How Does Bullion Now Make Money?
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- Опубликовано: 28 июл 2024
- 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.
Need to buy gold or silver in Melbourne, Australia? Come see Bullion Now for all your gold and silver bar and coin needs, now located right in the heart of the city! Need something a bit more special? Little Coin Shop has you covered with the best collection of collector's items!
And if you need to sell gold, silver or other precious metals... we pay 100% of spot price. To our knowledge, that's the best in the business.
Bullion Now & Little Coin Shop
Suite 605, Level 6
227 Collins St
Melbourne
#BullionNow #Gold #Melbourne
One advantage that bullion dealers have over most other retail businesses is that your product doesn't rot or otherwise depreciate.
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 ? ❤🤞🙃
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! 👍🇺🇸🇦🇺
Loving the Leopard print off to the side lol
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?
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?
@@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.
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.
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.
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 :)
You're welcome any time!
Business becomes pretty transparent upon this clip - great to have you guys explaining the industry, so glad I found this channel, good luck guys :)
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
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. 👍
We appreciate your transparency. And this information helps us become better precious metals investors
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.
This is a great series Michael. Thanks.
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.
Just received my xag 5oz today cheers people 👍
Nice little chunk.
Thanks.I've always wondered about this one.
thank you
Awesome information. Great to get your business. Thanks!
ThankYou in advance Michael. Appreciate the effort . Stephen australia
Congratulations on 13:000 subscribers :-)
Very interesting. Thank you
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?
Thanks for that l like your on honesty cheers
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?
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.
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.
Excellent video.
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?
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.
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.
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.
Amen, well said. That’s why I only deal with you guys. Look after people that look after you!
6:12 oh that makes sense i was wondering how bullion dealers dealt with price fluctuations
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.
selling noble metals at high premiums and purchasing other people's coins at a huge discount like a pawnshop.
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.
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
how dare you make a profit providing a product and service !
the nerve of these people trying to put food on their tables for their families... makes me sick to me stomach it does.
Nice video...
Thanks!
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.
Which gold is very useful buy to investment or saving... 22 or 24 Kt pls tell
We think 24k is better as you do not pay GST for it here in Australia.
Can you do a how to sell your bullion to your dealer or others?
Are limited edition coins silver or gold worth more?
to a bullion dealer to buy back?? NO.. spot no matter what... to someone on ebay or such maybe
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
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.
Always pay in cash also. Credit card fees eat into their margins.
First to comment haha
I swear I only disliked the lunar coin video. I don’t usually dislike videos!
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!
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?
So happy l ended up at Bullion Now.
Would not go anywhere else.