Is Premium for Silver/Gold Bullion Negotiable at Your Local Coin Shop?

B

BullionBoy

New Member
My local coin shop in Canada currently charges a premium for silver bullion of $ 4.25/oz (CAD) for a spot of $19.16 CAD. I have spent about $400 in the past month so I asked if it was possible to get a discount on the premium since I plan on buying a lot more from them. The reply was pretty much a flat out no.

Has anyone else been able to negotiate a premium for their bullion at their local dealer? I often read posts on this forum that many of you get bullion at $1.00 USD over spot. Even if I convert it to CAD it works out to $1.25. I have yet to see this type of premium anywhere on line. Plus in Canada shipping costs more than the silver.
 
I assume Canada is similar to Australia so we pay a higher premium due to various factors. Only the Yanks get to buy silver at $1 over spot from a dealer. You'll see most dealers in Australia have tiered pricing depending on how much of a particular product you buy. Silvergoldbull has some decent prices for Canadians. Altima would know more though.
 
Unashamed plug for one of the members has:

https://www.11thround.com.au/

It's an awesome store. His prices are an big improvement compared to other dealers in Australia.

Though there's less available due to the retail product shortage.
 
11th Round has a minimum purchase of AUD$1K so you are already getting a volume discount. In terms of coins/rounds you are also buying tubes only, limited products. But the prices are much better and I'm happy to have BiGs in our local market!

Bullion Dealers do drop prices based on volume. Some here in Australia will drop (say) AUD$0.50 per piece on Kangaroos in 10 or more, or Maples when buying a tube.

An LCS would generally not, but that's a difference between a Bullion Dealer and a Coin Shop.
 
Miloman said:
Unashamed plug for one of the members has:

https://www.11thround.com.au/

It's an awesome store. His prices are an big improvement compared to other dealers in Australia.

Though there's less available due to the retail product shortage.
Click to expand...

Actually bigs has been missing in action lately. I got my first big purchase through him, very very good deal. Great stacker too. I know it's not the point of the thread but a big thumbs up from me
 
I've been able to negotiate it before if it really was out of sorts, sometimes even dealers aren't paying attention to spot if business has been slow and even going a week without updating prices can be enough to really miss the mark.

That said, I usually don't try to. Your local shop has to keep the lights on, so I think you should expect to have a wider spread, just be glad they're making a local market at all. If you want low prices, get it from a volume dealer who has a tighter spread, if you want convenience then pay the price and stop by the local shop. It works with soda pop, it works with PM - you can hop into the corner store for a pop, or you can go to the less convenience box store and pay less for a six.

Edit, I would add, dealers do make mistakes sometimes though and I won't pay for their mistakes. If they go off and buy 1000 ounces at 50$us/oz at a market top and expect to recoup their investment by shafting their customers as spot prices dive, I'm not going to cover their mistakes. They'll just have to take the loss. You can tell when they've done this, they'll have all these super-shiney coins or rounds, same dates and/or designs, all laid out nice and pretty and they'll be way overpriced and that price won't change as spot falls.
 
I'd say it's somewhat negotiable depending on the situation, but I have a good relationship with my LCS. He generally sells to me at $.50 above spot, but also buys from me at $.50-$1 above spot depending on the item I sell. If we do a trade pretty much everything is up in the air.
 
Miloman said:
Unashamed plug for one of the members has:

https://www.11thround.com.au/

It's an awesome store. His prices are an big improvement compared to other dealers in Australia.

Though there's less available due to the retail product shortage.
Click to expand...

Prices are good IMO...However, how much does it cost for postage for a 10ozs bar to Qld.?

Regrds Errol 43
 
errol43 said:
Prices are good IMO...However, how much does it cost for postage for a 10ozs bar to Qld.?
Click to expand...

If you read the site, postage is included on all sales because he has a $1K minimum spend.

Currently a minimum single order spend of $1000 applies.
All prices are in AUD and are indicative to a live spot price (Ex. Copper).
Orders are price locked after a 10% deposit is paid immediately by credit card checkout.
All orders made via the website include free Australia wide shipping (including PO Boxes).
Outgoing orders are shipped once a week only, after the weekend on a Monday or Tuesday.
Click to expand...
 
AGSX in Sydney did discount few things for me.
Volume pricing can be given even in smaller purchases if you have a history of buying in higher volumes.
If you are happy you buy, if not move to other dealer. I am sure there is a kind enough person who needs your valuable currency.
 
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