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 Replies: 49 / Views: 4,597 |
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Pillar of the Community
 United States
3670 Posts |
He was really good in that movie Expendables most recently last year. Interesting note they are planing to have Chuck Norris in part 2 of this serious so that should be good. Chuck is king, lol. Nobody has sold more exercise machines I figure then Chuck. He is like 69 an would destroy me in like a nano second, lol....
You guys are gonna love this as this triggered the thought. I sold a gold coin to a fellow who lives in Kansas this past Monday, an as I was getting the address info while putting the package together, low an behold the buyer was Chuck Norris, I kid you not. The Chuck Norris, well I doubt it unless he does reside in Kansas. I have been thinkin about emailing him an telling him his coin is in route an then ask him for the record...."I know you must get this often, but....lol"
Edited by Silverhawk74
05/22/2012 10:11 pm
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Valued Member
United States
410 Posts |
Sorry to hear about the shop closing. As to the sales tax issue, that is Tennessee's own doing. They willfully chose to depend almost exclusively on sales tax to fund the state. No income tax and a tiny amount of property tax. I remember when I lived there people stormed the capital building when there was a rumor that the legislature might pass a sales tax.
I wonder if that means the Southern Bullion's in my area will be closing soon. Alabama is another state that relies heavily on sales tax (and the Federal government) to pay the bills. Our sales tax is 10% in most cities.
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Pillar of the Community
United States
3670 Posts |
I remember you saying JSH about living in Bama an shopping from time to time at the store in your location. Keep me posted if it does happen to close, as I will be interested to see if this chain of coin stores makes it or not.....
According to BF, these type of chains have always been doomed to eventual collapse. I figure it is hard for them to survive these long dips as well, esp as I recall us leaving items in safe due to the fact we paid 38 per oz. for the item back when silver was way higher an simply could not sell it right now for example with silver under 28 again. We will see....
Edited by Silverhawk74
05/22/2012 10:30 pm
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Pillar of the Community
United States
1454 Posts |
My old handgun instructor was named Chick Morris. He took a pretty good ribbing from most people in my class; but not me. I never make fun of anyone who can tattoo a bloody smiley on a man's head from 21 yards before I can hardly clear my holster  |
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Valued Member
United States
410 Posts |
Southern Bullion is still advertising here but the focus has changed. A year ago they advertised like any other "Cash for Gold" place but stressed that they pay top dollar because they own a refinery. Now they have added "Coin and Jewelery" to their name and advertise great prices on used jewelery.
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Pillar of the Community
United States
3670 Posts |
That was the gameplan JSH, you nailed it, an perhaps their downfall. Don't try an be a Zales, when at your heart you are just a pawn shop for silver an gold my feeling, bad idea all together, should have stuck with what brought them to the dance.....
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Pillar of the Community
United States
2335 Posts |
Lower PM prices hurt a company holding inventory but that's not the only factor. The business model is based on buying at X% less than spot & selling for spot or slightly over. When the price of PM's drops the profit margin doesn't change, but the amount of profit per ounce drops. That means you have to turn over a larger amount of inventory to make the same amount of money. Assume you have an established store that buys an average of 1000 ounces of silver per month at a 10% margin. With silver at $35/ozt you are making $3500 a month. If silver drops to $27/ozt you are suddenly making $2700.
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Valued Member
United States
196 Posts |
trdhrdr007- I am sorry I misunderstand you. But if you buy 1000oz at say 90% (10% margin) of $35. Then that is $31500. If silver goes to $27, then you sell the 1000oz so $27000. You lose $4500 from that investment.
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Valued Member
United States
410 Posts |
Selling jewelery makes complete sense to me. They buy a ring at 80% of the scrap gold price then mark it up 200% over what they paid. There is a lot more potential for profit than if they simply sent it to the refinery as scrap gold. I think your store's downfall was location. If I recall correctly the store was in Turkey Creek which is the most expensive retail real estate in Knoxville. Not exactly where one expects to shop for second hand jewelry. I think they would have done better in a low rent district.
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Pillar of the Community
United States
4897 Posts |
Quote:
Selling jewelery makes complete sense to me. Quote:
There is a lot more potential for profit than if they simply sent it to the refinery as scrap gold Yes and no... I would rather take the smaller profit and buy more gold with it. Jewelery can sit a looooong time. The smaller initial margin can be turned over multiple timenes before the average piece of jewelry is sold. |
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Pillar of the Community
United States
3670 Posts |
You called that JSH, nailed it sir. There was plenty of gold an money within my location there in turkey creek within a 10 mile radius, an very few of them ever need to sell, an buying scrap gold an silver coins an such at a lower cost margin is what keeps a place like that going....
The overhead was 20 grand a month, as I have said we needed to be in a much lower rent location in more of the blue collar side of town, just is what it is.....
Edited by Silverhawk74
05/23/2012 8:46 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
Judge Dredd... Ughhkhghkk . Hey, don't be pickin' on da Judge! lol Yeah, it was a corny movie but it WAS a sci-fi movie and that helps... that and a couple of drinks. "I AM... THE LAW!"  Lots of fans of the Dredd comic books ranted all over the place about this movie and how it didn't follow the comic book line. OK, so what? Those of us who never read the comics didn't have that extra baggage holding us back from enjoying certain parts of this movie. Brainless entertainment? For sure!  |
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Pillar of the Community
United States
3670 Posts |
Lol, Judge Dread. I have a worse Stallone movie, Oscar say no more, lol.... Update on the Chuck Norris sale, he played it up well as I sent an I quote.... "I gotta say, I was totally blown away when I went to get the address information for this Olympic proof gold coin 1988 an saw the name Chuck Norris. The Chuck Norris Missing in Action wow. Walker freakin Texas Ranger bought my gold coin can't get over that, lol.... I hear you are gonna be in Expendables 2, can't wait for that come back, rof .... Anyhow Chuck, the coin is in transit my friend, should be there Wed or Thurs, its a real beaut! Wanted to keep it but I am to poor for gold, so convert it back into some silver bars, take care an I will list more PMz soon an try an keep some cycling most of the year so keep an eye out, smart buy gold or silver always...." An he replied, lol.... "Kevin: Glad the coin is on the way, look forward to getting it. I am about 5% coin collector, 80 silver coin hoarder/buyer/investor?, and try to devote some funds (about 15 percent to gold coins. Will be watching, hope to do business with again. Thanks for the kind words on my upcoming expendables 2, another face lift and more hair dye should have me looking pretty good (I hope) Chuck" There you go, lol. I knew Chuck was ahead of the curve, rich or not from exercise machine sales an staring roles. Just smart to not put all ones eggs in the same basket eh.... |
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Pillar of the Community
United States
2335 Posts |
Quote:
trdhrdr007- I am sorry I misunderstand you. But if you buy 1000oz at say 90% (10% margin) of $35. Then that is $31500. If silver goes to $27, then you sell the 1000oz so $27000. You lose $4500 from that investment. Nothing wrong with your math or comment. You have perfectly illustrated the loss of investment from HOLDING silver during a price drop. That's certainly something stores have to consider when holding inventory that can fluctuate in value. I was talking about the drop in income for a store when there is a price drop. Most stores do a certain volume of business per month. That tends to build until the store is established, at which point it levels off. My point is that if your volume & profit margin stay the same your monthly income drops when the spot price drops. I don't have a store but do buy & sell PM's. Most of what I buy comes from estate sales & antique dealers. I've been doing it for the last few years. The $ amount of PM's I'm able to find in my area has pretty much stabilized. My profit margin can't change because there are other people/stores willing to buy at those levels. Bottom line, I make more money when prices are high than I do when prices are low. |
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Pillar of the Community
United States
2049 Posts |
First sorry to hear about your bad luck. Quote:
We had to clear 20 grand a month just to keep up with our massive overhead, just UN-realalistic.... That's an eye opening number and should really put in perspective what dealers are up against. Perhaps it will open the eyes of the people who bash dealers for "low balling" when they try to sell to the dealer. It gets worse when PMs tank unless the dealer has hedged against the up and down swings. Even that has costs associated with it. Anyway, best of luck to you. Hopefully the time there was good while it lasted and maybe you learned a few things being on the other side of the counter. |
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Posted 05/22/2012 10:11 pm
