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 Replies: 36 / Views: 3,307 |
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Pillar of the Community
United States
1590 Posts |
A year ago I couldn't keep gold on the shelf. Now it's been three months since anyone has bought gold at all! Most customers are weary of the rising price/rush to buy....and then the bottom falls out and they are left with pm's that they paid way too much money for.
It used to be that when the price of gold and silver went up people would buy.
Now I see a lot more people using the adage of "buy low, sell high".
Anyone else seeing this weakness?
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Pillar of the Community
United States
830 Posts |
Well last year was crazy, how is it compared to 2 or 3 years ago?
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Pillar of the Community
United States
2335 Posts |
I buy scrap sterling/gold at yard sales, estate sales, antique malls, etc. I sold a batch to one of my regular buyers last month. His company did many millions of dollars of business last year. He told me that the volume of their business has suffered a massive drop on the buying & selling end.
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Pillar of the Community
United States
619 Posts |
I've also read that the two biggest hotel gold buying companies have shut down due to low sales. The owner of one was just arrested for fraud.
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Pillar of the Community
United States
808 Posts |
I was talking with one of my LCS owners the other day. This guy travels to regional coin shows throughout the US and he too mentioned that transactions over all were way down. Few buyers or sellers.
I thought this was interesting since the trading volume in the equities markets has also been very thin this summer.
Edited by coinwatch
08/22/2012 09:49 am
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Bedrock of the Community
United States
36777 Posts |
I think the average Joe already has his little gold stash for insurance and is now directing extra money towards food and other needs as the prices continue to rise rapidly on those. As things continue to get worse in the economic world, less people are going to flip metals for quick profit and do more holding.
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Pillar of the Community
United States
1450 Posts |
I believe everyone is taking a breather(both buying and selling) until there is a sudden big move up or down,and if that doesn't happen,things will pick up after the November elections. With both gold and silver being range bound for the last few months it is hard to figure where things are going so everybody is standing pat or just dabbling,looking for bargains. I would not read too much into this slowdown,it is still the end of summer.
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Pillar of the Community
United States
2602 Posts |
At the recent coin show, I asked a number of dealers at the end about precious metals- all said sales were very weak and they did more buying than selling.
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Pillar of the Community
United Kingdom
616 Posts |
I was at a placed called Dallas Gold and Silver Exchange yesterday around lunch. According to them they had been very busy selling all morning. I know they have also been recently expanding. How much of the change in buying could be do to other players in the market like internet based companies or places like Dallas Gold and Silver Exchange?
Edited by starbuxinvestor
08/22/2012 10:19 am
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Pillar of the Community
Canada
834 Posts |
My dealer has been busier than ever, with these low prices people have been rushing in to buy, not many sellers. Keep in mind I live in a wealtheir city with very low unemployment and lots of jobs... I've been on a buying mission over the last 4 months. Gold and silver are a gamble and I'm a gambling man. If gold shoots up to $2500 I made a good buy at $1500-$1600 a oz, if it drops to $1000 $500 well it's a risk I'm willing to take.
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Pillar of the Community
United States
5832 Posts |
Summer vacation till last week of August, 3rd quarter for financial printing will kick in next week, so my guesses would be activities will pick up about the same time.
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Pillar of the Community
United States
2120 Posts |
I usually see plenty of gold at shops, but they cant keep silver in stock.
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Pillar of the Community
United States
808 Posts |
Quote:
How much of the change in buying could be due to other players in the market like internet based companies or places like... Dallas is a unique market due to comparatively low unemployment, low cost of living, and an abundance of affordable real estate. As a result, local "g&s" retailers with pretty storefronts have stepped up to meet the needs of affluent customers with very limited knowledge of the PM market. It's a lucrative business for the retailers and a pleasant shopping experience for someone who'd feel out of place or unwelcome in a more traditional coin shop. Though tremendously successful here in Dallas, I'm not sure how well this business model translates to other parts of the country. As for the impact of online PM dealers, there's no question that they are making a huge impact on the buying and selling of PMs both here in North America and around the world. Edited by coinwatch
08/22/2012 2:00 pm
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Pillar of the Community
United Kingdom
616 Posts |
From what I could tell because of shipping and such buying a single Gold Eagle at DG&SE was essentially the same as ordering from virtually any of the online retailers and you got it immediately. My guess is with multiple coins online would be better. I must admit I am still a little certained about sending a large check to an online dealer. I mean for a few silver coins I can deal with it but for 1 oz. gold coins it seems to take a lot of trust. But I will cross that bridge when I come to it.
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Pillar of the Community
United States
808 Posts |
@starbux - I completely agree that you must factor in shipping, insurance, postage, and possibly banking fees to do a proper price comparison. If DGSE's pricing has really become competitive, that's great news. And, I might add, it's about time!
My online benchmark has been Provident Metals. Their pricing and broad bullion inventory is typically excellent. Coin quality has never disappointed. Best of all they are based here in North Texas so delivery can be astonishingly quick if you pay by wire or postal money order.
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Pillar of the Community
United States
4008 Posts |
Quote:
Anyone else seeing this weakness? I'm thinking that as expensive as gold is, a lot people simply cannot afford it these days. The current $1640 per oz. price of gold has me thinking twice about buying some and I am a long way from being of average means. Combine this with the summer vacation season and the costs of heading back to school coming soon I can see that whatever money people have on hand is already spoken for. Silver is a lot more affordable and people are still buying it in good volume. My local coin store buys and sells both gold and silver. The owner says that silver buyers outnumber sellers 3 to 1 and that it is the opposite or a little better with the gold buyers vs. sellers. I don't know how representative of the market this one single example is but it seems to be in tune with what I am reading on-line. |
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Replies: 36 / Views: 3,307 |
Posted 08/22/2012 06:41 am
