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So a guy walks into a coin shop (silver price quesion)
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<p>[QUOTE="myownprivy, post: 3390242, member: 84588"]Yes, the shops around here are good. But, I am thinking many of you must live in smaller, weaker economies where dealers sell their Eagles at lower prices for locals to afford. </p><p><br /></p><p>My local shops:</p><p>An ASE would be selling for $17.25 or so right now ($2 over spot to sell) but would be bought back for at least $1 over ($16.25) In this scenario, the dealer makes around $1 per ASE. Dealer makes 7% per Eagle sold. My dealers cycle through a large volume in any given month, making a nice profit on every coin sold.</p><p><br /></p><p>My guess for where you live: </p><p>Are ASE sold for only around $16 right now? If that is the case, it makes sense your dealer would offer you only around $14.50ish when buying. But sell for $16ish. If the dealer is buying for 75 cents under and selling for 75cents over, he's making $1.50 per coin. That's a pretty greedy 10%, which indicates to me he doesn't do as much business as my dealers. </p><p><br /></p><p>Again, my guess is two parts:</p><p>1) Your dealers sell their ASE for lower than average prices because the local economy isn't as good. However, this means they must buy them at lower than average prices too.</p><p>2) your dealers sell on a nicer spread for themselves because they don't do as much business as dealers in a big cities with better economies[/QUOTE]</p><p><br /></p>
[QUOTE="myownprivy, post: 3390242, member: 84588"]Yes, the shops around here are good. But, I am thinking many of you must live in smaller, weaker economies where dealers sell their Eagles at lower prices for locals to afford. My local shops: An ASE would be selling for $17.25 or so right now ($2 over spot to sell) but would be bought back for at least $1 over ($16.25) In this scenario, the dealer makes around $1 per ASE. Dealer makes 7% per Eagle sold. My dealers cycle through a large volume in any given month, making a nice profit on every coin sold. My guess for where you live: Are ASE sold for only around $16 right now? If that is the case, it makes sense your dealer would offer you only around $14.50ish when buying. But sell for $16ish. If the dealer is buying for 75 cents under and selling for 75cents over, he's making $1.50 per coin. That's a pretty greedy 10%, which indicates to me he doesn't do as much business as my dealers. Again, my guess is two parts: 1) Your dealers sell their ASE for lower than average prices because the local economy isn't as good. However, this means they must buy them at lower than average prices too. 2) your dealers sell on a nicer spread for themselves because they don't do as much business as dealers in a big cities with better economies[/QUOTE]
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So a guy walks into a coin shop (silver price quesion)
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