This is How Bullion Dealers make MONEY from Silver & Gold | Can we do the same!?

I didn't hear a single word from the man . All I heard was the PRESCIOUS clinkings of the beautiful silver coins....

I Always get something from your content, and thank's for the ramble BYB much appreciated..

All of that boils down to the same thing in every retail business. 1- Buy low. 2- Sell high. LOL!

Great video! Thank you for sharing your experiences and insights. :)

Thanks for the rambling! 👍

Brilliant update as ever...bullion dealers like everyone else are subject to market forces but they have transaction/commission charges on their side which the public don't and also the difference between bid/offer spreads or spot/premium. Have mentioned this before but would love a video on how/where best places to sell silver. Thanks, keep safe and keep going !

There's a inner magpie in all of us, "shiny" things.

A lot of places will hedge their inventory with futures or ETF's. So say they have 100k oz of silver in inventory, they will consider that their base inventory. If a customer buy's 10 oz or 100 oz, they will buy that amount in futures. So they will always own 100k oz in physical or paper silver. Because physical silver has a large spread and paper doesn't, they profit make a big profit (3-8%) every time someone sell's their silver, and can buy silver in bulk or when their is a discount if their physical inventory levels get too low. Also, future prices are higher to account for storage cost to they can make a passive 0.25% a year just holding physical inventory and being short futures (rolling over every so often).

It's precisely because dealers have to restock that they safeguard their margins/profit by not lowering premium on PMs. If anything they raise premium even when spot price is falling; even when they know they can therefore restock at lower prices. Why does this happen? Not because dealers generally are unscrupulous, though some are. It's because there's a tendency to higher demand as spot falls. And for the dealers that's just a bonus- more profit. Always thought-provoking, so ramble on, BYB, I'm always listening right to the end, The Silver Forum's ting-a-ling.

It's actually a lot simpler than that, because while the price of precious metals do fluctuate, the changes balance out. Sometimes you sell at a lower spot price, sometimes you sell at a higher spot price. So ignore the fluctuations and focus on the spread. Rarely do the fluctuations outweigh the spread, and those times are offset by the times they work in the dealers' favor.

Great video! lots of good insight

Your video gives a very clear explanation on how the entire dynamics works. I am not quite convinced with the accounting part of the business. Say at the end of each month we had to pay our monthly overheads, reload our petty cash float and basically all the business expenses- what will an accounting entry look like ? Where will that cash come from? To extract that cash, will I need to sell the metal ? Kinda puzzled so please bear with me on the query

I wonder what is the margin Dealers get from Mint to Costumer. Say Spot price silver is 23$, Silver Eagle to costumer is 30$, how much do they pay to the US mint for that same coin? 25~27$ perhaps?

Great video again byb interesting subject I think a lot of people into stacking have thought about buying and selling metals for a profit at some point in time . Keep your videos coming 👍

My love of silver has taken me from just a humble beginner stacker, to a humble hobbyist in metal pouring, and to a point where I've decided I want to make my own coins and bars. I don't think k I'll make a lot of money but I d9 think I'll have a lot of fun

I am not sure that high premium coins are enough to compensate eventual losses of their main stock in a high volatility market (composed mainly of bullion coins with low margins) otherwise dealers would certainly go bankrupt in a severe correction. I have heard that they are hedging their stocks position with options on market

Sir do you buy or sell palladium? Or do you know it's price? Thanks

Where should i buy hold and silver? I've always been interested to have gold and silver on hand just to have some are there any online places that are safe to use or can I just welcome to the gold Town USA type of store and buy it is it better to buy bullion or coins?

Which are the silver coins that milk spot the least?

Anyone know where I can get number stamps for year and weight sent to me internationally?