You may have noticed that selling prices on gold and silver bullion can differ greatly from different bullion dealers. Bullion prices differ quite a lot from one dealer to another, depending on quite a few factors:
- Stock Levels
Firstly, stock levels can allow for different pricing on different products. For example, if we have a large buyback at Guardian Gold that bring our stocks levels much higher than our average holding, we may look to have a sale on those items and can price them very competitively until stock levels return to a normal level. It pays to keep coming back to the websites specials page to see the latest deals and sales.
Competition between dealers will keep premiums tight across the market. Many dealers have a unique offering or are based in geographical locations that mean they have additional delivery costs. All of our pricing includes delivery to either Sydney or Melbourne Guardian Vaults. Some dealers specialise in the more collectable/numismatic side of the market for rarer coins. These tend to have much higher premiums, so may look quite expensive in comparison. Be careful, as it can be difficult to sell collectable gold or silver coins back to dealers at a premium, as most pay spot or less regardless of the rarity of the item, or the high premium you might’ve paid initially. We feel that investors are often better off with the lowest premiums possible, so we don’t deal in collectables and stick to the basics.
Bullion prices globally are very similar across the board. However, some brands are much more expensive than others. The source of the bullion impacts its price but the main thing to consider is the question: where you are going to sell the investment in the future? For example, if you intended on moving overseas and taking bullion with you, you might consider paying a little bit extra for a premium brand such as Perth Mint or PAMP. If you are selling silver domestically or back to Guardian Gold, then the lowest premium bars and coins seem the best option as we have the same buyback rate on our own branded product as we do with premium products such as Perth Mint Kangaroo coins.
Bullion Storage options and prices also differ greatly between dealers. There are some important questions to ask your bullion storage provider to best understand the different storage products:
- Is the bullion stored physically allocated?
- Is it segregated from other holdings?
- Is it an asset on your companies balance sheet?
- Is it protected in the event of company liquidation?
As gold and silver bullion investment is not classed as a financial product in Australia, there are many bullion storage options out there that have company liquidation risk. The World Gold Council highlights that ‘unallocated’ bullion storage and similar products often mean the customer is an ‘unsecured creditor’ to the bank or bullion dealer providing that service.
At Guardian Vaults we only store allocated physical metals, which are off-balance sheet and do not have company liquidation risk.
Disclaimers: Guardian Gold, Registered Office, Scottish House, 100 William Street, Melbourne, Victoria, 3000. ACN 138618176 (“Guardian Vaults” & “Guardian Gold”) All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher and/or the author. Information contained herein is believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation. Guardian Gold, its officers, agents, representatives and employees do not hold an Australian Financial Services License (AFSL), are not an authorised representative of an AFSL and otherwise are not qualified to provide you with advice of any kind in relation to financial products. If you require advice about a financial product, you should contact a properly licensed or authorised financial advisor. The information is indicative and general in nature only and is prepared for information purposes only and does not purport to contain all matters relevant to any particular investment. Subject to any terms implied by law and which cannot be excluded, Guardian Gold, shall not be liable for any errors, omissions, defects or misrepresentations (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (direct or indirect) suffered by persons who use or rely on such information. The opinions expressed herein are those of the publisher and/or the author and may not be representative of the opinions of Guardian Gold, its officers, agents, representatives and employees. Such information does not take into account the particular circumstances, investment objectives and needs for investment of any person, or purport to be comprehensive or constitute investment or financial product advice and should not be relied upon as such. Past performance is not indicative of future results. Due to various factors, including changing market conditions and/or laws the content may no longer be reflective of current opinions or positions. You should seek professional advice before you decide to invest or consider any action based on the information provided. If you do not agree with any of the above disclaimers, you should immediately cease viewing or making use of any of the information provided.