Discussion in 'Bullion Investing' started by Randy Abercrombie, Jan 23, 2019.
I most assuredly did not get the hip hop gene!
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...or go for hernia surgery!
Some of the major bullion dealers publish their buyback price on a particular product ie, Provident sells a 1oz silver round for $16.37 and lists a buy back price of $15.43.
There's always a spread or they couldn't stay in business.
And larger businesses, especially ones with a minimum buyback of $1000 or more, can get by on a narrower spread. You'll rarely see a spread that narrow at a local shop, and pawnshops infamously pay half what they sell for (or sell at double what they buy for), regardless of where "melt price" falls within the spread.
Having said that, I've sold a one-ounce AGE to a dealer at a local show at right around $1300, then watched him offer it to a buyer for $25 more. So sometimes, in some circumstances, you can find a narrower spread.
And if the markets get hectic enough, you can do better -- I remember one show in 2011 or so where I bought a bunch of SLQs from a dealer at 25.5x, picked through them, and sold the rest to another dealer for 26x.
I've often said that many times, a smaller but quicker profit is, ofttimes, better than a larger, but more drawn out profit.
Your personal experience illustrates that concept : The dealer didn't want to hold out for a larger profit, he simply wanted to make a profit, quickly.
Your third paragraph illustrates the effect of market uncertainty and confusion.
You can create issues such as this, when it looks like there may
Be some question on authenticity, or the person buying may think
Hes getting to good of a deal.
Agreed. I like that the buy back offer is published and up front. You know how much price appreciation you need to break even or profit.
I don't get the concept of purchasing PM's for the short run. I own PM's that have been in my possession forty years. If a person wants to store a little cash in a roll of ASE's, why is the dealers buy-back price important?
Good point. People buy PM for different reasons. Your long term hold is just one of many. Some people think of get rich quick. The point of mentioning purchase price vs buy back price should give pause to that.
OK ... What are/is "PM(s)" ? Please.
Thank You. I looked through a dozen "abbreviation", "lingo" and/or "acronym" sites and not a one listed that. I even looked here with NO luck.
My apologies. I proclaim myself as the acronym nazi. I hate them for just exactly that reason!
For me anyway, i buy for investment, but i for sure want to make money
When i go to sell, buying and then watching 10 Percent evaporate
Isnt good business...LOL
When all else fails, just make something up, i promise i will believe you
If only that concept would work with my wife......
My wife, dont get me started on that...LOL
You can't do this. The government already owns this spot.
FYI, the dealers buy back price varies.
I used to track spot, purchase price and buyback.
Also, such as Provident. Their buyback prices are broken into two types (a) current year, (b) *all* previous years are clumped together.
So tracking a particular years buyback becomes obsolete after the year is up as it's clumped with the previous years. Plus it varies dependent upon spot and price pressure velocity it seems.
Separate names with a comma.