08/13/14
Business.
A few bullet points:
-Silver and Gold are worth buying as a hedge against the USD and economic instability worldwide.
-If the spot price of Silver is $20.00/oz, expect to buy at $25.00/oz and sell at $17.00/oz (or less) when doing business with a dealer or pawn shop.
-The condition and rarity of your coins means nothing to gold buyers. They only are interested in the precious metal and they will offer you scrap price for a Morgan Dollar that is worth $5,000.
-Obscene profit margins, uneducated and economically stressed out customers are the main target of gold buyers.
AFTER YOU READ THIS, consider sending me an email if you have any precious metals that you would like to sell. I offer free appraisals on silver and gold bullion as long as you send me clear photos of what you have if we can't meet in person. I always pay more than pawnshops and gold buyers do and if you don't believe me, get an appraisal from me and then call around and see if anyone offers you more than I did. I don't melt down anything and I know much more about Numismatics than most pawnbrokers and gold buyers do. Get more money by contacting me first.
Have you noticed all the Gold Buyers lately? I don't know why but a few years ago malls across America starting leasing kiosks to gold buyers. In Connecticut we have Good Ole Tom, Fast Eddy and pretty much every pawn shop who claim that they all pay top dollar for your unwanted gold and silver. You need to know that you should never sell anything to them and I'll explain why.
I have done business with Fast Eddy in Orange CT and I also have done business at the Good Ole Tom in Hamden. Both businesses are run well and owned by professionals. Because I am in the precious metals business myself, I know what their basic business model is; consumers don't know how these businesses operate. It is great to live in America where the market is competitive. Everyone in this regard is offering to pay you top dollar. The precious metals business is a very profitable one as long as you have the working capital (cash on hand) to buy inventory and also know what you are doing.
What is top dollar? Top dollar is a buyers way of letting the sellers (customers) know that they will pay more than any other business. This does not include private collectors. Businesses realistically only can compete with other businesses because private collectors usually are not buying to resell. In reality, all the businesses pay relatively the same price for your precious metals. The top dollar amount revolves around the "melt price" of the bullion. If Silver is trading at $20.00/oz, the buyer will pay less than if Silver is trading at $30.00. So if you want to sell your grandpas old silverware, wait until the price of silver goes up past $30.00/oz. .925 silver is worth less than .999 silver.
To this date, no brick and mortar gold buyer has been able to pay more than I do for silver coin and silver bullion. When I lived and worked in Florida, I paid on average $2.80 more than the highest paying pawn shops offered for a 1 Toz .999 Silver Eagle. I have always believed that gov't regulations are lynching small businesses and in the precious metals business, there are many state licenses that you need and certain reporting standards and requirements that must be met. I somewhat skirt around the requirements by buying as a collector, which I am. I buy bullion and precious metals as a hedge and just to have something other than the worthless USD in my safe. I deal more with coins and currency anyway.
I'm not a fan of throwing values out the window.
The biggest problem with the Fast Eddies of the world is that they destroy what they buy. Instead of reselling the gold tennis bracelet that they bought from you, they rip out all the stones (diamonds, gems etc) and then send the gold off to be melted down. To the gold buyers, precious metals are worth more if they scrap the jewelry. I also blame the commercial production of jewelry by Kay, Zales and the rest of the big name jewelers. There is no such thing as a one of a kind piece any more. That special ring you got your special lady is just one of thousands that other guys bought for their special lady.
When you buy any gold, silver or platinum jewelry, expect to get nothing for it when you go to sell it to a gold buyer. They ALWAYS will pay you the scrap price, even for beautiful pieces. When you buy an engagement ring, the price is marked up like crazy even though the gold weight is only worth a few hundred bucks. Simply, you buy a ring for $1,000 even though the components are worth only $460. And with Diamonds? Most gold buyers tell you "I can't do anything with the diamonds" which is why they remove any diamonds from the piece before weighing it. They only want the gold. BS, I know what they do with the diamonds and gemstones and they will never tell the customers that they are screwing them over.
-NEVER sell your precious metals "to just get rid of it." If you just want some money to go to Foxwoods, get a damn job or work extra hours. Don't enable the scam artists' that are gold buyers.
Thanks.
No comments:
Post a Comment