Why does bullion sell for a premium?

Like standard silver eagles. It's just bullion. If you can buy for spot, show me the way please

 

Log in or Sign up to hide this ad.

Gotta pay the piper Mcreagin. They's (dealers) are in the game to make money so sometimes ya gotta give the devil his due........

 

Yeah then they pay you under spot for them. Devils for sure

 

Well, actually, I've sold pretty close to spot. Ain't nobody twisting my arm and if I don't like what I'm hearing, I ain't sellin'.

 

I just sold 1 gram pamp suisse for $90. Picked up for $35 IIRC, gold was lower then. I'm trying to get ahold of gold to go for more because after the sale I had offers of $100+ coming in.

 

you know what, i have been thinking the same thing. i dont know what you guys pay for .999 but for eagles i feel like even buying a tube i pay 3-5 bucks over. For ten oz. silver bars i pay 3 bucks over and this is the cheepest latley. 2 years back i was buying two or three single eagles a week at pawn shops for spot. i didnt realize the deal i was getting. with thus type of premium ..especially ase's i think its impossible go make money within a few months unless there is a surge in price....it stinks buy with a premium and sell to the same dealer at a discount...i guess i need to start selling on ebay. people pay waaaay over spot

 

lol and what make them the Devil? That they make some money for their time? Or is it just that you can see what they basically make on it?
If their margins are the devil what about full service restaurants that the food only costs them about 1/3 of the check price? Or Retail that has even more? And don't get me started on what the Medical Service Mark up is?
Is everyone the devil?

For fun's sake Mcreagin what do you do for a living?

 

It's the same thing on ebay.
If you buy from them you usually pay more the the going rate.
And if you sell you pay them close to 20% after all the fees.

 

good point duke...i stand corrected i havent thought of the fees....maybe ill craigslist...i guess a little danger there thought

 

so really for people who cannot afford monster boxes to lower the premium, bullion may not be profitable. atleast in the short run. last year i did so well because of the big upward swing.

 

Meet in a public place to be safe. Accept cash only. Bring a friend to keep an eye on you.
It does have its down sides but could save you some money but you'll have to work harder to get it.

 

for sureit is a little more work. honestly i dont mind a premium.. i really dont. it is when it becomes excessive. the last quote i got from an actual coin store was 8 dollars over spot for silv. eagles a few days ago.. i was shocked...think of the percentage to the price per ounce. soon it will be 50% premium. people have to make money they have overhead and plenty other costs. its just getting out of control. im a barber not an ceo

 

I agree. I will pay premiums for what I want and when I want it. It's capitalism. Hence gas stations sell tons of soda at 2 bucks that you can get at a Kroger for 40 cent and then again go to Sams or Costco for 25 cent.
All part of a working economy.
Maybe we can split a monster box

 

Public? When I think of 'public' I think of Ron White being thrown out 'into public'.........


[video=youtube;3eToSZL1faE]http://www.youtube.com/watch?v=3eToSZL1faE&feature=related[/video]

 

i love Ron White lol

 

What a coincidence! I had never heard of Ron White before a few days ago when I picked up that CD from my library. I am listening to the CD in my car and so far he is pretty funny.

 

Spot prices are for either 100 ounces of gold or 5000 ounces of silver. Anything smaller is going to have additional production and carrying costs. Whether you can find a 1 ounce coin at the spot price or not is the difference between a bargain or not.

Spot price isn't the only kind of pricing used for gold. There is also the London "fix" which is set daily and covers the price for a 400 oz London Good Delivery Bar. This is basically the type of bar you see on TV in central bank vaults or similar. It's the way that mining companies deliver bars as well. The US Mint sets it's price for it's numismatic gold items, such as the proof AGE, Buffalo and FS coins, from this price.

 

In the case of silver Eagles the premium is basicly set by the market. They are very popular, people want them and are willing to pay that premium. If the demand for them went down, the premiums would too.

 

To sum it all up simply...

Because it can.

 

The guy that I have been dealing with has a $3 over spot on ASEs and he has had the 1 oz buffalo nickels for $1 over spot. His generic silver rounds and bars are at spot.