Would you sell cards to buy gold or silver coins?

[homerunhitter]

after researching it, my concern is spot price for silver is currently $25, you cant find them anywhere on ebay for less than $40 and when it comes time to sell dealers are buying them for $12-15, so paying $40 for a $25 coin to just sell for $15 doesnt seem like a good investment to me!

i know it has been said that the hope is eventually the price of silver will go up enough to cover seller markups, but I dont see silver going up that much in the next few years based on the past silver prices.

if dealers buy super low so they can make a huge profit on their mark up, im wondering why it would be good to pay $40 a coin just to sell it for $15 down the road?

[Econteachert205]

I was actually thinking of making a trade post to swap some cards for coins.

[G1911]

A dealer of any product will pay below market, that’s how they stay in business. It usually doesn’t make sense to sell to dealers at their buy rate for anything. You sell it to another investor.

[homerunhitter]

Originally Posted by G1911

A dealer of any product will pay below market, that’s how they stay in business. It usually doesn’t make sense to sell to dealers at their buy rate for anything. You sell it to another investor.

I totally get this and I totally understand this. but as a buyer how dos it make sense to pay $40 for a $25 coin to just sell for $15 eventually? (not trying to be smart at all, just trying to learn and understand if/does it make sense to buy for $40 and sell for $15)

[Peter_Spaeth]

Originally Posted by homerunhitter

I totally get this and I totally understand this. but as a buyer how dos it make sense to pay $40 for a $25 coin to just sell for $15 eventually? (not trying to be smart at all, just trying to learn and understand if/does it make sense to buy for $40 and sell for $15)

People play the silver market but I think more people invest long term in gold.

[homerunhitter]

Thanks Guys for your thoughts on this. I think ill pass on both gold and silver for now as Im not really educated on it or know what im doing in regards to investing in gold and silver.it doesnt seem like its a good option for me at this time the more I think about it.

[58pinson]

Deleted.

[homerunhitter]

I think one problem I see is that silver will never go up enough to make a profit on what todays sellers markup is. (I dont think the spot price of silver has been over $30 in the past 10-15 years (or maybe even ever) the seller markups today are outrageous.(to the point that making any profit on it is darn near impossible) to complicate matters worse in the silver market is that if an american silver eagle 1 oz coin is consistently selling for the sellers markup price of $40 then people start thinking and believing that 1 oz of silver is worth the $40 they paid for it, then when they go to sell then and only then will they find that their pants have been pulled down to their ankles!

[G1911]

Originally Posted by homerunhitter

I totally get this and I totally understand this. but as a buyer how dos it make sense to pay $40 for a $25 coin to just sell for $15 eventually? (not trying to be smart at all, just trying to learn and understand if/does it make sense to buy for $40 and sell for $15)

It doesn’t make any sense to buy at todays market rate to then sell at todays dealer buy price. For any item. At all. Why would you do that?

When you are investing in something, you are gambling that that item will go up over time. Conventionally, you are not planning to sell at below market prices either to a dealer. Don’t sell to a dealer who has to lowball you to make a profit. Don’t buy things as investments you don’t think will go up.

Your formulation here is the problem. Anything you take this approach too will result in a loss of money. Buying at todays market price and selling at todays dealer buy price guarantees a loss 100% of the time for any item.

[Mark17]

Originally Posted by homerunhitter

after researching it, my concern is spot price for silver is currently $25, you cant find them anywhere on ebay for less than $40 and when it comes time to sell dealers are buying them for $12-15, so paying $40 for a $25 coin to just sell for $15 doesnt seem like a good investment to me!

The spreads are not nearly that bad for bullion coins or bars. If you have American eagles or Canadian maple leafs, there is a premium for the minting costs, like maybe $100 for a gold ounce, or $3.00 for silver, when you buy them, but reputable coin dealers will buy them back for spot or pretty close. Bars have an even smaller spread (they'll cost less, but you might get a bit under spot when you sell.) I'd recommend buying and selling from the same dealer when possible.

There is no way you'll pay $40 for coins you'll sell for $15, unless spot drops 50%.

[homerunhitter]

You can’t find a 1oz American silver eagle on eBay for less than $40 and all the coin shops/dealers I called Asking hoe much they will buy them for the responses were $10-$20 so yes it is true that a coin they costs $40 on eBay, is worth $25 spot sells for $10-$15….that’s a fact Jack!

[Peter_Spaeth]

Check Apmex buy prices.

[Mark17]

Originally Posted by homerunhitter

You can’t find a 1oz American silver eagle on eBay for less than $40 and all the coin shops/dealers I called Asking hoe much they will buy them for the responses were $10-$20 so yes it is true that a coin they costs $40 on eBay, is worth $25 spot sells for $10-$15….that’s a fact Jack!

Here's a fact, Fred:

https://www.golddealer.com/product/c...ple-leaf-1-oz/

[Mark17]

Eagles. They'll pay north of $30.00:

[mrreality68]

Some interesting points and would really need to learn about coins first

[Peter_Spaeth]

Originally Posted by Mark17

Eagles. They'll pay north of $30.00:

Right, your local coin shop may not be the best source of market information, just as your local card shop (if there are any left) is not going to be the best source of buy prices for cards.

[homerunhitter]

Thanks guys for the info! As mentioned above, I know absolutely nothing about coins. I was just going off the info I got from local sources , which I see now are total rip offs!