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Buying Silver Online or In-Store: A real world analysis.
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Original Message
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Dilemma: You have $1000.00. What's the best deal? Buy online at Apmex or instore at Louisville Numismatic Coin store? I asked myself this question and "did what I do" and put the notes here for anyone else who might have the same question.
Current price of silver: $29.92
Calculator says we can get 33.42245989304813oz for $1000.
Goal: Buy 33oz for $1000.00
APMEX:
Silver - Rounds - 1oz - Sort: Price Low to High
As low as $1.19 per round over spot! (When you buy 500+), but we're looking to get 33oz, so OUR per coin price is $32.15, subtracting the current cost of silver ($29.92) we get:
Price over spot: $2.23
At $32.15, we can now only afford to get 31oz for $996.65.
CREDIT CARD FEE: (Not enough for 'bank wire') causes $32.15 to go up to $33.11. (Adding another $0.96 per coin)
At $33.11, we can now only get 30oz for $993.30.
Shipping: $19.95 (Note: Only being able to get 30oz, at $19.95 for shipping & handling, this adds about $0.665 per coin!) This brings total to $1013.25, over what we have and we can't buy again. So now, we're down to 29oz - for $960.19 & 19.95 S&H.
Tax: Apmex not based in or shipping from my state - No sales tax. Thanks Internet!
Now, let's go to our local store...
LNCS:
Price over spot ($29.92): $1.25
At $31.17, we can now only get 32oz for $997.44
CREDIT CARD FEE: None, since I'll be paying cash, something you can't do online.
Shipping: Cost of gas going there & back; most would consider free in comparison.
Tax: In state tax rules apply ( [link to thecoinologist.com] ) - LNCS will charge 6% sales tax by Kentucky state rules. (Some states don't charge tax for this, so they'll be fortunate to get additional rounds!)
$997.44 * 1.06(tax) = $1057.28. Too much!
Because of tax, we have to drop 2oz, so now we're down to:
30oz @ $31.17 = $935.10
$935.10 * 1.06 (tax) = $991.21
In Summary:
APMEX
TOTAL COST: $980.14
TOTAL OZ: 29oz
Total cost/oz: $33.80
LOCAL
TOTAL COST: $991.21
TOTAL OZ: 30oz
Total cost/oz: $33.27
Total Savings going Local over Internet: $0.53/oz.
Personally, I think I'd go with the option that gives me an extra round, for the "same amount" of money.
edited: link fixed by removing ) at end.
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