Thread: Become a Silver Bullion Dealer?

This is apparently hush hush or soemthing. I can not find any information about this ont he internet.

Im 24 years old with a good bit of money to invest. I am very interested in selling Silver Eagle coins and hoard them away for myself. I know I can purchase the coins from other dealers, but I would like to make a profit and be able to get the coins direct from the US mint.

How do I get the coins from the US Mint, or get them from a bank ( Bank Of America) or a reserve?

Thanks in Advance.

How do I get the coins from the US Mint, or get them from a bank ( Bank Of America) or a reserve?

You don't. There are only seven primary dealers that the Mint sells to directly. All other dealers must buy the coins from them. They in turn sell to even more dealers and the public. I am referring to the business stike coins.

You can buy the proof version directly from the Mint - cost about $24.95 each I think it is.

Now comes the question of who are the 7 major companies that get the bullion coins from the US mint? Just looking for the best price, even if I have to purchase large qty.

Originally Posted by fusionpunch

Now comes the question of who are the 7 major companies that get the bullion coins from the US mint? Just looking for the best price, even if I have to purchase large qty.

Basically, you are looking at millions and millions of dollars in assets just to get in the door to buying from the mint.

The way I understand it (open for corrections) is that part of the reason for this is that you have to be able to buy them back in any quantity at any time. In other words, you are the market both ways...selling to customers (smaller distributors) as bullion and buying them back as bullion.

Sorry to say - but again I do not think it is possible for you - or anybody else - to do this. No matter how much money they have. The Mint has struck their deals and they are not likely to change them.

These arrangements have been in place since the inception of the SAE in 1986 - and quite likely before that even. But for the Mint to add another primary dealer to their list now would be akin to any large manufacturing company making an exclusive deal with a distributor and then to renege on the deal. It's just not good business.

If all you want to buy is silver, why not go to anyone one of the silver manufacturers. They will sell in bulk at current melt plus a very small premium, alas, true these are not coins but pure silver. Avoid the small silver art bar makers as their premium is much higher. Also understand silver is a penny market, i.e., silver changes prices a few cents at a time. Make sure you overcome the premium, good luck. Remember the Hunt brothers?

I think the question was, how would one go about buying from one of the 7 direct distributors.... and who are those 7 distributors..?

JAMIE

Now that would be an interesting fact to know.

So Noone has any idea on this??? :wink:

As for myself - I have no idea who the 7 primary dealers are. I have never seen or even heard of rumors of who they might be. Don't see that it really matters.

But if you want to find out - I suppose you could. Just write to several of the larger dealers and ask them. When a name continually pops up as the answer - odds are that person or company is one of the 7.

Does anyone know any larger dealers that will sell, for example, unopened tubes of the gold bullion coins. Ocationally you will see such an auction on ebay for tubes of silver eagles....

Who has the best bullion pricing on quantity?

Thanks
JAMIE

The pricing on SAE's varies from day to day with the spot price for silver. As for who has the best price - that varies too. There are any number of dealers out there who will sell not only the tubes of Silver Eagles - they will also sell you the boxes of tubes if you wish. Each tube contains 20 coins - each box contains 500 coins.

All it takes is a simple search to find the best price on any given day. Go visit the various web sites for the dealers and when you find the lowest - there ya go.

Which dealer websites would you recommend checking out for those?

I would think that the PNG would be a good place to look.
http://www.pngdealers.com/
I don't buy a lot of bullion, though. I've bought a roll here and there of silver or gold eagles, but not often. Maybe a half-dozen rolls in my lifetime. I have almost always picked them up at a show. I might be able to save a dollar or two a roll to buy them from a bigger dealer in bulk, but the shipping cost would eat up any savings over buying at a show.

Bill - I did a search for you. About a week ago I found a site selling rolls of 2003 SAE for $6.30 ea. But I have not found it again today. I did find one for 5 rolls at $6.40 ea & if you buy 500 coins $6.30 ea.

http://www.jackhunt.com/silvereagles/

But I'll tell you right now - IF you are willing to search for 30 minutes or so you can find them cheaper. The above site took me about 10 minutes to find.