Let's go!

I've got a question for the brain trust… my stack of silver and gold isn't very large and I typically pick up bars or rounds every couple weeks off Reddit and the prices are usually a hair over spot. I had some time to kill today so I stopped in at a jewelry store that also says they're a coin shop. I inquired about silver and she brings a tray out with maybe 20oz on it and mentioned she's had these pieces for a while. Beaten up and ugly rounds and bars, nothing special. She said $39/oz. I offered to buy the whole tray for $35/oz (going price on Reddit for nice silver) and she said how could I do that with spot being $33?? I went up to $36 and she wouldn't budge so I thanked her for her time and left.

This is more of a curiosity and has my accounting brain swirling… if she's had this silver for a while, that implies her cost of goods is probably somewhere quite a bit less than where spot is right now. So why does it matter to her where spot is if she can make good margin on my offer of $35 or $36? And that she couldn't dare let go of the silver for less than $39 with spot at $33?

Like usual I'm probably missing something or uneducated on the subject. Hell she probably just doesn't want to sell it unless it's a ridiculous premium. Is there any other reason she just can't let it go for south of $39 that I may be missing? Once again, I'm just trying to learn something, I'm not upset or anything.

Quick edit… I'm not trying to assume I know how to run a coin shop. That's just the highest I've seen for ordinary .999 silver and she acted like I was threatening her dog.

I'd say, in that scenario, her cogs/cost basis is irrelevant. She has every right to value her silver at today's market. That said, getting offended at a "low" bid is just silly.

K Bo said:

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I'd say, in that scenario, her cogs/cost basis is irrelevant. She has every right to value her silver at today's market. That said, getting offended at a "low" bid is just silly.

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Is "today's market" $6 over spot for that type of silver? Also just trying to learn here.

FishrCoAg said:

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K Bo said:

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I'd say, in that scenario, her cogs/cost basis is irrelevant. She has every right to value her silver at today's market. That said, getting offended at a "low" bid is just silly.

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Is "today's market" $6 over spot for that type of silver? Also just trying to learn here.

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I don't know. My point is that her cost basis doesn't (shouldn't) matter in this scenario.

Yeah fair point. In my opinion $6 over spot seems really steep if you're a serious seller, which may be the answer. She's not a serious seller which is totally fine.

Just didn't know if that's what to expect from local coin shops

Are we now buying and selling based on what we trying it'll be worth in the future? Should've spot be representative of this already?

I'd agree that she does not seem to incentivized to sell there if asking for $6 over spot.

That's what I figured. Glad to hear all coin shops aren't like this.

Just go to https://texmetals.com/ Free shipping, Aggie owned, and always running some kind of special.

Apmex takes crypto payments

Yukon Cornelius said:

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Apmex takes crypto payments

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I've tried and it's always a nightmare. I think I was successful one time. I usually just give up.

I would never ever ever use my crypto to buy stuff since it triggers a taxable event.

The taxes aren't even the worst part, the real pita is the paperwork at tax time.

Really? I find its incredibly easy vs doing a wire or ach

looking at your crypto triggers a taxable event.

Its a zero gain if you go from a trade then using it for a payment.

Yukon Cornelius said:

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Really? I find its incredibly easy vs doing a wire or ach

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I have coinbase and try to use coin wallet or whatever third party app the seller has. It only worked one time for me.

I use bitpay.

Yukon Cornelius said:

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I use bitpay.

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Yeah, that's the one. I'm pretty computer literate and I cannot get it to work.

Hmm maybe they made it easier since you've used jt