One advantage that bullion dealers have over most other retail businesses is that your product doesn't rot or otherwise depreciate.

Loving the Leopard print off to the side lol

Just because you sell millions of gold and silver doesn't mean you make millions...alot of people should be more grateful you guys are a open transparent so we know what's going on...thanks guys Question! When are you going to ask a silver pourer to make a bullion now 1oz coin ? ❤🤞🙃

How do gold bullion dealers actually make a profit? In this episode of our "How To Invest In Gold" series, Michael shares how Bullion Now (and most bullion dealers) make a profit and dispels some myths in the process. This video is perfect for beginners. Questions? Visit www.bullionnow.com.au to find our contact details, we'd be more than happy to help you.

Business becomes pretty transparent upon this clip - great to have you guys explaining the industry, so glad I found this channel, good luck guys :)

Bullion Now always try to let you see the whole picture! I just wish it made sence for me to ship to the USA! Thanks guys! 👍🇺🇸🇦🇺

I don't know if BULLION NOW have discussed tax implications in a video ? How many dealers tell you that Capital Gains Tax ( CGT ) is payable on all bullion? So who would be rushing to sell after wishing the price would rise (and it will) nicely to make a gain only to have the TAX MAN grab 30%. No escape from death or taxes. However, does BULLION NOW send your personal details of your sales to the TAX office? If NOT then the onus and responsibilities for the CGT payable will only be as a result of your disclosure in your tax return, not the tax return and accounting of BULLION NOW, unless they disclose every detail of every transaction to the TAX office? Michael, will you please discuss this on a video?

We appreciate your transparency. And this information helps us become better precious metals investors

First time I am seeing this. I think videos like this will really help consumers in times where premiums seem high. I know in the US, the trust in retailers is a little on edge. I think we want to support those who we trust and want to do business with and will pay for that opportunity. There is a bullion dealer I work with who started in the early 2000s and now has an estimated valuation of 2-5 billion US. Ever thought about having a US franchise of your company?

"About half the world is middleman, and they don't take kindly to being cut out of the picture."

I know a bullion dealer in Australia who only buys back gold at -1.99% spot and -3.85% spot for silver. So BullionNow is much fairer to their customers IMHO. I might need to drive back to Melbourne when it's time to sell :)

I've only just come across this video as it was recommended in my list, I've been subbed now for a while. Anyway, i just wanted to again, commend you all at Bullion Now, especially you Michael, as you are one that the industry has needed and will need moving forward. Nothing undoes a good thing like greedy so and sos or misguided myths, and Bullion Now is none of those things. This is GREAT. Thank you for this this video, but especially thank you for your business' existence.

I once bough from a private guy, he was running some kind of a little bullion store from his home… anyway as I paid him for some ounces, he bought them right back online with the phone. I asked why he wouldn’t wait for spot to drop and he responded with “that’s the only way to make profit consistently in these volatile markets”. That kinda drove the point home for me. Dealers do not care about the stock price at all. 👍

Just received my xag 5oz today cheers people 👍

This is a great series Michael. Thanks.

Awesome information. Great to get your business. Thanks!

thank you

Excellent video.

I've heard that bullion dealers make very little money from standard bullion. The profit is more in collectibles and numismatics. Never bought into the idea that they 'withhold' product. They would go broke quickly.

How much does your free storage cut into your profit margin? I’ve heard you mention it before plus you have said that small purchases cut into your margins as well. Are we talking a minimal amount but adds up over many small purchases or is it significant? I use your free storage to save on postal costs.

Congratulations on 13:000 subscribers :-)

Though business to be in, its not like a normal retail that you buy at a certain price and then know the price youll sell. Have you ever bought at high price and ended up selling for a loss even for a small batch before?

Nice video...

ThankYou in advance Michael. Appreciate the effort . Stephen australia

how dare you make a profit providing a product and service !

Thanks.I've always wondered about this one.

6:12 oh that makes sense i was wondering how bullion dealers dealt with price fluctuations

selling noble metals at high premiums and purchasing other people's coins at a huge discount like a pawnshop.

It's also good that there are physical stores where you can walk in and have your metals tested and pay a certain amount in cash for products so that the Gov does not know you have it in case the Gov decides to confiscate metals in a depression or what ever. They couldn't be there if they couldn't make a profit.

Very informative. While I'm sure all this holds true for most dealers, seeing the results of wild swings in spot price over the last year makes me wonder if that holds true for the extremely large online buillion dealers.

Very interesting. Thank you

Amen, well said. That’s why I only deal with you guys. Look after people that look after you!

Outstanding ! Hey Michael when you hedge what happens when the spot goes down even though you have your fixed margins if spot moves down you have bought at a higher price and in return lower profits?

Silver gold bull, the main Canadian dealer, has extremely high prices. I noticed a difference of $75-100 Canadian for a 1oz gold coin vs other Canadian websites. Luckily they do price matching. I ordered 10x1oz gold maples and they wouldn't send coin capsules with them. I was disappointed in this

Thanks for that l like your on honesty cheers

I recently started collecting gold sovereigns, and it annoys me that I have to pay GST on something that's 91.67% gold, but 99% gold is tax free. Obviously that's a problem with the ATO and not the bullion dealers, but it makes buying the coins far less attractive. In the UK they are VAT free.

Thank you Very informative. When you hedge, can you always purchase coins? Some items that you showcase you mention that you ordered them 6+ months ago. How do they fit in your hedge equation?

Can you do a how to sell your bullion to your dealer or others?

Which gold is very useful buy to investment or saving... 22 or 24 Kt pls tell

Always pay in cash also. Credit card fees eat into their margins.

Are limited edition coins silver or gold worth more?

I'm fairly certain you will pay over spot for coins selling for $40+(US) to your retail customers. It's just good business and common sense. Back in Feb. my LCS here on LI in NY paid me +$8.00 over spot or $34.00 for a box of ASEs - at the time they were selling north of $40-. My rule of thumb as a retail seller is to accept 15% less than what they sell for on Ebay, this way the coin store can make the 15% for himself. As a seller if you accept spot for premium coins then you are a fool IMO. I was also selling 10 oz and 100oz bars for a dollar or $2 above spot because that is what he was willing to pay at the time. It all boils down to supply and demand as well as what kind of relationship you have with the buyer (LCS) in my case. I will add that I have not sold to APMEX or any large dealers in years because they are unwilling to pay fair prices like the local places. But i understand you have to make a profit. take care

So happy l ended up at Bullion Now. Would not go anywhere else.

I have some questions.- they might be for Michael's mailbag :-) - What's the history of Bullion Now? When did you start? Where you always in Central Melbourne? What was it like in the good old days? - Michael - did you sell numismatics first or was it straight into Bullion?? Look forward to hearing some answers in a future video!

First to comment haha

I swear I only disliked the lunar coin video. I don’t usually dislike videos!

Ye but u wouldn't be in business if it was that hard to make money. Even a 1% margin on a large enough sale is pretti significant, combined that with many customers locally and internationally, ur making a pretti penny 😉

Is that your laundry in the corner?