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 Replies: 12 / Views: 2,454 |
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Pillar of the Community
United States
1476 Posts |
Is there any other ways to turn your bullion into cash? Like if you invest in the metals as a savings device. Are the only options going to a dealer or the public like selling on ebay or similar format? Are there still institutions that will "redeem", (for lack of a better word), for a fair price? I do not own any gold and very little silver, but that question just popped into my head. Thanks all.  |
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Valued Member
57 Posts |
Not only is gold and silver a world liquid market, many places such as pawn shops, refineries,
metal dealers really like to deal in gold and silver, they enjoy it. You can get "fair prices"
by just calling a few places and asking. They instantly sell most of what they buy to the market
they are plugged into. I bet there are some pawn shops close to where you are, call.
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Valued Member
57 Posts |
I'm talking about gold and silver bullion coins and well known bullion.
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Pillar of the Community
United States
4333 Posts |
Let's say you bought 1,000 ASE's a while back at $17 ea. (silver $15.50). Sell back to the online place you bought them from for 18. $1,000 profit. When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
United States
808 Posts |
Keep in mind also that some buyers may have minimum dollar value requirements. For example, one of the best known online PM dealers requires you to sell $10,000.00USD or more worth of PMs in order to get their highest offer price for your metals. They'll still buy lower amounts but their buy offer will be less per ounce.
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Pillar of the Community
Canada
3049 Posts |
All prices of precious metals should be based somewhere off of something called "spot price" a price that is the current market trend, it changes all the time... in one day in can fluctuate very little or a whole lot. I would suggest if you were looking to sell.. call around to the places that say they buy gold or silver. Tell them what kind of gold or silver you have. Most U.S. silver coins (decimal/past currency) is 90% older Cdn. stuff is 80% with some stuff before the 30's being sterling or .925. You can also find bullion which will be .999. The same is similar to gold.. except the purity is talked about in terms of carrots, or .999. Call a few places... ask them if they buy. Ask them what they have for spot price and what they're willing to pay for _______. Then you can determine what percentage of spot each place is willing to pay with respect to "spot". A dealer has to make some money on the buying and selling of PM's so they may offer a slight percentage below spot but I would be leery to sell if anyone was less than 10% of spot... conversely I think there would be some sort of "con" if a shop was willing to pay more than 10%... Most deals I've had and from dealers I know.. they buy at around 5% below spot and then charge some "premium" that works out to be around 5% above spot.. that gives a 10% cushion to move material and still make a few bucks off the trade. As for places to sell... well the we buy gold shops... pawn shops are usually notorious for not giving the best prices and charging the highest premiums. There may be a PM dealer in your city/town...or you can use an online dealer.. there's also ebay, or craigs list or something like that... but be safe.. Good luck! |
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Valued Member
57 Posts |
There are pawn shops that have strong precious metal activity that
buy and sell within the same ranges as any metal dealer.
I used to sell raw gold that I mined to one.
You have to be careful in finding one, but you can.
They are the ones that enjoy dealing in gold and want to encourage it.
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Pillar of the Community
 United States
1476 Posts |
Thanks all! To bad the days are gone of walking into an assay office to make a deposit.  |
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Pillar of the Community
United States
1913 Posts |
The problem with buying/selling precious metals is that you're almost always buying/selling to a middleman. When you're buying/selling stocks, the middleman simply facilitates the transaction for a small fee, but you're actually buying/selling to someone else. Because the middleman has to make money in the risky bullion market, he has to buy below spot and sell above spot. Ignoring the price changes in the precious metals, this price difference between buying and selling is what puts you in the hole. You want to keep it as small as possible. Sometimes you can actually buy and sell at spot, but it's very difficult. For example, a couple of months ago I bought three 1oz gold bars from a major national dealer on ebay for spot. They were delivered to my house for no additional charge. They came in the factory certified holders and are individually serialized. Last weekend I was at a large coin show. Another major national bullion dealer was there. I asked the guy what he was paying for gold bars. While I was expecting him to say 98% of spot or something similar, he said spot. I said OK and he paid me. He had a device to make sure the bars were pure gold which was kind of interesting. After he paid me, I asked him how a competitor of his could sell at spot the bars he just purchased. He said that they had to move something for someone, but somebody was taking a loss. It also probably helped that this particular buyer had no gold in his case, but had a good amount of silver. My guess is that he probably turned the two bars around at the show for a quick profit. |
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New Member
United States
5 Posts |
When I was in the situation of selling gold coins, I made really bad experiences. I was confronted with unreliable and greedy gold buyers. I strongly recommend to sell only to experienced coin dealers but I have to admit that I was never paid the spot price and for me that's comprehensible. I fully agree that the buyer has to make a little profit, otherwise his business can't work well. But the percentage of the profit is important. A profit of 3-5% for fine gold is acceptable anything higher is not. Very rare coins or bullions can be sold on ebay to attractive prices. Collectors and private investors are willing to pay you 10-20% above spot if you sell average bullions over there, not to mention the prices for rare coins or bars. |
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New Member
United States
49 Posts |
You may want to research Roth IRAs for a savings device. If I have read correctly, you can transfer a certain set of bullion brands into this type of requirement account. Therefore, you can technically be in possession of physical Ag or Au (in your own possession or by a storage company) and still earn interest on the value of metal you have.
Don't quote me on anything here, but it is definitely an option if you would like to look in to it.
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New Member
United States
5 Posts |
I heard about the Roth IRAs but I'm not convinced. There are too many disadvantages for my opinion.
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New Member
United States
49 Posts |
silverhunter,
Do you mind sharing those disadvantages you had in mind? I've heard very good things about generic Roth IRAs as securities/ investment devices, but nothing about their use in precious metals investing. Thanks
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Replies: 12 / Views: 2,454 |
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Posted 04/09/2015 6:23 pm
