Gold Spot: 1,956.70 | 0.7% |
Silver Spot: 23.10 | -0.3% |
If an investor purchases a single American Eagle one ounce gold coin in uncirculated condition from the United States Mint, he or she will pay nearly 30% more than the current spot price of gold bullion. Individual service on small quantities of merchandise always costs more. There is always a cost to doing business and the business of the gold market is no exception. So, will an investor get a better deal if they buy a lot of gold? The answer is yes!
When buying gold from a gold dealer or gold exchange, a typical cost for an ounce of gold is around 7% above the spot price. This price usually requires a purchase of at least ten ounces of gold. Many exchanges offer lower prices with larger purchases or to return customers. Depending upon quantity purchased, it is possible to see incremental decreases in the price per ounce down to around 5.5% above the spot price of gold.
Part of the purchase price with many reputable gold exchanges includes resale of the same gold bullion or coins without a commission. Thus to buy a lot of gold with the same gold exchange over time often results in half the markup above spot price on the combination of purchase and sale, resulting in much lower fees.
To buy a lot of gold over the years also works out as a discount of sorts when the price of gold goes up. Gold quadrupled in value over the last ten years. A 5.5% to 7% markup over the 2000 spot price of gold is minimal in light of the advance of gold prices over the decade.
For investors seeking a volume discount, purchasing gold can be a great place to find it. As gold prices climb higher, purchasing gold coins, bars and rare coins can be a very affordable decision.