Buying gold and silver bullion in Auckland has never been easier with the range of quality precious metals available. Gold and silver prices are something that more and more New Zealanders are taking note of as commodity prices, in general, have been rising, and demand has been increasing as a result. However, that same driver has also brought a lot of gold and silver coins, bars, and commemorative items out of the woodwork as well, with some of them having not seen the light of day for decades if not a century or so.
Human Behavior Drives Commodity Values
Why are gold and silver bullion so popular now? Well, like most times in history that are similar, life seems to be more unstable than normal. And when that happens, people’s anxiety and fear go up. Stability allows people to get comfortable, grow families, plan for long-term goals, travel, enjoy luxury, and pursue hobbies. When things are unstable, people focus on the here and now, the immediacy, and don’t think beyond another 12 months. And, in turn, investments and financial moves that expect a return in five years or longer become very unpopular. The world could change tomorrow, in the blink of an eye. So, people want to know they have access to ready cash or, the next best thing, something that counts as immediate cash even in the worst of times. Bullion meets that definition since it’s known and accepted everywhere.
Even the lowest-priced precious metal, silver, gets attention during troubling times. Buying silver is becoming more and more popular as buyers realize that gold and silver are the only real money that exists when governments run into trouble. Precious metals can’t be readily duplicated, and they are subject to the most basic economic laws – supply and demand. That means their value holds and grows because it can’t be diluted, unless someone suddenly dumps a whole lot of holdings on the market all at once, and that rarely happens.
Buy Smart and Consistently, Not Rash and Sporadically
So, given that gold and silver bullion is a practical must, then comes the leap into actually making the purchase on a regular basis. Now there’s no reason to throw good money away unnecessarily. While prices do move up and down relatively close to the spot price of precious metals plus a business markup, there are ways to score some deals if one knows what to look for. The difference won’t a huge discount, like 25 or 30 percent, but you will save a few dollars that can add up over time towards your next bullion purchase. Remember, the more bullion you have, the more your investment is worth. So don’t spend more cash on that bullion than you actually need to.
There are lots of gold merchants in New Zealand claiming they have the best prices for gold and silver, that they are the number #1 seller in the country, and that no one can beat their prices. Except, as soon as you look down the street, someone is a dollar less for the same bullion.
Build Upward From What Gold and Silver Are Worth
Let’s start with the basics. Gold and silver prices are based on market spot prices. Spot prices are used in relation to the pricing of futures contracts of securities, typically commodities. As with all futures, you pay above the spot price for the physical product (mining, manufacturing, storage, insurance, etc). Price points above the spot price include a variety of things but generally fall into four categories:
- General profit markup (this is a vendor being really greedy when the markup add-on is high)
- Fees or regulatory charges (passed through from the government if they apply)
- Premium values (usually for some kind of a rare bullion issue or commemorative version, which is essentially another profit markup)
- Numismatic value (this otherwise known as the collectability factor, which goes way up if the given bullion is a really rare version like a very old coin)
So, the spot price is going to the floor you can expect bullion to be sold for at its lowest, at least from a gold or silver dealer who is paying attention (and they do or they wouldn’t be in business). In most likelihood, most dealers will mark up at least 10 percent to cover their business and operating costs and a basic profit margin if they are moving a lot of volume. However, many don’t move as much inventory as they would like, so they scale pricing, which is where a buyer should be paying attention. Buy one gold or silver coin and the markup could be as much as 30 percent. However, buy 10 coins and the markup per coin can drop quite a bit. You’re helping the dealer move more inventory all at once, so he or she will be inclined to make a bigger sale and lower profit percentage. This is where competition can be your friend if you make it clear you are buying a good amount of bullion versus just one coin here or there. This tack doesn’t need to be done with large dollars, such as a gold bullion purchase. Silver bulk purchasing can have the same effect on a dealer with a heavy inventory not moving very fast.
Look for Bullion Mistakes
Another category of bullion inventory that will tend to be priced lower tends to be unwanted collectibles. Every now and then a coin or bar issue is put out by a government mint intended to be a collectible, but the assumed audience never shows up. In these cases, an over-abundance of the collectible ends up being on the market and unloaded simply for the metal value. These items almost seemed to be cursed for some reason, with no one wanting to buy them in comparison to other collectible issues. For the smart bullion buyer, who cares? As long as the coin or bar is in fact pure gold or silver, it’s bullion worth buying. So, look for these ugly, unwanted bullion children as they can often save you a few dollars at a dealer with too many of them not moving anytime soon.
Watch for Dusty Counters and Showcases
Gold and silver bullion dealers who have a lot of regular traffic and regular turnover of inventory can afford to give discounts and reduce their margins a lot more than those who don’t see consistent traffic. How do you know the difference? Well, aside from the business’ reputation in the community look for something simple if you visit in person. Bullion and stock that look dusty and haven’t been moved in a long time are a clear sign inventory is sitting. Dealer wares that clean, moving a lot, and changing every week are obvious signs inventory is selling and being replenished.
Finding the Right Combination of a Bullion Dealer Benefits in One Place
MyGold provides great deals on wholesale amounts of bullion gold as well as consumer amounts. Simply view our range online and get in touch with us in order to make a purchase. We have an extensive collection of gold and silver bullion items available in wholesale and retail amounts at great prices, and our collection ranges from coins to bars to sovereign issues as well as collectible bullion as well. And we guarantee that investing in one of our gold or silver products is an investment that keeps growing.
If you would like to find out more about the gold and silver bullion deals we have available, or are interested in making a purchase on these items and have an enquiry, feel free to get in touch with the friendly team of MyGold. We are dedicated to continually providing an exceptionally high level of customer service and are always happy to help you with any enquiries you may have regarding your purchase of wholesale gold.