What I actually got for gold and silver
tneig
Posts: 1,505 ✭✭✭
I brought a Krugger 1oz, AGE 1/2, and an ASE into the B&M in the local weekend flea market. Established/known jewelry and coin dealer. The gold was 10% and the ASE was $2 below spot.
I was there, the coins were not new, the transaction was safe, and I didn't leave a sale unturned, so I sold the gold. Not the ASE of course because I could already get $16 all day long. My first transaction with them other than buying a silver Amark once. His verification was the plastic tipper/sizer thing only.
Got two doughnuts, 2 dozen stemmed clams and some chopsticks and we were on our way.
COA
0
Comments
My local shop recently paid me 98% of spot for no big deal gold. I've been there many time ( he paid me fair for a $5 Moffat yesterday) Think he wants me coming back is why he paid 98%. I wouldn't be surprised he would have paid me 90% If it was the first time I walked through the door. When you can buy MS64 common Saints based on spot, 90% is the going rate for someone trying to make a buck, you did good. I'm surprised he didn't offer you less at a flea market.
Gold and silver are always great! But how were the donuts and clams?
Meh.
You sold the gold for $180 below spot, but didnt sell the silver for $2 below?
Knowledge is the enemy of fear
sure that sounds terrible but it illustrates a problem that I focus on with granularity . I think 1 oz gold coins are terrible to own when gold is over $1000 an ounce . When you go into the store needing money the buyer is able to leverage you based on your need for money and your inability to divide that coin into chunks.
Now I'm not saying he would have netted more cash with 10 1/10 ounce coins but he could have asked for the dealers best offer on them , made him commit and then sold half and walked out the door. Sometimes this leads to a better offer if it looks like you are going to walk.
Either way its an oz but the fact is , your stuck selling the whole thing even if you only need 300 bucks or 1200 bucks . The dealer , being skilled at this probably figures you out pretty quickly and if he judges you need to sell he really puts the boots to you on the back of spot .
As for not selling the silver , thats easy to explain , what good is $14 ? , might as well keep it.
Silver is not about granularity its about the multiplier effect of a large number of ounces . So much simpler with 1 oz bullion or 10 oz bars or rolls of 90% than bringing in a big pile of garbage that might be 100 oz but spread across many types that the dealer can't resell as easily as he could with 100 oz. of a consistent type.
Its all ultimately down to spot price of metal. 1 oz gold coins are not hard to seller at $300 spot as the price climbs over $1000 I'd much rather have smaller coins.
If silver is $4 an ounce somehow I feel like I won't be buying dimes but I will still resist the urge to stock up on 1000 oz bars.
Big gold coins are good if you need to store wealth in a small form factor and think you are going to sell $10,000 chunks at a time, they suck when you might need a few hundred bucks here or there.
There was gold priced below spot on the BST with no hits. I can't imagine anyone here beating $180 below spot on nearly $2k gold.
when you might need a few hundred bucks here or there.
If this is the case then one should never buy PMs.
Its unfathomable that any investor or "saver" would accept 10% less than current price. Kinda all smells like dealing with a car dealership.
Well, Mr Jones, your house is worth 300k all day long, but ill give you 270 for it. Take it leave it. Terrible business.
Knowledge is the enemy of fear
Holy cow $180 below spot? Sure wish I could buy gold that cheap. I'd also gladly pay spot for ASE all day long as would many I suspect.
The whole worlds off its rocker, buy Gold™.
right , but $hit happens and sometimes you need to raise money. I think if I want to raise $10,000 i'll sell gold , If I need $3000 I will do that with silver.
No one should own PM's if they might need to sell to raise $60 in a hurry.
There are always buyers after something has sold. When it's pay up or shut up the room goes silent.
If someone needs to sell Anything to raise $60 "in a hurry" they ought to... um.. i dunno, do something differently with their ... um.. financial planning.
Liberty: Parent of Science & Industry
It means you need to rebalance your portfolio , maybe add to your investment in scratch tickets
Tneig, did you try putting that Kruggerand on the BST? You left a lot of meat on the bone for the dealer @ $180 below.
MY GOLD TYPE SET https://pcgs.com/setregistry/type-sets/complete-type-sets/gold-type-set-12-piece-circulation-strikes-1839-1933/publishedset/321940
Why not keep 10k in a money market?
Knowledge is the enemy of fear
I think he sold 1.5oz, at 10% below spot was about $180 for the 1.5 oz.
Knowledge is the enemy of fear
It was just a number. I meant if I'm cashing out with some sort of strategy towards the end I won't be selling huge dollar amounts of silver or small dollar amounts of gold. If i plan to hold then get out of a stack quick its gold if I intend to sell monthly to supplement a pension its silver.
To me while a roll of 20 1 oz silver rounds and a sovereign gold coin are roughly the same in dollar value its a totally different transaction. They have resale values and strategies too. If I put the ASE's in a bucket to resell at 2$ over thats a different animal than putting the sovereign in a 2x2 . that sovereign might be gone the same day to that one customer who wants that. That bucket has a different customer
I had this argument with a guy a few weeks ago , he was raising cash and wanted to sell gold I had around 600 to spend he had 5 1/10 maples he wouldn't sell because spot was at a lower price than what he paid , or he had a 4 ducat he was "up" on. I said if you need to convince yourself you made a profit then give me the ducat for 570
Ducats are my single favorite gold coin I won't complain . But seriously you have about an ounce of gold between the 2 things you need to sell half and up or down is nonsense , are you trying to raise cash or soothe your ego ?
When I say thats my favorite its because of the thin planchet and large diameter it just feels like old world treasure not mass produced modern garbage. I would be happy owning nothing but 4 ducats , sovereigns 20 francs , and dos peso coins and turn my nose up at every modern gold bullion coin with a nonsensical face value .
I know its a mistake to fall in love with any particular type of bullion but buying and owning stuff you hate is pretty strange too.
%10 below for the gold. Hoping to do better in the future of course.
I was just checking on ASE price. I only brought one.
The clams were $2 above clam spot per/12 do to a shortage though and the doughnut gave me a toothache.
;-)
I did consider BST. But I've only dealt with two buys in 10 years. I got the krugger from a pawn shop and I don't have a scanner. Can imagine my rep if it was a bad coin. Between shipping, risk, unknowns, I just wanted to try out the dealer person to person route.
I did try some other dealers. One didn't have any money to buy it and the other didn't seem to care to talk.
At 10% I think there was some dealing space. I tried some of my regulars that are afraid of anything over 1/10, plus not being able to shell out the cash even for one, let alone more. Another guy said he wouldn't mind getting beat on a few fake silver coins but no way take a chance on a 1oz gold. So it was enough effort for this one deal and lessons and experienced gain. What's good here is one can learn what they have to learn.
Our retail store for the most part specializes in metals. I'm the only real numis person in house. For 1/2 US Gold Eagles I think we pay spot at the moment, that's for nice BU, impaired I would pay around 98%. Krugerrands 1oz our bid is spot as well. Its worth calling around to bullion dealers for best pricing, many who are just coin dealers need a larger margin as they dont always hedge their buys.
I tried some of my regulars that are afraid of anything over 1/10
Interesting comment, and quite honestly, one that should give everyone pause.
Knowledge is the enemy of fear
There was a forum member here, years ago, that was like that. Would sell things cheaply as long as one would do immediate paypal. Not really high priced items either.
Turned out, it was all for drugs. The "need" was there but the cash was not...likely trying to use the coin sales to get instant cash and hide it from wife.
That member is no longer around...and hasn't been for awhile.
So, if someone "needs" to raise a low amount in a hurry....it could be more than just "financial planning" that is at fault.....
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
No offense, but those dealers seem really weird. What area are you in?
In the seattle, and surrounding, area, one can go to more than a few shops and, while their buy prices will vary and one should shop around, they can all pull the trigger on more than a few ounces of gold, immediately, if they want. And, from what I have seen so far, over more than a few years, they are quite comfortable looking at gold and calling it real/fake (GAEs , gold commems, and some indian head gold is my experience with them so far).
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
So who wouldn't take a beating for a donut ?
I was in my local shop and watched him pay $10 back on a Kruggerand, for my 1/2oz gold Australian year of the dog I got spot, generic silver rounds spot.
I would think that if one buys gold or silver that it would behoove one to know where to sell it.
During the gold and silver run up of a few years back, there were 'dealers' all over, including cheap hotel rooms. Now, it is mostly jewelry or antique shops. The one's around here are always back of spot (based on inquiry, not actually selling). Then I asked selling price...
I literally laughed at them.....Cheers, RickO
_ didn't know you needed new tires , you should have come to me first , I know a guy.
_
Yeah, I started with the old looking Krugger first.
Here's one company's buy sell rate for bullion:
https://www.brokencc.com/modules.php?title=bullion-pricing-terms&mod=Pages&op=view_page&pg_id=7
Did they have any long steamed roses?
Liberty: Parent of Science & Industry
Yeah. That's a sustainably better deal for coins in good shape. I may call them and see what they say.