Online Dealers
There
are now many online dealers available to purchase bullion from in
Australia. The last couple of years has seen many new stores spring up
and no doubt as more investors turn to precious metals this number will
only increase.Pricing has become extremely competitive amongst online
dealers cutting to extremely fine margins, relying on volume/turnover to
make up for the lower profits. My suggestion would be to find a dealer
who can be recommended by the bullion buying community (e.g. search or
ask for feedback on dealers at SilverStackers.com). I have purchased from and can recommend Bullion Money.
I have also purchased from the below online dealers and can recommend their services (fast delivery, good communication):
Gold Stackers (sister site to Silver Stackers forum)
Some
online dealers do also have a walk-in office or store (for example Bullion Money now does). Don't let the fact that some dealers don't have
an walk-in store deter you as many of them have established long
lasting relationships with their customers and can be trusted (but
please do your reading, especially on any newly established stores).
Direct From Perth Mint
Gold and Silver bullion can be purchased from the Perth Mint in several different ways. You can walk in and buy it across the counter, you can place orders over the phone or you can buy via their online portal (Perth Mint Bullion).
The largest criticism of Perth Mint is their cost. Most dealers undercut Perth Mint with their own products by buying in bulk at wholesale prices and then selling for less than Perth Mint sells to the public for. Further to this Perth Mint's shipping/insurance costs are quite substantial (costs listed here).
That said you aren't going to find a more secure business to purchase your bullion through given that they have the backing of the Western Australian Government. If a dealer goes bankrupt while they are holding your funds for an online order (not likely, but you can't rule out the possibility) you will likely end up an unsecured creditor chasing the funds from the administrators. No such event could occur when buying through the Perth Mint.
You will have to work out whether the additional security is worth the additional cost.
eBay & Auction Sites
Gold and Silver bullion can be purchased from the Perth Mint in several different ways. You can walk in and buy it across the counter, you can place orders over the phone or you can buy via their online portal (Perth Mint Bullion).
The largest criticism of Perth Mint is their cost. Most dealers undercut Perth Mint with their own products by buying in bulk at wholesale prices and then selling for less than Perth Mint sells to the public for. Further to this Perth Mint's shipping/insurance costs are quite substantial (costs listed here).
That said you aren't going to find a more secure business to purchase your bullion through given that they have the backing of the Western Australian Government. If a dealer goes bankrupt while they are holding your funds for an online order (not likely, but you can't rule out the possibility) you will likely end up an unsecured creditor chasing the funds from the administrators. No such event could occur when buying through the Perth Mint.
You will have to work out whether the additional security is worth the additional cost.
eBay & Auction Sites
From
my personal observations eBay rarely provides a good platform for
buying bullion. The excessive eBay and PayPal fees mean that dealers
aren't able to remain competitive given the low margin % on bullion
sales. Where a dealer is selling bullion on eBay you can often visit
their external online store for much better prices.
Along
with legitimate bullion, eBay allows many fake/plated items to be sold.
Some of these products are clearly labelled (for example items listed
as mills or plated), others (such as fake Chinese Bullion Panda coins)
are not clearly labelled and are sold as the legitimate product when
they are in fact fake. You can read more about counterfeit/fake Gold and Silver products in this post on my Bullion Baron blog.
Sometimes
bargains do come up on eBay, for example less well known coins will
sometimes go for very close to or even under spot. As I mentioned a previous time on the blog
I even managed to pickup some PAMP 1 Kilo bars for under spot when a
dealer started dumping them en masse over a couple of nights. However
these finds are the exception, not the rule, so avoid eBay to begin
with, but consider scouring it for good deals once you are more
confident about prices you should be paying for specific products as
well as being able to tell real from fake.
Although I only specify eBay above, the same is also relevant to most online auction sites.
Walk-in Store/Office
There
are many bullion dealers all over Australia. At least several in each
capital city. The benefits include being able to walk in and talk to
someone face to face about your purchase, more easily ask questions, be
able to see what you are purchasing and in most cases walk away with the
product in hand once you've paid for it.
A bullion dealer who runs a shopfront will likely have larger overheads than an online store, this may reflect in the pricing of their bullion (e.g. in some cases you would pay more in a walk-in store than via an online purchase). If you
A bullion dealer who runs a shopfront will likely have larger overheads than an online store, this may reflect in the pricing of their bullion (e.g. in some cases you would pay more in a walk-in store than via an online purchase). If you
There
is a list of Australian bullion dealers on this site which may come in
handy (unsure on how current the list is) to help you find a nearby store.
Privately (From Individuals)
Buying
and selling Gold and Silver privately is easy. Silver Stackers is a
forum where a predominant percentage of the user base is Australian and
they have a trading section specifically setup for facilitating
transactions between individuals. There is both public and private
forums providing more privacy if you only want
registered members of the forum to see the items you have posted for
sale. Trade feedback provides you with a history of transactions amongst members so that you can better decide on which members you feel comfortable transacting with.
Extra care should be taken when purchasing metals privately. When signing up on Silver Stackers or any other site ensure that you are careful about the username you use, for example I wouldn't recommend signing up with your real name (make up a handle/nickname). Also ensure you leave the hide email address option default (hidden) especially if you are signing up with an email that contains you real name.
If meeting face to face for a private transaction I would suggest doing so in a public/high traffic space where a discreet transaction can be made. For example a Cafe/Pub table might be a suitable venue to facilitate a trade.
If you buy from someone privately and in public then you probably have little recourse if what you buy ends up being fake, so be careful who you choose to deal with and ensure that you are confident what you are buying is the real deal.
Extra care should be taken when purchasing metals privately. When signing up on Silver Stackers or any other site ensure that you are careful about the username you use, for example I wouldn't recommend signing up with your real name (make up a handle/nickname). Also ensure you leave the hide email address option default (hidden) especially if you are signing up with an email that contains you real name.
If meeting face to face for a private transaction I would suggest doing so in a public/high traffic space where a discreet transaction can be made. For example a Cafe/Pub table might be a suitable venue to facilitate a trade.
If you buy from someone privately and in public then you probably have little recourse if what you buy ends up being fake, so be careful who you choose to deal with and ensure that you are confident what you are buying is the real deal.
