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Let's Be honest, what can you really sell your Silver for?
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<p>[QUOTE="SilverSurfer, post: 883633, member: 21603"]As long as the premium was "high enough," and the business had a decent turn over rate, the dealer should always have bullion to sell. Turn over rate is the key though. Consider...</p><p><br /></p><p>Silver spot is $18, dealer chargers $21 for a ASE. He takes the $21 to restock. Bullion prices go up to $19, so he has to restock at this price, but he still made $2 overall. Next he purchases for $19 and then you come in to buy when the spot price drops to $17.50. He charges $20.50, his usual $3 over spot premium. He still made $1.5 on this ASE. He takes the $20.50 and luckily the price of spot doesn't change and he purchases he restock at $17.50. He takes his stock back to shop, during the week, the price gets hammered and spot goes down to $14. You walk in to buy, he charges $17, his usual $3 premium. It appears he lost $.50 on the last transaction, but it is in his interest to do so, so he can now restock at the $14 price and hopefully make his money back when the price goes back up.</p><p><br /></p><p>So, a decent but reasonable premium and a rapid rate of turnover are two important features of a successful bullion shop.[/QUOTE]</p><p><br /></p>
[QUOTE="SilverSurfer, post: 883633, member: 21603"]As long as the premium was "high enough," and the business had a decent turn over rate, the dealer should always have bullion to sell. Turn over rate is the key though. Consider... Silver spot is $18, dealer chargers $21 for a ASE. He takes the $21 to restock. Bullion prices go up to $19, so he has to restock at this price, but he still made $2 overall. Next he purchases for $19 and then you come in to buy when the spot price drops to $17.50. He charges $20.50, his usual $3 over spot premium. He still made $1.5 on this ASE. He takes the $20.50 and luckily the price of spot doesn't change and he purchases he restock at $17.50. He takes his stock back to shop, during the week, the price gets hammered and spot goes down to $14. You walk in to buy, he charges $17, his usual $3 premium. It appears he lost $.50 on the last transaction, but it is in his interest to do so, so he can now restock at the $14 price and hopefully make his money back when the price goes back up. So, a decent but reasonable premium and a rapid rate of turnover are two important features of a successful bullion shop.[/QUOTE]
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Let's Be honest, what can you really sell your Silver for?
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