Ed L. wrote on 08/16/14 at 16:06:24:JOG, yea, I understand how pawn shops work but I was surprised as to how high a margin they get. 40% on a known item seemed excessive even with thier overhead and 30 day waiting period.
I'm staying out of the manipuation discussion, it's being done worldwide, it's just part of how things are.
I am with Ed on this.. Pawn shops are ripping folks off. Some percent of what comes in is stolen, so they can discount for that .. the "seller' got it for free anyway. Others just dont have clue.. " they gave me 50 cents for an old quarter!!!!".. It has nothing to do with overhead or markup. its pure greed and scamming. One shop ran an ad saying what hey would pay... bars were spot less $2.. really??? your going to pay me $2 less than spot when they cant be had for less than $4 OVER spot??? gee thanks pal. But hey they would pay spot for Silver Eagles! Gee really... even the government gets a premium on those out the door.. they run $5 to $6 over spot generally.
But fine.. A free ad on CL and I have folks clamoring for new sealed bars at spot plus $4 to $5. If I could get the dern things. Of course right now I suspect there will be price rise, hopefully by mid sept. I have no plans to sell at a spot of less than $23, so I guess that is my target. the other problem is now that I KNOW how hard it is to get the stuff... I am not to keen on selling any.. at any price.
PS: Row.. yep I got 50 oz in either Silver Eagles when they were $3.00 or silver 1/2 Walkers. None of that is counted in my little fun here, as I plan on the kids getting those.... someday.
PPS: I hear the JP got fined a whopping $600k for failing to report correct figures for their silver shorts. Its OK that they have silver shorts.. but they have not reported correctly at least 100 times in the last year, reaping them probably Billions in scammed money from Silver (paper) investors. I really cant see how anyone would keep doing paper contracts.