Message:

<p>[QUOTE=&quot;myownprivy, post: 4246529, member: 84588&quot;]I want you to think more about this $299 minimum order for free shipping and what that means.</p><p><br /></p><p>The cost to ship 5 or 6 ounces of silver is now over $4. ($4.60 to be exact). But let&#039;s just say $4 to keep it simple. </p><p><br /></p><p>Suppose I place an approximately $99 order to get free shipping in the old days. I buy 6 ounces of whatever silver that has a $1.50 premium attached to each ounce. Let&#039;s say silver is about $15 at this point. (It it is now actually even lower)</p><p><br /></p><p>6 ounces x $16.50=$99 gets me free shipping. </p><p>Shipping cost is about $4. JMBullion effectively takes only $95 from my order. Divided by 6 generic ounces equals about $15.83 per ounce. </p><p><br /></p><p>Now if we back up here to look at silver prices in earlier March, Feb, or Jan, or Dec, or Nov silver was pretty steadily at an average of $17 an ounce. </p><p><br /></p><p>JMBULLION IS VERY LIKELY LOSING MONEY RIGHT NOW because they have been buying silver stock at around $17 at ounce. Maybe even $16 an ounce if they placed their own order a year ago as any smart bullion dealer would do. But even at $16 an ounce, they are losing money selling small orders with free shipping.</p><p><br /></p><p>This move to give free shipping only on orders of $299 or more changes this calculation. At $299 for free shipping, I would instead have to buy 19 generic ounces at $16.50 each. The cost for JMBullion to ship this order is $8.25 flat rate. So now that $313.5 order of 19 generic ounces loses $8.25. Meaning JMBullion nets $305.25. Or $16.06 per generic round. In this scenario of selling silver they bought for $16 at ounce, they&#039;re about breaking even.</p><p><br /></p><p>This is why they have upped the free shipping minimum order amount. I know many of you already knew this. Some of didn&#039;t, so I hoped I helped. But the conclusion for all to think about is this should worry us, because the only reason JMBullion would do this is if they weren&#039;t making money by giving free shipping at $99. We should be concerned if the big dealers are losing money, because it means they have very much been caught off guard by this as well. They didn&#039;t place their own silver orders far back enough to have purchased at a lot low enough price to deal with this sudden drop in silver prices. And if the big dealers aren&#039;t prepared for it, imagine how the little guy is doing in.[/QUOTE]</p><p><br /></p>

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