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David- I have a question, maybe you can answer it. Last year I had a gold chain I wanted to sell. I calculated the actual value of the gold (I know how to do that), and offered it for 90% of that amount. I put it on BST, and my wife listed it on ebay and I think on etsy.
We didn't have a single inquiry anywhere. So how cheap do you have to list a commodity to make a sale? I know nobody pays full value- if I bring scrap gold into the diamond district in Manhattan they pay at most 70%, if that. Wouldn't you think 90% of face would work? I assume if I offer ten dollar bills for $9 each, business will be very brisk. |
#2
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Barrysloate: There are several coin shops in Bergen County, NJ (Oradell Coin is 1) that will pay full spot for gold. There is a substantial "middle" between the spot price and the ask retail price. Plenty of room for them to make money. I'd say the middle is about 5% - or currently over $60.
Numismatic/bullion: As David said it is often difficult to recoup the premium paid for a numismatic coin as opposed to a bullion coin. Not always. There is also the idea that in buying a numismatic coin as a relative layperson that you can be had by unscrupulous sellers, and they are out there. Not a lot different than the baseball card market in that respect - see our current travails. Peter: Although I know zilch about Titanium, on many of the precious metals that are sold the nation state mint coins can often demand a premium over bars and other forms. I have never purchased other than minted coins of different countries, but know of folks who have had to have their bars, etc. assayed before sale to satisfy the buyer that they have not been tampered with. Kind of a potential hindrance to a quick transaction. I suppose that coins could be hit too, buy my reading of the market is that is much less likely. |
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That's interesting, but everybody should pay around the same. One area can't overpay or pay more than another.
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I think the bottom line is that there are just different competing business models. The reputable coin store that is based on and content with making a fair profit, been doing it for a long time, and actually wants to have repeat customers. As opposed to the bottom feeders who are in it for as long as it lasts and will push any advantage they have to the hilt and pack it up when the party's over and people wise up or word gets out. Then again, all that's just my personal opinion. Your mentioning the lack of success you had when trying to sell some gold doesn't surprise me too much. There is only a miniscule percentage of the US population that owns or has interest in owning gold (or silver etc. for that matter). I recall a video I watched on Youtube a few years ago where a social researcher stood in front of a coin store in California and offered passersby a 1 ounce Canadian Gold Maple Leaf (face value of $50 for legal reasons) that had a current spot value of $1,500 for $25. No takers. Wish I'd have run into him. |
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__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
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I think you basic assumption is correct Peter. Especially when considering the smaller pieces. I have never dabbled with non-mint struck metal and my information is from acquantainces who have had issues. From what I understand the larger the bar (usually) or piece of silver (usually) the more likely the buyer would have qualms about not getting it assayed. A lot of funny business can go on with a 100 oz. bar of silver if in the hands of someone not on the up and up.
There would be counterparty risk in a situation like that, IMHO. I did not mean to intimate that the premium associated with state minted coins over plain bars is due to verification - I am sure they are simply more expensive to produce. Just that anyone who walks into a coin dealer with a 100 oz silver bar and plunks it down on the counter is likely going to have a different experience that if they bring in 5 US mint silver eagle tubes. |
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__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
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Not really, there are a ton of really good fakes out there from every company. I recently saw some really good fake 1oz silver bars from silver towne.
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https://www.youtube.com/watch?v=_rjJmGGkNPU |
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#12
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Check out this $20 bill from 1960. What does "REDEEMABLE IN LAWFUL MONEY AT THE UNITED STATES TREASURY, OR AT ANY FEDERAL RESERVE BANK" mean?
What is lawful money? Wasn't this $20 bill lawful money? If so, how can you redeem it for lawful money if it's already lawful money? |
#13
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Maybe there was an error in your weight/purity calculations where you thought it was worth more? |
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First I weighed it on my O'Haus gram scale, and it weighed between 25 and 26 grams, so I called it .9 of an ounce for convenience. I multiplied that by the price of gold, which was around $1300 at that time. Then since it was 14K, I multiplied that by .583, since it is 14/24 pure. So I got: .9 x 1300 x .583= $682 worth of gold. And I offered it for $625. I also have a gold testing kit, with the acid bottles and the black stone, so I know how to test it too. Were my calculations right? |
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When I do the math on my calculator, I get $609.24. When I use this scrap value calculator, I get $609.52, so very close. http://coinapps.com/gold/14k/calculator/ |
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Thanks David. I never knew about the use of troy ounces. I know there are twenty pennyweights (dwt) to an ounce, but don't know exactly how to use them in calculating.
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#17
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Gold spot hit $1380 this morning, highest in five years. I believe our discussion on this thread is the main reason for the steep rise.
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