That's $0.49 per ounce. So, on this single transaction, they'd make almost $500 just from the mark-up. It's a volume discount. By contrast, on a 1 oz coin, they're still charging $2 or so over spot, but are only making $2 on a single transaction.
Different market, chump. You don't buy industrial silver as an investment. It's much more difficult to sell and the bid / ask spread is huge. Of course premiums are lower on industrial silver. But you'll be paid FAR less per ounce when you try to sell. You'll have to do better than that.