Where To Buy?

May 7, 2012

This question got recently asked by a reader, and it’s an excellent question. Now, I will provide you with a few options, but you’ll have to figure out what works best for you.

 

Although silver may be $32 an ounce, there is what is called premium. For a generic silver round that was printed by a private company somewhere, usually you pay a premium around $1.00-$1.50 per ounce. This is added on so the business can pay their bills at the end of the day. Now, let me break down a few options for you.

 

  1. Craigslist – Craigslist can be the cheapest if the situation is right. I have bought a few bars/rounds on silver for either at spot or cheaper. I would not recommend you doing this until you get a silver test kit. These are readily available online. There are many tricks – smell, color, whether it’s magnetic or not, and I implore you to use all of them.
  2. Local Coin Shops – These places can be hit or miss. I’ve walked into coin shops and they’ve been well over $5.00 an ounce spot, I’ve also come in at days where it’s $1.00 over spot. As you build a relationship with the owner of the local shop you’ll be able to consistently get a better price. Most of these guys are very knowledge and I’d encourage you to get to know them and plan to spend 30 minutes in there every time you go in. For a buying strategy from a shop, I always go in with cash, look at my phone, check the spot price of silver and decide, “I’ll pay this today.” If it’s in my price range, buy; if not, then just chat for a little bit.
  3. The Internet – The internet is a great tool for everything! I know that Craigslist is on the internet, but I don’t consider it the internet! A few internet sites do quite a bit of advertising and have the number one Google rating and are also partnered with Youtube. These companies are vastly over priced due to their high expenditures on advertising and other means. The two places I have found to be best are Gainesville Coins and Jmbullion. These two companies depending on how much you’re buying run very similar prices. There are several over priced companies, but I will not slander them in this blog.
  4. Coin Shows – Coin shows are great places to find deals. Most of the coin dealers here are very friendly and it is a great atmosphere. And at a place with 40+ vendors, usually there is one selling bullion under $1.00 premium.

 

 

Also, all precious metal deals are made in cash. If you use a credit card you will get a 4% up charge. So, with a few of these places you will need to wire transfer or mail in a check, this is completely normal. Also, whenever you buy precious metals in person you will only be able to buy with cash. A few places will take a check, but not many. And if they take credit you’ll be up charged 4%.