A lot of prospective silver buyers are looking to make a bulk purchase to jump start their collection or investment. If you fall into this category of buyers, you have no shortage of options available to you. Of course, you will be spending a lot more money, but you will also be able to take advantage of discounts that other buyers won’t be able to. Like any company in any industry, silver retailers prefer to sell their inventory in bulk whenever possible. The larger that your order is, the more likely that you will have some wiggle room when it comes time to close the deal.
Bulk Silver Options
Bulk silver can be purchased in many different shapes and forms. You can choose from tubes or boxes of coins, large bars, sizable rounds, and just about anything else that you can imagine. The most common way for buyers to make a significant silver purchase is through bars. Bars enable anyone to own a lot of metal without taking up a lot of space. You would need to have a fair amount of storage for 1,000 Silver Eagles, for example, where 10 one hundred ounce bars will accomplish the same exact thing in terms of actual silver quantity.
The only hurdle to leap and problem with buying larger pieces of bullion is that you will have a more difficult time selling it off. Most buyers prefer to pick up large lots that are broken down into many pieces. When you have just a few massive chunks of silver, it will be a challenge to find an immediate buyer. With that said, however, there is always someone looking to buy your silver, no matter what form it comes in.
What is a “Large” Quantity?
Large purchases in the world of silver bullion will eclipse the $5,000 and $10,000 dollar marks. Anything below this is considered relatively small. Silver companies work on razor thin profit margins as is, so it is difficult for them to offer significant deals to anyone who is making a purchase that is not very large. As a result, you are only going to walk into some discounts after you breach these figures. Even then, however, the actual percentage off of your total order price is not going to be very much.
You should consider yourself lucky if you are able to negotiate a 1% discount even with a big order. Any sizable silver company is moving inventory in and out on a minute by minute basis, so it won’t crush them if you don’t place an order. Yes, you do have a little bit of bargaining power, but not a ton.
As mentioned previously, the most common type of metal for bulk buyers is a bar. They come in very compact sizes and can pack a lot of punch without taking up much room or being a hassle to sell. When it comes to bars, you will have a number of different sizes to choose from. Few bulk buyers are going to chase after 1 oz. silver bars, as these will end up being difficult to deal with anyway.
The most common size for silver bars is 10 oz. This is a figure where you have a good amount per block, but not so much that it can be easily traded or sold. There are literally infinite increments that can be had in silver bullion bars, but after 5 oz. and 10 oz., the most commonly produced version is the 100 ounce bar. This is where you start to get into some serious money. 100 ounces of silver is never going to be “cheap” per se, but it will offer you an initial opportunity to save some money. If you are truly in it for the long haul and silver is going to be one of your primary investments, 100 ounce bars may very well be just what you are looking for.
If bars do not interest you, there are multiple ways to stock up on bulk quantities of silver coins as well. Tubes are the most typical way to buy coins in bulk, as they come in sets of 20 at a time. If 20 is not enough for you, however, boxes of tubes are also produced. In the end, these are also going to be quite easy to barter, store, and invest in.
The only catch to buying coins over bars of silver is that you are going to pay a small premium on every ounce that you order. If you are buying generic government produced coins, expect to pay around a couple dollars additional per ounce. Buyers can buy 500 count monster boxes of coins, expediting the shopping process tremendously. It is up to you when it comes down to it. If you like the collectible and added premium aspect of coins, tubes and boxes are the way to go. If you just want to stock up on a ton of bullion, bars will more than get the job done.
It is important to remember that buying silver in bulk is not for everyone and that it is definitely not the only way to go about investing in silver. You can start off with as little as 1 ounce or you could even buy fractional silver pieces. There are many different ways to buy silver and bulk is ideal for anyone who has the proper budget. Overextending yourself when buying silver is one of the worst mistakes that anyone interested in bullion can make. Take it slow until you are familiar with buying silver, and when you have the allotted amount of money that is needed (and most importantly, safe) you can make a bulk order of silver at a discounted rate.