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JerrySpringer
Penny Collector Member
385 Posts |
 Posted - 08/09/2008 : 21:37:56
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I ride past a store that buys and sells gold and silver jewelry and coins. In fact, I probably go by a few others on my bike rides. How do these shops fit in with us coin hoarders? Is it within reason to make offers on coins at these places or are many of these shops already highballing over spot prices? Also, is it a good time to visit the pawn shops to buy coins or not?
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Neckro
Penny Collector Member
USA
315 Posts |
Posted - 08/09/2008 : 22:51:14
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| I went to a local one near me, just to check prices, when silver was 20 an ounce, they told me generic bars where 25, and they bought for 15. Just made me sick how they rip off the general public. |
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WheatieFan
Penny Sorter Member
USA
88 Posts |
Posted - 08/10/2008 : 06:04:36
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I went to one place and asked about the colorized silver eagles. The ones that have been painted red white and blue, and effectively ruined in my opinion. I was thinking $1 or so over spot silver, and they wanted $30 each. I didn't bother asking about anything else.
WheatieFan |
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JerrySpringer
Penny Collector Member
385 Posts |
Posted - 08/10/2008 : 09:43:31
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| And these places stay in business? The casual savvy gold or silver buyer must have some idea of spot prices and see that the shops are no bargain. Who keeps them in business? |
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Ant
Penny Collector Member
402 Posts |
Posted - 08/10/2008 : 10:34:14
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I've been in a shop like that before, too. Probably the worst numismatic experience of my life.  It was like I was in some kind of time wrinkle, where everything in the shop was happening in slow motion.
Me: "Hey, wanted to see if you've got any generic silver rounds for sale."
Him: "Wellllllllll, what kind of rounds you looking for?"
Me: "I'm not too particular. Let's take a look at what you've got."
Him: "I got these NASCAR rounds. Ever seen those? They're nice."
Me: " . . . "
Him: "Got these that say 'Happy Easter' on 'em. Lookit, here's one with Garfield on it!"
[I should point out that I'm a 37-year old woman and while I do look young, I don't look *that* young. Or dumb.  ]
Me: "Are these all the same price?"
Him: "NASCAR ones is gonna run you more. Rest of 'em's $25 apiece."
[Silver had closed in mid-sixteens the day before, on Friday.]
Me: "I'll pass for today, but thank you for showing them to me."
Me, Unspoken: "Jerk."
However, a display of jewelry for sale doesn't necessarily mean that a coin dealer is a cheeseball. Example: My main coin guy sells gold and silver jewelry in addition to bullion and numismatic coins. He has only recently starting putting out the jewelry. So many people came in wanting to sell their stuff for scrap that he ended up taking in some nice things. He sends the ugly stuff to the scrapper and displays the better pieces.
This dealer's practice is to check the spot price as soon as you tell him what metal you want to buy. As for prices, it depends on which coins you're buying, since different coins will have different premiums. I usually buy Krugs and he sells those for $10 over spot. AGEs and pandas have a higher markup since, as you know, there are a lot of collectors for those and even coins sold as bullion tend to be in pretty nice shape. Markup on bars is pretty much nonexistent. Generic silver rounds are 50 cents to a dollar over spot.
You never know what kind of deal you're going to get until you actually walk in and ask. If you're quoted a price that seems high, you can always counter. (Unless the guy is like the one I talked to, in which case bargaining with him is like teaching a pig to dance. You just annoy the pig and aggravate yourself.  ) You never know, it could be that those are coins the dealer has been sitting on a while and is just tired of looking at them. The worst thing he can say is no. 
Edited because I cannot spell. |
"No, man. You gotta keep goin'. What am I gonna do? Quit? That's not an option. Life's a garden. Dig it? You make it work for you. You never give up, man. That's my philosophy." --Joe Dirt |
Edited by - Ant on 08/10/2008 10:37:19 |
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wagsthadog
Penny Pincher Member
USA
191 Posts |
Posted - 08/10/2008 : 11:32:41
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Hi all,
The coin store guy's gotta make a living, so I can tolerate a little spread on PM purchases, but it's true that some people are ridiculous.
Went to a flea market yesterday, and some people were asking $35 for 1921 Morgans. One guy wanted $600 for a 1/2 oz gold eagle. Get real.
wags. |
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wagsthadog
Penny Pincher Member
USA
191 Posts |
Posted - 08/10/2008 : 11:35:49
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Only deal I got at that market was a beat up 1943 war nickel for 75 cents. Woop de do.
wags |
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legacypac
Administrator
Canada
1653 Posts |
Posted - 08/10/2008 : 12:01:41
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| I tried the same thing, but all they had was ugly jewelry to sell. What can you expect from pawn shops that deal with the very poor and thieves? The clerk was 1/2 a step above the clients economically, and had zero idea about PM. When I asked about bars and silver coins she looked at me like "Why would you want a silver bar or coin" and said "we never see anything like that". Gold is something to make an ugly biker ring from, Bars are for getting hammered in, and her biggest "investment" might be buying pot seeds. |
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NotABigDeal
1000+ Penny Miser Member
USA
1848 Posts |
Posted - 08/10/2008 : 12:38:55
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quote:
Originally posted by legacypac
I tried the same thing, but all they had was ugly jewelry to sell. What can you expect from pawn shops that deal with the very poor and thieves? The clerk was 1/2 a step above the clients economically, and had zero idea about PM. When I asked about bars and silver coins she looked at me like "Why would you want a silver bar or coin" and said "we never see anything like that". Gold is something to make an ugly biker ring from, Bars are for getting hammered in, and her biggest "investment" might be buying pot seeds.
Nice post. Sounds about right....
Deal |
I'm so sick over pennies....I frequently trade a dime or two for the whole "take-a-penny" container if sufficient coppers exist. That will get you some odd looks. |
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pencilvanian
1000+ Penny Miser Member
2034 Posts |
Posted - 08/10/2008 : 19:54:15
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quote:
Originally posted by JerrySpringer
And these places stay in business? The casual savvy gold or silver buyer must have some idea of spot prices and see that the shops are no bargain. Who keeps them in business?
The uninformed or those too lazy to try to get the recent price in gold or silver are the main customers of these PM con artists.
The typical Joe six pack sees in the paper gold has gone up so he sells his class ring and a broken gold chain for what he thinks is good money, not realizing a legitimate buyer would give him 50% or 100% of what the coin con men offered.
Off topic but worth mentioning (if I didn't mention it before)
A dirty little secret of the jewelry trade-
The markup is 700% or 800% of the melt value, but few in the trade mention this to customers. I learned this from a jeweler who is also a wholesaler as well as a retailer so he doesn't really care if the dirty little secret gets out (This jeweler is a jewelers jeweler, he will make rings, bracelets and necklaces that no other jeweler will attempt. They come to him for the hard-to-make or tough to fix items that he has the skill in making or fixing) |
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Those "We Buy and Sell Gold,Silver" shops
