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Bullion Surcharge?

Just got this e-mail from a local B & M.

* * * * * * * * * * BULLION SURCHARGE * * * * * * * * * *

Due to the increase in commodities silver prices the minimum price for silver coins will be 21 times face value (i.e dimes = $2.10, quarters = $5.25, halves = $10.50. Silver dollar pricing will be at a minimum of $25.00 per dollar. We are being forced to apply this "bullion surcharge" across the board to all silver coins. We apologize for this increase but we are forced by market pricing increases.

Can somebody interpret this for me?
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Comments

  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    It means the 2x2's with Franklins half dollars marked $6 are now $10.50. This is to cover for them not relisting prices.
    Avid collector of GSA's.


  • << <i>Just got this e-mail from a local B & M.

    * * * * * * * * * * BULLION SURCHARGE * * * * * * * * * *

    Due to the increase in commodities silver prices the minimum price for silver coins will be 21 times face value (i.e dimes = $2.10, quarters = $5.25, halves = $10.50. Silver dollar pricing will be at a minimum of $25.00 per dollar. We are being forced to apply this "bullion surcharge" across the board to all silver coins. We apologize for this increase but we are forced by market pricing increases.

    Can somebody interpret this for me? >>

    GOOD IDEA! I think us private sellers should adopt this surcharge on our bullion when we sell to the B&Ms!
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • 7over87over8 Posts: 4,733 ✭✭✭
    at the height of the 79-80 silver market - 90% coin silver was selling for 40-50% over melt......

    thats when you know things are out of line.
  • 7over8, Totally weird... I remember just the opposite....
    at $40 and $50 silver we couldnt get half of melt.... ?!
    Support your local Coin Shop
    LM-ANA3242-CSNS308-MSNS226-ICTA
  • CaptHenwayCaptHenway Posts: 32,119 ✭✭✭✭✭


    << <i>It means the 2x2's with Franklins half dollars marked $6 are now $10.50. This is to cover for them not relisting prices. >>



    That sounds like a logical explanation. I have been repricing stuff for weeks now, and can't keep up.
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • Had a guy in yesterday and he spotted a coffee can on the floor
    that had a label, Circ Morgans $15.00 each....
    He says, Can I see that can please...
    I hand him the empty can,
    He says, It's Empty !!
    I say, yup......
    he says, when ya gonna fill it again ?
    I says wen silver hits $10 again....
    he says, O.K. Thanks, I'll be back......

    :-)
    Support your local Coin Shop
    LM-ANA3242-CSNS308-MSNS226-ICTA


  • << <i>It means the 2x2's with Franklins half dollars marked $6 are now $10.50. This is to cover for them not relisting prices. >>

    You mean there's a rational reason and it's not just an excuse for dealers to screw their customers? That can't be right. image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    The 21X base rate covers then for any eventuality in the direction of silver prices....ie...they aren't taking the hit for the recent splunge. Or maybe they are practicing to see how things will be received when the 10-15% VAT comes about.

    It won't affect them lowering their buy prices however if silver falls further. Have a nice day.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • 7over87over8 Posts: 4,733 ✭✭✭
    Small Town -

    That situation as described is true and correct, when the market overheated just before the bottom fell out - there were buyers....yes buyers

    that were paying 40% OVER melt for 90%

    a buyer at a B&M could buy from sellers at OVER spot and still make a handsome profit.

    However, at the end.......when the bottom fell out......most buyers were quite scared and were discounting their prices against spot, not even paying spot.

    My point is when you see a situation where buyers are paying SPOT + a significant percentage, be careful and hopefully you wont be holding too much inventory.......
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    7over8, Totally weird... I remember just the opposite....at $40 and $50 silver we couldnt get half of melt.... ?

    When it was $50/oz. and you called a refiner to cash in some, they immediately went at least $10 back of what melt was at that moment.
    That silver run wasnt market driven like this one is, it was Hunt driven. BIG difference.
    To forgive is to free a prisoner, and to discover that prisoner was you.
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