Can someone help me with the name of this type of buying/selling? do you do this?

Azurescens

Hey guys, so, I just started doing this thing a few months ago.. stop paying attention to tickers, pay attention only to what things are selling for, right? There has to be a name for a system like this, or a name for this type of selling. So far I've failed to describe it but here goes. Bear with me.

Let's say I got in on a bunch of maples for $10. The market is crazy I can sell them for $15 and pull my $5 out quick, with never really tying up too much in one piece or metal. I break even on my $10/$10, grab my 5 bucks and go.

Instead of dropping 10k of metal in a safe, just keep shuffling that wealth and roll it onto itself, and let it continue to make money for you as you continue to snowball it.

For example, 8 weeks ago John bought 10k gold. Hasnt done much but go up and come back down. John has either broke even or is holding a slight loss.

Bobby decided to buy a ton of small stuff and keeps reselling and reselling, pulling profits as he goes. Gold is down and John is kinda screwed, but Bobby has been picking up more pieces as he goes, and Bobby is suddenly pulling profits and positioned for a SHTF skyrocketing metals situation (just go dark and hold whatever it is you're rolling).

Is this a real thing anywhere else in the world? Does this make sense? I think I'm describing it ok. Does anyone else do this? Or is this a stupid way? I think I can see how it could suck, maybe. It seems pretty bulletproof. Right? It seems less risky for so much more reward. And you're never positioned to take a massive loss, since you've been making money the whole time and constantly have a grip of gold/silver coming in, which you can then decide to start rolling again or hold and go dark. Then you have all your money and tons of free gold and silver.

And please do be honest, if I'm like risking all my money and not realizing it or something please lemme know. I'm self aware just enough to know I miss things sometimes.

I've been trying to pull this apart for 2 months now. I can't find the weak point. I dont know where my biggest mistake is gonna happen or what to watch for. But that's the point right? With this you're kinda all in all the time which is why the money is so fast/easy? In a stagnant, or falling, market I could see someone spinning their wheels doing this.

Right?

Thank you for insight.

Azurescens

I'm so, so sorry if I just made you all read the most basic way every reseller works.

jdimmick

Basically, I do this in the coin business as I hate metals period. Have never been a fan of gold and silver, but its 70%+ of the business currently. When I buy gold/silver bullion in what ever form, I am quickly flipping it back to cash waiting for the next deal to come in. Sometimes, I sell and price jets up a day or two later, and sometimes it corrects a pile the next morning, but when i buy it, I always have the profit built in it at time of purchase, so I am okay. if no local buyers are available after buying a sizeable amount, I drive it straight to the refinery or ship to national buyer.

I have customers/friends who have bought large amounts only to watch thier investment ride the high, and then come crashing back down without taking profits.

I would add, as an individual, the buy sell spreads are not as favorable as a dealer, so buying it, and then selling it is a bit tougher than your typical dealer can do. basically, being able to buy at a fair price, then flipping it back to a fair price selling.

bronco2078

@jdimmick said:
Basically, I do this in the coin business as I hate metals period. Have never been a fan of gold and silver, but its 70%+ of the business currently. When I buy gold/silver bullion in what ever form, I am quickly flipping it back to cash waiting for the next deal to come in. Sometimes, I sell and price jets up a day or two later, and sometimes it corrects a pile the next morning, but when i buy it, I always have the profit built in it at time of purchase, so I am okay. if no local buyers are available after buying a sizeable amount, I drive it straight to the refinery or ship to national buyer.

I have customers/friends who have bought large amounts only to watch thier investment ride the high, and then come crashing back down without taking profits.

I would add, as an individual, the buy sell spreads are not as favorable as a dealer, so buying it, and then selling it is a bit tougher than your typical dealer can do. basically, being able to buy at a fair price, then flipping it back to a fair price selling.

get a store to buy from the public back of melt then sell at or above melt

dont buy at or above melt to flip quick or you will be sleeping on a park bench

dontippet

You certainly can do this. I did a lot of this in the past years, and it helped finance part of my stacking. Just remember that you will have expenses. If you use sell on these boards, then you will save some fees, like the 10% ebay fees. What you need to do is find a place to buy coins a bit cheaper, then find a place to sell coins for a little more. These two places are probably going to be two completely different places. It can be done, but I will say, it was easier 10 years ago than it is now.

And please remember, what the market is doing now, is atypical. You usually can't buy now, then wait a month and always sell at a much higher spot price.

Don

ricko

If you are making money, good.... Keep it up....just be sure to compute all your costs - shipping, taxes, packaging, insurance etc.... sometimes buying at X and selling at X+1 does not cover expenses....Cheers, RickO

dontippet

@ricko said:
If you are making money, good.... Keep it up....just be sure to compute all your costs - shipping, taxes, packaging, insurance etc.... sometimes buying at X and selling at X+1 does not cover expenses....Cheers, RickO

I absolutely agree. I recommend having a spreadsheet showing what you purchased something for, then what you sold it for after subtracting all expenses. And like Ricko said, don't forget about possible taxes. This ongoing spreadsheet can tell you the contents of your stack along with your absolute costs after including profits from your sales.

Don

Baley

It sounds like a Job, called precious metals dealer.

Meltdown

It's my favorite part of this hobby. I buy to sell pretty much any time I see an opportunity. I don't need the profits to get by but use it to add to my own holdings and just enjoy the process in general. I have friends and family that have no idea how to make money on the side and I enjoy the security of knowing if I did have to rely on buying/selling I'm prepared to do so.

PerryHall

I would call it "building the business" when you plow any profits back into the business.

metalmeister

Success starts with alarm clock. " Ted Nugent"
Be prepared to hustle. Espresso helps

Azurescens

I appreciate everyone taking time out of their day to respond thoroughly. I didnt know anybody else did this. You dont see anyone talk about it this way. I dont, anyway. It just kinda made things easier and faster and just started happening this way. We have a business and a hobby thing and I'm always packing orders so this is as easy as playing with coins at work. I got tired of relisting things whenever the market would go up or down and that was a time sink, so screw it, take it and run.

I always see people doing what "John" did in OP, buy a brick of it, sit on it, and kinda be at a slight loss but still excited about holding? So, what... one day you're broke or loaded, owing a lot of taxes or screwed. Yay... fun. Been on both sides of that none of it is fun.

This probably REALLY sucks in a slow market huh? I ran my post through my head imagining it was 2015 and uhhhh.

Dscoin

If you can buy say 10 double eagles for $15,000 last November and keep flipping them and buying more and more so be it. Hopefully by the time you are at the SHTF situation you either have 10 double eagles that cost you say $8,000 or you have 20 double eagles that cost you $15,000 depending on what you did with your profits. Either way it keeps a guy out of the bar and busy 😀

MsMorrisine

small flips keep me entertained

bronco2078

@dontippet said:

@ricko said:
If you are making money, good.... Keep it up....just be sure to compute all your costs - shipping, taxes, packaging, insurance etc.... sometimes buying at X and selling at X+1 does not cover expenses....Cheers, RickO

I absolutely agree. I recommend having a spreadsheet showing what you purchased something for, then what you sold it for after subtracting all expenses. And like Ricko said, don't forget about possible taxes. This ongoing spreadsheet can tell you the contents of your stack along with your absolute costs after including profits from your sales.

Don

well hold on now. Its easier to profit if you avoid paying taxes . If i were you I would plan on screwing the tax man ruthlessly at every opportunity. it might be the only way to make it work.

You can keep records but structure things so you only report your losses

be really bad at it on paper

jmski52

You describe John as somewhat hapless and that he gets stuck in the same price range, rather than a rising market.

But you describe Bobby as pulling constant profits from a rising market.

Two different scenarios. Apples vs. Oranges.

In fact, John does benefit almost as much as Bobby with a rising market, and Bobby is working constantly to pull some before tax profits out of his money pool. Taxes and the time spent in recordkeeping for numerous transactions do matter.

Nothing is free, and the market isn't always with you, so it's always a long term proposition anyhow.

Now that I've retired, I might just join you in this type of "hobby". Good Luck!

Baley

@jmski52 said:

Now that I've retired, I might just join you in this type of "hobby". Good Luck!

Hey, congratulations!!
Big news, best wishes for you, yours, and your 'ville!

bronco2078

@jmski52 said:
You describe John as somewhat hapless and that he gets stuck in the same price range, rather than a rising market.

But you describe Bobby as pulling constant profits from a rising market.

Two different scenarios. Apples vs. Oranges.

In fact, John does benefit almost as much as Bobby with a rising market, and Bobby is working constantly to pull some before tax profits out of his money pool. Taxes and the time spent in recordkeeping for numerous transactions do matter.

Nothing is free, and the market isn't always with you, so it's always a long term proposition anyhow.

Now that I've retired, I might just join you in this type of "hobby". Good Luck!

taxes

bronco2078

word to the wise

jmski if you keep mentioning paying taxes on PM's that could be viewed as a bannable offense

cohodk

@jmski52 said:

Now that I've retired, I might just join you in this type of "hobby". Good Luck!

Congrats. More time for the back 40. Looking forward to seeing the fruits of your passions.

TwoSides2aCoin

@PerryHall said:
I would call it "building the business" when you plow any profits back into the business.

Warren Buffet started with Coke. Buying them for a nickel , selling them for a dime to construction workers. Built business to buy business.
Seems brilliant to me.

Overdate

I'm thinking something similar could be accomplished playing the ups and downs of precious metals ETFs. Wouldn't even have to leave home.