Does this make sense? B&M Trip
SilverEagles92
Posts: 6,787 ✭
Having moved recently, I decided to check out a B&M shop in my new area.
First, about the shop:
The place it's in shares the building with a barber shop, and the whole building is probably no less than 300 square feet. I walked in the door, and there are 4 display cases total. The one to the left has a slew of graded currency, some very nice notes. Several worth in excess of $10,000, which surprised me considering how small the place is.
The case next to that was mostly empty, holding only a few $10 casino Silver Strikes. Another case was full of Proof Silver Eagles, and had a bunch of junk silver sitting out in cigar boxes on top. The last case is where the dealer was sitting behind, had a tray of silver, and a few other odds and ends. In the corner of the room is a large standing safe.
The reason I went was to look for bullion. I found 8 Engelhard prospectors at $17 each, which I bought. HE was also asking only face value for the $10 silver strikes, and since they have 6/10 of an oz of silver in them, I bought 5.
Now, my question:
He charged me $17 for one ounce bars. I asked about 10 oz bars, he had two and he wanted $180 each for them. He also showed me a 100 oz Engelhard bar, but he wanted $1900 for it.
Does that make sense? Charge closest to spot for the smaller quantities, and over $2 over spot for a 100 oz bar?
First, about the shop:
The place it's in shares the building with a barber shop, and the whole building is probably no less than 300 square feet. I walked in the door, and there are 4 display cases total. The one to the left has a slew of graded currency, some very nice notes. Several worth in excess of $10,000, which surprised me considering how small the place is.
The case next to that was mostly empty, holding only a few $10 casino Silver Strikes. Another case was full of Proof Silver Eagles, and had a bunch of junk silver sitting out in cigar boxes on top. The last case is where the dealer was sitting behind, had a tray of silver, and a few other odds and ends. In the corner of the room is a large standing safe.
The reason I went was to look for bullion. I found 8 Engelhard prospectors at $17 each, which I bought. HE was also asking only face value for the $10 silver strikes, and since they have 6/10 of an oz of silver in them, I bought 5.
Now, my question:
He charged me $17 for one ounce bars. I asked about 10 oz bars, he had two and he wanted $180 each for them. He also showed me a 100 oz Engelhard bar, but he wanted $1900 for it.
Does that make sense? Charge closest to spot for the smaller quantities, and over $2 over spot for a 100 oz bar?
0
Comments
<< <i>If he finds a buyer it'll make cents, or dollars
Very true.
But why would anyone buy anything from him besides 1 oz when other sizes are so much more expensive percentage-wise?
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It is a little odd but maybe he has a reason for it. I would have had to ask....
<< <i>People are strange. There is a buyer for everything at most any price. Have you searched eBay lately?
It is a little odd but maybe he has a reason for it. I would have had to ask.... >>
I thought maybe he was just really attached to his 100 oz bar
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<< <i>pick up as many 1 ozers you can especially if they are engelhards. I find that the larger the bar, the smaller the premium. For example if the local store is charging 17.50/oz, 100 oz bars will cost like 17 bucks. Not sure why your store is actually pricing them higher! >>
That's what I've seen almost anywhere else - the more you buy, the lower the price per ounce.
And Tom, he was selling Engelhard 1 oz rounds for $17 an ounce, and Engelhard 100 oz bars for $19 an ounce!
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I know who a local dealer here in LA that had a premium on a big bar (don't rememer what the size was) and he said it was because he only had one to sell and there were many shoppers who would come to grab it as soon as the word got out.
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<< <i>Having moved recently, I decided to check out a B&M shop in my new area.
First, about the shop:
The place it's in shares the building with a barber shop, and the whole building is probably no less than 300 square feet. I walked in the door, and there are 4 display cases total. The one to the left has a slew of graded currency, some very nice notes. Several worth in excess of $10,000, which surprised me considering how small the place is.
The case next to that was mostly empty, holding only a few $10 casino Silver Strikes. Another case was full of Proof Silver Eagles, and had a bunch of junk silver sitting out in cigar boxes on top. The last case is where the dealer was sitting behind, had a tray of silver, and a few other odds and ends. In the corner of the room is a large standing safe.
The reason I went was to look for bullion. I found 8 Engelhard prospectors at $17 each, which I bought. HE was also asking only face value for the $10 silver strikes, and since they have 6/10 of an oz of silver in them, I bought 5.
Now, my question:
He charged me $17 for one ounce bars. I asked about 10 oz bars, he had two and he wanted $180 each for them. He also showed me a 100 oz Engelhard bar, but he wanted $1900 for it.
Does that make sense? Charge closest to spot for the smaller quantities, and over $2 over spot for a 100 oz bar? >>
Were the one ouncers pre-priced, with a sticker or card or whatever? $17 per is too cheap for Prospectors, and it may just be that he had priced them a week ago and forgot to change the card when silver went up. When you said "I'll take those," he was a mensch and sold them at the marked price.
$180 is about right for the 10 ounce bars. Why he was so high on the 100 oz. I don't know. Perhaps he was factoring in the shipping cost if he had to order another one for inventory. Just a guess.
TD
<< <i>it might be a factor of the local market. perhaps in that area there is more demand for the larger bars and that could justify the price differences.
I know who a local dealer here in LA that had a premium on a big bar (don't rememer what the size was) and he said it was because he only had one to sell and there were many shoppers who would come to grab it as soon as the word got out. >>
There may be some truth to this although usually the smaller bars fetch the premiums. Who knows maybe he's buried into the large bar and wants to get his money back???
<< <i>
<< <i>Having moved recently, I decided to check out a B&M shop in my new area.
First, about the shop:
The place it's in shares the building with a barber shop, and the whole building is probably no less than 300 square feet. I walked in the door, and there are 4 display cases total. The one to the left has a slew of graded currency, some very nice notes. Several worth in excess of $10,000, which surprised me considering how small the place is.
The case next to that was mostly empty, holding only a few $10 casino Silver Strikes. Another case was full of Proof Silver Eagles, and had a bunch of junk silver sitting out in cigar boxes on top. The last case is where the dealer was sitting behind, had a tray of silver, and a few other odds and ends. In the corner of the room is a large standing safe.
The reason I went was to look for bullion. I found 8 Engelhard prospectors at $17 each, which I bought. HE was also asking only face value for the $10 silver strikes, and since they have 6/10 of an oz of silver in them, I bought 5.
Now, my question:
He charged me $17 for one ounce bars. I asked about 10 oz bars, he had two and he wanted $180 each for them. He also showed me a 100 oz Engelhard bar, but he wanted $1900 for it.
Does that make sense? Charge closest to spot for the smaller quantities, and over $2 over spot for a 100 oz bar? >>
Were the one ouncers pre-priced, with a sticker or card or whatever? $17 per is too cheap for Prospectors, and it may just be that he had priced them a week ago and forgot to change the card when silver went up. When you said "I'll take those," he was a mensch and sold them at the marked price.
$180 is about right for the 10 ounce bars. Why he was so high on the 100 oz. I don't know. Perhaps he was factoring in the shipping cost if he had to order another one for inventory. Just a guess.
TD >>
Actually, there was a guy ahead of me that took two of the prospectors and he quoted him $17 each, there was no sticker. I said I'd take the rest, and he just did it on his calculator $17 X 8 rounds = $136 total.
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Maybe he bought the larger bars when silver was up and doesn't want to lose money at current market price.
Good pickup on the Prospectors!
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