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Tale of two dealers
Weiss
Posts: 9,935 ✭✭✭✭✭
I mentioned last Friday I'd bought a 5, 2.5, and 2 peso gold coins at my favorite B&M the middle of last week:
The 2 peso is a tiny coin--just under 1/20th of an ounce AGW. .0482 of an ounce.
When I bought the coins, gold was ~$1225. $1225 x .0482 = $59.06. I paid $60 for the 2 peso. My dealer bought them 10% back of melt earlier in the day and was happy to flip them to me for the $25 or so profit.
It's been several years since I had any fractional Mexican gold and these struck my fancy. My dealer didn't have any more, so I reluctantly headed to the other B&M that I've sworn over and over I'll never set foot in again.
Lo and behold, she had a 2 peso in the case. I asked to see it: Absolutely identical to the one I'd just bought.
I asked for a price and held my breath. She got on to her computer, pulled out the calculator, and said...
...
...
$79.
I thanked her politely and walked out of the store.
The 2 peso is a tiny coin--just under 1/20th of an ounce AGW. .0482 of an ounce.
When I bought the coins, gold was ~$1225. $1225 x .0482 = $59.06. I paid $60 for the 2 peso. My dealer bought them 10% back of melt earlier in the day and was happy to flip them to me for the $25 or so profit.
It's been several years since I had any fractional Mexican gold and these struck my fancy. My dealer didn't have any more, so I reluctantly headed to the other B&M that I've sworn over and over I'll never set foot in again.
Lo and behold, she had a 2 peso in the case. I asked to see it: Absolutely identical to the one I'd just bought.
I asked for a price and held my breath. She got on to her computer, pulled out the calculator, and said...
...
...
$79.
I thanked her politely and walked out of the store.
We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
--Severian the Lame
--Severian the Lame
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Comments
<< <i>I thanked her politely and walked out of the store. >>
That is the way you train that B&M dealer to give you better deals. Weiss....you are the B&M coin dealer whisperer.
I got my 1/10 AGE and Krugs at the BM I found by me finally. Swapped silver and a twenty, but hit $120 + 130 for what would still be $150~ each delivered via apmex.
$19 on a 1/20 is a bunch difference. Good call.
<< <i> My dealer bought them 10% back of melt earlier in the day... >>
And you condone this?
So, when you sell them, are you going to request to be paid 90% of melt, so that the next owner can get a great deal also???
But seriously folks, the first guy was too cheap. The second guy was too expensive. Neither price made economic sense.
If I want to buy 2 Pesos wholesale, I can get a 200-coin lot from Dillon-Gage right now for +6%, and I only have to tie up $12,627 worth of capital to get that price. Sell one coin, and I only have $12,564 or so tied up in the other 199 pieces. Gold will keep going up, right, so that I can't loose any money on this deal?
Of course, I could buy fewer coins for inventory so that I still have some when customers want them, but then the cost per coin would go up.....
TD
And I'd gladly have paid 10% over melt for the three pieces.
But the second dealer wanted, what, better than 30% above melt?
That's outrageous.
--Severian the Lame