If you are a personal buyer of gold and other precious metals, you might be relieved to know there are significant savings to be made by buying coins and bars in bulk. Although coins and bars have a pre-set value that determines how much an investment is going to cost, when you buy in bulk, you can derive more value from your investment by taking advantage of the principle of “economies of scale.”
Simply put, economies of scale allows retailers to offer sizeable discounts on wholesale purchases. This is because, in a wholesale purchase, the administrative and transactional costs that the retailer incurs are lower per unit weight of gold, compared to a smaller purchase. Most retailers then are able to pass this savings on to the investor.
When combined with the cost savings from free (or considerably lower) shipping charges, buying in bulk allows the investor to take the most favorable position in the physical gold market. So, if you are uncertain about the extent of the savings you are likely to make by purchasing wholesale quantities, rest assured you will invariably be in a better position than if you had bought each item separately.
Where to Buy in Bulk
The first place that you might have on your list of sources for buying gold coins in bulk is The United States Mint. Unfortunately, they are rather restrictive about who they sell to in bulk. In order to become a United States Mint bulk purchaser, the applicant must be either a licensed full-time “coin-dealer”, a licensed business involved in precious metals or the numismatic coin industry, or a licensed retailer or financial institution. If you are not one of the preceding licensees then this option is closed to you. So while The US Mint is a good source for small purchases, for the bulk buyer, it is often not an option.
Online gold retailers are another option someone wishing to buy gold in bulk or at wholesale prices might turn to.
One popular online retailer who sells bullion in bulk is JM Bullion. Their website lists a good range of items available in bulk and they encourage prospective buyers to contact them by phone in the first instance to discuss other options and latest pricing information. Their bulk bullion range includes boxes of 25 10-gram gold bars from PAMP Suisse, boxes of 500 Silver American Eagle 1oz coins and boxes of 500 uncirculated Canadian Silver Maple Leaf 1oz coins.
Another popular online retailer of bulk bullion is Silver.com. They have a large amount of gold and silver bullion bars for sale online. Sizes of their gold bars range from 1oz bars which, at the time of writing, retail for $1,710, right up to 1kg gold bars which are on sale for $55,436. These weights are available in multiples so there should be something to match your bulk buying bullion budget.
When it comes to buying gold online, using a website that compares the prices of gold at a number of different popular online bullion dealers is a good idea. One such site is www.GoldShark.com and they use a custom built algorithm to instantly compare the prices of items of your choice.
A great feature of this site is the fact that the prices they show include all the extra charges like shipping and credit card fees so that it becomes even easier to compare prices from the listed retailers. It is also a great way to check which online retailers are selling bulk amounts of precious metals and at what quantities.
As prices can fluctuate on a regular basis it is highly recommended that you pick up the phone and get in touch with the bulk and wholesale bullion retailers you are interested in doing businesses with, for the latest prices and quantities available.
All good retailers should have a telephone number you can call in order to speak to an expert on bullion buying. If a retailer refuses to give out a telephone number for their sales team, be wary and ask yourself why they might not be forthcoming about giving out their telephone number.
While bulk and wholesale buying from mints isn’t always an option for most non-professional bullion buyers, it shouldn’t be too hard to find a dealer selling in the quantities that match your budget if you do a bit of shopping around.