Hello. What kind of deals does bullion dealers have with perth mint. What do they pay for the lunar series and funnel web coin etc? What kind of premiums? Anybody know or have an idea?
Great question and I suspect the information remains secret dealers business! I believe something changed in the "pricing" structure with the 2015 bullion goat release.
That would be what is known as "commercial-in-confidence" information that would put a distributor in breach of their distributor agreement by revealing. What can be said though is that it's never at or below spot.
Then I wonder what the price perth mint buy their silver at. Below spot? The dealers can't have much profit when they buy silver coins with low premium initially. Had been nice to know their pricing.
For gold, Perth Mint have their own refinery so they are not paying spot. I don't know about silver, but maybe they refine that too. I just looked now at their website and I notice there is a "Refinery Primary Purchase Price" for gold that is lower than spot: http://www.perthmint.com.au/refinery_primary_purchase_price.aspx Maybe the same with silver?
Silver is a cash cow to most of these mints, if some of their coins don't sell they can reuse/melt them down to make new coins. No raw material lost, nice set up really. Just need to convince the masses that they "need" the coins they produce. I mean Collector coins, not so much bullion.
Perth Mint aren't making mega profits. Their annual reports are available online if you want to check all the interesting details: Source: http://www.perthmint.com.au/about_us_the_perth_mint_annual_reports.aspx
How Bullion Dealers Make Money - Even In A Falling Market [youtube]http://www.youtube.com/watch?v=5OP3H4POM6w[/youtube]
