In line with my tutorial on how to avoid spending money on fake precious metals, it logically concludes that I would give a review on a legitimate bullion dealer. I will be highlighting some of the benefits that come with this company. But I’m also going to keep room for any improvements that I think could be made.
By high-lighting dealers who are verifiably legitimate I hope we can help reduce fraud. Especially since precious metals tend to be vulnerable to fakes. I’d hate to see anyone getting ripped off and so I’ve created this review of a genuine bullion dealer - Money Metals Exchange LLC.
That being said, let’s dive right into it.
Low Premium Silver and Gold
One of the things that caught my interest with Money Metals Exchange was the fact that they offer low premium gold stored in their vault. Essentially they sell portions of large gold bars/ other precious metals. They’re able to sell these at far reduced premiums (I'm assuming because large bars = lower premiums).
If you’re not a fan of the paper market because you believe that it’s inflated, this is a happy medium between holding your own assets and saving money.
Vault metals definitely isn’t everyone’s cup of tea. But you do know you own a physical asset as opposed to a piece of paper with this option. Costs do come with storage, but they are comparable with the fees on the futures market.
The premiums on vault products are exceptionally low, at least enough to turn heads. For instance at the time of this writing, the premium on a Gold Eagle is 123$, whereas on the vault stored gold it’s 7.00$.
You could potentially be concerned about safely storing your own metals and the logistics this involves. In that case vault metals can become an attractive option.
If you’ve already been storing your metals in vaults for years, it only makes sense to grab the low premiums while you’re at it. You’re also able to sell your assets or request a loan on them at a faster pace.
Even though the profit margin of a bullion dealer is low, Money Metals Exchange funds a student scholarship program. It’s a nice thought knowing that a bullion dealer isn’t simply taking your money and putting it in their own pocket.
The student scholarship on their site is offered to anyone from any post-secondary program. Just as long as they have an interest in economics. They simply need to write an essay on one of several precious metals topics.
One of these includes how we might return to a gold-standard in modern times. If you’re an advocate for a switch in current monetary policy, you’ll be happy to know that this is being assisted through the ideas of our youth.
There are unpredictable outcomes with Kenesyian economics we don’t know about yet, so it’s neat to see a refreshed perspective of the Austrian School taking place.
This is certainly the first I’ve seen of a bullion dealer directly offering a scholarship. Not to say there aren’t any other examples but I haven’t seen any recently.
Dollar-Cost Average and The Monthly Program
I’ve covered the benefits of dollar-cost averaging on my Instagram (give it a follow if you don’t already do!) Dollar cost averaging is essentially an investment method whereby you invest the same amount of money, into the same investment over a long-term period.
This translates to purchasing less ounces when the price is high. But also more ounces when the price is low. The total average of your investment per ounce can be reduced by using this method.
For example let's say you purchase 1 oz of silver per month at 15$ for 2 months. Then 1 oz at 10$ for 3 months. Your total average cost is 12$ per oz for that period. Whereas, your average cost would be 15$ per oz if you invested all your money in the first month.
Clearly investing the same amount of money per month, each month, can be a great investment strategy (although not foolproof, of course). Thankfully, Money Metals Exchange offers a monthly program where they allow you to purchase the same amount (minimum of 100$) per month.
You can also choose to purchase a set amount of ounces you want per month. But to keep in stride with dollar cost averaging, you’re better off selecting a price point.
This way you can automatically have silver delivered to you monthly. You won’t need to worry about consistently filling out your own order. In line with dollar cost averaging this might even reduce your average cost per oz.
Money Metals Exchange also has a referral program if you know anyone that’s looking to invest in gold or silver. On their first purchase you receive a ½ oz coin, and you then receive a free 1 oz coin for everything 5000$ purchased from the person referred.
If they continue to invest in Money Metals exchange for a period of time, you essentially get free silver. While 5000$ is a lot of money to be invested to get a free ounce of silver, you have to remember that profit margins are low in the industry.
Also, receiving absolutely any free silver is a bonus in general.
A Legitimate Bullion Dealer
Some bullion dealers share an above average amount of information regarding sales involving their customers. The law does set a minimum threshold for what information needs to be included in precious metals sales, generally due to issues with money laundering.
However, Money Metals Exchange doesn’t share any information regarding sales unless they exceed over 10, 000$ in sales and are paid in cash.
Just remember that everyone has a legal obligation to pay their taxes when it comes time to sell, but if you’re worried about Big Brother, it’s nice knowing Money Metals won’t needlessly share your info.
Sell To Us Price
Have you ever wondered how much your bullion dealer would purchase your precious metals for? Thankfully Money Metals has the buyback price listed at the bottom of every product that they sell.
Some bigger bullion dealers do this too, and honestly it’s a must-have feature. For dealers who don’t provide this option it’s of serious detriment to their website.
When you don’t have a buyback price, it just makes it seem like there’s pressure for me to call and get a quote.
If you're looking to see if they're paying over spot for Eagles it's a quick find. This can help you portion out the cost/benefit ratio of different products.
Room For Improvement
It could be the millennial coming out in me, but I’m generally not a fan of the style of the website. I find the organization a bit clunky to navigate, and there can be a lot to distract you.
That being said, I’m not their marketing team and I don’t know what kind of advertising research they have done. To be fair I have seen much rougher sites, that made it impossible to even find basic bullion products.
It could be that their target demographic responds favourably to the current layout that they have. And to be fair I tend to be more of a minimalist than anything (although some might find my site doesn’t reflect that).
One other area for improvement I would suggest would be emphasizing their shipping costs. After navigating around the FAQ and the site I couldn’t find any readily available information about these.
The only way you’re able to find out how much shipping will cost you (it’s a substantially small amount) is by creating an order. If anyone has been able to find the information on the site readily, let me know and I’ll clear up this information.
Money Metals also ships to Canada which is awesome. The flat shipping fee is 50$. Due to the premiums we’re experiencing up here in the north, it can actually be more cost-effective if you order enough.
With everything in mind, Money Metals Exchange is a legitimate bullion dealer. They offer services that aren’t provided by competitors, but their site can feel a bit clunky at times. I wish they included more information on how their shipping fees work in a more convenient way. If you have any more to add the conversation feel free to leave a comment!
In compliance with the Federal Trade Commission, none of the information presented in this article constitutes financial advice or should be taken as such. Precious Metals Professor does not recommend financial positioning or investment strategies, and does not take responsibility for any gains or losses made.
Precious Metals Professor is a part of the Money Metals Exchange affiliate program and may earn a commission from the links contained in the article. The commision earned is at no extra cost to you! This article is not an advertisement on behalf of Money Metals Exchange. It is not intended for promotional purposes and is solely intended as a review.