If you are new to precious metal investment, you may have never had reason to pay for a purchase with bank wire payments before. Although the process can seem confusing at first, often times bank wires are the best option for buying precious metals. They are a relatively easy, fast, and inexpensive way to pay for purchases of gold or silver from a precious metal dealer. Many dealers prefer this method because it is so fast and secure – and you might even be offered a discount for paying with bank wires.
How it Works
Bank wire – also known as wire transfer or credit transfer – is a method of electronically transferring funds from one account to another. The process is fairly simple. The precious metal dealer will provide their bank account information. Then, you will contact your bank, which may have a form that must be filled out, or instructions to begin the process online.
You’ll want to provide the order number so that the dealer can find the order corresponding to your payment. The dealer may also have additional instructions regarding the bank wire payment, such as a time limit for sending payment once the order has been submitted. In most cases, the wire transfer is completed the same day it is submitted.
Security and Fees
Bank wire payments tend to be more secure than other methods, which can be important when making large purchases of precious metal. In fact, bank wires are among the most secure ways of moving large amounts of money. If you are concerned about your privacy, it is possible to send a wire transfer via Western Union, rather than using your bank account.
One thing to be aware of is that some banks – as well as services such as Western Union — charge a fee for sending a bank wire, unlike when paying by check. Such fees may be a flat rate, or they may be tied to the amount of money being sent. If you’re not accustomed to sending bank wire payments, this fee may catch you by surprise. Be sure that you factor in this fee when determining the total cost of your precious metal purchase.
Processing Time and Discounts
One advantage of the bank wire payment is that it is faster than other payment methods, such as sending a check in the mail. As a result, your order can be processed faster, and you will receive your gold quicker. This immediacy also reduces the risk that market fluctuations will significantly alter the market value of your purchase between the time you purchase it and the time you receive it.
Another advantage of paying via bank wire is that many precious metal dealers will discount the purchase price, sometimes by as much as 5%. On the seller’s end, a bank wire incurs fewer fees than credit card transactions. Many sellers either charge an additional percentage for credit card transactions, or give a discount when paying by wire transfer, as a way to give buyers an incentive to use this payment method.