The silver buy price is that price which you pay for silver in whatever form it is the silver buy price is often referred to as the Ask price. The Bid price is the silver price at which a silver dealer is willing to buy silver from you. However, there is more to it than that.
When you buy silver you have to take into account the various other associated costs involved. You cannot just buy silver at the spot price as recorded in the market place and showed in the charts above. Other costs have to be factored in to get a true price for the silver you are buying.
Firstly there is the premium or mark up. When you buy silver from a mint they make a charge also, called a premium. This is to cover the cost of manufacture of that silver in the form you are buying it. This might be silver coins, silver bars or silver rounds for example. Then there is the packaging and, of course, they want to make some profit. On some silver coins, such as ‘theme’ coins, the premium is usually more than the value of the silver so the price of the silver is effectively doubled. All this affects the silver buy price for an individual.
If you buy from a dealer, on top of the original price for the coins or bars, the dealer then has his own expenses and profit to consider, so this also gets added as a mark up or premium to the price of the silver bullion such as silver coins or silver bars.
Because the larger the expenses of producing silver in the form of coins and bars is very much the same for larger as well as smaller coins and bars, the premium and mark ups for the larger silver bullion pieces remains very similar to the smaller pieces and so, in proportion, you pay less for the silver if you buy large silver bars.
Then there is such expenses as packaging, shipping and, if you are having large quantities, insurance costs to consider, all these need to be factored in when buying silver.
It pays then, to really shop around to find the silver that has the least premium and mark up added to the overall cost. This means that buying silver bullion in the form of the larger bars or finding ways of buying as close to the spot price as possible is the most cost effective way.
When it comes to the silver buy price, some research and study can pay off handsomely when you buy silver.