I’m in the local coin shop this morning -

SIowhand

In the lcs this morning to do a little bit of business of my own.

Behind the counter, is a table where serious business is discussed with customers. Seated there was the customer and the owner of the shop doing a $4.5M gold purchase. I’ve never seen that much gold in person. A good mix of bars and AGEs. Not only was the stores’s security guy there but apparently the customer had his own armed security guard in tow also. Interesting to witness but….

So this guy is selling roughly 2500 oz of gold. Four and a half million dollars worth. The owner is writing it up when an argument is born. Now, it wasn’t a huge blow up but it was a little intense for a minute.

What was it about, you ask? It was who was going to cover the $45 wire fee. If there weren’t a few guns around, I may have laughed out loud.

Conclusion? The owner pulled a $50 from his pocket and handed it to the guy. Deal saved.

bolivarshagnasty

Damn, how many local coin shops have access to 4.5 mil?

erwindoc

Wow! And I was impressed when I was at a shop recently when someone brought in 70,000 worth in silver to sell so they could pay taxes! That was a pile too!

gumby1234

Really? A 4.5 million deal and quibbling over $50

savitale

Wow. Your local coin shop must be something special. I can’t imagine any coin shop I have ever been in writing a check for $4.5 M.

ms70

I totally believe it.

jmlanzaf

@bolivarshagnasty said:
Damn, how many local coin shops have access to 4.5 mil?

@savitale said:
Wow. Your local coin shop must be something special. I can’t imagine any coin shop I have ever been in writing a check for $4.5 M.

You don't have to pay the $4.5 million. You just call the market maker and he wires the money to the customer and you ship the gold to the market maker who then cuts you a check for the 1% or so that he gets.

While the LCS could cut the check himself if he had the money, it would be unusual for him to take that risk if he doesn't have to.

pmh1nic

No pictures it didn't happen...lol.

savitale

@jmlanzaf said:

@bolivarshagnasty said:
Damn, how many local coin shops have access to 4.5 mil?

@savitale said:
Wow. Your local coin shop must be something special. I can’t imagine any coin shop I have ever been in writing a check for $4.5 M.

You don't have to pay the $4.5 million. You just call the market maker and he wires the money to the customer and you ship the gold to the market maker who then cuts you a check for the 1% or so that he gets.

While the LCS could cut the check himself if he had the money, it would be unusual for him to take that risk if he doesn't have to.

That makes a lot more sense.

jmlanzaf

@savitale said:

@jmlanzaf said:

@bolivarshagnasty said:
Damn, how many local coin shops have access to 4.5 mil?

@savitale said:
Wow. Your local coin shop must be something special. I can’t imagine any coin shop I have ever been in writing a check for $4.5 M.

You don't have to pay the $4.5 million. You just call the market maker and he wires the money to the customer and you ship the gold to the market maker who then cuts you a check for the 1% or so that he gets.

While the LCS could cut the check himself if he had the money, it would be unusual for him to take that risk if he doesn't have to.

That makes a lot more sense.

It's also probably why he handed him $50. If he were wiring the money himself, he would have just added $50 to the wire transfer.

Modwriter

I have witnessed some huge money transactions go down in coin shops while Im over checking out the bargain bin tubs. Last time a lady brought in her friend to buy some silver and she asked the owner if he accepted credit cards. He was polite but wanted cash. By the time I finished, there was a long line behind me at the bargain bins. The young couple behind me got me to smile. Young numistmatists always warms my heart.

GRANDAM

For 4.5 MILLION you would think that the shop owner would close down for an hour or so until the deal is done.

jdimmick

Couple of commments : I dont have 4.5 Million to cover either, but that would most likely not happen in my shop, however, i do have two customers that are that liquid, that i could call in a moments notice.

second, I did have a deal one time for approx 500k , I called in one of the guys above and we closed the shop for an hour while we met with the customer, got him paid, and secured the stuff (a pile of 20's)

third, same principle but diff situation, some wealthy folks will squeeze and account for everydime. I used to meet a couple of friends down at fun or the ana. this one guy would bring like 200-250k worth of his coins to show and tell, when we had a get together in the room at night, problem, is he would not stay anywhere respectable, stay in the cheapest run downest motel to save a few bucks. One time I was coming over to pick him up for dinner, and there was a drug deal shootout outside one of the rooms a few down from him .

Modwriter

@jdimmick said:
Couple of commments : I dont have 4.5 Million to cover either, but that would most likely not happen in my shop, however, i do have two customers that are that liquid, that i could call in a moments notice.

second, I did have a deal one time for approx 500k , I called in one of the guys above and we closed the shop for an hour while we met with the customer, got him paid, and secured the stuff (a pile of 20's)

third, same principle but diff situation, some wealthy folks will squeeze and account for everydime. I used to meet a couple of friends down at fun or the ana. this one guy would bring like 200-250k worth of his coins to show and tell, when we had a get together in the room at night, problem, is he would not stay anywhere respectable, stay in the cheapest run downest motel to save a few bucks. One time I was coming over to pick him up for dinner, and there was a drug deal shootout outside one of the rooms a few down from him .

Wow. I witnessed a shootout at my bank a long time ago. The FBI were undercover inside, and they all came out the front door guns blazing as I was walking up. The robber was on the ground, and they started putting up crime scene tape in the parking lot. I moved m truck before it got sealed in and grabbed some fast take out.
I grew up with a very wealthy family in the neighborhood and once asked why they dont live in a mansion and own expensive cars. The patriarch told me that is the reason they have their wealth, by not living lavishly. Well, a few years later, the Grandfather passed and they got a mansion at the beach.

amwldcoin

Hmmm, The few times I've done that I just have my buyer wire the money into my account and I cut the customer a check.

@jmlanzaf said:

@bolivarshagnasty said:
Damn, how many local coin shops have access to 4.5 mil?

@savitale said:
Wow. Your local coin shop must be something special. I can’t imagine any coin shop I have ever been in writing a check for $4.5 M.

You don't have to pay the $4.5 million. You just call the market maker and he wires the money to the customer and you ship the gold to the market maker who then cuts you a check for the 1% or so that he gets.

While the LCS could cut the check himself if he had the money, it would be unusual for him to take that risk if he doesn't have to.

ricko

I have been involved in deals of that magnitude in business, but not in precious metals or coins. No armed guards either since it was contract signing. (Though I was, and am, always armed) Cheers, RickO

keets

to my way of thinking, this story, if true, highlights just how stupid people really are.

when I first saw it I figured the dealer cut at 2% or $90k. anyone who's amassed this amount of Gold should at least have some insight into how the transaction works, so why would you do it with Billy Bob down on the corner?? you go to the Market Maker yourself. all that takes is a little investigation, right??

here's a guy doing a $4.5 million transaction with some schmuck on the corner, paying the guy close to $100k that he doesn't have to and he's arguing over a $45 wire transfer fee?? that's either pure stupid or pure BS.

291fifth

The dispute over the $45 does not surprise me. You are dealing with someone who is hauling $4.5 million in physical gold around with him. Just what mind set do such people have?

tommy44

@SIowhand said:

What was it about, you ask? It was who was going to cover the $45 wire fee. If there weren’t a few guns around, I may have laughed out loud.

Conclusion? The owner pulled a $50 from his pocket and handed it to the guy. Deal saved.

Sounds like one of my transactions years ago. It was 1969 or 1970 and I was buying 400 British Sovereigns. The dealer wanted $10.05 each and I wanted to pay $10.00 and the dealer was paying the shipping. I was arguing over $20.00! I did come to my senses and paid the $10.05.

rec78

@tommy44 said:

@SIowhand said:

What was it about, you ask? It was who was going to cover the $45 wire fee. If there weren’t a few guns around, I may have laughed out loud.

Conclusion? The owner pulled a $50 from his pocket and handed it to the guy. Deal saved.

Sounds like one of my transactions years ago. It was 1969 or 1970 and I was buying 400 British Sovereigns. The dealer wanted $10.05 each and I wanted to pay $10.00 and the dealer was paying the shipping. I was arguing over $20.00! I did come to my senses and paid the $10.05.

You cant let a $45 million dollar deal walk out the door for $45.00.
My local dealer (rated the best coin dealer in the area by far for the last 20 year or more) tries with all his might to not let any deal walk out the door, even if he has to take a loss. Reputation around here is everything. Word of mouth still travels far.

Catbert

Oh oh. @keets is in lockup. 😱

WAYNEAS

Wow.
4.5 mill.
I would have put the the "be back in a hour sign out".
Wayne

jmlanzaf

@keets said:
to my way of thinking, this story, if true, highlights just how stupid people really are.

when I first saw it I figured the dealer cut at 2% or $90k. anyone who's amassed this amount of Gold should at least have some insight into how the transaction works, so why would you do it with Billy Bob down on the corner?? you go to the Market Maker yourself. all that takes is a little investigation, right??

here's a guy doing a $4.5 million transaction with some schmuck on the corner, paying the guy close to $100k that he doesn't have to and he's arguing over a $45 wire transfer fee?? that's either pure stupid or pure BS.

@keets said:
to my way of thinking, this story, if true, highlights just how stupid people really are.

when I first saw it I figured the dealer cut at 2% or $90k. anyone who's amassed this amount of Gold should at least have some insight into how the transaction works, so why would you do it with Billy Bob down on the corner?? you go to the Market Maker yourself. all that takes is a little investigation, right??

here's a guy doing a $4.5 million transaction with some schmuck on the corner, paying the guy close to $100k that he doesn't have to and he's arguing over a $45 wire transfer fee?? that's either pure stupid or pure BS.

A lot of market makers have preferred rates for dealers to maintain the relationship.

I would put the dealer cut at less than 1%, maybe much less. The bigger the deal, the smaller the percentage. On a $100k deal, you probably take 2 to 3% on a 1 million deal, you probably take 1%

jmlanzaf

@amwldcoin said:
Hmmm, The few times I've done that I just have my buyer wire the money into my account and I cut the customer a check.

@jmlanzaf said:

@bolivarshagnasty said:
Damn, how many local coin shops have access to 4.5 mil?

@savitale said:
Wow. Your local coin shop must be something special. I can’t imagine any coin shop I have ever been in writing a check for $4.5 M.

You don't have to pay the $4.5 million. You just call the market maker and he wires the money to the customer and you ship the gold to the market maker who then cuts you a check for the 1% or so that he gets.

While the LCS could cut the check himself if he had the money, it would be unusual for him to take that risk if he doesn't have to.

You could. However you probably need to wire to the customer. Why would the customer take a $4.5 million check if he could get a wire transfer?

These days, I think a $4.5 million pass through will raise red flags. If the dealer is only getting a $1ok or $20k brokerage fee, why did he want to do a $4.5 million pass through.

So, you could do it your way. You might also prefer to do it the way I suggested.

MasonG

@291fifth said:
Just what mind set do such people have?

The same one as a collector who walks away from a coin show when he finds there is a $1 admission charge?

keets

Oh oh. @keets is in lockup.

yeah, the Sports Forum moderator got me for telling the truth.

jessewvu

I would certainly let $50 stop a $5M deal. Some things are about principle, not profit. 🤷‍♂️

moursund

@jessewvu said:
I would certainly let $50 stop a $5M deal. Some things are about principle, not profit. 🤷‍♂️

But what principle are we speaking of? Would you let a "who pays the $50" stop the deal? Prolly not...

mr1931S

The owner pulled a $50 from his pocket and handed it to the guy.

Did he get his change? I mean five buck is five bucks.

CoinJunkie

@ricko said:
I have been involved in deals of that magnitude in business, but not in precious metals or coins. No armed guards either since it was contract signing. (Though I was, and am, always armed) Cheers, RickO

Me, too! I've got one on each side...

Jzyskowski1

Keets. Bummer. I have offered before when Vams had to pull time. I’ll put some money on your books. And my cat has an uncle pulling time. Look him up. He can hook you up on the inside 🤠

Flatwoods

@jdimmick said:
Couple of commments : I dont have 4.5 Million to cover either, but that would most likely not happen in my shop, however, i do have two customers that are that liquid, that i could call in a moments notice.

second, I did have a deal one time for approx 500k , I called in one of the guys above and we closed the shop for an hour while we met with the customer, got him paid, and secured the stuff (a pile of 20's)

third, same principle but diff situation, some wealthy folks will squeeze and account for everydime. I used to meet a couple of friends down at fun or the ana. this one guy would bring like 200-250k worth of his coins to show and tell, when we had a get together in the room at night, problem, is he would not stay anywhere respectable, stay in the cheapest run downest motel to save a few bucks. One time I was coming over to pick him up for dinner, and there was a drug deal shootout outside one of the rooms a few down from him .

Some people get rich that way.
I had a great uncle that never owned a pair of shoes after I was old enough to remember.
Lived in a shack. No running water.
When he passed he left 1.5 mil to his wife.
When she passed she left 2.5 mil to charity.

nwcoast

The rekindling of my interest in collecting came after an inheritance of an environmentally damaged hoard that was accumulated through an incredible cheap friend of my elderly parents, and my early discovery of THIS very forum when researching coin cleaning (conservation). The collection had been buried underground.
The guy lived in a run down home in a very nice neighborhood, drove beat up old cars which he kept registered in another state because it was cheaper, stuffed himself at “all you can eat” buffets while filling his pockets with crackers and sugar packets and often “ran” the parking gate to avoid paying! He was so cheap that he dumped his garbage in grocery store dumpsters late at night too.
When his disorganized estate was eventually sorted out, and most left to charity, it exceeded 11 million.
I have NO DOUBT that HE would NOT have let a $45 difference pass to close a deal- no matter how large.
He was pathological.

pmh1nic

Wow, I've lived a very sheltered life.

SIowhand

I was intentionally a bit vague. Not my intention to expose anybody’s privacy on the off chance they could be identified.

But to provide a little color, the shop is not a typical walk in retail shop. You have to call to be let in and it is a fairly small space. The dealer is primarily a precious medals dealer.

It did go down essentially as described. I just found the discussion of the $45 humorous. Like I said, it wasn’t a big argument. Just a 20 second escalation of tone where the dealer quickly decided, whatever, and gave him $50.

Plus, like I said, I personally have not been that close to that much gold. It was cool.

Herb_T

Not a coin shop, but a baseball card shop. Tops Finest in 1994 had refractors, and there might be one per box. But there was rumored to be what was called a Hot Box, where every pack in a box would have nothing but refractors. I was in my local store and behind the counter the owner and a customer were opening up a hot box. I had never seen so many refractors in my life. Turns out a customer bought a few packs and opened them in the store. The owner realizing what he had called a big dealer to buy the box. The deal was the dealer got the stars and the store owner got the commons and $10,000. The stars like Ken Griffey Jr were worth about $1000. I remember I just stood with my mouth wide open. I am sure it was that way with all the coins.