Become a Silver Bullion Dealer?

How would you be a bullion deaeler? Who would you sell to?
thanks

 

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From what I have seen as far as Canadian gold bullion is concerned...the price always seems to be exactly the same as the American Eagle, or slightly below. I'm not sure how silver bullion compares, but I'm guessing it would be the same way.

 

The list of mint vendors is in post #19, thanks to our kindly moderator. If you wish to buy from them just contact a few of them...but I would bet that they have requirements regarding whom they sell too, just like the mint. In other words, they may have minimim amounts, and they might only wish to deal with established dealers who have known financial connections. Want to buy it cheap? My suggestion would be to go to the F.U.N. show in Orlando in January. The newest silver eagles are always there and the price is always competitive. That's where a lot of medium-smallish dealers buy their silver eagles

 

Oh, and gold bullion. There are several coins that are pure. The Canadian Maple Leaf, the Austrian Philharmonic, the Chinese Panda, and the Austrailian Kangaroo are all pure. They typically sell at U.S. shows for a bit less than the American Eagle. Remember the Eagle and Krugerrand both contain 1 troy ounce of pure gold plus the copper alloy. Just because they're 90% pure doesn't mean that you're only getting 90% of an ounce.

 

AES authorized purchasers

The United States Mint currently sells American Eagle Silver Bullion Coins to 11 Authorized Purchasers worldwide. The Silver Eagle Authorized Purchasers in the United States are: A-Mark Precious Metals in Los Angeles, SCB/Mocatta Bullion in New York, Jack Hunt Coin Brokers in New York, Salomon Smith Barney in New York, Prudential Securities, Inc. (New York), The Gold Center (Illinois) and HSBC Bank in New York, with sales domestically and abroad.

 

If you want bullion try here http://www.nwtmintbullion.com/SilverBullion.htm

Silver eagles will always sell for a premium over spot higher than just bullion,they are dated and actually have a face value of $1

I did have a listing of Silver Eagle dealers but am unable to locate it. I think I requested a copy from the US mint.

 

Authorized purchasers from US Mint

The Silver Eagle Authorized Purchasers in the United States are:

1. A-Mark Precious Metals in Los Angeles
2. SCB/Mocatta Bullion in New York
3. Jack Hunt Coin Brokers in New York
4. Salomon Smith Barney in New York
5. Prudential Securities, Inc. (New York)
6. The Gold Center (Illinois)
7. HSBC Bank in New York, with sales domestically and abroad.

The international Silver Eagle Authorized Purchasers are:

1. Commerzbank International (Luxembourg)
2. Deutsche Bank A.G. (Germany)
3. Union Bank of Switzerland (Zurich)
4. Hang Seng Bank (Hong Kong).

 

A few years ago I called the Mint to find out about becoming a dealer for ASEs -- just silver. They have a program that would allow you to become a direct purchaser but the requirements are astronomical. You had to prove a significant amount of capital plus the minimum order quantity is very high. Call them and ask.

They told me the names of three or four - don't remember direct dealers. One is a large bank and there's a guy with a small coin store in Santa Fe NM who buys direct. He's definitely in the right business.

 

Believe me...if you know what most coin dealers know, you would NOT want to be a bullion dealer. They work on *very* slim profit margins, often less than 1%. Just a slight tick downward in the spot prices at the wrong time could really hurt.
Buying and selling bullion and nothing else is like daytrading squared.
Nick

 

I echo this sentiment. If I could, I would not buy nor sell a single ounce of bullion. Too many ways to lose money. When the stars are inline, and cat's in the cradle, you make 60 cents on an ounce of silver.

 

60 cents? wow how do you sleep at night? LOL!
I may buy/sell a few hundred to a few thousand oz of silver per month and if I make more than .25 cents I'm a happy camper.
But remember this is not an easy part of the business. Bullion is frankly the least desirable part of my job, as far as profit goes. I once bought a huge pile of silver bars...spent over $10k in real money. I made $90.00 profit. How's that for a phat profit? Now the good news...and this is true for many of my bullion transactions...it was over in 30 minutes. Yes fast money but only at the cost of laying out a huge sum to do it. Is it really worth it? Not really, but $90 is $90.

 

"Remember the Hunt brothers?", Jess.

Jess seems to know the silver market quite well with his comments about being a penny market and where is the best place to buy. I think that his "Remember the Hunt Brothers" comment sums it up best in that pure silver is not the real deal for small or medium investing. It is great for Native American Jewerly and for Tiffinys but if the market drops when someone large tries to corner it then how strong is the market anyway? I would say buy silver coins for you love the coins or because you think the value of the coin will go up or the coin is under priced.

Trader Nick was that 90 dollars after transaction fees and Captail Gains Tax. Also thanks for posting a picture of your store front. I always wondered how it would look like. Now if I could ever get the chance to get inside.