Intresting info on dealer buy price of 90% silver
jdimmick
Posts: 9,794 ✭✭✭✭✭
Yesterday , i set up at a local coin show, and a few folks walked in with 90% silver coins to sell, I found out that "several " dealers there pay more for silver at a show, but when they get back to thier shops they pay considerably less becuase of no competition. For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side!
0
Comments
<< <i>Yesterday , i set up at a local coin show, and a few folks walked in with 90% silver coins to sell, I found out that "several " dealers there pay more for silver at a show, but when they get back to thier shops they pay considerably less becuase of no competition. For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
Most dealers charge more for coins that they sell at their shop (no competition) than at a coin show (competition). At least that's been my experience. I'll leave it up to others to decide if this is ethical or not.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
It's not unethical at all. It's called supply and demand. If at a show the dealer has to pay more to compete with other dealers, that is was he/she has to do to compete at that particular venue. However, if at their local coin shop they do not have the competition and people still to them then at their lower prices that is their prerogative. However, it is up to seller to know the value of what they have before they sell and to shop all local prices even internet pricing. I pretty much sell all my 90% to the same shop but I call a couple other local shops in town and if their prices are higher I ask my shop to match. 99% of the time they do. The only time they wont is if they happen to be sitting on a large stock.
<< <i>
<< <i>For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
It's not unethical at all. It's called supply and demand. If at a show the dealer has to pay more to compete with other dealers, that is was he/she has to do to compete at that particular venue. However, if at their local coin shop they do not have the competition and people still to them then at their lower prices that is their prerogative. However, it is up to seller to know the value of what they have before they sell and to shop all local prices even internet pricing. I pretty much sell all my 90% to the same shop but I call a couple other local shops in town and if their prices are higher I ask my shop to match. 99% of the time they do. The only time they wont is if they happen to be sitting on a large stock. >>
Does dealer John just take your word for it that dealer Bob offered you a higher price?
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
<< <i>Yesterday , i set up at a local coin show, and a few folks walked in with 90% silver coins to sell, I found out that "several " dealers there pay more for silver at a show, but when they get back to thier shops they pay considerably less becuase of no competition. For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
Yes, I think so.
Free Trial
and am sure the average seller at shows is more astute than the average seller in the store
and the average seller at the show knows what 90% silver is (no clad or 80% Canadian mixed in)
Actually if the dealer really had ethics, and was generally clueless about current silver buy and sell prices, then proudly maintaining his 9X buy standard at the coin show (and getting zero business) would display MORE ethics than paying 12X just at a show. We can say that it's up to the public to know the price of everything before they go to make a buying or selling decision. But that's a utopian dream. This is why an advanced society tends to lean on expert brokers, dealers, sales people, appraisers, local bankers, etc. to help determine values. Looks at all the major coin collections that go to auction because even knowledgeable collectors can't really determine what their prized coins are worth after being off the market for years or decades. Look at the all the individual coins that are brokered by top notch dealers like Dave Akers because they DO know more than the expert collector and can bring back some additional value. I'd like to hope that anyone selling silver would go on line and find a price somehow or call some local shops first. But it doesn't happen quite like that in most cases. I'd say the majority of the less than fully informed public drives down to their local shop and asks what they're paying. People go into a business establishment and expect to be treated honestly and fairly. That seems to be an ideal that is lost among our times. And here comes Gordon Gecko back for a sequel after 20 yrs. Amazing how things run in such precise cycles.
roadrunner
<< <i>Yesterday , i set up at a local coin show, and a few folks walked in with 90% silver coins to sell, I found out that "several " dealers there pay more for silver at a show, but when they get back to thier shops they pay considerably less becuase of no competition. For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
You have to ask yourself "Why should he pay more than 9x at the shop?"
Perhaps you don't understand the costs that he incurs by owning a store. Perhaps you don't understand that he has the right, by the very nature of that seller walking into his shop, to offer what he pleases, as he doesn't have to offer anything at all.
Wolf359 said "Yes, I think so. "
Do you own a store? I'll bet not. You just run your website from the comfort of your own home. I bet if you owned a shop, you would quickly change your mind. Either that or you would go bankrupt in no time.
roadrunner
<< <i>
<< <i>Yesterday , i set up at a local coin show, and a few folks walked in with 90% silver coins to sell, I found out that "several " dealers there pay more for silver at a show, but when they get back to thier shops they pay considerably less becuase of no competition. For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
You have to ask yourself "Why should he pay more than 9x at the shop?"
Perhaps you don't understand the costs that he incurs by owning a store. Perhaps you don't understand that he has the right, by the very nature of that seller walking into his shop, to offer what he pleases, as he doesn't have to offer anything at all.
Wolf359 said "Yes, I think so. "
Do you own a store? I'll bet not. You just run your website from the comfort of your own home. I bet if you owned a shop, you would quickly change your mind. Either that or you would go bankrupt in no time. >>
And the seller has just as much right to reject the dealers low ball offer and take his coins elsewhere.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Exactly. The dealer is not doing anything to intentionally mislead his customer. It's the responsibility of the seller to educate himself.
<< <i>It is called the free market. No ethics question involved. Cheers, RickO >>
No Way Out: Stimulus and Money Printing Are the Only Path Left
I see this as a completion issue only and ethics’ are not an issue. More completion always forces the profit margins to close. This closing of the profit margin is not only there in the bullion trade but if you check they will be more completive with your collectable coins as well at a show than back at the shop.
<< <i>It's called "capitalism." >>
So is price gouging after a natural disaster. Doesn't mean it's ethical though.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I unloaded a lot of silver at a Baltimore show last year; I intend to do it again this year. But I have to say that they were not tripping over each other to pay competitive prices. I spent quite a bit of time shopping the floor.
We have dealers in this area who purchase silver all year round; I know that their prices at their stores won't compete with what I'll get at the show. That's just business.
<< <i>
<< <i>Yesterday , i set up at a local coin show, and a few folks walked in with 90% silver coins to sell, I found out that "several " dealers there pay more for silver at a show, but when they get back to thier shops they pay considerably less becuase of no competition. For example one dealer in particular was paying 12x at the show, but then only pays 9x at the store. I personally find this a bit on the unethical side! >>
You have to ask yourself "Why should he pay more than 9x at the shop?"
Perhaps you don't understand the costs that he incurs by owning a store. Perhaps you don't understand that he has the right, by the very nature of that seller walking into his shop, to offer what he pleases, as he doesn't have to offer anything at all.
Wolf359 said "Yes, I think so. "
Do you own a store? I'll bet not. You just run your website from the comfort of your own home. I bet if you owned a shop, you would quickly change your mind. Either that or you would go bankrupt in no time. >>
I have folks call me and ask prices sir. And I buy at coins shows. Same thing. My price stays the same.
Free Trial
<< <i>
<< <i>It's called "capitalism." >>
So is price gouging after a natural disaster. Doesn't mean it's ethical though. >>
PerryHall, there are larger economic forces at play in post-disaster "price gouging" than one might realize on the surface. Higher realized prices being paid ALWAYS bring in more resources, faster, to a disaster area than do items under price control - also, economic equilibrium is reached more rapidly.
But regarding the issue at hand, if a buyer in a geographic market is consistantly paying under-market prices, a market driver exists to bring in competition in some form - be it a physical store, a targeted mail advert, hotel buyers or even another retail establishment.
A willing buyer should always be able to offer whatever price, wherevere they want, for privately owned non-regulated goods. The only alternative is regulation - but be careful what you ask your Government to do, because they rarely cede power once that power is granted - even when it is no longer necessary or desired by all of the market participants.
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
Why is it unethical for a a dealer to ask for more, but not the seller?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I can understand the other side of the argument. But having seen all sorts of abuse in our hobby since the 1960's I always err on the side of consumer protection in our hobby. That's just the way I am. There's no reason why there has to be a "learning curve" in our hobby, even for precious metals. I'll walk a mile to help someone avoid the pitfalls or tell them where to get a fairer price if I cannot offer it myself. If this was your grandmother going to sell silver at the local B&M how would you want her to be treated? 6X face? I've seen elderly people go into my B&M and get offered 30c on the dollar for rare MS64 gold coins (that one deal was worth $80K wholesale and they got about $25K! Free market huh?
roadrunner
<< <i>What if Sears had a store in the ghetto and another identical store in the nearby white middle class suburbs and what if the ghetto Sears charged 25% more for the identical merchandise as they sell in the suburban store where there is more competition from other stores. Would that be ethical? >>
Yes. There are many reasons why the store in the bad neighborhood might need to charge more. Maybe they have more shoplifting, more need for store security, higher property taxes, etc.
Even if none of that were true - and the operating costs were the same - they are still free to charge more. That's capitalism. Others are perfectly free to set up shop in the same neighborhood and sell for less.
to quote Nancy Reagan"just say no" I do not see this as a problem
just sell your silver at a show. Try asking your dealer if they will buy by weight instead of face and you may get more money.
<< <i>What if Sears had a store in the ghetto and another identical store in the nearby white middle class suburbs and what if the ghetto Sears charged 25% more for the identical merchandise as they sell in the suburban store where there is more competition from other stores. Would that be ethical? >>
Logically fallacious. Different premise, and using an emotionally charged subject. I cry foul.
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
<< <i>Why can Burger King charge more for a whopper at the airport? That is the question I'd like answered. >>
They pay much higher rent for space at the airport would be my guess.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>Why can Burger King charge more for a whopper at the airport? That is the question I'd like answered. >>
They pay much higher rent for space at the airport would be my guess. >>
That and a captive audience. You can't leave the terminal security. Same thing at a music concert. I paid recently $12 for a 24 ounce can of beer. Why? I wanted beer and there was no alternative. I also bought two. Why did I buy two? I drank the first one quickly and wanted another beer. I vowed never again!
Small quantities are typically bought for a bit less. The end buyers of 90% pay the highest amount for half dollars in bag amounts of $1000 face. Many lower the price paid for 90% for amounts under $1000 face, $250 face, $100 face etc. Most also pay a bit less for dimes or quarters as it takes more time to count and handle. This may account for some of the difference if a seller walks up with a few hundred $'s face versus someone that walks in with $3.85 in face. Buying the small amount increases holding time risk as a dealer holds this until they get up to half a bag at least.
Also, what if a dealer has $1890 face back at the shop and is ready to sell that off, has a buyer but would like to get the deal done upon return to the shop the first of the week after the show. Maybe by offering the highest price to push his total holding over the $2,000 mark he will pay 12x to get it done and generate the cash for operations. Keeping liquidity high can be a motivating factor as well.
Also, there may be a buying dealer of 90% at the show the dealer can off the 90% too immediately, not have to lug it back and forth, and be done with the deal.
There can be a lot of things going on from the dealer's perspective that could create a difference although 9% to 12% seems a bit much.
Website-Americana Rare Coin Inc