One advantage that bullion dealers have over most other retail businesses is that your product doesn't rot or otherwise depreciate.
@derekcannon29393 жыл бұрын
Loving the Leopard print off to the side lol
@Budzyoner3 жыл бұрын
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 ? ❤🤞🙃
@BullionNow3 жыл бұрын
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.
@GertrudePerkins3 жыл бұрын
I am curious about something and I would love to ask you, although I fully understand if you would prefer not to answer... * How did you get started? * How did you get the funding to start the business and start trading and start buying stock? Gold not being cheap! * Are you wealthy, Multi-millionaires? ...Pardon my asking; I am just curious how one starts a bullion dealing business and how one can afford to buy several million worth of gold bullion to sell (e.g. your multi-million gold unboxing), 12 kilo gold coins, etc My local friendly bullion dealer, Sharps Pixley, is privately owned by one of Germany's wealthiest families who also own the Degussa Gold and Silver bullion company. So I can understand how they can afford it.
@harquebus733 жыл бұрын
Business becomes pretty transparent upon this clip - great to have you guys explaining the industry, so glad I found this channel, good luck guys :)
@paulrogers70672 жыл бұрын
Great video have only just started buying from you guys and have started small 15 X 1oz silver coins and 1 - qter Oz gold kanga. That's my ratio silver against gold
@nowweride30943 жыл бұрын
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! 👍🇺🇸🇦🇺
@charlesmorris6593 жыл бұрын
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?
@AY-vi2ld3 жыл бұрын
In addition to this, do non investment grade coins such as sovereigns and Krugerrands attract CGT? If I sold a Krugerrand back at $2420 incl GST, does that mean that $2420 is paid to my bank account?
@annakryzilinski47483 жыл бұрын
@@AY-vi2ld I'm not an accountant or tax lawyer but tax laws are incredibly complex that's why the super rich have smart lawyers and pay no tax. My guess is you'd lose the GST you paid, if you sold. Plus the loss of margin you paid to the dealer when you purchased. This whole tax question is a quagmire for the small fish. The big fish NEVER pay tax.
@kmustacal3 жыл бұрын
We appreciate your transparency. And this information helps us become better precious metals investors
@cultureofcurrency2 жыл бұрын
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?
@malachitekell4793 жыл бұрын
"About half the world is middleman, and they don't take kindly to being cut out of the picture."
@drumcrazy723 жыл бұрын
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 :)
@BullionNow3 жыл бұрын
You're welcome any time!
@tonesthebreakdown79952 жыл бұрын
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.
@Hamachingo3 жыл бұрын
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. 👍
@wombat11843 жыл бұрын
Just received my xag 5oz today cheers people 👍
@shadowplayish3 жыл бұрын
Nice little chunk.
@shadowplayish3 жыл бұрын
This is a great series Michael. Thanks.
@carlchilds37412 жыл бұрын
Awesome information. Great to get your business. Thanks!
@Realtor_Rion3 жыл бұрын
thank you
@maiabrittany10 ай бұрын
Excellent video.
@lamentate073 жыл бұрын
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.
@sticustom3 жыл бұрын
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.
@shadowplayish3 жыл бұрын
The free storage is a deal sealer for me. It makes a difference knowing you can just EFT and stash it with BN till you want it. And when you get your few months worth of orders in one go its pretty sweet. Im never in a hurry for my metals. Long hauler here.
@Fortuna_Magica3 жыл бұрын
Congratulations on 13:000 subscribers :-)
@brainiac0063 жыл бұрын
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?
@BullionNow3 жыл бұрын
No we don't ever make a loss in regards to spot going up or down, as we hedge our position (with physical metal, not paper contracts) multiples times a day to stay as neutral as possible. The only time we make a loss is when we choose to for promotional reasons. It's called a "loss leader"... for example when we have sold a limited amount of that years newly released lunar series silver coin at spot price... even though it cost as more than spot to purchase them.
@BullionNow3 жыл бұрын
Or if you are asking (and I think I know what you mean now...), is there ever a time where we have sold a bunch of product in-store and then for whatever reason, we haven't had time until much later in the day to hedge the metal... and then by that time, spot has risen quite a bit.... then yes that has occurred. But even in those odd times, we do still make a profit, but just not as much.
@branned3 жыл бұрын
Nice video...
@BullionNow3 жыл бұрын
Thanks!
@downunda1073 жыл бұрын
ThankYou in advance Michael. Appreciate the effort . Stephen australia
@Ralphgtx2803 жыл бұрын
how dare you make a profit providing a product and service !
@Fanta....2 жыл бұрын
the nerve of these people trying to put food on their tables for their families... makes me sick to me stomach it does.
@Scientifictruthseek3 жыл бұрын
Thanks.I've always wondered about this one.
@greenerell484 Жыл бұрын
6:12 oh that makes sense i was wondering how bullion dealers dealt with price fluctuations
@npa24683 жыл бұрын
selling noble metals at high premiums and purchasing other people's coins at a huge discount like a pawnshop.
@BullionNow3 жыл бұрын
Our spread is the best in Australia. Premiums are lower than the rest 99% of the time and we buy back at spot, which is the highest buy back rate in Australia. So nothing like a pawnshop.
@objectivesovereignty3 жыл бұрын
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.
@pawpatrolnews3 жыл бұрын
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.
@Snaerffer3 жыл бұрын
Very interesting. Thank you
@silvrsentinel76713 жыл бұрын
Amen, well said. That’s why I only deal with you guys. Look after people that look after you!
@CuSTACKS3 жыл бұрын
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?
@whatastud10003 жыл бұрын
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
@maxmcrae38813 жыл бұрын
Thanks for that l like your on honesty cheers
@CatsMeowPaw3 жыл бұрын
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.
@twin24823 жыл бұрын
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?
@bign16673 жыл бұрын
Can you do a how to sell your bullion to your dealer or others?
@ayyappansastha90823 жыл бұрын
Which gold is very useful buy to investment or saving... 22 or 24 Kt pls tell
@BullionNow3 жыл бұрын
We think 24k is better as you do not pay GST for it here in Australia.
@mattanderson30353 жыл бұрын
Always pay in cash also. Credit card fees eat into their margins.
@wombat11843 жыл бұрын
Are limited edition coins silver or gold worth more?
@sim86346 ай бұрын
to a bullion dealer to buy back?? NO.. spot no matter what... to someone on ebay or such maybe
@christofour2173 жыл бұрын
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
@Fanta....2 жыл бұрын
If you're financially stable you can afford to take your time and get the best price. where a lot of people fail, is they overspend, then have an emergency that they are unprepared for, and have to liquidate their stash at a low price because they are desperate.
@andrewbest46083 жыл бұрын
So happy l ended up at Bullion Now. Would not go anywhere else.
@staffordlumsden3 жыл бұрын
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!
@KernCountyTransparency3 жыл бұрын
First to comment haha
@HafzaProductions20193 жыл бұрын
I swear I only disliked the lunar coin video. I don’t usually dislike videos!
@nafismridha997 Жыл бұрын
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 😉