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Internet reviews for Online PM dealers

tyler267tyler267 Posts: 1,231 ✭✭✭✭
edited December 22, 2022 1:37PM in Precious Metals

I'm stuck at home because of today's blizzard so I started to look at silver prices from online dealers. The dealer with the best price on rounds has over a 4 star which would normally be good enough for me. But when I read the reviews 15 5 star reviews were posted on 12/19/2022 most if the other reviews are not good. Then I read the product page and looks like the estimated ship date is over a month out. I did business with this dealer years ago with no problems but I think I will look elsewhere for now. Been a while since a big bullion dealer exploded do you guys think we are due for one?

Comments

  • derrybderryb Posts: 36,010 ✭✭✭✭✭

    @tyler267 said:
    Been a while since a big bullion dealer exploded do you guys think we are due for one?

    Not with prices gaining. It's when prices are dropping that the dealers have cash flow problems.

    Another problem for dealers is selling what they don't have and then having issues with getting that sold inventory. I always call ahead and make sure item is "on hand" and ready for delivery. I don't ever buy "pre-sale" items simply because they may never get stocked.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    As always, do the research.... Check with other customers... Do direct contact and discuss order details. Good luck, Cheers, RickO

  • tyler267tyler267 Posts: 1,231 ✭✭✭✭

    @derryb said:

    @tyler267 said:
    Been a while since a big bullion dealer exploded do you guys think we are due for one?

    Not with prices gaining. It's when prices are dropping that the dealers have cash flow problems.

    Not trying to start a debate just looking to be educated. If a dealer sells unhedged product they don't have wouldn't price gains cause a loss if they have to fill at the higher price? Seems like falling prices would help a dealer doing this.

  • derrybderryb Posts: 36,010 ✭✭✭✭✭

    @tyler267 said:

    @derryb said:

    @tyler267 said:
    Been a while since a big bullion dealer exploded do you guys think we are due for one?

    Not with prices gaining. It's when prices are dropping that the dealers have cash flow problems.

    Not trying to start a debate just looking to be educated. If a dealer sells unhedged product they don't have wouldn't price gains cause a loss if they have to fill at the higher price? Seems like falling prices would help a dealer doing this.

    price drops with on hand inventory easily result in a loss. price gains with inventory sold but not yet ordered easily result in a loss. Price gains with inventory on order by the seller and paid for at a lower price result in a gain.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • tyler267tyler267 Posts: 1,231 ✭✭✭✭

    I just looked at the same online dealer I started the thread about. The estimated ship dates are now more than 6 weeks out. They are continuing to get 1 star review for shipping delays but they are gettting batches of 5 star reviews that offset the bad reviews from customers who seem to only leave reviews for this company. I hope it's all legit but might be cause for concern, seems similar to patterns we have seen in the past before dealer failures. Low premiums are a great deal as long as the seller delivers.

  • blitzdudeblitzdude Posts: 5,264 ✭✭✭✭✭

    You would probably get better feedback from board members if you would let us know what "online dealer" you are referring to. Chances are, some have experience with them. I have recently made purchases from APMEX, Liberty Coin, and Bullion Exchange all of which shipped within 1-3 business days. At one point last year I vowed not to buy from Bullion Exchange anymore due to quality issues, but I gave them another chance and things have been good since.

    Long shipping delays are usually not a good sign. Tulving and Bullion Direct among a few others come to mind. RGDS!

    The whole worlds off its rocker, buy Gold™.

  • tyler267tyler267 Posts: 1,231 ✭✭✭✭

    @blitzdude said:
    You would probably get better feedback from board members if you would let us know what "online dealer" you are referring to. Chances are, some have experience with them. I have recently made purchases from APMEX, Liberty Coin, and Bullion Exchange all of which shipped within 1-3 business days. At one point last year I vowed not to buy from Bullion Exchange anymore due to quality issues, but I gave them another chance and things have been good since.

    Long shipping delays are usually not a good sign. Tulving and Bullion Direct among a few others come to mind. RGDS!

    Id love to disclose the dealer name but I think it might violate forum rules and be a bit unfair if everything is okay with this dealer. Alot of us have been in this market for a long time and know what to watch out for. I made the post mainly for our newer members. There are lots of new participants in the market who might be a little too trusting. Your list did not include the company I am looking at. This situation does remind me of tulving and bullion direct. Hope it doesn't turn out the same.

  • jmski52jmski52 Posts: 22,263 ✭✭✭✭✭
    edited January 7, 2023 11:29AM

    I had an experience with Northwest Territorial Mint years ago on a sizeable order that was supposedly "in stock". The shipping delay went on for maybe 6 weeks, but they finally delivered . I was promised a 1/10 oz AGE by Ross Hansen for all the aggravation but of course he never delivered. They went down less than a year later.

    My experiences with Tulving were interesting. They gave pretty good prices and they shipped pretty fast, but near the end of their business existence, I had ordered (2) partial bags ($250 face, I think) of 90% silver and they shipped me (2) full $1000 bags. They didn't even know what they had shipped me. When I notified them, they paid for the return shipping on the extra 1 1/2 bags. I think that things had become very hectic for them towards the end. I never even got a "thank you".

    The benefit of dealing with a larger operation is that they run a profitmaking business and have the ability to manage their own risks without going way out on leverage. In other words, you can expect them to stay in business. The newer internet dealers - well, the proof is in the pudding, performance over time.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • jimqjimq Posts: 253 ✭✭✭

    I had multiple good experiences with BGASC. I just checked my orders page and my orders totaled over $20K. All of the orders were shipped within a week, I was happy with what I got. I would at least check them out before you buy.

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