Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
How do bullion dealers make money?
>
Reply to Thread
Message:
<p>[QUOTE="SD51555, post: 2029151, member: 71871"]Hedge. </p><p>Use line of credit at .5%/month. </p><p>Turn inventory once/twice per month at 5-10% premium. </p><p><br /></p><p>If they can make a 5% gross profit on the same capital (or better yet leveraged capital) 18 times in a year, that's a hell of a business. </p><p><br /></p><p>The bars I just bought tonight aren't even in stock yet. They'll get them in one door and out the next in probably the same day. </p><p><br /></p><p>I have no first hand experience, but I can see some creative use of a credit line, hedging, and tight inventory management leaving a lot of profit margin on the table for nothing invested. I used to buy from a shop in Des Moines, IA and he told me that he hedges everything he buys. Hedging isn't free, but if you can move your inventory fast enough, you'd make out just fine. </p><p><br /></p><p>Judging by how much stuff is regularly out of stock, I'd say they're not carrying more than a few days normal supply.[/QUOTE]</p><p><br /></p>
[QUOTE="SD51555, post: 2029151, member: 71871"]Hedge. Use line of credit at .5%/month. Turn inventory once/twice per month at 5-10% premium. If they can make a 5% gross profit on the same capital (or better yet leveraged capital) 18 times in a year, that's a hell of a business. The bars I just bought tonight aren't even in stock yet. They'll get them in one door and out the next in probably the same day. I have no first hand experience, but I can see some creative use of a credit line, hedging, and tight inventory management leaving a lot of profit margin on the table for nothing invested. I used to buy from a shop in Des Moines, IA and he told me that he hedges everything he buys. Hedging isn't free, but if you can move your inventory fast enough, you'd make out just fine. Judging by how much stuff is regularly out of stock, I'd say they're not carrying more than a few days normal supply.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
How do bullion dealers make money?
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...