Silver Direct from the Mine: Comparing Great Panther to First Majestic

There are a handful of precious metal miners which offer direct bullion sales to the public.  A concept that is appealing for many bullion enthusiasts.  Among benefits include a possible lower price of the metal for a purchaser by eliminating the middle man.  Furthermore, a direct sale from a mine could minimize or eliminate the COMEX and it's control of the silver market.  Two silver miners which offer direct bullion sales to the public include Great Panther Silver (GPR) and First Majestic Silver Corp. (AG).  While both companies offer silver bullion sales directly to the public, the way they carry-out the operation is quite distinct.

Great Panther Silver (GPR)
http://store.greatpanther.com/
Today's Silver Price- $38.20 per ounce as of 2:45p.m. 10/27/2011

1. Direct sales to the public at a fixed spot price.  Usually updated once a day.  There are limits on the amount you can purchase.
2. Silver base from it's mines is sold to 2-3 large traders.
3. The silver base is sent to the refinery followed by the mint.
4. Great Panther Silver buys the silver at the prevailing market price from the mint.
5. Great Panther Silver sells the bullion to the public.  The goal of the company is to break-even and the sale of bullion is done strictly for a marketing exercise. 

First Majestic Silver (AG)
http://www.store.firstmajestic.com/  
Today's Silver Price- $36.75 per ounce as of 2:45p.m. 10/27/2011

1. Direct sales to the public at a fixed spot price.  Usually updated once a day.  There are limits on the amount you can purchase.
2. One of First Majestic Silver's mines is chosen to supply the silver base.  
3. The silver base is sent to the refinery followed by the mint.  
4. It is entirely owned and controlled by First Majestic Silver Corp. throughout the entire process.
5. First Majestic Silver Corp benefits from market prices if the market price has increased from the time it leaves the mine until the time it is sold to the public. 

First Majestic Silver Corp is the superior model when it comes to direct from the mine silver sales during a bull market.  Great Panther Silver only uses the bullion store as a marketing exercise and thus, attempts to minimize any fluctuation in market prices.  While bullion sales only makes up a tiny share of both companies, First Majestic's bullion store model is in the best position to capitalize from higher silver prices.