I would have never guessed that this topic would generate 100 responses.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@Zoins said:
Here are some related questions. I'm not sure what's behind the reason to pick on eBay. Be equal opportunity
Is transacting Gem Saints on Heritage cost prohibitive?
YES
Is transacting Gem Saints on Stack's Bowers cost prohibitive?
YES
Is transacting Gem Saints on Great Collections cost prohibitive?
YES
Is transacting Gem Saints on BST cost prohibitive?
It depends. If you are selling using PayPal, then yes there are limitations that eat into your profit. If accepting a check from a dealer, then not so much.
@Zoins said:
Here are some related questions. I'm not sure what's behind the reason to pick on eBay. Be equal opportunity
Is transacting Gem Saints on Heritage cost prohibitive?
YES
Is transacting Gem Saints on Stack's Bowers cost prohibitive?
YES
Is transacting Gem Saints on Great Collections cost prohibitive?
YES
Is transacting Gem Saints on BST cost prohibitive?
It depends. If you are selling using PayPal, then yes there are limitations that eat into your profit. If accepting a check from a dealer, then not so much.
Is this perhaps a more relevant question:
Is transacting Gem Saints cost prohibitive?
Or
When is transacting Gem Saints not cost prohibitive?
@Zoins said:
Is this perhaps a more relevant question:
Is transacting Gem Saints cost prohibitive?
If not done correctly, yes. A direct sale for cash or check is very cost effective.
Or
When is transacting Gem Saints not cost prohibitive?
If done correctly, yes.
Bounce one check and we'll see how cost effective.
Don't sell to the hotel buyer crowd. I'm referring to reputable, established dealers. I have sold a number of coins directly to trustworthy dealers that I know and have never had a single check bounce.
@Zoins said:
Is this perhaps a more relevant question:
Is transacting Gem Saints cost prohibitive?
If not done correctly, yes. A direct sale for cash or check is very cost effective.
Or
When is transacting Gem Saints not cost prohibitive?
If done correctly, yes.
Bounce one check and we'll see how cost effective.
Don't sell to the hotel buyer crowd. I'm referring to reputable, established dealers.
If you're selling to dealers instead of other collectors, the offered price may be much lower, causing it to be cost prohibitive as well.
Perhaps there's no way to transact gem Saints that isn't cost prohibitive?
Fair enough, but the buy/sell spreads on gem Saints aren't that large. In MS65, you're looking at less than $100 for generics. By time you pay 3% in PayPal fees, that's nearly $50 down the drain. Then there is shipping in multiple lots which is usually more expensive than a single package to a single dealer. Then there are customers to deal with, your time (as people waste your time looking for a cherry pick/rip), and imaging all of which eat up your resources. For some people, the extra $30-$40 might be worth it. It wouldn't be worth the time, resources, and opportunity cost to me.
@Zoins said:
Is this perhaps a more relevant question:
Is transacting Gem Saints cost prohibitive?
If not done correctly, yes. A direct sale for cash or check is very cost effective.
Or
When is transacting Gem Saints not cost prohibitive?
If done correctly, yes.
Bounce one check and we'll see how cost effective.
Don't sell to the hotel buyer crowd. I'm referring to reputable, established dealers.
If you're selling to dealers instead of other collectors, the offered price may be much lower, causing it to be cost prohibitive as well.
Perhaps there's no way to transact gem Saints that isn't cost prohibitive?
Fair enough, but the buy/sell spreads on gem Saints aren't that large. In MS65, you're looking at less than $100 for generics. By time you pay 3% in PayPal fees, that's nearly $50 down the drain. Then there is shipping in multiple lots which is usually more expensive than a single package to a single dealer. Then there are customers to deal with, your time (as people waste your time looking for a cherry pick/rip), and imaging all of which eat up your resources. For some people, the extra $30-$40 might be worth it. It wouldn't be worth the time, resources, and opportunity cost to me.
Agree.
The whole scenario as laid out by the OP u.s problematic. If you want to make money in 12 months you're a dealer not a collector in which case you aren't paying sales tax and you aren't buying at retail. If you are a collector, you really shouldn't expect to flip a retail purchase in a short time frame and not lose money.... on anything in any venue.
Or Apmex and the like. I'm not sure what they pay in fees, but it is less than the rest of us. Although I still don't know why THEY bother.
For the one item I looked at...
$20 Liberty Gold Double Eagle BU (Random Year)
they do charge more on eBay than they charge on their website. Perhaps the difference covers the fees, and they can then work on getting any return business direct through their website.
It's not their standard offerings, it's some of their specials. When they are selling Maple Leafs for $14.99 over spot with free shipping and CC payment, you've gotta wonder why.
eBay is subsidizing them. Why I don't know, but if it wasn't worthwhile they wouldn't be doing it.
Or Apmex and the like. I'm not sure what they pay in fees, but it is less than the rest of us. Although I still don't know why THEY bother.
For the one item I looked at...
$20 Liberty Gold Double Eagle BU (Random Year)
they do charge more on eBay than they charge on their website. Perhaps the difference covers the fees, and they can then work on getting any return business direct through their website.
It's not their standard offerings, it's some of their specials. When they are selling Maple Leafs for $14.99 over spot with free shipping and CC payment, you've gotta wonder why.
eBay is subsidizing them. Why I don't know, but if it wasn't worthwhile they wouldn't be doing it.
eBay gives them preferential rates, but even at their reduced rates it just doesn't seem profitable. On a $1400 1 oz gold coin, they are charging on their specials as little as $14.99 over melt, sometimes $9.99. There is no way that their total eBay/CC/shipping fees are less than $14.99 which is barely over 1% of the item cost.
Or Apmex and the like. I'm not sure what they pay in fees, but it is less than the rest of us. Although I still don't know why THEY bother.
For the one item I looked at...
$20 Liberty Gold Double Eagle BU (Random Year)
they do charge more on eBay than they charge on their website. Perhaps the difference covers the fees, and they can then work on getting any return business direct through their website.
It's not their standard offerings, it's some of their specials. When they are selling Maple Leafs for $14.99 over spot with free shipping and CC payment, you've gotta wonder why.
eBay is subsidizing them. Why I don't know, but if it wasn't worthwhile they wouldn't be doing it.
eBay gives them preferential rates, but even at their reduced rates it just doesn't seem profitable. On a $1400 1 oz gold coin, they are charging on their specials as little as $14.99 over melt, sometimes $9.99. There is no way that their total eBay/CC/shipping fees are less than $14.99 which is barely over 1% of the item cost.
I've wondered the same thing myself. Also there is the 1-2% cashback/rewards that I believe is being eaten by the seller. The unknown is how much the seller paid for the item. It's been suggested on other sites that eBay was supporting them. The unknown is that we don't know what their cost basis is.
Or Apmex and the like. I'm not sure what they pay in fees, but it is less than the rest of us. Although I still don't know why THEY bother.
For the one item I looked at...
$20 Liberty Gold Double Eagle BU (Random Year)
they do charge more on eBay than they charge on their website. Perhaps the difference covers the fees, and they can then work on getting any return business direct through their website.
It's not their standard offerings, it's some of their specials. When they are selling Maple Leafs for $14.99 over spot with free shipping and CC payment, you've gotta wonder why.
eBay is subsidizing them. Why I don't know, but if it wasn't worthwhile they wouldn't be doing it.
eBay gives them preferential rates, but even at their reduced rates it just doesn't seem profitable. On a $1400 1 oz gold coin, they are charging on their specials as little as $14.99 over melt, sometimes $9.99. There is no way that their total eBay/CC/shipping fees are less than $14.99 which is barely over 1% of the item cost.
I've wondered the same thing myself. Also there is the 1-2% cashback/rewards that I believe is being eaten by the seller. The unknown is how much the seller paid for the item. It's been suggested on other sites that eBay was supporting them. The unknown is that we don't know what their cost basis is.
Their cost basis is only part of the equation. What they can net on EBay vs. other alternatives is more important.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
I've wondered the same thing myself. Also there is the 1-2% cashback/rewards that I believe is being eaten by the seller. The unknown is how much the seller paid for the item. It's been suggested on other sites that eBay was supporting them. The unknown is that we don't know what their cost basis is.
Cashback/rewards are not paid by the seller, at least not directly. CC rewards are paid by the CC company from their receipts. eBay rewards are paid by eBay from their fees.
Or Apmex and the like. I'm not sure what they pay in fees, but it is less than the rest of us. Although I still don't know why THEY bother.
eBay gives them preferential rates, but even at their reduced rates it just doesn't seem profitable. On a $1400 1 oz gold coin, they are charging on their specials as little as $14.99 over melt, sometimes $9.99. There is no way that their total eBay/CC/shipping fees are less than $14.99 which is barely over 1% of the item cost.
I've wondered the same thing myself. Also there is the 1-2% cashback/rewards that I believe is being eaten by the seller. The unknown is how much the seller paid for the item. It's been suggested on other sites that eBay was supporting them. The unknown is that we don't know what their cost basis is.
Their cost basis is only part of the equation. What they can net on EBay vs. other alternatives is more important.
This is quite true. Their cost basis is known as they have a known buy price. My point is that you can "melt" just about anything at 98% of gold value. If you are $14.99 over melt (about 1%), that means your total costs have to be 3% or less in order for it to be better than simply scrapping it.
I think part of it is new client generation, so they don't mind the cost.
They must be paying about 1% minimum in CC fees an 1% minimum in eBay fees - MINIMUM. That's 2 of the 3% right there.
There are times when I can buy it from them and send it to scrap myself just using a 2% cashback credit card and 1% eBay bucks. They had Maple Leafs at $9.99 over spot. At $1400 gold the total cost is $1410. My CC gives me $28, eBay bucks is $14 and I can scrap it at $1372 so I could actually "make" $4 profit. If it were cash instead of eBay bucks, I'd probably do it every week until my CC was maxed out. LOL.
Comments
I would have never guessed that this topic would generate 100 responses.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
YES
YES
YES
It depends. If you are selling using PayPal, then yes there are limitations that eat into your profit. If accepting a check from a dealer, then not so much.
Is this perhaps a more relevant question:
Or
If not done correctly, yes. A direct sale for cash or check is very cost effective.
If done correctly, yes.
Perhaps this is the ultimate answer to the OP’s question.
No, even then you lose money in the OPs scenario because you have to eat the 8% sales tax
Bounce one check and we'll see how cost effective.
Yes, the OP was offering a Kobayashi Maru scenario.
Don't sell to the hotel buyer crowd. I'm referring to reputable, established dealers. I have sold a number of coins directly to trustworthy dealers that I know and have never had a single check bounce.
If you're selling to dealers instead of other collectors, the offered price may be much lower, causing it to be cost prohibitive as well.
Perhaps there's no way to transact gem Saints that isn't cost prohibitive?
so why even try?
I'm not sure if it is yet or not. I'm sort of coming to the realization it may be through the course of this thread.
If so, it seems like it would be pretty bad news for the OP.
Fair enough, but the buy/sell spreads on gem Saints aren't that large. In MS65, you're looking at less than $100 for generics. By time you pay 3% in PayPal fees, that's nearly $50 down the drain. Then there is shipping in multiple lots which is usually more expensive than a single package to a single dealer. Then there are customers to deal with, your time (as people waste your time looking for a cherry pick/rip), and imaging all of which eat up your resources. For some people, the extra $30-$40 might be worth it. It wouldn't be worth the time, resources, and opportunity cost to me.
Agree.
The whole scenario as laid out by the OP u.s problematic. If you want to make money in 12 months you're a dealer not a collector in which case you aren't paying sales tax and you aren't buying at retail. If you are a collector, you really shouldn't expect to flip a retail purchase in a short time frame and not lose money.... on anything in any venue.
eBay is subsidizing them. Why I don't know, but if it wasn't worthwhile they wouldn't be doing it.
Anything can be transacted on eBay if it’s bought right and something they will pay the money for. My online store there does very well.
The market has been on the southward of steady for sometime.
eBay gives them preferential rates, but even at their reduced rates it just doesn't seem profitable. On a $1400 1 oz gold coin, they are charging on their specials as little as $14.99 over melt, sometimes $9.99. There is no way that their total eBay/CC/shipping fees are less than $14.99 which is barely over 1% of the item cost.
I've wondered the same thing myself. Also there is the 1-2% cashback/rewards that I believe is being eaten by the seller. The unknown is how much the seller paid for the item. It's been suggested on other sites that eBay was supporting them. The unknown is that we don't know what their cost basis is.
Their cost basis is only part of the equation. What they can net on EBay vs. other alternatives is more important.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Cashback/rewards are not paid by the seller, at least not directly. CC rewards are paid by the CC company from their receipts. eBay rewards are paid by eBay from their fees.
Their cost basis is known. They have a buy price.
This is quite true. Their cost basis is known as they have a known buy price. My point is that you can "melt" just about anything at 98% of gold value. If you are $14.99 over melt (about 1%), that means your total costs have to be 3% or less in order for it to be better than simply scrapping it.
I think part of it is new client generation, so they don't mind the cost.
They must be paying about 1% minimum in CC fees an 1% minimum in eBay fees - MINIMUM. That's 2 of the 3% right there.
There are times when I can buy it from them and send it to scrap myself just using a 2% cashback credit card and 1% eBay bucks. They had Maple Leafs at $9.99 over spot. At $1400 gold the total cost is $1410. My CC gives me $28, eBay bucks is $14 and I can scrap it at $1372 so I could actually "make" $4 profit. If it were cash instead of eBay bucks, I'd probably do it every week until my CC was maxed out. LOL.
More legs than a beach volleyball team.