Buy prices during the 2011 spike

IronHammerIronHammer Posts: 33 ✭✭
edited March 27, 2019 4:47AM in Precious Metals

What were coin shops and bullion dealers paying for AU/AG during the big spike in 2011? Were some dealers not even buying but waiting till the spike was over?

I've found that my local coin shop will only pay .60 per mercury dime that I got last week for $1.10. I feel like he is low-balling me or is this normal?

Comments

  • DrBusterDrBuster Posts: 3,834 ✭✭✭✭

    At ~$49/oz for silver I swapped a bunch of generic for gold at $1 back for the silver and melt for the gold.

  • bronco2078bronco2078 Posts: 7,214 ✭✭✭✭✭

    @IronHammer said:
    What were coin shops and bullion dealers paying for AU/AG during the big spike in 2011? Were some dealers not even buying but waiting till the spike was over?

    I've found that my local coin shop will only pay .60 per mercury dime that I got last week for $1.10. I feel like he is low-balling me or is this normal?

    I was in a shop yesterday buying foreign junk and a guy came in with 3 dollars face of dimes and they gave him 30 bucks. So get a new guy yesterday

  • coinpalicecoinpalice Posts: 1,420 ✭✭✭✭

    i was selling silver proof sets for 70 dollars per set in 2011. i believe the 7 silver coins in the set were 1.333 oz of silver

  • rickoricko Posts: 66,621 ✭✭✭✭✭

    I still have all my silver mint sets.... probably should have sold them at the time....mint sets just take up room. Cheers, RickO

  • tommy44tommy44 Posts: 1,265 ✭✭✭✭✭

    Just pulled out a receipt from 9/4/2011 with silver at 42.956 I sold a bunch of 90% for 29.2 times face. Melt at that would have been 30.7 times face so I got a little over 95% of melt. About 4 months earlier on 4/26/11 silver peaked at 48.165. If it ever hits that again the rest of what I have will be gone.

    it's crackers to slip a rozzer the dropsy in snide

  • jmski52jmski52 Posts: 19,498 ✭✭✭✭✭
    edited March 28, 2019 9:12AM

    If your shop is only paying half melt for 90% junk then find another buyer.

    Absolutely! Don't deal with a shop that isn't willing to be competitive. Period.

    To clarify, I'm not saying to never deal with that dealer because he may not have the resources or inclination to become a market-maker. But, in this instance don't even think twice. Run Forrest, Run.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • ARCOARCO Posts: 3,796 ✭✭✭✭✭

    @IronHammer said:
    What were coin shops and bullion dealers paying for AU/AG during the big spike in 2011? Were some dealers not even buying but waiting till the spike was over?

    I've found that my local coin shop will only pay .60 per mercury dime that I got last week for $1.10. I feel like he is low-balling me or is this normal?

    yes, you are getting lowballed. You are basically getting 60% of the silver value in the dime. I went to a coin shop to unload five silver dollars because I was too lazy to list them on Ebay. These were nice AU coins, not culls, nor damaged. Same thing. That dealer will never get my business again.

  • I was at a local coin shop looking for 90 Percent quarters and halfs. This guy walks in with a really nice 1896 20 dollar. dealer give him $1200.00. less than 2 minutes later it was in a new flip and in the glass case. I asked how much 1350.00 he replied. I offered 1250.00 dealer just laughed. That laugh made me pissed. I told him I lost interest in the 400.00 of junk silver I was thinking about buying. walked out. Could of just said sorry I need 1350.00

  • VanHalenVanHalen Posts: 3,155 ✭✭✭✭

    @Mrcardsniper said:
    I was at a local coin shop looking for 90 Percent quarters and halfs. This guy walks in with a really nice 1896 20 dollar. dealer give him $1200.00. less than 2 minutes later it was in a new flip and in the glass case. I asked how much 1350.00 he replied. I offered 1250.00 dealer just laughed. That laugh made me pissed. I told him I lost interest in the 400.00 of junk silver I was thinking about buying. walked out. Could of just said sorry I need 1350.00

    Could have.

    Try to look at it as business and don't take it personally. He's was not laughing at you.

  • HemisphericalHemispherical Posts: 6,133 ✭✭✭✭✭

    Build a rapport.

  • derrybderryb Posts: 26,835 ✭✭✭✭✭

    @ARCO said:

    @IronHammer said:
    What were coin shops and bullion dealers paying for AU/AG during the big spike in 2011? Were some dealers not even buying but waiting till the spike was over?

    I've found that my local coin shop will only pay .60 per mercury dime that I got last week for $1.10. I feel like he is low-balling me or is this normal?

    yes, you are getting lowballed. You are basically getting 60% of the silver value in the dime. I went to a coin shop to unload five silver dollars because I was too lazy to list them on Ebay. These were nice AU coins, not culls, nor damaged. Same thing. That dealer will never get my business again.

    I don't own a shop but in defense of those that do you have to consider that shops have to purchase low to compete with low sale prices that are available online. Expect shops to pay wholesale, not retail. If there were no room for profit there would be no shops. The market will weed out shops paying too little.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

  • jmski52jmski52 Posts: 19,498 ✭✭✭✭✭
    edited April 2, 2019 6:21AM

    Without knowledge of what the dealer had just paid, someone might have bought the really nice $20 gold for $1,350. That $150 markup is a far cry from offering a 60% buy price on generic 90% silver or nice AU silver dollars. Apples and oranges.

    It's always a challenge to assess whether or not a dealer is messing with you, but it's also important to always know what the reality of the market is, before getting emotionally twisted up when getting ready to sell.

    Again, some dealers aren't willing to be market makers in some areas, so take time to find out who the market makers are. Local shops might make a market when they see prices moving, but at other times - they may not. Their mission is to stay in business, and it's generally good to have them in business.

    But, never accept being screwed when it's not necessary.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • ARCOARCO Posts: 3,796 ✭✭✭✭✭
    edited April 2, 2019 9:18AM

    @derryb said:

    I don't own a shop but in defense of those that do you have to consider that shops have to purchase low to compete with low sale prices that are available online. Expect shops to pay wholesale, not retail. If there were no room for profit there would be no shops. The market will weed out shops paying too little.

    Sure, my comments factored that in. I understand the dynamics. I am a business owner myself. Really, it is up to the seller to find the right buyer, not the dealer to accommodate the seller. The OP did not do his homework and he is responsible for himself. However, if the dealer wants to stay in business, they have to find a healthy middle ground very fast.

  • ARCOARCO Posts: 3,796 ✭✭✭✭✭

    @tommy44 said:
    Just pulled out a receipt from 9/4/2011 with silver at 42.956 I sold a bunch of 90% for 29.2 times face. Melt at that would have been 30.7 times face so I got a little over 95% of melt. About 4 months earlier on 4/26/11 silver peaked at 48.165. If it ever hits that again the rest of what I have will be gone.

    Everyone who claims to love silver will unload everything they have too if prices rise again. The Metals markets keeps burning buyers over and over and over again.

  • blitzdudeblitzdude Posts: 1,570 ✭✭✭✭✭

    My LCS was paying $3 over on eagles, full melt on 90%, slightly higher if BU. They were desperate as there were people lining up to buy daily. Everyone just hoping someone would come in with silver to sell so something would be available for purchase. Ironically they were only paying spot for bars and didn't want anything to do with if over 5 ounces. I never sold there, craigslist was getting me $5 over on eagles and 110-115% melt on 90%. It was that way all the way up until the bubble popped. Hell I could even move Canadian and Mexican silver in those days with hardly any effort. Lol, how times have changed.

  • cohodkcohodk Posts: 15,480 ✭✭✭✭✭

    Ironically they.... didnt want anything to do with if over 5 ounces.

    Classic sign of a top....when a small amount is too much for the little guy.


    Excuses are tools of the ignorant
    Knowledge is the enemy of fear
  • bronco2078bronco2078 Posts: 7,214 ✭✭✭✭✭

    @cohodk said:
    Ironically they.... didnt want anything to do with if over 5 ounces.

    Classic sign of a top....when a small amount is too much for the little guy.

    i dont think so , I think that if you are feeling a top is near then big bars are nothing anyone wants. Self preservation

  • TwoSides2aCoinTwoSides2aCoin Posts: 40,441 ✭✭✭✭✭

    Bought shop in '09 and purchased a 100 ounce bar for $1000. , and an ounce of gold for $900.
    By 2011, I was paying $4200+ for a 100 Oz AG bar , when they walked in. And I was buying ounces of gold for almost $1900.

    I'd buy your Dime for a buck and sell one to you for $1.20. Did you ask your dealer how much he would sell one to you for ? Might be a deal. Maybe he would sell you one for less than $1. ???
    You didn't say if he is the dealer who sold you the Dime for $1.10. If he was, then he's lowballing. But why try to sell now ? Buy buy buy

    We need a law to combat hate. But who would make love a law ?

  • BaleyBaley Posts: 20,886 ✭✭✭✭✭

    The % margin on single dimes being higher % than 100 oz silver bars or gold ounces is not surprising. Time and energy cost money in the real world.

    Want to trade dimes near spot with low spreads? Deal in rolks and bags of them.

    Liberty: Parent of Science & Industry

  • cohodkcohodk Posts: 15,480 ✭✭✭✭✭

    Ironically they.... didnt want anything to do with if over 5 ounces.

    Classic sign of a top....when a small amount is too much for the little guy.

    i dont think so , I think that if you are feeling a top is near then big bars are nothing anyone wants. Self preservation

    5 oz is a big bar?


    Excuses are tools of the ignorant
    Knowledge is the enemy of fear
  • bronco2078bronco2078 Posts: 7,214 ✭✭✭✭✭

    @cohodk said:

    Ironically they.... didnt want anything to do with if over 5 ounces.

    Classic sign of a top....when a small amount is too much for the little guy.

    i dont think so , I think that if you are feeling a top is near then big bars are nothing anyone wants. Self preservation

    5 oz is a big bar?

    for some reason I was thinking 5 oz of gold I withdraw my objection :#

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