patrick.net

$100 for a Government Minted gold ounce is absolutely, positively absurd. Even if gold dropped tomorrow to 2001 prices - obviously highly unlikely - they'd be making 300-400 profit.

Now, you may not get spot (since the price of PM's fluctuate from day to day and retail stores have overhead), but you should get within about 10% of it. Naturally the pawn broker is taking a risk that the price might drop rapidly the moment they buy it.

I would walk in with the WSJ or a print out of the morning's Kitco graph and say, "I'll give you a deal on Gold at 5% off spot."

I just sold about 10 ounces of silver and got $27 each at the pawn shop a few weeks back, taking a little less than a 10% haircut. These were generic rounds and not government minted coins, either.

Where are you located?

frodo says

When I take the coins into town, no-one will give me spot price. I check the pawn shops, they will give me spot - $100 for the gold, and the jewlrey stores will give me spot - $75.

LOL, you read this real life experience and compare with stuff spouting from King World News / James Turk etc. their analysis looks ridiculous and so one-sided. Eventually they may turn out to be right, but given the twists and turns the market takes -- clearly they don't acknowledge or foresee these turns.

frodo says

I feel like I should expect at least spot price, but I am lacking knowledge here. I think my marketing is flawed.

Getting spot-price at least seems reasonable. Have you tried apmex? They're a big player and they usually take metals back at a reasonable price from spot.

Checkout Tulving too..

http://www.tulving.com/New%20Pages/buying_bullion_coins.html

Most coin shops will give you spot for minted coins... like SAE, Gold Eagles etc...

They will always undercut by a bit on rounds.

You could also try Apmex.

Cruising the blogosphere and saw your post. I may be interested in purchasing from you. Please contact me at southerntier@hushmail.com and we'll discuss details. Please send a detailed list of what you have. Are these 1/10 oz or 1 oz coins? How many? What year? Where did you buy them? Etc. Thanks!

this is why I never went out and got physical gold. I just felt like I'd be getting screwed if I try to sell it or have to pay some exhorbitant commission.

frodo says

I check the pawn shops, they will give me spot - $100 for the gold, and the jewlrey stores will give me spot - $75.

Pawn shop is a business, not gold speculator. If you can sell your inventory for 1,800, would you buy it for 1800? You buy it for $900. Since gold is fairly liquid, it has a $100 delta or about 5% - 6% gross margin.

Retail user of gold are jewelry fabricator, but even then, they probably buy below spot as well. And since the fabricator has more leverage than you, they will demand spot minus as well.

thunderlips11 says

$100 for a Government Minted gold ounce is absolutely, positively absurd. Even if gold dropped tomorrow to 2001 prices - obviously highly unlikely - they'd be making 300-400 profit.

I am sorry if I was unclear: the offers were for (Market Spot - $100.00) ~ $1550.00 today.

I would walk in with the WSJ or a print out of the morning's Kitco graph and say, "I'll give you a deal on Gold at 5% off spot."

Yes. I gotta get my marketing game on.

I just sold about 10 ounces of silver and got $27 each at the pawn shop a few weeks back, taking a little less than a 10% haircut. These were generic rounds and not government minted coins, either.

Let me see, 10% of the current spot price is $165.00. I ain't gonna' take a 10% haircut on premium Sovereign Bullion. The price has been stable at ~ $1650.00 for a while now.

Where are you located?

Ione, California, but the local main street I am speaking of is in Jackson, CA.

EDIT: FORMATTING

uomo_senza_nome says

Getting spot-price at least seems reasonable. Have you tried apmex?

I would rather conduct cash transactions.

GameOver says

Serpentor says

this is why I never went out and got physical gold. I just felt like I'd be getting screwed if I try to sell it or have to pay some exhorbitant commission.

I feel you. That's why I never finished High School; I felt that if I earned a higher income later in life they'd only tax me more.

-"I NEVER wipe after pooping, it only encourages

commercial tree harvesting" Jen O'Syde

LOL, Thanks for saving me the time. . .

frodo says

I am sorry if I was unclear: the offers were for (Market Spot - $100.00) ~ $1550.00 today.

Ah, that's not too terrible. You're probably going to take a haircut when dealing with pros in the Jewelry and Pawn business.

frodo says

Let me see, 10% of the current spot price is $165.00. I ain't gonna' take a 10% haircut on premium Sovereign Bullion. The price has been stable at ~ $1650.00 for a while now.

Frodo, take a look at December's Gold Spot:

In their minds, it could be $1500 tomorrow, or $1700 in the course of a few days. That's why they're going to offer you less.

I brought most of my Silver between $8-13/oz, so taking about 10% off $29 didn't really bother me too much.

I sold to APMEX last time. Got a check in the mail about a week after I shipped. Would do it again.

I would rather conduct cash transactions.
Don't forget to give your 28% cut to Uncle Sam. I can imagine that cash only buyers will offer a greater markdown than other dealers.

EBGuy says

I would rather conduct cash transactions.
Don't forget to give your 28% cut to Uncle Sam. I can imagine that cash only buyers will offer a greater markdown than other dealers.

Just go to a coin shop that will give you cash/cut you a check.

If you are in the Bay, try http://www.oaklandsilverandgold.com

EBGuy says

Don't forget to give your 28% cut to Uncle Sam.

No doubt. . .

B.A.C.A.H. says

If you are in the Bay, try http://www.oaklandsilverandgold.com

Thanks, I called and I think they are out to lunch!

The markets are up drastically today. I'd most like to get rid of my palladium, and keep the gold. I am still of the opinion that gold is a good thing to have.

You could have just listed it all for sale on your post with fair prices. People send you check or money order, it clears, you then mail the item. It's really quite simple, the old way of doing things, but alas, your of the persuasion that it's not something you can do yourself don't want to take the cut, but yet complain about the cut. A better place to advertise is coin forum sites that are full of buyers and sellers tired of paying ebay prices, listing fees, retail markup, and sellers fees.

everything says

You could have just listed it all for sale on your post with fair prices. People send you check or money order, it clears, you then mail the item.

Yeh, s/he could do that, post on the internet that s/he as physical gold for sale, for anybody and everybody to know, that s/he has physical gold. It'd be a ironic if the publically announced physical gold was locked up safe and sound in a safe deposit box, but the unsavory people on internet didn't know that when they planned their crime.

I meant what I said, the numismatic community is pretty tight. I would also email the poster who left his email address. Send him pictures, take his order, wait for the check to cash, then send him his stuff. To easy. Trust me, the few will come back with bigger orders after trust is established. Oh, and sorry about my curt previous post, I get a little moody sometimes but mostly just to prove a point. Oh, and the maples should sell instantly, although I don't think they carry much premium, people love them.

joshuatrio says

Just go to a coin shop that will give you cash/cut you a check.

BANG!

That did it. Thank you joshuatrio.

Like, I said in my OP, I think this is a failure of my previous marketing strategy. Others had a comment on that, so I will save my comments on this for them.

I called a coin shop in Lodi. They gave me (Spot - $10) for my Palladium Maple leafs. Market was $689/oz when I sold. No questions asked. . . The way I like it.

everything says

You could have just listed it all for sale on your post with fair prices.

I have too much respect for patrick to use his fantastic blog in such a manner.

People send you check or money order, it clears, you then mail the item. It's really quite simple, the old way of doing things, but alas, your of the persuasion that it's not something you can do yourself don't want to take the cut, but yet complain about the cut.

I asked a pertinent question regarding investing. The precious metals markets are discussed here in great detail, since I am a member of this online community, I thought it would be a great way to find out what I was doing wrong.

Furthermore, since you pressed my buttons, I will reply to your sarcasm in kind: The old fashioned way, is to go outside and hawk your goods, not trying to figure out how to insure some $XXX,XXX,XXX.XX worth of bullion in the mail. I don't have a Lords of London policy number so I'm gonna' stick to the real old fashioned way of doing things: Gun on my hip, and gold in my pocket. OK?

Continuing along, and regarding the 'haircut' $10 is fair, $100 is not. I got a $10 cut, thanks to this community. . . You guys are AWESOME!

A better place to advertise is coin forum sites that are full of buyers and sellers tired of paying ebay prices, listing fees, retail markup, and sellers fees.

Do you always place your foot in your face before you have something valuable to add to a conversation? For what it's worth now. . . Thank you, that's good advice.

EDIT BELOW:

Oh, and sorry about my curt previous post,

It's all cool. Thank you.

Try to find a buyer on free local ads that will pay you half way in between. This way you both get a better deal.

If you want to sell in order to "hedge" against a short term pull back in price I suggest you look at other hedging alternatives. Not only do physical PM transactions come with too high of transaction fees (as you now see) but on top of that can the capital gains taxes kill your profit and strategy. If you want to hedge for price pull backs as we had in late August / early September I suggest you look at this strategy instead:

http://www.wtffinance.com/2011/08/how-to-hedge-physical-silver-and-gold-positions/