How To Buy Gold & Silver at Spot Price?

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Prospective gold and silver buyers often ask themselves, how can I buy gold or silver at the spot price? The reality is that under normal circumstances gold and silver cannot be bought at the spot price. The reason for this is the fact that dealers charge markups and the dealer also has a buy price and sell price spread.

Buyers of gold and silver can, however, try to buy their bullion or coins for as close to the spot price as possible. How can they do this? Here we will outline some ways for investors to try to buy gold and silver as close to spot as possible:

  • First off, decide what bullion or coins you are interested in. Bullion bars and coins can have wildly different premiums attached to them depending on the product. A certified, near mint condition rare coin, for example, is likely to carry a significant premium over spot. A product like this will typically not be able to be purchased near the spot price. Do your research, and if trying to buy as close to spot as possible, settle on the appropriate coins, bars and rounds. Bars and rounds will normally carry the smallest dealer premiums over the current spot price.
  • Know what the current spot price is. Live gold spot and silver spot prices may be found with ease all over the web or on dealer websites. Know where gold and silver are trading before attempting to make a purchase.
  • Once you know the current spot gold or silver price, shop various online dealers. It has never been easier to shop for gold or silver online at places such as JM Bullion. Buyers can compare dealer prices from the comfort of their own homes. A 2014 1 oz American Gold Eagle, for example, is the same 2014 1 oz American Gold Eagle regardless of what dealer may be selling it. Online, one can easily compare apples to apples so to speak.
  • Know the other costs involved in the gold or silver purchase. This is a very important issue that buyers can easily overlook. What additional costs are associated with the gold or silver purchase? Most dealers will charge for shipping and insurance and there may be extra charges for using a credit card to make the purchase. It is important to make sure you have a handle on all charges. These must be factored in to the total cost of the transaction. Only when one has a handle on all costs involved can he or she compare bullion dealers side by side.
  • Deal in volume if appropriate. Many bullion dealers will offer significant per ounce discounts if a purchaser is buying in bulk. Dealers will often list these bulk discounts on their websites. For example, on a dealer’s product page, it may state something along the lines of: Quantity 1-9=$XXX per bar or coin. Quantity 9-25= $XXX per bar or coin. Quantity 25+=$XXX per bar or coin. As with many other non-bullion products, when someone buys in bulk they may pay a lower per-unit price.
  • Look for dealer specials or sales. Dealers will often times look to clear excess inventory by offering the products at significantly reduced prices. These “sales” can provide an excellent opportunity to buy bullion or coins at rock-bottom premiums over spot. Be sure to check out our sale page where we add a new discounted bullion piece each week.
  • Condition. Products that are used and in varied condition typically will not carry the same premiums as products that are brand new. In addition, products that are of a lower grade or lower condition may be less expensive than comparable products of a higher grade.

One should do their homework before purchasing bullion or coins. The fact is, an educated customer is a better customer; keep in mind that bullion dealers are competing for your business. By doing the necessary homework and research, one can purchase gold or silver with confidence.

All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.