Bullion Direct "Clearing Fee" ... ??? - How does BD Work ?

[gunDriller]

I was looking at the Agreement at Bullion Direct.

https://www.bulliondirect.com/termsOfUse.do

"6. Clearing, Shipping, Service and Handling Charges.

a. Clearing Charge. Customer will pay to Bullion Direct® for each purchase or sale a clearing fee of 1% of each transaction.

b. Shipping and Handling Charges. Shipping and handling charges apply upon personal delivery of commodities to Customer or from Customer to Bullion Direct®. Such charges do not apply to commodities delivered to and received from Depository for the benefit of Customer. Shipping charges will vary depending on weight, value, destination, and method of shipment. The shipping and handling charges are automatically computed at the time the order is placed. Customer will be notified when placing the shipping order of the exact amount of shipping and handling. "

So, let's say you buy 4 1/4 ounce Gold Eagles.
https://www.bulliondirect.com/catalog/lp/American_Eagle_Gold_Coin_(0.25_oz).html

$337.95 x 4 ~ $1352

+$25 shipping = $1377

So, does Bullion Direct add an additional $13.52 "Clearing Fee" ? (1% x 1352)

In that case the purchase total would be $1377 + 13.50 ~ $1390.

You know, it seems like a lot of people are thinking about buying gold fractionals. APMex is sold out of random year fracs -
http://www.apmex.com/APMEXTop40/Default.aspx

[Heimdhal]

Ive bought from BD, though not much and never a full oz (mostly just single oz or 10 oz silver). They do charge a 1% fee on their nucleo exchange, not sure about the catalog purchases though. So yes, they woudl add an aditinal 13.50, but they DONT charge you extra to store the item with them for any period of time, its all worked into that 1% I guess.

As far as the shipping goes, its better to save up a bit in their "vaults" and have them ship a larger order than single oz items, that way it balances out over your per oz cost.

[gunDriller]

Ive bought from BD, though not much and never a full oz (mostly just single oz or 10 oz silver). They do charge a 1% fee on their nucleo exchange, not sure about the catalog purchases though. So yes, they woudl add an aditinal 13.50, but they DONT charge you extra to store the item with them for any period of time, its all worked into that 1% I guess.

As far as the shipping goes, its better to save up a bit in their "vaults" and have them ship a larger order than single oz items, that way it balances out over your per oz cost.


Thanks for the info !

on their website it says they don't take phone calls.

so all these transaction details get worked out online ?

So I guess basically, I should add 1% to their price to figure out the final cost.

[Heimdhal]

Ive bought from BD, though not much and never a full oz (mostly just single oz or 10 oz silver). They do charge a 1% fee on their nucleo exchange, not sure about the catalog purchases though. So yes, they woudl add an aditinal 13.50, but they DONT charge you extra to store the item with them for any period of time, its all worked into that 1% I guess.

As far as the shipping goes, its better to save up a bit in their "vaults" and have them ship a larger order than single oz items, that way it balances out over your per oz cost.


Thanks for the info !

on their website it says they don't take phone calls.

so all these transaction details get worked out online ?

So I guess basically, I should add 1% to their price to figure out the final cost.


Yea, they actualy have a pretty good and straight forward online system. Its not overly convoluted or anything and every step is explained and they tell you exactly what to do by email upon completion of the transaction.

I think the not having people manning the phones keeps the overall cost down, and their website is the same way. Not a ton of bells and whistles, but they are a good and reliable site, its certainly not some fly by night operation.

I would count on adding at least 1% to each transaction and have them store it until you are ready for a bulk shippment. It kind of goes against "if you dont hold it..." moto, but:

a) you arent trading paper. THe nucleo is a system for individual sellers, not for BD so if they dont have the metal, they cant sell it, unlike paper.

b) unless we go through an epic systemic collapse literaly over night, I doubt youll be unable to get your shipment any time soon. But just in case, my moto is to take delivery every 20 oz or so. That way if the above DOES happen, you arent out hundreds and hundreds of oz (of silver, adjust accordingly for gold, say 2-3 oz).

Some people leave it there much longer and have hundreds and hundreds of oz on hand to trade with the swings in spot, and that is a great thign to do too, in fact I am trying to get enough stored up to do the same, but its all about your particular needs and perspective as to how you handle your PMs and why you are buying them.