PM price drops

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JamesTerry's picture
JamesTerry
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PM price drops

Hi guys,

can anyone explain to me why numerous bullion dealers are doing special offers on their bullion?  I have noticed a number of sites offering 1-3% off of gold and silver bullion.  This seems to have come about at a time when people are buying up as much silver and gold as they possibly can anyway.  So why the need to lower prices 'for a limited time only'?

Jim H's picture
Jim H
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References to these sales would be nice JamesTerry

A link or two? 

JamesTerry's picture
JamesTerry
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Hi Jim, this is the site that

Hi Jim,

this is the site that I usually go to.

http://www.bullionbypost.co.uk/gold-coins/britannia-1oz-gold-coin/2013-b...

http://www.bullionbypost.co.uk/silver-coins/britannia-silver-ounce/2013-...

 

They just seem to offer their deals at really weird times.  Never when the market is struggling to offload silver or gold.

Poet's picture
Poet
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WTF Britannia?

I checked out the second link, and even if you buy 100 of these 1 oz coins, it's £22.15 (or USD $34-ish per coin) right now, at a time when spot is roughly USD $21! Buy just one and it's £29.35 or around USD $45.

That second link for 2013 Silver Britania 1 oz. is below:
http://www.bullionbypost.co.uk/silver-coins/britannia-silver-ounce/2013-...

On the other hand, Gainesville Coins is selling 2013 Silver American Eagle 1 oz for about $25.90.

Poet

dreinmund's picture
dreinmund
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To get an idea about bullion

To get an idea about bullion prices and premiums, check out this website:

https://www.comparesilverprices.com/

I know that this list is US centric, but it should give you n idea about reasonable premiums.

JamesTerry's picture
JamesTerry
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Yea if I buy 10 coins I am

Yea if I buy 10 coins I am paying £6 above spot price which I dont think is too bad considering shipping is free.  But I still find it odd that these companies are almost trying to 'offload' their bullion with 'special offers' at a time when surely everyone is happy to snap it up anyway.

JamesTerry's picture
JamesTerry
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Do you also know why the

Do you also know why the premiums in England are so high?  is it because there are no silver mines here like there are in America?  And should I just buy by the kilo to avoid such high premium costs?

Poet's picture
Poet
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No silver mines in the U.K.?

No silver mines in the U.K.? Is that your reason?!?

And yet here in the U.S., I can purchase delicious bing cherries in the middle of December, flown in fresh from Chile, over 5000 miles away - shorter than the 3,500 miles from the Eastern U.S. to London - for only around $4.99 / pound.

If that will salve your wounds at the extra fleecing you are being shorn, by all means, keep thinking that.

Buy by the kilo? How are you going to use something that huge in barter?!?

"Well, I really need those five survival rations and two cans of beans. But this is the only thing I have... This rough half kilo of silver... I broke off the other half to buy an armful of firewood last night, see..."

However, let me offer a thought:

Right now, 5 one-ounce Silver Britannia 2013 coins from that web page you linked to, cost £26.80 each (USD $40.85) before shipping.

You could buy from an American web site selling, say, one-ounce Silver Canadian Maple Leaf 2013 coins for around USD $27.00 (or £17.70) each before taxes (if any, depending on the state) and shipping.

You might want to think about how much it might cost for you to send money to a friend in the United States, and for them to use that money to buy coins, then mail them singly or in fours to you in a plain, thick envelope (like a media mailer for a CD or DVD jewel box). (Disclaimer: Of course you'll want to make sure all applicable laws, customs declarations, and taxes are attended to.)

Poet

JamesTerry's picture
JamesTerry
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Posts: 18
This website has shipping

This website has shipping included in the costs.  I think that is partly the reason that the prices are so high.  Maybe it would be smarter to just buy physical silver next time I am in America.

JamesTerry's picture
JamesTerry
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Posts: 18
Do you have any links for

Am I right in thinking that (bullionbypost.co.uk) gold has the same sort of premium above spot price as all the other websites?  Considering that shipping is included.

Poet's picture
Poet
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Posts: 1891
You'll Have To Do The Math For Yourself

I don't know, honestly. And I don't have time to look up prices again. But just taking the price difference I showed you in my previous comment... Do you think your outlet is justified in charging £9 extra per coin to be shipping and tax inclusive?

Poet

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