New Low For Hotel Buyers?

Veep · June 11, 2012 1:54AM

A lady asked me to evaluate a necklace made of a dozen gold U.S. and British coins which was strung together by 10k chain links. The total gold value was $5,600. The chain links themselves were worth $857. The hotel buyers price??? ---> $200

mrearlygold · June 11, 2012 1:58AM

The Gallows would be too easy

DennisH · June 11, 2012 2:04AM

Televised flogging of those jerks would be outstanding.

Zoins · June 11, 2012 2:07AM

It's been televised by CBS

Without that show, I wouldn't realized this is a (multi?) billion dollar business.

BAJJERFAN · June 11, 2012 2:08AM

<< A lady asked me to evaluate a necklace made of a dozen gold U.S. and British coins which was strung together by 10k chain links. The total gold value was $5,600. The chain links themselves were worth $857. The hotel buyers price??? ---> $200 >>

Taking into account the overhead involved, if you were a "hotel" buyer, what would YOU offer as a fair price for her gold. Since a dozen gold coins were worth about $4800, we can assume that they had little or no numismatic premium or that any premium was destroyed by damage.

OldEastside · June 11, 2012 2:15AM

Thats gotta be one expensive room

Steve

guitarwes · June 11, 2012 2:21AM

<< 

<< A lady asked me to evaluate a necklace made of a dozen gold U.S. and British coins which was strung together by 10k chain links. The total gold value was $5,600. The chain links themselves were worth $857. The hotel buyers price??? ---> $200 >>

Taking into account the overhead involved, if you were a "hotel" buyer, what would YOU offer as a fair price for her gold. Since a dozen gold coins were worth about $4800, we can assume that they had little or no numismatic premium or that any premium was destroyed by damage. >>

At least 50-70% of melt. That's a fair margin.

lasvegasteddy · June 11, 2012 2:30AM

At least 50-70% of melt. That's a fair margin.<<<< in this crowd too

yeah that $200 offer should be a criminal account besides the moral injustice

djm · June 11, 2012 2:37AM

Why does it matter what the second offer was?? The orignial offer was $5600 which the owner turned down. She goes looking for a better offer. The experienced buy pick up on the fact the necklace wasn't for sale and made an offer which achieved it purpose of make the seller go away so they could move on to serious sellers.

Zoins · June 11, 2012 2:40AM

<< Why does it matter what the second offer was?? The orignial offer was $5600 which the owner turned down. She goes looking for a better offer. The experienced buy pick up on the fact the necklace wasn't for sale and made an offer which achieved it purpose of make the seller go away so they could move on to serious sellers. >>

Was the first offer $5600? Or $200?

copperhunter · June 11, 2012 2:44AM

Upon overhearing the $200 offer, did the security guard walk over with cuffs and ask the buyer to place his hands behind his back before the lady could accept the $200??

djm · June 11, 2012 2:44AM

The OP put a price on it of $5600

BAJJERFAN · June 11, 2012 2:45AM

<< Why does it matter what the second offer was?? The orignial offer was $5600 which the owner turned down. She goes looking for a better offer. The experienced buy pick up on the fact the necklace wasn't for sale and made an offer which achieved it purpose of make the seller go away so they could move on to serious sellers. >>

My gist is that the owner refused the $200 offer and sought the second.

Zoins · June 11, 2012 2:45AM

<< 

<< Why does it matter what the second offer was?? The orignial offer was $5600 which the owner turned down. She goes looking for a better offer. The experienced buy pick up on the fact the necklace wasn't for sale and made an offer which achieved it purpose of make the seller go away so they could move on to serious sellers. >>

My gist is that the owner refused the $200 offer and sought the second. >>

That's my impression as well.

kimber45ACP · June 11, 2012 2:49AM

I interpreted the opposite way.
I thought the seller got a low ball offer from the hotel buyer, turned them down and
then went to Veep to get a second opinion on the value.

BAJJERFAN · June 11, 2012 2:50AM

<< The OP put a price on it of $5600 >>

He put a value on it of $5600. He didn't say that is what he offered.

BAJJERFAN · June 11, 2012 3:06AM

If a gold or silver seller came into your shop and you knew he was one of those "hotel" buyers who was unemployed, would you offer him/her fair value for whatever it is they were trying to sell?

djm · June 11, 2012 3:16AM

<< My gist is that the owner refused the $200 offer and sought the second. >> >>

This doesn't make sense, if the $200 offer had been a good price for the item, The hotel buyers would have been gone before the seller could have returned to sell the item. Most people get an idea of what something is worth before they go to sell it or buy it for that matter.

phnatacc · June 11, 2012 3:24AM

Guessing they were all melt-bucket $5s and Sovereigns one could offer a rock bottom $4350 with a good amount of wiggle room. You'd have a happy seller and a more than a tidy profit including shop overhead. Thats 87 to 90% of melt for the coins + $300 for the links because there isn't really enough information to work from.

$200 is a disgustingly low offer.

RichR · June 11, 2012 3:35AM

Unfortunately, people like that give the rest of us a very bad name (as we're all grouped together in the public's mind as a group of thieves and connivers).

And PS...saying that "stupid" sellers should either know better or be ripped off, is not acceptable...as many of these people are probably widows and younger people...so this should not be a learning (i.e. rob them blind) experience. Either you're an honest dealer or you're just a plain old crook. And yes, making a decent profit is permissible...but c'mon...stuff like this is just plain wrong.

mkman123 · June 11, 2012 3:38AM

$200 is far too low! Thats disgusting

BAJJERFAN · June 11, 2012 3:40AM

<< 

<< My gist is that the owner refused the $200 offer and sought the second. >> >>

This doesn't make sense, if the $200 offer had been a good price for the item, The hotel buyers would have been gone before the seller could have returned to sell the item. Most people get an idea of what something is worth before they go to sell it or buy it for that matter. >>

Why would someone who has an idea of the worth of what they have, bother to go to a "hotel" buyer for a second offer? One can get an offer from them and get another offer from someone else in less than an hour.

jmcu12 · June 11, 2012 3:44AM

<< we can assume that they had little or no numismatic premium or that any premium was destroyed by damage >>

While not entirely on subject but certainly not irrelevant; this in not necessarily true 100% of the time. I have seen plenty of coins over the years that came out of bezels and actually graded. Each coin must be considered separately.

BAJJERFAN · June 11, 2012 3:55AM

<< 

<< we can assume that they had little or no numismatic premium or that any premium was destroyed by damage >>

While not entirely on subject but certainly not irrelevant; this in not necessarily true 100% of the time. I have seen plenty of coins over the years that came out of bezels and actually graded. Each coin must be considered separately. >>

12 coins worth about $4800 would be about 3 ounces in total or about a quarter of an ounce each. For me significant numismatic premium would be 1.5X spot or more. I'm just guessing that the OP found little or no premium here. Wasn't trying to make a condemnation of all coins used as jewelry pieces.

jmcu12 · June 11, 2012 4:09AM

<< Wasn't trying to make a condemnation of all coins used as jewelry pieces >>

Understood - I just thought it should be said

Justlooking · June 11, 2012 5:15AM

I think they always give three offers, but they never offer more than 80 percent of what they think an item is actually worth.

They're traveling pawn shops.

Veep · June 11, 2012 5:58AM

More info: The lady said that her husband had it appraised 8-10 years ago and was told something in the neighborhood of $2,000. She took it to the Holiday Inn and was told $200. This confused her. On the same day, she showed it to me and I told her that I would pay $5,600 which was 85% of the gold value. The coins ranged from $1's to $5's to a $20 along with a British sovereign and half sovereigns and a $10 Canadian piece. All of them were worn, highly polished and had links soldered to them holding the whole thing together. She did not sell it as she wanted to talk it over with her husband. At least she now knows the current value and wont get cheated.

RichR · June 11, 2012 6:15AM

$200 wouldn't even cover it being silver...nevermind GOLD!

truthteller · June 11, 2012 6:23AM

<< More info: The lady said that her husband had it appraised 8-10 years ago and was told something in the neighborhood of $2,000. She took it to the Holiday Inn and was told $200. This confused her. On the same day, she showed it to me and I told her that I would pay $5,600 which was 85% of the gold value. The coins ranged from $1's to $5's to a $20 along with a British sovereign and half sovereigns and a $10 Canadian piece. All of them were worn, highly polished and had links soldered to them holding the whole thing together. She did not sell it as she wanted to talk it over with her husband. At least she now knows the current value and wont get cheated. >>

My bet is the lady will go back to the Holiday Inn and sell the gold for $200 just because they buyers had free coffee, doughnuts and smelled good.

TRUTH

rhedden · June 11, 2012 6:26AM

I have to believe legislation will be forthcoming at some point which will redefine precious metals fraud. This kind of thing is only slightly less heinous than burglary.

truthteller · June 11, 2012 6:32AM

<< I have to believe legislation will be forthcoming at some point which will redefine precious metals fraud. This kind of thing is only slightly less heinous than burglary. >>

This will never happen. One small town local coin shop buys bullion for 10% under gold spot. In the big city 200 miles away, the coin shops pay 3% under spot. Where is the fraud when there's an offer and acceptance. Too many variances in buying to legislate.

TRUTH

TwoSides2aCoin · June 11, 2012 6:54AM

<< 

<< I have to believe legislation will be forthcoming at some point which will redefine precious metals fraud. This kind of thing is only slightly less heinous than burglary. >>

This will never happen. One small town local coin shop buys bullion for 10% under gold spot. In the big city 200 miles away, the coin shops pay 3% under spot. Where is the fraud when there's an offer and acceptance. Too many variances in buying to legislate.

TRUTH >>

Agree with TRUTH. In a meeting of the minds between a buyer and seller, it's their minds and their business. The bracelet could have held fake coins. G_d knows I've been "stuck" with a few.

cladking · June 11, 2012 7:08AM

<< At least 50-70% of melt. That's a fair margin.<<<< in this crowd too

yeah that $200 offer should be a criminal account besides the moral injustice >>

There are numerous laws against it but now days even big multi-nationals are all crooks and no one wants to be the first to toss stones.

morgansforever · June 11, 2012 7:17AM

Hit another one of those pop-up gold buying shops Saturday, used to be a CD/DVD store, went there as a buyer.
They weren't selling anything. A lady sitting there with a scale and several bottles of testing solutions.
Talk about low, 7x face for 90%, 10x for 90% dollars. Doesn't stop people from selling though.
Then she had the nerve to ask me, "Do you want to sell?"

EDIT: <<At least 50-70% of melt. That's a fair margin.>>

The OP assigned a total value of $6457, chain + gold coins.
A $200 offer is 96.9% of $6457.

Coinsponge · June 11, 2012 7:26AM

<< I have to believe legislation will be forthcoming at some point which will redefine precious metals fraud. This kind of thing is only slightly less heinous than burglary. >>

I don't trust legislators to have intelligence enough to come up with a good bill. Remember some of them even scoff at the thought of even reading bills before they vote on them. Don't we ever learn our lessons? People too stupid or lazy to educate themselves about the value of an article they want to sell and who instead want "Big Brother" to protect them in these matters are not deserving of freedom and will lose it in short time. The slime balls who intend to defraud people in a trade will find ways around most laws the Congress might make or they will throw enough money at the right people to make sure they do not get busted.

littlebear · June 11, 2012 8:11AM

<< The OP assigned a total value of $6457, chain + gold coins.
A $200 offer is 96.9% of $6457. >>

Huh? You may want to check those computations.

Lary L.

Edited to add: OP's corrections appear below and better emphasize how pathetic (3.1% of spot) the offer was. Yet, people still go to the hotel buyers when they could do so much better elsewhere.

cladking · June 11, 2012 8:14AM

<< I have to believe legislation will be forthcoming at some point which will redefine precious metals fraud. This kind of thing is only slightly less heinous than burglary.

>>

The real difference is that the robber makes house calls. If you keep your gold
stored in a safety deposit box you only have to worry about Morgan Stanley et al.

There's not much safety anywhere any longer.

Zoins · June 11, 2012 8:15AM

<< The OP assigned a total value of $6457, chain + gold coins.
A $200 offer is 96.9% back of spot of $6457. >>

Fixified.

morgansforever · June 11, 2012 8:21AM

<<Fixified.>>

Thanks, I knew my math was right, goofed on the wording, I'm human.

EDIT:
200 is what percent of 6457? 200/6457 = x/100 cross multiply 200 x 100 = 20000, then divide by 6457 x= 3.09%
Round up to 3.1. 100 - 3.1 = 96.9.

TwoSides2aCoin · June 11, 2012 4:01PM

However you add it up, you can't beat the free continental breakfast.

New Low For Hotel Buyers?

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