Ebay allows a listing like this?

derryb · November 23, 2009 4:18AM

Listing

RichR · November 23, 2009 4:20AM

Looks fishy to me...too many "ifs" "ands" and "buts" to be an enforceable contract!

dizzyfoxx · November 23, 2009 4:21AM

<< Looks fishy to me...too many "ifs" "ands" and "buts" to be an enforceable contract! >>

If "ifs" and "buts" were candy and nuts, we would all have a Merry Christmas.

SilverEagles92 · November 23, 2009 4:22AM

I'm really confused.

Bochiman · November 23, 2009 4:23AM

I don't think so.
Roger is using a lot of words to try to confuse people, and ebay, but I think that ebay would yank it in a heartbeat if reported.

The "you can use paypal to pay me but cannot use online payments to pay the other person" bit is yankable I believe.

Heh...can't believe people are ebaying "the rights" to pay more money to buy something.

Pay me $100 and you can buy an GAE for $1250. Total price is obviously $1350 but only $100 of that can be done with paypal.
I believe that ebay has a thing against selling something that can't be physically sent to a person.

crypto79 · November 23, 2009 4:27AM

<< I'm really confused. >>

Same thing as stock options more or less.

coinguy1 · November 23, 2009 4:29AM

<< I'm really confused. >>

It appears that he's selling an option to buy a 1 ounce $50 Gold American Eagle from a third party at a fixed price for a fixed time period. I don't know if that's permissible under Ebay policy or not, but my guess would be no.

doh · November 23, 2009 4:57AM

Let me get this straight: you're giving this jackass $100 for the RIGHT to purchase an AGE for $1250 in the next month? What an idiot.

Reported.

oldhobo · November 23, 2009 4:59AM

And you can buy one now for $1222

ponderit · November 23, 2009 5:06AM

Pull up his seller ID. He has a real nice pool. Maybe he needs to $$ pay his water bill

steelielee · November 23, 2009 5:06AM

Can I borrow a ten foot pole???

BECOKA · November 23, 2009 5:14AM

So it kind of like trading stock options but in this case it is an option to buy gold?

So if you don't buy it within the time period the auction seller keeps th $100?

coinguy1 · November 23, 2009 5:18AM

<< So it kind of like trading stock options but in this case it is an option to buy gold?

So if you don't buy it within the time period the auction seller keeps th $100? >>

The seller of the option gets/keeps the $100, whether you excercise the option to buy at $1250/oz. or not.

LindeDad · November 23, 2009 5:26AM

Looks like that guy hangs out here too check out the about me page.

Connecticoin · November 23, 2009 5:35AM

That listing is likely not legal -- he is, in effect, selling a security (the option) without a license.

WoodenJefferson · November 23, 2009 6:18AM

A fool and their money are soon parted.

This would be like pre-selling Super Bowl tickets to the Colts/Viking game.

DennisH · November 23, 2009 8:01AM

Listing poofed.

droopyd · November 23, 2009 8:28AM

<< Ebay allows a listing like this? >>

Not anymore they don't.

CEOGBOSE · November 23, 2009 8:40AM

Looks like it's been removed couldn't see it.

Connecticoin · November 25, 2009 5:46PM

<< Listing poofed.

>>

TavernTreasures · November 25, 2009 8:02PM

Figures, someone here would report this guys stupid Ebay listing. Why not just move on? Congratulations.

BigRick · November 26, 2009 12:46AM

Above link seems to work sometimes and not work other times:

TITLE:

"$50 Gold American Eagle 1 oz - Buy @ $1,250 Until 12/28"

DESCRIPTION:

"You are buying the right (given to me by a third party) to purchase a 1 ounce $50 Gold American Eagle coin anytime between now and 12/28/09 for the price of $1,250.

You can pay me for my right by PayPal but must pay the right grantor via secured/cleared funds (i.e. NO online payments of any kind) should you decide to exercise this right before the close of business (1:30pm ET) on 12/28/09.

Your TOTAL cost will be what you pay me for this right PLUS the $1,250 you must pay to the grantor should you decide to exercise the right you purchased from me.

You are under NO obligation to exercise your right and may feel free to let the right you purchase to expire worthless.

Since the value of this right will fluctuate with the passage of time & the price of gold itself, unfortunately I cannot offer refunds but may be willing to re-purchase this right from you."

Didn't use the word option in the listing but explained it so that there was no doubt it was. Basically a covered call.

The $100 was merely a listed price but seller accepted best offers & probably would've taken as little as $25.

Tried a novel idea. eBay yanked it 'cause of some complaints. Seems no one would've gotten hurt (except perhaps eBay's shareholders - LOL). Period.

How would it have been different if Dallas Gold & Silver issued promotional certificates that allowed someone to buy a one ounce AGE for $1,250 by that date and someone was merely selling that cert?

Isn't it stupid that eBay & PayPal take such a large combined percentage bite out of bullion items?

$104.55 or 8.364% in eBay/PayPal fees - $68 in final value fees ($50*12% + $950*6% + $250*2%) plus about $36.55 ($1,250*2.9% + .30) in PayPal fees - on a $1,250 gold eagle seems excessive. Don't you think?

p.s. for those that allege a possible securities law violation, that would not apply since anyone can sell an option in property that they own, or have a fiduciary interest or a right under common law in.

coinguy1 · November 26, 2009 2:37AM

<< Figures, someone here would report this guys stupid Ebay listing. Why not just move on? Congratulations. >>

Figures someone here would complain about someone here reporting an item that appeared to against Ebay rules and a possible violation of securities laws. Why not just move on. Congratulations.

notwilight · November 26, 2009 2:46AM

Big Rick,

You are absolutely correct, ebay is not an effective venue to buy or sell bullion as there is not enough margin in it to pay ebay and paypal fees. It's getting almost that way with coins. Coins generally have a low markup from wholesale to retail so if you mark it up 15% and ebay takes 9%, they make more than the dealer doing all the work.

As for an option contract: A properly worded option contract covered by ownership of the physical entity is not unethical or dishonest. I doubt ebay would allow it and I don't know if laws require some sort of license to sell a derivative on a physical product.

--Jerry

zeebob · November 26, 2009 3:00AM

I think Ebay took the listing down.

Pushkin · November 26, 2009 4:20AM

It is likely against eBay rules. However, there are many kinds of options that are not securities options but are rather contracts (e.g. real estate options). Securities options are options on securities where the securities are defined usually by federal law. If I want to give you an option to by my car for a fixed price during a fixed time period and charge you $50 for that option the SEC isn't going to come after me. I doubt if the SEC is chasing down folks who put earnest money down on a house. Is the SEC going to go after certain coin dealers that offer "layaways" with a penalty for non-fulfillment - the terms of which might look like an option?

Now I'm really worried. If I want to purchase a Maine Coon kitten from a breeder, standard procedure is to give the breeder $50 - $200 dollars to hold my "option" to buy the kitten 10-12 weeks after it is born. If I change my mind the breeder keeps the price of the "Maine Coon Kitten Option". Is the SEC going to come after me and the breeder for securities violations because I bought a "cat option"? I hope not - the SEC, with its very limited resources, should be going after bigger fish, IMO.

Getting back to the post, even if this option is not against Ebay policy, it's not one I would touch.

ksteelheader · November 26, 2009 4:24AM

TwoSides2aCoin · November 26, 2009 5:44AM

<< I think Ebay took the listing down. >>

I think it was this place, but I could be wrong.

Ebay allows a listing like this?

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