never sell your bullion to a dealer for under spot!

Ebay has 10% fees. I have not seen a standing ad in craigslist from someone who will buy at spot. Selling to another collector most likely requires me to ship the silver (insurance included) and wait for payment. While any of those three options may get a sale price at spot, when you include transaction costs I won't get spot. All three options also entail taking more time then selling to my local dealer and my time is worth money. Any other options?

Oh, and for the record, you never mentioned any other places to sell in this thread so please get down off that horse.

 

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Have you ever sold a car at the "Retail Price" or do you sell at the "Wholesale Price". All dealers have expenses that need to be covered. If you don't like the price that a particular dealer is offering you, find a better price if you can.

Remember the dealer can buy brand new bullion to sell at a higher premium than your "used" bullion.

I would rather buy 2013 ASE fresh in a tube, rather than buying a bunch of used ASE that have been handled and will probably begin toning. Used is never worth as much as new, so it sells at a discount based on how used it appears.

 

You have to look at it from the dealer's stand point. If they feel the price of PMs is going to drop even further, they will likely offer you less than spot, and should not feel one bit guilty about it. It's a free market, and you can always leave, rather than take the offer.
Besides, once you pay the utilities, rent, insurance, and inventory tax; you'd likely change your tune on what a business owner needs to pay for a few ounces of silver. All of those expenses come before he takes his income from the till.

 

And there are a lot of know-it-alls out there too, so at times it can make for an interesting mix.

Hmmm... and do you think that there could be a reason for this?

There is absolutely nothing "dishonest" about telling someone what they will pay; if you don't like it, don't take it.

See my first comment.

Selling to a collector is fine, but not everyone knows one locally with cash in-hand. Ebay is fine, but does not necessarily help your point once fees/expenses are considered, plus there is a time factor involved. Craigslist usually sounds great to most of those who have not yet had the pleasure of dealing with the liars, tire kickers, scammers, thieves, dreamers, etc, etc who constantly haunt there. What is "funny" is that you slam certain dealers who do not conform to your standards, but suggest craigslist and say nothing about the individuals regularly advertising there who offer substantially less than $1.50 under.

 

And I suppose they should sell at spot too?

 

I would be very cautious of dealing with PMs on Craigslist. That is a great place for dishonest individuals to steal, rip off, or any other number of shady activities. You especially do not want an unknown individual finding out where you live (and probably store your silver).

 

10%-50% over spot to Buy is justifiable Plus extra's go at Premiums pieces,
To sell, Spot plus premiums.. this is the way I bought coins all through the 60's and 70's and 80's, this B.S of 20%-50% lower than spot is fraud, Dealers need to stand up to the buyer's, but th.e..y... w..o..n...'t.......

 

There is more information available to you to protect yourself on the internet than you need to do so. In the time it takes to post a comment on here, you could probably check out 2 or maybe even 3 of the internet retailers websites and get their buy prices. If you arm yourself with information, and the LCS knows you're smarter than your average bear, then maybe you have a shot at making a deal that is palatable to you.

One thing that makes me really sad, it all the posts about being "ripped off" or the prices are too high or whatever other nonsense some of you come up with. You do realize the LCS owner has a right to a profit, they have overheads to pay, mouths to feed and all the other things you have plus a few extras. I'll let you in on a little secret, the margins they work on suck...really bad, in fact, I have no idea how they turn the lights on every day when they make a 10% margin...give or take a couple %... and for some uneducated fool to start crying about "rip off" just amazes me. I've never read a story about a LCS holding a gun to a customers head and forcing them to pay what they were asking, and making them buy...then again, maybe you're special???

 

I've seen a few dealers comment on this topic, the point I was making are the premiums that some dealers are reaching for because they got bullion at the higher market rate and are trying to recover by charging more even with spot being much lower. Thats the point, not so much about being ripped off, more about the dealers trying to get $8-$10 over spot because they bought at $30+

By the way I understand margins and all that, I think its funny dealers are defending the outrageous over charging that has been going on as of late. How about some of you take ownership on that point instead of complaining that people are idiots because they don't want to bail you out for your left over bullion that you bought at the higher market rate...?

 

One last thing, how about you buy more while the price is down, that evens out the loss margins when you resell. What a concept right??? If you bought at $35 and buy at $20 now your average is much better then taking the straight loss at your original price...$27.50

I have no issue with selling at spot on generic bullion, its the $2.50 to $3.50 under spot that some dealers have offered me like they could get over, that is what I have a issue with. Once I called them on it, they made the usual statement that you won't get any better then what they offered.

 

So, again, who are the "dealers" that have commented on this thread? You accused me of being one, and I told you I am not. I do not believe most other posters here are dealers either. Are you assuming anyone disagreeing with you are dealers simply trying to defend their practices? I wrote ad nauseum here on CT to expect higher premiums when PM goes down. It always happens, just like in every other market decrease I have been in. I also wrote that while selling premiums will go up, buying premiums will go down, since the dealer is afraid the market can fall further. Effectively in falling markets the spread widens due to uncertainty. Always has in my 30+ years experience.

Assuming everyone disagreeing with you is only doing so because of a self interest sure is closed minded in my view. You are effectively telling yourself there is no way you could be wrong, since you have assumed the other side has to have a reason to lie. Good path towaards self delusion in my book.

 

LOL, I have no issue with admitting when I am wrong, the issue is not if I am right or wrong, its the people who won't stand up and say I am a dealer and I think you are wrong. Some of the people on here make comments and basically call people stupid but don't identify if there is a reason for them to be so defensive towards a statement made. You are not someone I think is a dealer, but I do think you may know some dealers who you may be standing up for.

 

I am speechless, this is the stupidest thing I have read here for a while.

 

F

Find the words instead of saying something that means nothing on a post. What I said is very accurate. You buy more silver to lower the value of the loss as you resell, you don't take such a huge hit in return. Define stupid instead of leaving a stupid remark with nothing to back it...

 

We lose money on every sale but make it up in volume...

The total amount of money lost is the same, you double the amount of sales and cut the lose on each sale in half, it's the same loss.

The other possible interpretation of what you said is classic sunk cost fallacy. Each new investment has to make sense solely on it's own merits, not because you already have a bunch of money involved.

Either one is stupid.

 

This is by far the best response on here, I don't fully agree with you but you actually gave a resonable response. I can respect that sir

So beef1020 does this make you a dealer, based on how you phrased some things, leads me to think yes???

 

My initial response was reasonable as well, it was an accurate description of your post.

Nice to know you don't agree with math or logic, I will keep that in mind next time I read your post.

What is with your us vs. them obsession over the dealer/non-dealer label? I am not a dealer, but I fully support dealers making a profit and running THEIR business however THEY choose. It's my choice as a consumer to either do business with them or find some other option.

 

Is it me or do you have to be sarcastic in every response back to me? How about you keep it a bit friendly for a change? You don't agree with me so your way to respond is to challenge someones opinion by putting them down... My opinion is shared by others, if you don't agree thats all well and good but no need to make it seem like your the one with a intelligent answer and no one else has a clue...

 

It is you, there was no sarcasm in my post. I did not put you down, your statement about buying more silver to minimize the profit loss margin was stupid, but I did not call you stupid

 

Why do you think buying more is a stupid idea to minimize the profit loss margin.? I think its a sound strategy that others have done in the past. Instead of taking a huge loss, you balance out the value of your bullion by buying at a lower cost...If you do a bulk sale, your losses are minimal if any at all...

Think of it this way, you buy silver now at $20 and lets say you buy double the amount that you did at $35, you can't turn a profit off of that?