I notice here in the United States that most of the coin shops around here make their money selling bullion.. I'm curious as into how these shops make any money when they offer someone $31 for an ounce of silver and only put 3-4 dollars of premium on each coin?? Is this really how these people make their predominant living or are there aspects of this exchange I'm failing to see? Thanks
Inventory turnover is the key. And a lot of people buy several ounces at one time. Buy at spot & sell for spot + $3/coin on 100 coins equals $300. I know people who buy 500 ounces at a time. Besides, I would imagine their is more than $3 profit/coin on a lot of the items.
Someone buys at $35 a coin, reorder from the US Mint at the same time for $30 a coin, repeat process. Its all about volume.
