Silver sells for less than spot on eBay?

[RockMyAmadeus]

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.

 

http://cgi.ebay.com/1973-1976-CANADA-Olympics-Silver-Bullion-Lot-5-10-/140506698006?pt=LH_DefaultDomain_0&hash=item20b6da1116

 

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"?

[grade it-migration]

Saw the same on a set of 48 circulated silver rooses go for $85 yesterday.

 

Silver value was $100..for 48

 

The seller would pay 15% to feebay on top of that.

 

A honest coin dealer would have given him more......

 

 

 

 

[Coindude]

That's why I only sell silver and gold off ebay. Even if I were to sell it for 10% back of spot on the BST or Marketplace, I still make out. Strange but true.

[gmarguli]

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.

 

 

[grade it-migration]

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

 

[Coindude]

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.

[$ilverHawk]

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".

 

$ilverHawk

[Brol]

I thought "good silver" is the one in either NGC or PCGS holder with MS69 or MS70 on it