It’s not normally possible for retail investors to buy silver from mints or wholesale desks, as these sources are reserved for dealers and the websites that we individuals shop on. Although investors looking to buy 5,000+ ounces of silver can normally speak to mints about a direct purchase, the majority of investors will be hunting for bulk bargains at normal retail websites.
For example, you will tend to pay around 10-12% above silver spot price if you are buying individual American Silver Eagles from online PM dealers. This premium will be reduced to 7-9% if you are buying 500+ quantities, also known as Monster Boxes. Nearly all products offer these same tiered discounts, as retailers know they have to compete on price to earn the larger orders.
As with most retail products, the best place to buy bulk silver is on the Internet. Coin shops and bricks and mortar establishments will normally not stock large amounts of silver. They may not even have the 500 ounces that you want, let alone be able to offer you a proper quantity price. Online retailers have massive stock levels and can provide you large quantities and fast delivery.
Avoid Credit Card & Shipping Fees
One of the largest savings available is to ditch the credit card and pay with a paper check or a bank wire. Most online retailers will charge 3-4% extra for paying by credit card, which is 3-4% in price you have to recoup before you even break even on your investment. We always advocate buying with a paper check or bank wire to eliminate the unnecessary credit card fees.
Beyond credit card fees, shipping and insurance also come into play. Many retailers charge scaled shipping and insurance costs, as the more you purchase, the greater the shipping and insurance costs. However, some retailers like JM Bullion offer free shipping on certain sized purchases ($100 plus in this case), so we advocate buying enough to avoid paying shipping and insurance fees, which are also costs that have to be recouped before your investment breaks even.
Compare Dealers
Our next tip is to not settle for the first offer you get. There are dozens of excellent dealers online offering competitive pricing, and many will also do custom deals on large, bulk silver purchases. Visit a number of websites and compare their offers, as well as contact them to see about special pricing. You are investing a lot of money so it is important to ensure you get the best deal possible.
You can examine comparisons of current pricing levels from some of the top online retailers at www.comparesilverprices.com. They have regularly updating silver price comparisons that highlight the percentages above spot price.
It is worth speaking to the main players in the market and asking them how they could incentivize you if you were to buy a large amount of silver. Silver retailers are always looking for high net worth clients to bring on board and will be accommodating in their offers.
Remember that they are buying at wholesale and therefore getting great rates. If they sell bulk silver to you they will increase their volume, and may even get better economies of scale with their supplier. It is a win/win/win scenario.