When dealing bullion, how does the dealer make his money? What's the percentage he takes with each transaction? Is it up to him, or standard when dealing with precious metals. With silver low, it seems to make sense to buy bullion now and trade it in if it goes up a couple of bucks for collectable coins. Would a dealer find this gauche/bothered by a newbie doing this? Do you all out there simply buy bullion and hold on to it? It's probably pretty clear I don't know what I'm talking about, so any info would be appreciated.
They buy at under spot and sell at over spot. That's called the spread. Each dealer determines how much his spread will be.
It's not like the dealer is giving the people he buys from anything near retail for what they're selling. There's no money to be made as a middleman in this business.
That's why you should shop around when buying and selling . To me silver right now is overpriced from the actual melt price of silver . I think gold is a little better of a buy right now . But one thing is for sure no one knows where either is headed . I've heard of $8 silver and $8-900 gold . Wish I had a crystal ball .
