if a dealer buys a one ounce american gold eagle at $10 below spot---he is going to get rich. it is a $1500 coin. I will happily give up the $10 for instant liquidity with no associated costs with the sale.
I have bought some British gold for less than melt. I am to buy it at that price, the dealer who sold it to me had pay something less than that. Saying that you should not sell gold for less than melt does not make it so in the market.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@bidask said:
I think you are leaving money on the table selling gold below spot in a rising market .
2011 run in gold saw many sales above spot .
I know because I sold that way.😊
There is a lot more gold available now too. How much I'm willing to take back of spot would depend upon my basis. I don't think i'd be a buyer at current pricing. If it turns south you could be in the red right quick.
Even a couple months ago at spot around $1280 there was more selling than buying going on.
I can understand a buyer discounting when the market is fluctuating wildly in order to protect his investment—-but most savvy dealers lock in their sale of the gold to wholesalers as soon a they purchase—-so no risk.
However, I do agree with items such as AGE/ASE or any regularly traded gold and silver coins that sell for a premium (+3-4%) over or more—you shouldn’t have to settle for less than spot.
If you do, you are dealing with a small time dealer who doesn’t move the quantity of metal to make enough profit on the 3-4% spread.
Comments
if a dealer buys a one ounce american gold eagle at $10 below spot---he is going to get rich. it is a $1500 coin. I will happily give up the $10 for instant liquidity with no associated costs with the sale.
I have bought some British gold for less than melt. I am to buy it at that price, the dealer who sold it to me had pay something less than that. Saying that you should not sell gold for less than melt does not make it so in the market.
There is a lot more gold available now too. How much I'm willing to take back of spot would depend upon my basis. I don't think i'd be a buyer at current pricing. If it turns south you could be in the red right quick.
Even a couple months ago at spot around $1280 there was more selling than buying going on.
I can understand a buyer discounting when the market is fluctuating wildly in order to protect his investment—-but most savvy dealers lock in their sale of the gold to wholesalers as soon a they purchase—-so no risk.
However, I do agree with items such as AGE/ASE or any regularly traded gold and silver coins that sell for a premium (+3-4%) over or more—you shouldn’t have to settle for less than spot.
If you do, you are dealing with a small time dealer who doesn’t move the quantity of metal to make enough profit on the 3-4% spread.