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Locking in a price when selling to a large PM dealer?

MGLICKERMGLICKER Posts: 7,995 ✭✭✭
in Precious Metals
Spoke to a large coin dealer yesterday and locked in a sell price for a group of St Gaudens. I have a long relationship with these guys and am sure that they will follow through as promised.

What have your experiences been? Is locking in a price typical or do most of the PM houses base their buy price on spot when the coins arrive?

Comments

  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    I've seen people who advertise here who want to pay based on spot at the time they get it. I'd prefer to lock in a price myself, but that sort of obligates one to deliver them ASAP. It would probably cost me $100 to Express a monster box to APMEX. OTOH large bullion houses lock in your price when they accept your order, but don't feel obligated to expedite the shipment unless you pay extra.
    theknowitalltroll;
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    APMEX has a buy price of $24 per coin in $10K/21 rolls or more. I assume they lock the price when they agree to buy.

    Anyone ever sell to them? How do they handle shipping?
    theknowitalltroll;
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    Bought from Apmex but have never sold to them. They seem to have some disclaimers along with the posted buy prices.
  • freechancefreechance Posts: 380 ✭✭


    << <i>APMEX has a buy price of $24 per coin in $10K/21 rolls or more. I assume they lock the price when they agree to buy.

    Anyone ever sell to them? How do they handle shipping? >>



    they reccommend you ship USPS registered mail. shipping is at your cost and the price is locked in when you call.
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭


    << <i>

    << <i>APMEX has a buy price of $24 per coin in $10K/21 rolls or more. I assume they lock the price when they agree to buy.

    Anyone ever sell to them? How do they handle shipping? >>



    they reccommend you ship USPS registered mail. shipping is at your cost and the price is locked in when you call. >>



    I could live with that. Express would be faster if they'd cover it with their insurance. Thankfully, OKC isn't that far from me.
    theknowitalltroll;
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>I could live with that. Express would be faster if they'd cover it with their insurance. >>



    Arrival time is probably not important as long as it is postmarked in a prompt fashion.
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    Locking the price in at the time of the deal is the only way I'll do a transaction. Forget that pay the price when received crap. I realize some people may not have the good fortune of having at least 1 lcs they can buy from, so they are forced to do on-line deals, but even so, the price is the price at the time of agreement of the price, not when received.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • jdimmickjdimmick Posts: 9,676 ✭✭✭✭✭
    I have sold to apmex in the past. When I call, I lock it in at that price. They request that you send registered mail safer, and they allow for that time. I do send express on occasions if less than 5k. When I was a regular customer, they would have a credit card on file and charge me if I backed out of a deal(which I never did or would do) after an agreement was made. I am sure if you did this with out one heck of a good excuse like package loss, you would probably loose privledges selling to them. I have had a dealeraccount with them for many years now, so I don't even think a cc on file is required now for me. I just call, lock and ship.

    The place I sold my scrap gold too while back , I would call and lock in quantity , and ship. they would honor at the price. Again never had a problem. The place I sell the scrap too now has opened up an office with in a 50 min drive from me, so If I need to lock, I just call and run it up there the same day or next am.

    In both instances, I have had situtations where the price plummeted shortly after locking in, and in both cases my check came as it should have , with no problems.

    I had sold apmex like 15 oz of gold the day before that $90 drop in price last year, luck by chance I got out in time.

    Remember the silver drop from 49.00 oz , same sunday night that they captured osbin laden. I had just sent 90K worth of silver /gold that sat to my buyer. They recived it 4 days later after prices had plummeted, they honored it of course with no problem, she told me that they lost near 12k on that deal ..

    Now on the same token, there have been times where they have come out ahead because of a price increase while in transit.
  • Jinx86Jinx86 Posts: 3,710 ✭✭✭✭✭
    When we lock in prices with a client to purchase/sell any large amount we hedge it within minutes. Sometimes instantly depending which sales person they get. Sold 10 ounces of Plat last night and wasn't able to hedge instantly, the delay actually made us an extra $200.
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