How much do brick and mortar dealers pay for bullion?

[Lastufka Collection]

I'm talking raw ungraded eagles and maple leaves.

 

One of my dad's friends has some bullion he's looking to sell, so dad gave me a call. I may want to pick it up if I can get a decent deal, but I'll obviously have to at least match what a B&M dealer would offer him.

 

I see APMEX is currently paying $1,700-ish for $50 eagles, which is above spot. I assume places with more overhead would pay below spot so they can make a little on the deal. So would 90% of spot be an insult for me to offer? Would it compare to local quotes he'd get? 80%? I'll only be interested if I can get a good deal.

 

I haven't sold bullion outside of eBay before, so I have no idea what B&M dealers pay for it.

[PerryHall]

Dealers will pay as little as possible when buying from the general public so it pays to shop your bullion around to get the highest offer.

[Chris1976]

I know for sure that the Cash For Gold location in Cape Coral Florida on Del Prado Blvd only pays $11 per ounce of silver regardless if its a bar, US coin or jewelery.

[Ducksoup]

I buy 90% silver coins for 18-25x (when silver is at around $30/oz)face value from one dealer, another guy buys 10% below and sells 5% above spot.

[DaveG]

It seems to me that if you're looking to be competitive with your local dealers that the smartest thing for you to do is call some local dealers and ask what they're paying.

 

After all, it's what your dad's friend should do.

 

 

Of course, the other side is how much you care about underpaying your dad's friend.

 

(Actually, I guess you've already answered that question.)

[WoodenJefferson]

Never spot and your dreaming if you think that.

[Lastufka Collection]

@DaveG I'm not going to skin him like Cash4Gold would (they pay what? half of melt?). But I want a decent deal, yeah. If not, I won't be mad if he takes it to a pawn/jewelry/dealer shop. I'll definitely call around tomorrow when places are open again. Just thought I'd get some feedback here first. Thanks.

[nk1nk]

As of 2:30 p.m. Friday 1-20-2012 Monarch Coin in salt Lake City, Utah (801) 262-5874

 

Spot Gold $1,665.90

Spot Silver $32.19

 

Gold Eagles and Buffaloes

Buy $1,688.00

Sell $1,737.00

 

Silver Eagles

Buy $32.88

Sell $35.28

 

Nick

[noow]

You cannot beat the Frederick Coin Exchange. They deliver bullion, here are their prices-

 

Silver Eagle selling to them: SPOT+ $1.65

Silver Eagle buying from them: SPOT+ $3.49

Gold Eagle selling to them: SPOT+ $20

Gold Eagle buying from them: SPOT+ 4.9%

 

Linked above is their full list of bullion trading.

 

Edit: No minimum selling/buying quantity, $5 flat rate shipping for all orders.

[Bruceswar]

I have never understood why anybody would sell an Eagle of any type using spot. Eagle spot is where people should be using if you ask me.

[DunderChief-migration]

When the silver market ran up to $50, I took some silver eagles and maple leafs to a local B&M. He offered me 90% of spot. I held on to them for a couple of weeks until I could get to a coin show and sold them for $1 under spot. Maket was still at $50. I'm sure he sold them before he left the show but to answer your question, 90% was the offer.

[noow]

A good dealer like FCE will buy your eagles for above spot.

[Brian D]

Hartville coin in Ohio is at $2.00 above spot

[physics-fan3.14]

A good dealer like FCE will buy your eagles for above spot.

 

Do you have a link? I've never seen anyone pay more than spot for bullion except in the very rare circumstance that it is a bubble near the top, and spot is moving up at a blinding pace. For example, last year.

 

Proof coins are different - they always trade at a premium.

[coinman_23885]

A good dealer like FCE will buy your eagles for above spot.

 

Do you have a link? I've never seen anyone pay more than spot for bullion except in the very rare circumstance that it is a bubble near the top, and spot is moving up at a blinding pace. For example, last year.

 

Proof coins are different - they always trade at a premium.

 

You cannot beat the Frederick Coin Exchange.

 

I have seen brick and mortar dealers pay melt for American Silver Eagles before and I don't think this is uncommon. I do, however, find it uncommon that dealers would pay melt for 90% silver. Maybe this is what you are thinking of.

[nk1nk]

A good dealer like FCE will buy your eagles for above spot.

 

Do you have a link? I've never seen anyone pay more than spot for bullion except in the very rare circumstance that it is a bubble near the top, and spot is moving up at a blinding pace. For example, last year.

 

Proof coins are different - they always trade at a premium.

 

Are you guys serious? There are 3 major coin shops in my area, and all pay over spot for gold and silver eagles. My above post has a number, you can call it anytime and they qoute, spot, buy, and sell prices and always pay over spot.

 

also Rust Rare Coin 1-800-343-7878 and Ace coin 1-801-262-300. Im not sure if Bob Campbell at All About Coins buys bullion but if he does I gaurantee he is paying above spot.

 

I feel bad you guys have to deal with dealers that dont pay fair prices.

 

Nick

[physics-fan3.14]

I feel bad you guys have to deal with dealers that dont pay fair prices.

 

Nick

 

To be perfectly honest, I have never bought bullion. The prices they pay don't make one iota of a difference to me.

[bochiman]

A good dealer like FCE will buy your eagles for above spot.

 

Do you have a link? I've never seen anyone pay more than spot for bullion except in the very rare circumstance that it is a bubble near the top, and spot is moving up at a blinding pace. For example, last year.

 

Proof coins are different - they always trade at a premium.

Local B&Ms will pay over spot for SAEs. I've sold more than a few over the last 2 years. Anywhere from $0.75 to $2.00 over, depending on the shop and how things were going with need at the time (their need and whether or not I felt like selling.....the offers for under $1 over, I didn't accept).

Also got a little more if it was for a roll or more.

[SPeck95512]

My local dealer (OKC) gives spot for silver and charges $1 over for SAEs.

[Lastufka Collection]

My local dealer (OKC) gives spot for silver and charges $1 over for SAEs.

 

This thread was certainly an eye opener. I'm curious how any coin shops make money operating in this fashion. When your spread on common purchases is $1, the overhead, even in a small shop, has got to be killer.

 

I haven't bought or sold coins in a shop (as the closest one is two cities away), but I just assumed these shops would offer below spot and charge the same $3 or more above spot levels common online.

 

Thanks for all the info guys, I'll just tell him to take it to his local shop. I'm not paying current spot prices, I feel they will have no where to go but down over the next year.

[bochiman]

The local B&Ms that pay over spot for the SAEs are also selling them for an ADDITIONAL $1-$3 over THAT PRICE as well.

And, 3 of the local shops really go through the bullion/SAEs at times. I've seen them all but sell out of thousands of SAEs/rounds in a couple day period.

 

When they do, and have people calling/arriving for more, THAT is the best time to sell to them

 

[FishyOne]

My local dealer (OKC) gives spot for silver and charges $1 over for SAEs.

 

This thread was certainly an eye opener. I'm curious how any coin shops make money operating in this fashion. When your spread on common purchases is $1, the overhead, even in a small shop, has got to be killer.

 

I haven't bought or sold coins in a shop (as the closest one is two cities away), but I just assumed these shops would offer below spot and charge the same $3 or more above spot levels common online.

 

Thanks for all the info guys, I'll just tell him to take it to his local shop. I'm not paying current spot prices, I feel they will have no where to go but down over the next year.

 

Glad you got the advise you're looking for and will direct them to someone who will pay over spot.

 

ASE always bring over spot price. The only exception might be if silver had a quick, huge run up (like last spring) and even then there should be a small premium. Maple Leafs have a big following and high demand also.

 

I expect silver to head back to $50 this year or next year at the latest. The only way out of our current financial mess is to destroy the USD and the U.S. Gov't has proven they will do it.

[Bruceswar]

At current Silver spot is

 

Silver 33.05

 

And Silver Eagle Spot is...

 

Silver American Eagle 35.93

 

 

So there is a 2.88 cent difference. Most places sell at $2.00 over Eagle Spot for an ASE, so with that said even at $1.65 over spot they are still under eagle spot and they are making slightly over 3 dollars a coin, assuming the market holds. For a company that sells lots of bullion that is a pretty nice flip. If you move 1000 eagles in a week, you just came out 3K ahead.

 

 

When I buy eagles I buy back of Silver eagle spot. I usually buy back 2.00 from Eagle Spot and sell at 2 over. We make 4 dollars a coin, but also assume the risk involved with that. If silver drops we are in the hole. If it goes up, well that is just our luck. If we sense the market is gonna go down we buy 2.50 back to cover us.

[noow]

A good dealer like FCE will buy your eagles for above spot.

 

Do you have a link? I've never seen anyone pay more than spot for bullion except in the very rare circumstance that it is a bubble near the top, and spot is moving up at a blinding pace. For example, last year.

 

Proof coins are different - they always trade at a premium.

Physics, I already provided a link in my 1st post in this thread.