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 Replies: 15 / Views: 1,758 |
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Pillar of the Community
United States
1590 Posts |
I had a customer call me yesterday and asked if I had any 90% for sale. I told him I was not selling at this time. He offered me 30x face. I asked why he would pay that much. His reply? "IT'S A BUYING OPPORTUNITY, HAVEN'T YOU HEARD!".
I tried to reason with him and tell him that 30xface was MORE than what I was charging Thursday before the slide. He did not care and I ended up selling to him.
This morning I had three more customers call me, because the first one had notified them that I still had inventory. They too offered 30x.
In the end I passed them to another dealer who had no scruples. I can hear some of you thinking I am crazy for not making an insane profit.
While I like to make money, I don't like to screw people. And second taking advantage of your customers like that will damage your business in the long term. Because those people will eventually calm down and asses their purchase. And when they do they will realize that they did something really, really, stupid. Who will they blame? Surly not themselves.
My main point is; this feeding frenzy is out of control. Waaaaay too many people have no clue as to the relation between spot and X times Face.
Is anyone else seeing this?
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Pillar of the Community
United States
3294 Posts |
I sold someone a roll of 90% coins a few months back at around 45x face, but I figured that there were some special varieties in there that he saw so he was willing to pay more when I asked what he wanted. Otherwise, I have not seen any of this.
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Valued Member
United States
302 Posts |
I don't see that you are messing with your customers or taking advantage of them if they insist on paying you more than you want after you have clearly explained to them what they are doing and what risks they are taking.
Customers like that do not make good long term customers. And neither do their friends. Any bad-mouthing they do is normally passed off as the ranting of an idiot because those he rants to know that he is an idiot.
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Bedrock of the Community
United States
12437 Posts |
Quote:
And second taking advantage of your customers like that will damage your business in the long term. How is it taking advantage of a customer when it is the buyer calling you and practically throwing piles of cash your way? You did not set the price, they did so that is on them. I suspect they are offering so much because of tight inventories elsewhere and will not think anything of it once silver climbs back over $40 on its way to $50 again. IMO, you can still have a clear conscience without leaving legitimate cash on the table. |
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Pillar of the Community
United States
2120 Posts |
I think some people are starting to realize how undervalued Silver is and want to get physical in their hand. They dont care about the price because they would rather buy and have it at 30x face, than not have any at all.
And its this dynamic, of course, that will drive prices up.
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Pillar of the Community
United States
4132 Posts |
Quote:
Customers like that do not make good long term customers. And neither do their friends. Any bad-mouthing they do is normally passed off as the ranting of an idiot because those he rants to know that he is an idiot. This is true in any business. You'd think people with more money than sense would be a fountain of profits, but the opposite is often true. I work at an Internet company, and sometimes we get people who want to give us wheelbarrows full of money to implement their idiotic idea. No joke - one guy's brilliant business scheme was to make a site just like Youtube, but only for Karaoke videos. I hated to tell him that the site already exists - it's called Youtube and they also have other kinds of videos (there are also dedicated Karaoke video sites, but I didn't want to confuse him.) We've got enough experience to know that these kind of customers do not pay for the misery they cause. |
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Pillar of the Community
United States
3670 Posts |
Jkendall why should you feel bad for their ignorance?
Pops always says...."If your gonna be dumb, you better be tough."
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Valued Member
United States
304 Posts |
I applaud your principals jmkendall. I tell you what, I will give you 20x face, now you can sell to me and feel good about yourself  |
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Pillar of the Community
United States
931 Posts |
Sell it. This just goes to show the separation between paper and physical. I would not ask any advice from those 30X guys though.
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Pillar of the Community
Canada
1502 Posts |
Good on you jmkendall. Not everyday do you see painfully honest sellers anymore. I've told some buyer, when asked about particular coins at reasonable prices that I can;t afford to sell at during a dip, that I wouldn't insult them by trying to sell above market. But, i'd have to admit I would've sold anyways if they pressed, especially I had explained the situation as you had.  |
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Pillar of the Community
United States
667 Posts |
When you see silver at the mid 40's it looks real cheap at around $30. If you put in 100 ounces and it goes up $10 you them made a $1,000 gain. It my be worth the risk for many people since the 100 oz of silver would cost you $3,300.
I think it is reasonable to believe it will reach this height again soon.
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Pillar of the Community
United States
3670 Posts |
It was not like you were taking advantage of them, they know the spot price and what you wanted for it, and they were happy to spend it....
If silver hits 150 an oz. one day, they may feel like they took you to the cleaners instead of them, lol....
Edited by Silverhawk74
09/27/2011 7:46 pm
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Valued Member
United States
123 Posts |
The market transactions determine the value (rather than the spot determining the price). If someone is willing to pay 30x face (because of low quantities, difficulties finding sellers, speculation, whatever), then that is what it is worth for that transaction, regardless of what the spot is. I kind of chuckle at people who are not selling silver right now because the spot is too low (the old "we are out of stock" bit). It makes far more sense to me to just price silver at a price that you are willing to sell it for and let people decide for themselves if they are willing to buy it or not.
I do commend your honesty and your commitment to being fair, but I also do have to call you crazy for not accepting their money even after you explained everything! If they come to the decision to make the purchase, even after you honestly set them straight on the facts and advise them not to purchase, then that is their decision to make!
...but I also celebrate your freedom to make your own choice about the matter, regardless of who disagrees with you!
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Pillar of the Community
1283 Posts |
Send him my way I have a bunch I would sell them at that price.
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Rest in Peace
United States
9104 Posts |
 I'm in for a bag or three at 30 times. |
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Pillar of the Community
United States
4008 Posts |
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In the end I passed them to another dealer who had no scruples. I can hear some of you thinking I am crazy for not making an insane profit. Not a bit of it, JMK. You did the right thing by your standards and are to be respected for that. I would have done the same as you and for the same reasons. I bought a few coins from my local dealer today. Nothing special, just some 90% silver common date US coins. I got 3 Peace dollars, 2 Franklin halves, a Walking Liberty half, and a proof Washington quarter... all at today's spot. He did say that he was seeing a lot of traffic but not a lot of buying. He runs a pawn shop so coins are a sideline for him and not his main business. Quote:
I would not ask any advice from those 30X guys though. Amen to that, Bro! |
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Replies: 15 / Views: 1,758 |
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Posted 09/27/2011 2:04 pm
