IF you find this article helpful, please take a moment to vote yes at the bottom, I would like to find out what the viewers are looking for so I can expand on specific areas! Thanks in advance
**This is a addition to original** This ad has BLOWN up :) I have gotten 6 hate emails from sellers, and 3 of them have tried to contact EBay to have it pulled. I thought the readers would like to know this.. One of the buyers that contacted me went as far as to say I was communist for not allowing sellers to run their buisness in a profitable manner :) I replied back to him, by simply stating "Welcome to America, bring down your prices, and this guide has no validity at all" Their anger proves my point in this one, isnt it odd that 3 have reported me to EBay, and I have 3 unhelpful votes :) Enjoy the honesty in this guide.**
Ever wonder why Ebay sells so much bullion at such ridiculosly market up prices over spot value.... The answer is all to easy to say, but VERY hard to comprehend..... Lazy consumers!
That's right, lazy consumers are making EBay bullion sellers rich beyond believe, simply for convenience. To prove this, take a moment to log onto a spot value web page, Kitco or Apmex for example... Take a look at the spot value of Gold or Silver, then compare those prices to what is selling on EBay. It is astronomical to say the least, and millions are being made. Remember when I state these comments that I am refering to bullion bars specifically, coins are a different area that come at much better value on EBay in my opinion!
Let me tell you exactly what I am talking about here... Yesterday I was browsing thru EBay looking at gold bars, and I couldnt figure out why 1 ounce bars were still selling at over $660.00 an ounce, with spot price just over $560.00. The more I looked, I noticed most all the bullion for gold was selling for well over $600.00 ounce with little or no exception. WHY????????? I called a few places today locally here in Phoenix, and as usual, they were selling about 3 - 5 dollars over spot, meaning I could get it for $568.00 and ounce, and on top of that pay no shipping, for a short 5 minute drive.
So I could only think of 2 scenarioes that would make a bullion buyer buy on EBay at such ridiculous prices over spot. Location and Laziness......
By Location I mean geographically you have nothing close to you for purchase. No coin stores, or bullion buy sell locations that can fullfill your needs on a regular basis when you want it. But then again, lack of education still makes you go to EBay, because ALL MAJOR precious metal sellers sell off spot price too, over the internet or via phone. These major companies will not only take your order over the phone or interent, BUT even go as far as to hold orders for you while your check is sent at the price when you called them. SO if you buy today at 565.00, if it jumps to 700.00 tomorrow, your order is still reserved at your quoted price as long as you send the check. Not to mention most of the larger bullion suppliers don't charge shipping over a certain amount, usually $200.00. So why pay a mark up of $100.00 dollars an ounce......... You tell me!!!!!!!!!!
The other I mentioned was just plan being lazy I suppose. Some people may not be aware that most coin shops sell bullion on the spot, and 100% of them can tell you where to buy it locally because that is where they will sell theirs in large quantities upon purchase. Some local jewelery store owners will buy and sell bullion, and most larger cities you have buisness that simply buy bulk bullion to resell at premiums. Another location that many people dont think about is recycle facilities.. ALthough not the best places to visit, alot of them buy precious metals at low rates, and have them on hand for really good deals if you can find them. All of these options are as easy as a phone book away to find, and will save you 1000's of dollars or more in the long run. So why not use them?..
You see, precious metal on EBay has become like fuel prices in America, as spot prices go up, so do Ebay prices, but as the spot prices go down, like gold more than a 140.00 an ounce over the last 2 week, EBay prices stay the same......Why? Because just like fuel, people keep buying it at those ridiculous prices, so why not do it? These sellers are legitimate sellers might I add, and are doing nothing wrong at all, it is the buyers that are letting them do it, and making them a killing in the process, so I applaude the sellers, it is easy money! But I have to boo the buyers that would pay a 25+% market-up on precious metals, plus shipping and insurance just because they are either not informed, or just to lazy to get it locally.
Look at it like this, if you buy a ounce today on EBay for $660.00 an ounce..... every four ounce the seller sells, the fifth one he has now is PURE PROFIT, and in return, had you bought offline thru a major supplier directly or locally, you could get 5 ounces of gold for what you are getting 4 ounces for on EBAY. Looking at it like that, it cant make any sense to the buyers, nor does it make any sense to me...........Try finding a auction on EBAY for an ounce of gold even 40 dollars over spot : ) Good luck........
Dont get trapped into convenience when you are investing in bullion, and that is anywhere. As a bullion investor, you have to be dilligent in your purchases, and strict in your sells. Remember, you also have to factor in shipping and insurance into your buying price, usually meaning you are paying about an additional $10.00 an ounce for gold right there. Ebay is a great place, and older EBayers know how great it use to be to buy bullion, but now days the lazy consumers are buying it all up and paying ridiculous prices for ease. If you want to make a killing, buy a bulk of silver from one of the major bullion distributors of silver, meaning you will pay about 10.00 an ounce TOTAL with shipping, the pop on EBay and do a buy it now option for 14.00 dollars a peice, with shipping..... remember, the dollar amount doesnt seem big, but when you are dealing in bullion, you are dealing with percentages. So bottomline, your making a 50% profit on your money, and still low baller the lowest seller on EBay by 2 bucks an ouce : ) Try making a 50% profit in the market on anything....It just doesnt happen.
Eventually sellers will bring the prices down when educated buyers say this is ridicualous and stop paying it, but till then, STAY AWAY if you are trying it for an investment. Stay local with your purchases and hopefully this advise will help some make lots of money, either on EBay or off.. Good luck all