eBay Precious Metal Auctions

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Morpheus's picture
Morpheus
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eBay Precious Metal Auctions

I've been bidding for a 65/35 mix of gold/silver (by value) on eBay for months now. Has anyone else used eBay? 

I've never beenripped off, but I find that ALL auctions usually result in winning bids ranging from 5-25% above spot.

Not really puzzling if you ask me. This IS the actual market price. At first glance some might think that this does not pass the common sense test as spot price is supposed to reflect the market's price of the metal per demand.

That is, unless you question the spot price. LOL

What % above spot are you folks paying for metals? 

SagerXX's picture
SagerXX
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Re: eBay Precious Metal Auctions

 5-6%

Ken C's picture
Ken C
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Re: eBay Precious Metal Auctions
Pete In Florida wrote:

I've been bidding for a 65/35 mix of gold/silver (by value) on eBay for months now. Has anyone else used eBay? 

I've never beenripped off, but I find that ALL auctions usually result in winning bids ranging from 5-25% above spot.

Not really puzzling if you ask me. This IS the actual market price. At first glance some might think that this does not pass the common sense test as spot price is supposed to reflect the market's price of the metal per demand.

That is, unless you question the spot price. LOL

What % above spot are you folks paying for metals? 

Pete,

You can get spot price if you have the where-with-all to go to the London Metal Exchange (LME) or Comex and buy a large bar like a 100 oz or 400oz bar. For smaller items like coins or small bars you end up paying for manufacturing cost as well as dealer  mark-up.

As far as EBAY goes- I don't think buying PM there is the best deal. I have watched it from time to time and as you say the bidding seems to be a little out of line. I think that you can get a better deal with dealers like APMEX, CNI, KITCO and others.

Of course you probably do have the ability to take delivery on a 400 oz bankers bar. Let's see 400 times 955 (approx) is about 382000. Just barely lunch money, eh. I think I have to stick with 1 oz coins and pay the markup.

 

Ken

 

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Morpheus
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Re: eBay Precious Metal Auctions

Sager's thinking along the same lines as I am doing. I am typically paying around 5-6% above spot although I have jumped as high as 10% depending on the traffic of the day. One of things I practice is patience. I typically set max bids at about 6% above spot and do this on a dozen different bids. If I win ONE I am lucky. I've seen grams and troy ounces of gold go for 25% above spot in bidding frenzies. I am not going there.

Ken. Don't have a qtr million to throw around so the manufacturing costs have to be eaten. I do seek bullion over coins because they bid lower.

Right now I have 2K in emergency Federal Reserve Notes and another 3K in CAD for emergencies. Otherwise, my working plan is every dime of savings into PM's save 250 CAD added every month until I hit 5K.

The plan is coming together nicely. Now if I just had more time.

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SamLinder
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Re: eBay Precious Metal Auctions

Pete,

I used a local dealer for my one gold transaction on 19 May 09. At the time, I paid approximately 3.6% over spot because I bought multiple coins.

The dealer is AJPM in Portland, OR (http://www.ajpm.com/htbin/gold.cgi) and will ship anywhere in the country. Looking at today's sell price for Krugerrands you would pay approximately 4.75% over spot for a single coin at AJPM. I have checked other gold dealers on line (Kitco, APMEX, amergold.com) and found them to sometimes be pricier than AJPM and other times cheaper as you can see below:

As an example, at todays (07Jun09) prices <$955.60 spot> (shipping, insurance, etc. not included).

amergold.com 1 oz. gold Krugerrand: $1,018.36 (approx. 6.5% over spot)

APMEX.com 1 oz. gold Krugerrand: $998.45 (approx. 4.5% over spot)

Kitco.com 1 oz. gold Krugerrand: $1,027.95 (approx. 7.7% over spot)

AJPM.com 1 oz. gold Krugerrand: $1,001.00 (approx. 4.75% over spot)

 

Prices will vary by coin. As an example, Gold Maple 1 oz.

Kitco: $1037.56, AJPM: $1,015.00, APMEX: $1004.35, amergold: $1,017.36

All the coins are 1 troy ounce of gold so I don't know why the prices fluctuate so much from dealer-to-dealer. Guess it must be supply and demand.

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SamLinder
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Re: eBay Precious Metal Auctions
Pete In Florida wrote:

<snip>

Right now I have 2K in emergency Federal Reserve Notes and another 3K in CAD for emergencies. Otherwise, my working plan is every dime of savings into PM's save 250 CAD added every month until I hit 5K.

The plan is coming together nicely. Now if I just had more time.

Pete,

I'm curious as to your saving CAD's. Apparently you think it will hold its value better than USD. Is there a reason you chose CAD instead of Yen or Euro or other currency? Is it because you consider Canada a good bug-out locale?

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Morpheus
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Re: eBay Precious Metal Auctions

Sam. Canada's financial system is in somewhat better condition than ours (for now). Also, my reasoning is that Canada is filthy rich with natural resources and a small population so she'll be able to hold her economy much better than ours. It's a diversification strategy really. I don't want to place all my eggs in gold (in case Obama tries to steal it like FDR did in the 30's). Federal Reserve Notes are for the event of a sudden shock to the economy like a bank holiday. The funny money gets spent first. CAD is liquidity that I am hoping won't inflate away as fast as the our Private Banker's Debt Enslavement Instruments, aka, Federal Reserve Notes, aka, US dollars. So, they get spent next. I have also invested in some petty cash generating ideas such as beermaking (miserable people like to drink). Extra ammo is for trading, as ammo will be worth it's weight in gold. Silver is also more transferrable as you can barter the less valuable per oz silver for needed goods. Gold is a long-term reserve for me. I am also overbuying other commodities that will be in extreme demand, such as vegatable seeds, soap, and common daily items.

Right now on my radar screen is a Saiga 12 shotgun. I need a real solid defense weapon in the event that zombies wreck all my plans with a massive break-in. The Saiga 12 is the most hard hitting, legal self-defense weapon I have ever seen. It really has the ability to "knock down all the pins" in one strike, if you know what I mean. :)

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SamLinder
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Re: eBay Precious Metal Auctions

Pete,

Sounds like a good plan to me. I've got family (first cousins) in Kamloops and Kelowna, BC. I should give them a holler and ask them how they see the situation on the ground from their perspective. Maybe I should also warn them to set an extra place or two at the table if things get dicey here.

Where do you pick up your CAD's - at a local bank or is there a money exchange facility near you? This sounds like a good plan - think I'll look into doing this myself.

I like your idea of overbuying on basic commodities. If it turns out you don't need them for barter, you'll always be able to consume them yourself down the road.

I'm slightly bemused by the fact that you want the Saiga 12 shotgun. I thought you already had all the firepower you needed!

 

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Morpheus
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Re: eBay Precious Metal Auctions
SamLinder wrote:

Pete,

Sounds like a good plan to me. I've got family (first cousins) in Kamloops and Kelowna, BC. I should give them a holler and ask them how they see the situation on the ground from their perspective. Maybe I should also warn them to set an extra place or two at the table if things get dicey here.

Where do you pick up your CAD's - at a local bank or is there a money exchange facility near you? This sounds like a good plan - think I'll look into doing this myself.

I like your idea of overbuying on basic commodities. If it turns out you don't need them for barter, you'll always be able to consume them yourself down the road.

I'm slightly bemused by the fact that you want the Saiga 12 shotgun. I thought you already had all the firepower you needed!

 

 

First rule. When holding assets you can never have too much firepower. (although presently in a safety deposit box).

Second rule. See rule #1 and get extra shells.

Thanks for the tip on the online broker! 3.6% above spot! I pay about 4.4% above spot locally so this is even better. Problem is that locally I can't get a supply 3/4ths of the time.

I get my CADs at Scotiabank locally. Miami is a big international hub for import/export and finance.

SteveR's picture
SteveR
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Re: eBay Precious Metal Auctions

I've had good luck buying PMs on eBay.  I always picked sellers with impeccable feedback.

Here is a handy link that lists prices on eBay for various bullion coins, such as American Eagles.

http://www.24hgold.com/english/buy_sell_gold_coins.aspx?co_id=0

SamLinder's picture
SamLinder
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Re: eBay Precious Metal Auctions
Pete In Florida wrote:

Thanks for the tip on the online broker! 3.6% above spot! I pay about 4.4% above spot locally so this is even better. Problem is that locally I can't get a supply 3/4ths of the time.

Pete - I need to make sure that you realize that the 3.6% above spot on that particular sale was because AJPM was offering a special on Krugerrands that day - but I had to buy multiple ounces to get the deal. Normally, his spread is larger. E.g. today it was 4.75% on single coin purchases.

AJPM is also not an "online broker". They have a brick storefront here in Portland but also advertise their wares on their web site. When I buy from them, I can wire the money, send them a check, or simply show up at their door with cash.

AJPM will often advertise a daily deal on their website. If it's something of interest, you have to move fairly quickly or someone else might snap it up. I think it's because they periodically buy collections from someone and then turn around and offer all or part of the collection as a deal for that day only.

As an example, I bought some silver coins from them recently that was a daily special: Fifty-nine 1 oz. silver coins (mix of Eagles, Maples, and Austrian Philharmonics) for $1,000.00 delivered to my door. That same day, he was asking more than $18.00 per 1 oz. silver coin if you just bought them singly.

If you go to their web site right now, you'll see the following as they forgot to take down Friday's special:

Affordable Jewelry & Precious Metals Incorporated
304 SW Washington Street * Portland, Oregon 97204
Phone: 1-800-690-4995 - Fax: 503-227-4204 - E-mail: [email protected]

Home Gold Bullion Silver Bullion Platinum & Palladium Gold & Silver Specials
Welcome to our Silver Bullion Page!
Web Specials Last Update: 06/07/2009 23:29.07 EDT Gold Silver Platinum Palladium
Metal Spot Prices from Kitco.com:
(Prices are accurate & updated every minute)
$ 960.20
$ 15.47
$ 1273.00
$ 263.00

How to OrderHow to Order    Phone Trading hours are Monday- Friday 8am-8pm PST

Our Retail Store hours are 9 am to 4 pm Monday - Friday.


If you have questions about how to Buy from us, how to Sell to us, prices or procedures, please, take a moment of your time and read our HOW TO ORDER PAGE Before Calling!

Web Specials June 5th 2009

  • 3 pc lot. Austrian 4 Ducat 1350 Delivered
  • 21 pc lot. Swiss 20 Francs, Uncirculated. CHEAP! 4095 Delivered.


As I noted in an earlier post, you may get better deals at a different dealer (e.g. Kitco or APMEX), so it's always good to shop around. I like AJPM because they are local and service is quick - I get delivery the next day if I do a wire transfer. If they advertise a coin, then they have it in stock - no back ordering.

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