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Silver sells for less than spot on eBay?

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Hola. Can someone explain to me why certain coins sell for a substantial discount off spot, when fees are figured in?


My specific examples are Canadian. For example, there are a lot of Montreal Olympic $5s and $10s that sold for $275. Assuming the seller takes Paypal, with eBay fees, that will be $242 in the pocket of the seller, after all is said and done.




So why would this happen? Wouldn't the seller have been better off just taking these 10.115 ounces of silver to a(nother) dealer? Current spot would make that lot worth $305+. What is the typical discount a dealer takes off spot for these? Surely it can't be the 20%+ that selling on eBay would require...


What am I not understanding? Are Canadian coins not "good silver"?

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Many dealers don't want to deal in this stuff and therefore will pay accordingly. 15%-25% back of melt is not unheard of.


Smelters are also backed up whenever metal prices move higher. You may have a lot of silver now at $30/oz spot, but by the time the smelter gets around to it, silver may be $20/oz. Also, the smelter isn't free and you need quantity - meaning you either have to buy a lot at once or save it up until you have a quantity and therefore take the risk of metal prices going down.



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I have sold bags to Tulving for kitco spot no problem check in mail over night


Tulving Company, Inc. (The)

P.O. Box 6200

Newport Beach CA 92658


Phone numbers:

Voice (1) 714-545-3030

FAX (1) 714-545-3031

WATS (1) 800-995-1708

Email hannes@tulving.com


WWW http://www.tulving.com


Dillion Gage will by about the same maybe 5% under spot for small amount 5oz or so...


Dillon Gage Inc. of Dallas

15301 Dallas Parkway

Suite 200

Addison TX 75001


Phone numbers:

Voice (1) 972-788-4765

Voice (1) 800-375-4653

FAX (1) 972-490-3218

Email sreichenberg@dillongage.com

Email amarchus@dillongage.com

Email mjeddeloh@dillongage.com

Email thewitt@dillongage.com

Email mneese@dillongage.com

WWW http://www.dillongage.com


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When I need some silver, I'd love to purchase for spot minus 5%! I make those offers and it takes a while but I usually get someone who understands they are making more money than they would have otherwise on ebay.

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It just goes to show that if you are diligent in your searches, there are always profits to be made in silver.


The example you give is of a seller not fully aware of the value of the lot they are offering.


Canadian, Austrian, etc. coins all have their purity backed by their governments. It is all "good silver".



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