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Thread: Buying Silver vs. Selling Silver - The Spread

  1. #11

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    The coin shop I deal with charges $1.50 over spot for 1 oz Ag rounds, $1.37 over for 90% junk, $4 over for ASEs. I checked into Gainesville Coins, the prices seem OK, but one gets hammered on the shipping charges. I feel better dealing face to face. Bought a bunch of Peace Dollars a week ago. The dealer brought out a box of PDs and I picked out the ones I wanted. Not like the Engelhard ozs I bought on eBay, most of which were tarnished. I could see why no picture was included. I'll gladly pay a buck more and know what I'm buying.

  2. #12
    Join Date
    Nov 2008
    Posts
    2,178

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    Early December I paid something over $4 premium on some ASEs. Last week at a different dealer I paid 3.50 premium on ASEs. If their buy price was near spot or a bit lower that still results in an incredibly low margin. I don't see how any brick and mortar retail shop can operate on those low margins. I sure wouldn't do so.

    Figure something like 10% on clothing for instance. That would be, at best, it cost the retailer 10% of what they first sell the items for... so they operate on a huge margin - something along the lines of 1000% markup resulting in a 900% margin. Clothing may be a bad example since it can be notoriously marked up... but figure many other non-clothing retail shops sell at a 50% markup for a 33% margin.

    So how a coin shop can keep the lights on, pay staff, insurance, and all the other expenses and still net something on a 11% margin is beyond me.

    Getting a 1 oz gov mint coin at just a few dollars per ounce more than what a 5000 ounce bar cost seems like an incredible deal to me.

    And it may soon seem cheap at twice the current premium.

    Silver coins are like gas in the USA. Be thankful both are cheap.

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