondary market metals hold the same value as similar newly minted bars, the primary difference is the source of the precious metals.
The primary driver for buying gold and silver bullion from secondary markets is the lower price, particularly when you’re looking for the cheapest premiums over spot.
Cheap Silver and Gold
There are several reasons why you should look to buy secondary market precious metals. Below are just a few of those reasons.
- When a broker buys precious metals from individual investors they will often pay a price slightly below the melt value, which allows them to price these products lower than newly minted products.
- You can often discover harder to find 10 oz silver bars and backdated gold coins.
- Price is often lower because the coins may show some signs of wear, scruff marks, small scratches or tarnish.
- It is a good way to get started into Precious Metals investing because the premiums are often lower. (Buy Silver)
These are just a few of the reasons people buy secondary market metals, investors have a large variety to choose from that are high in quality and offer great value.
