Made my first invest today at +$1 over spot on maple leafs. Is it too good to be true?

Discussion in 'Bullion Investing' started by chungt, May 25, 2020.

  1. chungt

    chungt Member

    I get your point but consider if you had paid 1-2 over spot when the spot was at 15, you’d be in the black already. Now, to my question, surely paying +1 over the spot in current climate doesnt mean i have been duped? Apmex has the silver american buffalo coin for +2@$20 per oz. Considering this is a local dealer, surely, $19/oz is not too “off” for me worry?
     
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  3. goldcollector

    goldcollector Member

    You made your move then asked if you should be worried. No point in worrying now, you have already made your move. You will either get screwed or you won't.

    I'm sure if he has been around 40 years you will be fine. Even at $1 over you paid $18. You still paid more than it's worth.
     
    chungt likes this.
  4. Jeffjay

    Jeffjay Well-Known Member

    Things are worth whatever someone is willing to pay for them. Most things in this world are over priced.
    Is $10 over spot for silver too much?
    Of course it is, but many see it as being worth it. If they didn't they would not be purchasing.
     
  5. kcg777

    kcg777 New Member

    I bought some 2020 1oz Maple Leaf coins from APMEX last night. They were having a special on them for $5.99 over spot, cash price.
     
  6. chascat

    chascat Well-Known Member

    Yep!
     
  7. juris klavins

    juris klavins Well-Known Member

    Use a neodymium magnet (6x3 mm or 1/4x1/8 in) with an N42-48 strength - tilt the silver item and slide the magnet down from top to bottom - if it sticks = fake, if it slides freely = fake, if it slides slowly = probably real.
    You can also place an ice cube on the silver - real silver will cause the ice to melt rapidly, fake silver will not.
    https://www.ebay.com/itm/20pcs-6mm-...997972?hash=item3f4ab02714:g:qfQAAOSwBGRd78Jg
     
    coinsareus10 and CommemHalfScrub like this.
  8. Kentucky

    Kentucky Supporter! Supporter

    I'll have to remember to carry a few ice cubes in my pocket when I go to my LCS :)
     
  9. goldcollector

    goldcollector Member

    I tried the Ice Cube thing once. I wasn't impressed
     
  10. FarmerBill

    FarmerBill Member

    I'd be a little worried. Government silver at a dollar over is almost to good to be true. You said he has been in business for 40 years, but are you a first time customer? Why pay up front? If you don't get burned this time you will in the future. Cash and carry all the way. Good Luck.
     
  11. Stevearino

    Stevearino Supporter! Supporter

    Caveat emptor. I have no opinion or gut-feeling about the "pay now, receive later" bullion deal you are involved in. But I believe the following to be true:

    - Length of time in business is a guideline, not a guarantee of honesty or fair-dealing. I have seen numerous examples of folks doing business for years and, for a variety of reasons, decide to cheat the buyer; cf. Bernie Madoff. I had a friend who was an insurance agent, and because of his alcohol problem he started spending premium payments instead of forwarding them to the company. When the sheriff had an accident and wasn't covered, the SHTF.

    - You being a first-time customer, the possibility (not the probability) exists that "he saw you coming." Again, Caveat emptor. It means be aware, not fearful.

    Steve
     
  12. rte

    rte Well-Known Member

    When are you suppose to take delivery of your silver?
    My local G&S store has a junk box if you will that is a $1 over spot.
    It sells out quick, but once in awhile I catch it with some interesting silver art bars in it.
    I usually have a loupe in the car along with a strong magnet.
    I've found more then one bar that was questionable.
    A couple marked 100mills that I just hand over to the worker and say....that's a fake, you might want to check that one out a little more.
     
  13. chungt

    chungt Member

    He said it generally takes around 3weeks for the delivery. To prepare for possible worst case scenario, i sent him a text containing information about money transacted and the amount of silver purchased. He confirmed and replied back. I also ordered single coins from apmex so i can take it with me when its time for a pick up. I will also have calipers and scale with me just in case. When i first approached him, he quoted ase at +$7 and recommended i dont buy it for invest but i should buy others that he can sell to me at $19/oz. the silver price was around $17.50 at the time. The guy also owns a local car dealership. In any case, i hate that i made this dumb move. The worst part of it is that i work as a buyer and my job is negotiating prices and terms and conditions to protect my company commercially. I feel like a bonehead trusting my gut in a situation like this. I am preparing for the worst. I will keep you guys updated :)
     
    Kentucky and Stevearino like this.
  14. Stevearino

    Stevearino Supporter! Supporter

    @chungt, thank you for your openness with the CT community. I hope you come out OK. This could be a learning situation for many of us.

    Steve
     
    Kentucky likes this.
  15. myownprivy

    myownprivy Well-Known Member

    Well that sure was a stupid purchase.
     
  16. FryDaddyJr

    FryDaddyJr Junior Member


    better than buying a slabbed eagle or Perth mint coin. especially if he just bought a couple of them. A lot of people spend money on a lot of things with nothing to show for it. Entertainment, cigs, alcohol, overpriced food.
     
  17. chungt

    chungt Member

    Lol thanks steve but i dont intend to teach anyone this time around ;)
     
  18. myownprivy

    myownprivy Well-Known Member

    He could wait a few months for premiums to return to normal.
     
    chascat likes this.
  19. FryDaddyJr

    FryDaddyJr Junior Member


    I am planning to do that also, but I've found some junk for 16 x face.
     
  20. myownprivy

    myownprivy Well-Known Member

    I'm curious why people feel any need whatsoever to buy metals right now. If metals are already around 5-20% of your assets (or whatever your target percentage is) why would a person feel any need to buy?
     
    FryDaddyJr likes this.
  21. FryDaddyJr

    FryDaddyJr Junior Member

    because people aren't smart. that's how other people make money.
     
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