So now, at long last, you’ve made your purchase. You’ve bought your Gold at a fair price and a high net value.
Now what?
The first thing you have to decide is how long you want to wait before you end up selling the item. Would it be beneficial to hold onto it for a while, or is the price of gold suddenly so high that you know you’ll never in your life have the opportunity to make as much as you would be selling it within the next five minutes?
And let’s say the time does come to sell it. You’ll now find yourself in a whole new ballpark.
Of all the things that are vital to understand in this field, there is one fact that many struggle to comprehend, and unfortunately it’s possibly the most important: the price of gold literally changes per minute! This is why it is important that all final sales should happen in person. Should you go through all the trouble of taking an order by phone only for the price to go down within minutes of hanging up, there is a strong chance that this buyer will then not show up.
I am sad to once again report dishonest behavior in the field, this time by the middle-men. The company or service you use to find a buyer may interfere with the details of your transaction or not be upfront about their own fees. And while it’s not advised, if you do make a sale online, make sure you’re using a company that offers free, insured shipping you can track. The last thing you want is a buyer who claims he never got your order and therefore does not have to pay you.
But the biggest issue to consider is the needs of your buyer. I recently encountered a prospective customer who had $4 million-worth of silver bars he wanted to sell. However, moving that many bars is going to be a problem and I know I won’t be able to sell them out all at once. This is an ongoing risk in running a business; an item only has value as long as there is a market for it, and if there ever comes a day when everyone sells but no one buys, the market will be jeopardy. Of course this is unlikely to happen, but it’s still a chronic risk. Let’s say that on one day my office gets ten visitors who all sell me the ten Krugerrands. And let’s say this happens again on the next day. By the third day, any further purchases of Krugerrands that I’d make would have to be at a reduced price, because I now know I will have a hard time selling them. By the tenth day I either will no longer accept Krugerrands at all or will accept them only to be melted, which would be for an even lower price. Back in 1999, during the Y2K scare, many people began selling their gold in fear of the end of the world. In the aftermath, sales of Silver Bars went down from 2000 – 2005.
Still, as long as you sell to a dealer, no matter what his situation is, the price will be more consistent than what a coin shop will give you. The advantage of doing business with a coin shop is that you could potentially get a fantastic deal depending on the state of their inventory. The disadvantage is that you could just as easily be a bad deal; it all depends what day of the week you happen to walk in. A dealer, who usually has a better inventory and represents the market in general, is going to give you more consistent pricing. So again, before you approach any buyer, research them and learn what their current needs are. If you’re fortunate enough to find out something about their needs that they’re not disclosing, you can work with this and get a good deal out of them. Remember, a good salesperson is always savvy and will work out a price that best meets the value of the items and the respective needs of both the buyer and seller.
And finally, you cannot complain about the abundance of dishonesty in this business if you are not honest yourself. Be sure to conduct all your transactions out in the open with full disclosure and with people you can trust. This is why it’s worth it to build relationships with dealers and coin shops. Please sell your gold and silver at fair prices or else you will just be perpetuating the problem. In a business that has unfortunately become saturated with scammers, don’t make the unfortunate mistake of becoming part of that activity. You will only develop a bad reputation and increase the likelihood of misfortune catching up with you.
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