How To Buy Gold and Silver at Spot Price?

The spot price for gold and silver is always tantalizing to buyers. It’s galling that there seems to be a lower price for the two metals that doesn’t seem to be available.

The problem is that, in a way, the spot price is the price of an ounce of gold or silver in a kind of vacuum, absent other considerations. The reality is that getting gold and silver into your hands requires the help of others, and those folks have to be paid for the job that they do.

That facilitation fee is what we call the premium – the additional amount you must pay above the spot price. The thing to do is to try to find the lowest premium that you can. The guide below is how to do that.

• Buy Gold at Spot
• Buy Silver at Spot

Step 1 – Decide what you want.

First of all, decide what kind of metal you want to buy. Most people choose gold or silver, but there are also options for platinum and palladium.

Then, decide what format in which you want to purchase your metal. Coins, rounds, or bars are the most common options, but you may see some others from time to time.

Step 2 – Check the spot price.

After you know what kind of metal you want to buy, check the spot price for it. You’ll need to have the price in mind for the next step of the process.

However, it’s better to get a sense of where the spot price is, rather than locking onto an exact number. The spot price is always in motion, so it’s not useful to look at it like it’s set in stone.

Step 3 – Shop online dealers.

Next, you should shop around for the metal, format, and amount that you want. We think that we have some pretty competitive offers here at JM Bullion, but we also think that you, the smart investor, should seek out the best deals that you can.

To perform this action, knowing the spot price is essential. Since that’s the baseline amount, you can easily see the different prices in an apples-to-apples comparison.

Step 4 – Look for other fees before you decide.

Now, please bear in mind that the premium might not tell the whole story about the costs that come with buying your gold or silver. Obviously, there may be a shipping cost to send it to you, although some dealers might offer free shipping for orders of a certain size.

However, what you do need to avoid are unnecessary administrative or processing fees. If you cannot understand a portion of what you’re paying, it’s a problem.

In a sense, these types of costs can add to the dealer’s actual premium, rather than its stated premium. So, be a savvy investor, and watch out for these sneaky moves.

Step 5 – Choose the lowest reputable price.

Finally, it’s time to make a move. Choose the lowest price – fees included – that you can find for your order.

HOWEVER, before you do, make sure that your chosen dealer is a reputable, fair, and honest broker. If a price seems too good to be true, it almost certainly is.

Other articles of interest:

• What is premium over spot?
• How is gold spot price set?

Other considerations

There are a couple of things to consider before you make your final choice.

The first thing to realize is that buying precious metals is similar to buying other items with respect to buying in bulk. Though the overall price of buying slightly more gold or silver than you initially wanted will be higher, the pound-for-pound price is almost always lower and a better deal.

The other thing to know is that several dealers may offer temporary deals at or just slightly above the spot price. In fact, we are proud to offer new customers an option to buy both gold and silver at spot.