How Can You Increase Bullion Returns by Reducing the Bid/Ask Spread?

 

Getting a good deal is always a goal for investors, especially when it comes to precious metals. This certainly applies to the return you get on your investment. Below, we discuss how you can boost your bullion return by lowering the spread.



Learn about the Bid/Ask Spread

The “bid/ask spread” refers to the difference between what you pay for gold or silver and what you get when you sell it back to the dealer. This also includes the fees the dealer charges to hold precious metals in inventory.


Know What Can You Expect with Premiums

All rounds, bars, and coins carry a premium or markup from the actual spot price. Generally, there are higher premiums for government bullion because government agencies tend to be inefficient. With commercial retailers or dealers, premiums tend to be lower. However, the bid/ask spread has been increasing lately due to increased demand and short supply.

Look for Deals

Some dealers offer deals on vault silver or gold. These items are often priced lower because they’re more abundant. You may also be able to find deals for buying in bulk. Some dealers have special deals for first-time buyers. Vault purchases tend to be better than what’s common with popular products like the American Eagle Silver Coins. Keep in mind dealers need to make a profit, so there will always be some kind of bid/ask spread. Whether they’re interested in buying gold coins or selling silver bullion, San Diego precious metals collectors can trust the dealers at First National Bullion to treat them with professionalism and integrity.

You may be able to reduce the spread by storing your gold and silver or other bullion products elsewhere. However, some dealers require customers to keep their gold or silver on-site, especially those who are working with a company that has a storage facility. Even if this is the case, you should be able to arrange for the company to sell and transport your gold or silver. Some companies will take care of all of this for you once you make your decision to sell.

Work with an Investment Professional

One other way to reduce the spread for bullion is to work with an experienced investment professional who can help you lower premiums by finding deals that fit into your budget and portfolio. Ask about fees for the professional’s services so you’re not losing your savings from the bid/ask price.

Watch Spot Prices

Keep an eye on spot prices for gold and silver so you have a better idea of what to expect with bid/ask spreads. This information also helps you negotiate with dealers. Avoid dealers that offer deals that sound too good to be true unless they’re reliable. Otherwise, you may not get delivery of your bullion. Also, spot prices can help you determine when to sell your gold and silver back to the dealer. Try to sell your bullion back to the dealer when prices are favorable for you. 

 

If you’re interested in maximizing your bullion returns and looking for the best place to sell gold in San Diego, reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how precious metals can figure into your investment planning decisions. Give one of our experienced dealers a call today.

 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.