Get me out !

jdimmick

Just had a customer call wanting me to get him out of 18 oz of gold. I told him when he bought them 2 months ago, that I would wait, I felt there was lower prices ahead. He bought in at 860.00 on a up tic day. Told him sorry, not at that price!!

This is a perfect example somebody buying trying to make a few dollars, that shouldnt have (or at least a much smaller amount)becuase he doesnt have the extra funds to survive a low/dip period.

roadrunner

If that guy is speculating with $15,000 that he knew he needed elsewhere then that's just being dumb. It could have happened in stocks, bonds, collectibles, etc. I'm sure that the chorus of "get me out" has been quite loud on Wall Street the past few months. The number of people that shouldn't have been dabbling in stocks or "managed" funds the past few months and lost, probably outnumbers gold buyers by 1000 to 1. Judging by the huge amount of gold still in the gold ETF (GLD), very few gold buyers have liquidated over the past few months as gold fell a few hundred dollars...very odd indeed! More than a few must realize something is not right in the gold trade. The overall open interest on the Comex is at very low levels for the current price of gold, indicating that more and more players are realizing just how stacked the paper game is against them.

Kitco's John Nadler did just the opposite in mid-2007. He kept on telling his readers that gold was coming back to $650 or lower and to wait to catch the next train. For months his readers watched from the sidelines as gold ran to $1000. If they put that money into most anything else but commodities at that time, they probably lost a ton. His readers lost out on the best run to date in the bull market. Sure, he kept them from "losing" money as gold fell back from $1000 to $680. Should gold's bottom already be in, he can have the opportunity to do it a second time. I have no doubts he'll keep his readers out of the next major run in the gold market. Hey, but he saved them from losses!

If anything, gold should be screaming "let me in." Sometime in the next few months (or weeks) that guy can bail out of his $860/oz "investment" with a small profit and go elsewhere. He doesn't have the temperment needed in this market.

roadrunner

DorkGirl

You are open on Sunday? You need to take a day off.

CaptHenway

What did he mean, "get him out?"
Did he expect you to buy at his original price, or current price?

MrEureka

This is a perfect example somebody buying trying to make a few dollars, that shouldnt have (or at least a much smaller amount)becuase he doesnt have the extra funds to survive a low/dip period.

I don't get it. How do you know what your customer "should" and "shouldn't" do with his money?

mkman123

he bought what brand of gold? I mean did he get 18 oz of kruggerands or AGEs??? If it was AGEs, he could still come out on top. There are individuals in my area selling AGEs and Krugs for nearly 850+! On ebay he could sell them for 900 if they were AGEs. B&M stores are asking Spot +120 and getting it easily.

Perhaps your customer should do more research as he could sell it easily to another person and get nearly his money back.

jdimmick

Andy,
Its none of my business what he does. I simply gave him my opinion that I felt a larger drop was coming. It was his decision to buy then. More importantly if he does not have the funds to ride out a possible drop in price whether it be short term or long, he shouldnt be buying this quantity to begin with.

DG,
I am usually only open by appt on sundays, but the phone is always on and calls are fowarded to where I am at! part of the reason is to take advantage of any additional business. I am not retired from my regular job yet, due to insurance and other stuff, so I miss some week day early morning business that goes to my competitor(even though he pays low). This helps balance back what I miss early week days.

CaptH,

Yes , he honestly thought I would be able to re-purchase these with in a few dollars of what he paid, if you can beleive that!

CaptHenway

Ever see the Mr. Boffo cartoons with the theme:
"PEOPLE UNCLEAR ON THE CONCEPT!"???

Metalsman

jdimmick. Do you not have a "Spread you work with, posted or published when dealing with bullion? All the "Dealers" I buy from have a posted or published spread.. although lately the spread has been inflated from the norm. So in effect I know when ever I want to buy or sell the price above or below spot for buying or selling to that dealer.

Deadhorse

The guy simply hadn't researched PMs enough and had no business getting involved with money that he didn't have to put away.

Never speculate with money you can't afford to lose, I wonder if he would ask for a refund in Vegas after he lost at the tables?