When investing in silver bullion, many investors are concerned primarily with seeking out the lowest per-ounce prices. By obtaining the lowest possible pricing, the potential for profit is greater. There are several strategies for seeking out the lowest possible prices, including careful selection of investment-grade silver and shopping around to find a dealer with low pricing. In addition, buying in bulk is one way to achieve the lowest possible prices for your silver. Often, buying in bulk results in quantity discounts, bringing the per-ounce cost of the silver close to its current spot price.
Often, investors assume that wholesale or bulk discounts are only available when buying very large quantities that are outside of their reach. However, this is not always the case. In particular, investors who prefer to buy multiple smaller rounds stand to benefit from quantity discounts. They are frequently surprised to find that bulk quantities may be within their reach. Often, these price breaks occur when purchasing a full tube – typically containing 20 rounds – or a monster box, which contains a total of 500 rounds. A purchase of 20 half-ounce rounds, for example, may be enough to qualify for a quantity discount, depending on the retailer.
Inquiring About Discounts
While bulk pricing is available on the wholesale level, individual investors typically can’t buy straight from wholesalers, who sell only to retailers and dealers. However, if you intend to buy a large quantity of silver, ask retailers about their bulk discounts. These price breaks are often available, though they may not be advertised openly by the dealer. Some dealers do publish their bulk pricing policies on their website. Others only offer such discounts if asked.
While quantity discounts are common in this industry, the availability of wholesale or bulk pricing does vary from dealer to dealer. Some offer discounts based on the total amount of your order, even if the order includes multiple different types of silver bullion. Other sellers calculate their bulk pricing based on the quantity of a particular bullion product being purchased.
In other words, all of the rounds being purchased must be the same type to qualify for the discount. By fully understanding the dealer’s policies, you can structure your purchase in a way that allows you to take advantage of these bulk discounts. For example, you might opt to save up until you have enough to purchase a full tube of rounds, or select one type of round or another due to the availability of a discount.
Worth Waiting For?
Many investors purchase silver rounds every month, or with each paycheck. However, it may be beneficial to save up until you are ready to buy a larger quantity of silver at once, rather than purchasing a single round every time you’re able to. By doing so, you can take advantage of bulk discounts to achieve the lowest possible pricing for your silver. Buy as much as you can at one time to qualify for the best bulk rates.