Numismatic companies that buy behind spot price

puffer

How common is this--major numismatic companies like Littleton coin that buys bullion behind gold and silver spot? A few years ago when I was up in northern NH I stopped in to get offers on some coins and asked about what they paid for gold eagles--they said 30% behind the gold spot price! How common is this type of low ball activity from non-pawn shops?

agentjim007

Unless it was scrap jewelry 30% back of spot sounds very close to cash for gold shops.

BAJJERFAN

Since there is no law that requires them to pay any specific percent of spot, your choices are to accept their offer, negotiate or walk the hell away extremely very fast

Timbuk3

They'll pay whatever they can get
away with !!!

Coulport

<< <i>How common is this--major numismatic companies like Littleton coin that buys bullion behind gold and silver spot? A few years ago when I was up in northern NH I stopped in to get offers on some coins and asked about what they paid for gold eagles--they said 30% behind the gold spot price! How common is this type of low ball activity from non-pawn shops? >>



Find that hard to believe.
Are you sure it wasn't $30 back of spot?

puffer

It was percent. But they are not known as bullion dealers.

roadrunner

My local shop was working on 6% net when it came to 1oz AGE's. I'm sure there were others higher. No doubt you can find pawn shops and jewelers working a lot higher. Took a pair of 3 oz gold chains to several local shops and the offers ranged from 20%-40% of spot between the pawns and jewelers. My local coin shop was around 80-85%.

30% on gold coins from a national numismatic dealer is obscene imo and I hope that's not the norm......it's almost like giving the bank 30% to take cash out of an ATM. Heritage typically works on 3-7% depending on gold direction when it comes to classic generic circ/unc $20's....comparable spreads on AGE's. I consider 5% about the norm. Some of the smaller national gold dealers I've worked with have been happy to work on 2-1/2 to 3%.

puffer

And what is the rationale you hear from the low ball buyers? Overhead costs, "we have nowhere to go with it", the price fluctuates so much that we have to hedge our bets, too much money to tie up, security and insurance costs associated with doing business in precious metals.....