Say someone found a hoard of 100 one ounce gold coins, worth at least 100,000. They take them to the local "We buy gold place". Now here is the interesting question, what would happen if the place did not have the money to buy them?
First, find out how much they are paying at the moment per ounce. Second, find out how much they are willing to purchase... then go to the next "We buy gold place".. repeat first 2 steps
My question is...is that any place that buys gold only has so much money. A mail in place would most likely sell it before the check is even written, but if someone bought a large chunk ($75k+) into a local place, what would happen if they couldn't buy it? Would they hold onto it until they could?
Anyone who takes gold coins worth (approximately) $1K each to a "We Buy Gold" establishment is a fool! Chris
Most businesses, just like people, have a certain line of credit, ie borrowing power. If the deal was good enough, and the line of credit allowed, I suspect the owner of the business would borrow money to buy the gold.
Well, since this is a hypothetical question, my answer would be, "Anyone who takes gold coins worth (approximately) $1K each to a "We Buy Gold" establishment is a hypothetical fool!" Chris
First off, those places won't give you cash, they write you a check. Second, unless you want to pay a heft tax, you'd want to split the selling up. Third, why anyone would ever want to patronize one of those slimeball sleazy businesses in the first place is beyond me. They'd be at the bottom of my go-to list, below even Mafia money launderers and ISIS weapons dealers.
What's so "interesting" about it? Here's an, ahem, interesting question as well... what if you answered a "buying metals" ad in the paper, and the guy didn't have the cash? Oh, wait... there's nothing remotely interesting about either one. If one, a cash-for-gold or otherwise, does not have the funds/ability to make a certain purchase, what do you honestly think will happen, Tim? If you walk into Wally World and don't have the cash/credit to purchase that new toy, assuming no one is there to buy it for you and you're not going to steal it, what usually happens? With that said, any cash-for-gold that cannot make a 100 ounce gold buy happen, especially at the likely price offered, needs to find a new business.
Had a local guy that purchased precious metal. If he didn't have enough money on hand, he'd write you a check made out to cash. You could then take it right across the street to the bank where he had an account and cash it.
......and while you were standing at the teller's station with your back to the front window, the dealer was standing on his side of the street giving the teller a "Hell no!" signal. Then he locked the front door, put the "CLOSED" sign in the window and snuck out the back door. Chris