| Author |
 Replies: 15 / Views: 1,297 |
|
|
Valued Member
United States
497 Posts |
http://cgi.ebay.com/SILVER-US-COIN-...em5ad60dbca2Silver right now as of the moment is $24.32, wouldnt thisguy want to make some kind of profit? I'm interested in buying a lot. Has anyone ever bought from here before? (IM SORRY IF I POSTED THIS IN THE WRONG SECTION)
|
|
|
|
New Member
United States
14 Posts |
You're confusing the current price for silver with what the seller's basis for the silver is. If he acquired all of the coins (it looks like a real mish mash) when silver was at $15 an ounce, then he's making a profit based on what he paid for it.
|
|
Valued Member
 United States
497 Posts |
so basicly your saying he's still making a profit because he bought for under $25 but the sale is still at melt value?
|
|
New Member
United States
14 Posts |
Exactly. It's the same if I buy an ounce of gold at $1,000 and sell it for the current spot price--the profit is the difference between the $1,000 and the price I sell it for. His profit all depends on what he bought the coins for, not the current spot or market price.
|
|
Pillar of the Community
United States
1080 Posts |
well, he's selling an ounce of coins, not an ounce of silver. So you could get a Walker half dollar (12.5 grams), a Silver Washington quarter (6.25 grams), and 4 Mercury dimes (2.5 grams). This would be 0.83 oz of pure silver which at current melt would be $20.17. This auction is approximately 28% above melt (not including his low, low shipping). |
|
Pillar of the Community
United States
1080 Posts |
Also look at his feedback:
"Wording misleading, felt ripped off! Would not buy from again!"
"i would do business again although the photos were misleading to me as a buyer s"
"seller delivers quantity as listed but of limited numismatic value"
"The picture makes you think your getting more than you actually do get."
etc.
|
|
Pillar of the Community
United States
4212 Posts |
He's sold dozens of lots.
|
|
Pillar of the Community
United States
1534 Posts |
I agree, the seller probably sends junky/possibly non-silver coins. Silver under melt isn't uncommon though and being under melt isn't always "the deal of a lifetime."
|
|
Pillar of the Community
United States
1080 Posts |
Quote:
Silver under melt isn't uncommon though But this isn't under melt... he's selling an ounce of 90% silver coins... that doesn't mean 1 ounce of silver content. |
|
Pillar of the Community
United States
687 Posts |
Read the auction again. specksynder is right. One ounce of coins does not equal one ounce of silver.
|
|
Pillar of the Community
United States
1534 Posts |
I mentioned that because it seemed the OP figured that the auction might not be legitimate due to him believing it was under melt. Quote:
But this isn't under melt. I do agree with that though. |
|
Valued Member
United States
294 Posts |
Problem is, people don't read it through. When I read the listing, I read "1+ oz silver coins". I did not read "1+ oz of silver". So the ad may be confusing to some, but not really misleading (unless you don't read it through). As far as his asking price, that's the beauty of living in a free market society. You can sell for whatever the market is willing to pay. There's nothing illegal about selling a precious metal for more than the spot price. Dealers do it all the time. Profit comes from the difference between what he paid and what he gets. But other posters have already explained that.
Edited by omahaorange
10/17/2010 7:28 pm
|
|
Pillar of the Community
United States
1659 Posts |
This is a very misleading listing.
If you look carefully, he is selling "1 US Ounce 28.4g+" of 90% silver coins. 28.35 grams is an avoirdupois ounce.
Remember that silver is bought and sold in troy ounces. A troy ounce contains 31.10 grams.
Let's suppose you bought one lot from this guy. One lot would cost you a grand total of $29.36 ($25.97 plus $3.39 shipping) and you would receive one avoirdupois ounce of 90% silver bullion coins. Here's the math for what you would actually be paying per troy ounce of pure silver:
Current spot silver = $24.26 per pure troy ounce
28.35 divided by 31.10 = .912 (rounded)
1 avoirdupois ounce = .912 troy ounce.
.912 X .90 (since he is selling 90% pure coins) = .821 (rounded)
You would be paying $29.36 for .821 troy ounces of pure silver.
$29.36 divided by .821 = $35.76 for 1 troy ounce of pure silver.
This amounts to $11.50 over spot for one troy ounce. That is an enormous mark up. Taking advantage of people not knowing the difference between avoirdupois ounces and troy ounces is how this guy makes a profit.
Edited by cwb1877
10/17/2010 7:35 pm
|
|
Pillar of the Community
United States
1213 Posts |
cwb - good explanation and math. This guy is why "let the buyer beware" is good advice. Not much of a bargain.
|
|
Valued Member
United States
463 Posts |
not really buyer beware, more of people should due some reserach before buying anything. Same thing applies when buying a pet, its the owners fault not the sellers part to educate. Its all about money
|
|
Pillar of the Community
United States
687 Posts |
These types of auctions are intentionally deceptive. I just can't believe how many people don't notice the issues even AFTER the purchase.
|
| |
Replies: 15 / Views: 1,297 |
|
Posted 10/17/2010 4:54 pm
