APMEX: $4.29 premium on ASE's?
derryb
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Scott
Whats crazy is that when silver was around 13-14, the same store was charging 16-16.50 for the ASEs. Even with silver dropping, he wanted the same amount.
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Today, I got a few 5 ounce "Libertads", but not from Apmex. They are available at quite a premium, much moreso than ASEs. Yet, i'll get a few, because they are very cool items! I should post some pictures showing the difference between an ASE, a 1, 2 and a 5 ounce Libertad.
in the last few weeks . Starting today , it's $5 over spot . everybody
wants to buy , nobody wants to sell .
<< <i>$4.29 premium
Yup ... the same rolls are selling on eBay for $340+ ..
Tex
Fighting the Fight for 11 Years with the big "C" - Never Ever Give Up!
Member PCGS Open Forum board 2002 - 2006 (closed end of 2006) Current board since 2006 Successful trades with many members, over the past two decades, never a bad deal.
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<< <i>Well APMEX sent me an email this morning that they are buying 08 ASE for $2.50 over spot and other years for $2 over spot. Special previous customer buy prices. >>
SOOOOOOOOOO they are paying $2.50 over and selling them at $4.27. When they were charging 2 over they were paying probably a little over spot. How dare they charge more and make the same or less money. Lets beat the dead horse everyone.
It seems a lot of silver dealers are calling on customers to welcome them "back into the fold" and to let them know that the paper silver price is not the "real" price.
roadrunner
By the way I was at the shop because I wanted to trade in some generic silver rounds for whatever 50+ oz. bars he had. He was only interested in the Sunshine Mint rounds that I had and even those he wasnt too enthusiastic about even though none of the rounds were in bad shape and were all in plastic holders. He was quick to say that he would buy them though, gee wonder why. Wonder if he would offer me $9 per oz. and then sell them for the $16, probably. I thought for sure that trading 100 1oz. rounds for a 100 oz. bar would be cool with the owner. I thought the rounds would be welcome considering that larger size bullion tends to sell for less over spot and so he would be glad to get rid of the large bars. He was even reluctant to trade a couple 10 oz. bars for some of my rounds.
I just got the same email. They are also buying at $0.60 over spot for generic silver rounds and $0.80 over spot for 10 oz and 100 oz bars. The offers are $0.20/oz. better than what they list for buying prices on their website.
I knew it would happen.
Dear Valued APMEX Customer,
APMEX is actively looking to buy product from any and all resources to help satisfy the needs of the current market.
Right now, for a limited time, APMEX is buying to replenish our depleted silver inventories. As a valued customer, you can take advantage of our “Email Only” prices which are significantly higher than we are currently advertising.
This offer is only for current APMEX customers and only while our needs exist. These are the current items we are buying at increased prices…the only requirement we have is that you sell at least 100 ounces to us.
Listed Online
Buy Price Your Special Buy Pricing
Ref# 808090AS
1 oz Silver American Eagles 2008 + $2.00 + $2.50 Over Spot
1 oz Silver American Eagles (Back Dates) + $1.50 + $2.00 Over Spot
100 oz Silver Bars + $0.50 + $0.80 Over Spot
10 oz Silver Bars + $0.50 + $0.80 Over Spot
1 oz Silver Rounds + $0.40 + $0.60 Over Spot
Sell your silver to APMEX today – don’t hesitate, this offer will only be available until APMEX secures a desired position.
Get Premium Buy Pricing when you sell a minimum of 100 ounces to APMEX. Call 800-375-9006 and select option #1 for the “Trading Department” to get started right away.
Respectfully,
David McCarty
Director of Marketing
American Precious Metals Exchange
<< <i>I thought for sure that trading 100 1oz. rounds for a 100 oz. bar would be cool with the owner. I thought the rounds would be welcome considering that larger size bullion tends to sell for less over spot and so he would be glad to get rid of the large bars. He was even reluctant to trade a couple 10 oz. bars for some of my rounds. >>
Please tell me you are joking. Yes it true that the 1 oz bars sell for a higher premium but that premium is small and would not account for the difference in labor it takes to sell. For example Joe walks into the store and wants to buy a 100 oz bar, he pays me the $1.25 per oz over spot and leaves. Transaction could take anywhere from 2 min to 10 min. With 100 1 oz bars which I get $2.25 over on I have to stand there while Joe Collector looks through the bin, asks for a discount and picks out the 3 he likes. This takes the 5-10 minutes and needs to be repeated 30+ times. I am not saying our time is worth millions but the difference of $100 doesnt begin to justify 2-3 hours of extra, unnecessary work. Think opportunity cost.
<< <i>
<< <i>I thought for sure that trading 100 1oz. rounds for a 100 oz. bar would be cool with the owner. I thought the rounds would be welcome considering that larger size bullion tends to sell for less over spot and so he would be glad to get rid of the large bars. He was even reluctant to trade a couple 10 oz. bars for some of my rounds. >>
Please tell me you are joking. Yes it true that the 1 oz bars sell for a higher premium but that premium is small and would not account for the difference in labor it takes to sell. For example Joe walks into the store and wants to buy a 100 oz bar, he pays me the $1.25 per oz over spot and leaves. Transaction could take anywhere from 2 min to 10 min. With 100 1 oz bars which I get $2.25 over on I have to stand there while Joe Collector looks through the bin, asks for a discount and picks out the 3 he likes. This takes the 5-10 minutes and needs to be repeated 30+ times. I am not saying our time is worth millions but the difference of $100 doesnt begin to justify 2-3 hours of extra, unnecessary work. Think opportunity cost. >>
I guess but you make it sound like he is never gonna have any other customers in the store at the same time and also without that customer browsing through the rounds he would be suntanning in malibu. 100 oz is 100 oz though. Sure it will probably take him longer to sell off the rounds but it also gives him more inventory when prices do rise and he decides to conitinue normal volume selling. 100 oz. bars is more then average joe is interested in purchasing from a small coin shop. I'm sure more people would be looking for smaller size stuff from this shop, i.e. 1 oz. rounds. Hes just a coin dealer, not a precious metals investor like you or I. You or I don't care about having a variety of items, but a variety of items to sell is a good thing for a store owner to have. It's like saying that having 5 different size plasma TV's is gonna bring in alot more customers then having 1 large plasma tv. Plus all those extra customers and purchases increases the chances of selling other items as well. I can understand how some people wouldnt be too enthusiastic about it but I think you and him didn't weigh in the positives and the fact that its a dead even trade.
As low as $4.49 over spot! Limited Availability. In stock and ready to ship! but, but ... you can get them on eBay for as little as $7 to $10 over spot ....
<< <i>I was at a shop this morning and with silver at $10.50, the owner was charging $16 for generic bars and rounds and $18 for silver maples. $5.50 over for just generic silver !!!! Some of these shop owners have to realize that they either have to take a loss once in a while or not sell till prices get higher. >>
That's not the way it works.
Right now the wholsalers are sitting on large stockpiles.
They have just laid off employees and are waiting.
When the prices gets back to the $21-$22 range they will begin shipping.
They aren't selling into a loss.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
You know even though you don't want to buy the silver at 4-5+ over spot, there are a lot of people willing to pay that. Look at ebay. PEOPLE are paying 18/oz for silver!! The stores in my store are cleaned out of silver............they were selling 08 ASEs for 20 each and already sold 3 rolls.
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There was one table with a relative handful of ASE's (less than 40)...$18/ea and they all sold...and to the first people who asked... one was a dealer who took a whole roll...
As deadhorse said... why would anyone sell into a loss?... all the indicators point to a rise in the spot price in the near future... and even if they don't, as long as the paper traders keep playing with the price, I'd just as soon sit on any silver I have and would only sell as a last resort...
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