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 Replies: 22 / Views: 2,899 |
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Pillar of the Community
United States
1304 Posts |
How does a bullion company, in this case Provident, set the price on it's bullion after a day like today when silver went down? Do they reset there prices at the end of the day, the next day?  |
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Valued Member
United States
64 Posts |
I've seen some companies change their prices within seconds of a spot price shift.
They watch the markets very closely...I believe most of them are tied in to the markets and automaticly reset prices.
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Bedrock of the Community
United States
10982 Posts |
A big company like Provident, or any other bullion distributor, does not reset prices per se. Prices are continually updated throughout the day/night and are "Locked In" whenever a deal is made whether it's buy, sell, or trade.
I made a mistake last week on a trade that cost me over $100. A guy had some very nice silver dollars he said he would trade for bullion. After setting the deal with silver at $34.19 he started getting wishy-washy and I offered to make up the $$ difference if silver drops before he received the silver. Big mistake! I won't do that again!
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Pillar of the Community
 United States
1304 Posts |
Thanks for the answers, just wondering how it worked.  |
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Pillar of the Community
United States
2168 Posts |
My local dealer does so as well actual spot price is used for the calculation at the time of sale
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Valued Member
United States
421 Posts |
I know where I buy and sell, they have 7 stores and they set the price for each day in the morning. During the day I haven't seen it fluxate even on bigger mover days.
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Rest in Peace
United States
9104 Posts |
I've had the price of an ounce of gold change $9 while I was on the phone checking the price for a customer.
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Pillar of the Community
United States
2168 Posts |
I know what you are saying about the price changing. My shop uses spot at the time of sale or I guess purchase. I am surprised a store sets and keeps a price all day. It could work fopr or against them. Maybe it averages. But I guess a good place to buy from when prices are rising everypalce else
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Pillar of the Community
United States
4008 Posts |
Quote:
I know what you are saying about the price changing. My shop uses spot at the time of sale or I guess purchase. Same here, Angel. In fact, both of the places where I shop locally have laptop PCs connected to the Internet with the Kitco / markets page up continuously. Each time I make a purchase, they check the spot price of silver at the time of the sale and use that to help determine the exact selling price at that moment. I don't see how they could do otherwise, as volatile as the PM markets can be sometimes. |
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Pillar of the Community
United States
2168 Posts |
Yes they do the same and I believe with Kitco as well.
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Pillar of the Community
Canada
1502 Posts |
not just Kitco, most online dealers will update their pricing based on spot at the time of sale. Some more frequent than others.
The local dealer I frequent is open only on weekends, so he only have to pay attention to Friday's closing price.
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Pillar of the Community
United States
4008 Posts |
Quote:
The local dealer I frequent is open only on weekends, so he only have to pay attention to Friday's closing price. Interesting. How does he respond to a large change in metals prices on the international market, which could still be open when the US markets close? If he doesn't, it might be possible to trade the spread.  |
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Pillar of the Community
Canada
1502 Posts |
The premium he charges isn't high but still considerable, so the market has to Really fluctuate for the small timer like me to make a buck off the difference. Waiting until Sunday afternoon to buy don't work either because he's usually sold out by then. I frequent the place mostly because he gets rare Canadian commemorative coins that he sells by the book (so Very good deals sometimes) and he also don't charge much of a premium for the world bullion he gets in. I can get lucky sometimes with britannias or koalas for $5-6 above spot.
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Pillar of the Community
United States
4008 Posts |
Then you have a good local resource there. That's nice. Not everyone does. I have a couple of local stores that are decent but usually buy in bulk on-line because the local guys tend not to have the volume that I need. I do support the local stores to the extent that I can, though. It's good to have them around and also to be known to them as a customer. If I ever need to sell any of my silver, my 1st choice would be to the local guys. That might be a bit easier if they know me from previous purchases.  |
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Pillar of the Community
United States
2168 Posts |
I am reluctant to buy online since I find more people are involved (bank, delivery people) plus wait time. I just feel like no one really is involved with a local purchase made with cash. I have bought over the phone from the mint and I'm sure any delivery person knows that plainfield address. I just think the fewer that know the better
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Pillar of the Community
Canada
1502 Posts |
I feel bad sometimes buying and immediately turning around to sell for a profit (which is only made possible by the internet). Always exciting to visit though.
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Replies: 22 / Views: 2,899 |
Posted 11/21/2011 9:20 pm
