Why not sell to a refiner?
philographer
Posts: 1,367 ✭✭✭✭✭
In all seriousness, how difficult is it to cut out the middleman and sell directly to a refiner? It can’t be as bad as melt minus $9.50 or minus 20%, can it? What volume or other requirements are required to sell to a refiner directly? Anyone done it?
He who knows he has enough is rich.
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don't know of a refiner that does retail too
There are a few. For example, Midwest Refineries in Michigan will buy any quantity from the public. Website states paying 90% of spot for pure silver content in 90% Ag. Edit... I didn't know this prior, but Midwest Refineries refining operation is in Lakeland, FL.
As another example, there is ARA in Dallas. But a decade or so ago they changed their business model and no longer deal with non-business entities. You could mail your gold jewelry to them and get 98% and close to that on larger Toz quantities of silver. I wish they still dealt with the public.
Is that what some are charging ? Obscene....my LCS was at $6 off spot silver which I detest but is not obscene.
Better not go up......
Is it possible refiners don't do retail because they are trying to avoid the risk of being shut down for handling stolen goods?
Spend the $25 and get a city business license.
Become a wholesaler to the refinery of your choice.
I know a guy who sells the a small refiner in Arizona.
I've sold a few things to him and when he gets enough quantity he makes a trip to Arizona.
Last trip I think he said he took 11 ounces in mixed gold.
Probably more likely that they just don't want the logistical hassle of dealing with small mixed batches of metals. Some states might have laws that require holding the metal for a short period (like pawn shops do) to deter transactions on stolen goods. However, the PM refiner is probably going to pay you with a check and is likely to require additional information such as your driver's license #, birthdate, etc., so in most cases the turn around time from receipt of your metal to refinement and mailing your check is just a matter of days.
I have a small local refiner in Pittsburgh that buys from the public. Unfortunately, he is not buying any forms of gutter at the moment. Only gold and he's at spot on .999 and 98% on everything else....pre33, sovereigns, francs, peso's etc. . RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
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Refiners make their money through turnover so they want long term relationships with customers that bring them repeat business.
I can only imagine the time it would take to purchase small amounts from inexperienced sellers who expect top dollar.
The final part is government regulation, including AML compliance, and local/state ordanences. Makes sense that they want to deal with pros it has got to be a lot easier and more profitable.
At a small local refiner, I recently traded some sterling flatware for refined 999 silver bars (which I will use for future minted products). I received 90% of the net silver yield (the refiner retained 10% of the silver as their profit, which I think is reasonable).
It seems the spread is getting lower for selling and higher for buying. I am wondering what the future holds in reference to this situation. Will the gap become lower and higher? I know this is new territory for everyone, the LCS and even the refineries… So I guess the rules are being made up as they/we go along I’m wondering what silver hits 100 what it will be like.
spread is difference between buy price and sell price
are you thinking of the gap between the bid or ask and melt ?
Isint there a conflict of interest thing?