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What are B&M's paying for silver?

morgansforevermorgansforever Posts: 8,461 ✭✭✭✭✭
in Precious Metals
I was suprised when a local shop offered me $350 a piece for 10 oz.
bars. The same shop quoted me a price of $225 when silver was $30.
Curious as to why he tightened up his prices? Is there a run coming?
Competition?

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Comments

  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    What are B&M's paying for silver?

    Not enough, but they will be sorry when they realize a couple weeks from now how much cheaper they could've had it.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • CaptHenwayCaptHenway Posts: 32,116 ✭✭✭✭✭
    Better to call a few B&M shops to get real numbers.

    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.
  • morgansforevermorgansforever Posts: 8,461 ✭✭✭✭✭
    <<Better to call a few B&M shops to get real numbers>>

    Thought that was a pretty decent buy price, from basically a Mom N Pop.
    No shipping, or waiting for someone to purchase it.
    World coins FSHO Hundreds of successful BST transactions U.S. coins FSHO
  • BochimanBochiman Posts: 25,377 ✭✭✭✭✭


    << <i>What are B&M's paying for silver?

    Not enough, but they will be sorry when they realize a couple weeks from now how much cheaper they could've had it. >>



    Don't agree with that. A smart/good shop is probably selling almost as soon as they buy. They aren't buying to sit on it for a few weeks.
    That would be an investor. Are most B&Ms investors or what? The ones near me aren't. They want to buy & sell and make their profit quickly.

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • CaptHenwayCaptHenway Posts: 32,116 ✭✭✭✭✭


    << <i><<Better to call a few B&M shops to get real numbers>>

    Thought that was a pretty decent buy price, from basically a Mom N Pop.
    No shipping, or waiting for someone to purchase it. >>



    Their original offer was $7.50 per ounce back of spot. For a name brand bar that is quite low. Perhaps they are cash poor. A large shop should give you no less than $1 an ounce under spot, and maybe even closer to spot if their inventory is low.

    As I said, call a few places and get numbers. Be prepared to tell them the brand name(s) and quantities of each.
    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.
  • BarndogBarndog Posts: 20,490 ✭✭✭✭✭


    << <i>

    << <i>What are B&M's paying for silver?

    Not enough, but they will be sorry when they realize a couple weeks from now how much cheaper they could've had it. >>



    Don't agree with that. A smart/good shop is probably selling almost as soon as they buy. They aren't buying to sit on it for a few weeks.
    That would be an investor. Are most B&Ms investors or what? The ones near me aren't. They want to buy & sell and make their profit quickly. >>



    the local place I use won't buy a "major deal" (about 100 oz or more) unless they can have a buyer for it lined up already. Deal comes in, shop makes a phone call, then the deal is paid for.
    JR Newsletter Online Edition
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    the local place I use won't buy a "major deal" (about 100 oz or more) unless they can have a buyer for it lined up already. Deal comes in, shop makes a phone call, then the deal is paid for.

    What a sad way to do business. As a seller to a B&M, I would feel like a tool in that situation. Guess that's why I mainly only deal with a few guys around here even though there are plenty of them. The ones I deal with wouldn't insult a customer in their face like that. That's why they've been around 30+ years. There is such a thing as tact you know.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • CaptHenwayCaptHenway Posts: 32,116 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>What are B&M's paying for silver?

    Not enough, but they will be sorry when they realize a couple weeks from now how much cheaper they could've had it. >>



    Don't agree with that. A smart/good shop is probably selling almost as soon as they buy. They aren't buying to sit on it for a few weeks.
    That would be an investor. Are most B&Ms investors or what? The ones near me aren't. They want to buy & sell and make their profit quickly. >>



    the local place I use won't buy a "major deal" (about 100 oz or more) unless they can have a buyer for it lined up already. Deal comes in, shop makes a phone call, then the deal is paid for. >>



    That's not a dealer, that's a broker. A dealer has capital and cojones, and does not need to broker a sub-$4,000 transaction.

    That's not to say that large deals might not need a little brokering. When we moved 3,000+ ounces of gold for a customer in early 2010, we did it as brokers. However, on a day-to-day basis I could write a $100,000 check without mentioning it to the bookkeeper first.

    TD
    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.
  • cjmezzcjmezz Posts: 467
    my local B&M pays spot and sells for $2 over...no matter what it is
    "When someone tells you nothing is impossible, ask them to dribble a football"

    MANY positive BST Transactions
  • metalmeistermetalmeister Posts: 4,586 ✭✭✭✭✭
    Local B$M
    -1$
    +2$
    email: ccacollectibles@yahoo.com

    100% Positive BST transactions
  • WingsruleWingsrule Posts: 3,010 ✭✭✭✭
    -$1.00
    +$1.50
  • DrBusterDrBuster Posts: 5,378 ✭✭✭✭✭
    My guy buys -$2
  • guitarwesguitarwes Posts: 9,266 ✭✭✭


    << <i>my local B&M pays spot and sells for $2 over...no matter what it is >>




    My local B&M pays 10% back and sells at spot for .999 stuff, no matter what it is.

    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • BarndogBarndog Posts: 20,490 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>

    << <i>What are B&M's paying for silver?

    Not enough, but they will be sorry when they realize a couple weeks from now how much cheaper they could've had it. >>



    Don't agree with that. A smart/good shop is probably selling almost as soon as they buy. They aren't buying to sit on it for a few weeks.
    That would be an investor. Are most B&Ms investors or what? The ones near me aren't. They want to buy & sell and make their profit quickly. >>



    the local place I use won't buy a "major deal" (about 100 oz or more) unless they can have a buyer for it lined up already. Deal comes in, shop makes a phone call, then the deal is paid for. >>



    That's not a dealer, that's a broker. A dealer has capital and cojones, and does not need to broker a sub-$4,000 transaction.

    That's not to say that large deals might not need a little brokering. When we moved 3,000+ ounces of gold for a customer in early 2010, we did it as brokers. However, on a day-to-day basis I could write a $100,000 check without mentioning it to the bookkeeper first.

    TD >>



    yes, not even a Mom and Pop shop...more a Pop and Daughter shop. They are both hardly ever there at the same time, since one is scurrying around delivering to or picking up from PM wholesalers all the time
    JR Newsletter Online Edition
  • BochimanBochiman Posts: 25,377 ✭✭✭✭✭
    Tom,

    When you worked as a dealer, were you buying bullion for "investment" at the shop, or buying to turn around and sell it quickly if you could?

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • CaptHenwayCaptHenway Posts: 32,116 ✭✭✭✭✭
    We were buying for inventory, trying to resell as much as possible at retail. We had a theoretical position where we were "flat," but if we drifted 20 or thirty ounces long in gold we would just hang on to it and sell it later. Occasionally we bought in a lot more than we were selling out, and we would blow some off.
    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.
  • greatnortherncoingreatnortherncoin Posts: 412
    motel buyer last weekend was paying 13.00 face spot was around 37.
    dont send sheep to kill a wolf...
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    motel buyer last weekend was paying 13.00 face spot was around 37.

    Those guys are banned from the city just East of me. One of the dealers of the city has an in with the city council and the city made it a law that those kinds of "hotel buyers" are not allowed to do business in the city.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • WingsruleWingsrule Posts: 3,010 ✭✭✭✭
    What's next, a ban on companies that charge too much over spot? While I do not condone the prices they are paying, where does the line get drawn? 20% back? 30% over?

    If they make an offer and it is accepted, sounds like capitalism to me. Whether or not you could have received a beter offer somewhere else is a moot point. The seller did not take that upon themselves to investigate.

    As long as no fraud is involved, i.e. "this coin is worth $100" when it is really worth $1,000. That's much different from "I'll give you $100 for this coin".

    The B&M in the OP was only paying 75% of spot for a name brand bar. Should he be banned as well?
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