2.5x face on 90% silver!!!???

[CHAINCHOMP]

i was at my family christmas party thing, and my uncle who owns a pawn shop said he get silver coins in all the time, he said he pays 2.5x face!!! my uncle is SUCH a scam artist apparently! but i think hes to stupid to realize hes ripping people off...he said he just throws all the silver in bags, and keeps them in back, because he doesnt even know how much they r worth
im contemplating if i should offer to buy all the silver coins he gets in for 10x face, that way he would be literally getting 4x the amount of money he paid for them, and i would be able to turn around and sell them at a local coin shop that pays around 20x face, and i could double my money!!! ill see if i can talk him into it sometime soon, w/in the next week or 2 hopefully
wish me luck!

 

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[SFBayArea]

Really, he doesn't even know? I don't know your uncle but if you run any pawn shop, they know the basics of gold and silver. I watch "Pawn Stars" and those guys know their precious metals. They don't even have experts appraise if people have old silver coins because they know what they are. I think he might just be telling you that so that if he thinks you know, he didn't want to seem like such a scam artist. I bet if you try to offer to buy at 10 times face, he'll say no. If he does say no, it shows he has an idea what they're worth. I don't mean to jump on your uncle like that but I just find his reasoning for the pricing hard to believe. Precious metal prices are discussed everywhere you go. I watch CNBC and they talk about 25% of the time.

 

[fistfulladirt]

If you only offer him 10 times face, I'm sure he knows that's really cutting into his profit margin.
As for his customers that sell at 2.5, they weren't forced at gunpoint.

 

[maine_Jim]

You never know what you are gonna get at pawn shops. Most are overpriced but sometimes you can find a deal. Last week I picked up 41 silver dimes for $20. I was certainly surprised at the price. The owner used a 2003 red book to look up the price. At first I wondered if I was ripping him off but quickly decided that he certainly wasn't losing money on the sale and was likely marking up the price by 100%. I've also sold him things like electronics and movies that I've picked up at yard sales and his offers are all over the place. I deal with a number of these shops so I sometimes take things around and get the most money.

Maine_Jim

 

[CardsNCoins]

Instead of putting a fixed number on your offer to your uncle, why not just ask how much of a face value multiplier he would sell the silver coins to you for if you were willing to take them all. Making him take the first pricing step will let you know if you if he really is clueless, or a sharp shooter in disguise.

 

[ArkieBassMan]

Instead of putting a fixed number on your offer to your uncle, why not just ask how much of a face value multiplier he would sell the silver coins to you for if you were willing to take them all. Making him take the first pricing step will let you know if you if he really is clueless, or a sharp shooter in disguise.

Agreed. Don't bid against yourself by making an offer. Let him tell you what he'd sell the coins for. Why offer 10X when 5X (or less) might get them all.

 

[gold eye]

Always go low you can always go up but you cant go down you never know until you ask good luck. Ron

 

[quiksilver]

Whats his address? i will go visit him while you contemplate what to do

 

[diggummup]

Instead of putting a fixed number on your offer to your uncle, why not just ask how much of a face value multiplier he would sell the silver coins to you for if you were willing to take them all. Making him take the first pricing step will let you know if you if he really is clueless, or a sharp shooter in disguise.

Agreed. Don't bid against yourself by making an offer. Let him tell you what he'd sell the coins for. Why offer 10X when 5X (or less) might get them all.

Yes and yes- I agree. Also don't forget to ask about a "family" discount, I mean afterall......

 

[apush]

Business dealings and family often do not mix. Take care on this one Chainchomp!

apush

 

[jim4silver]

Anyone who can successfully run a pawn shop cannot be dumb. These guys/gals know the value of things inside and out. Maybe sometimes a person can find a deal on coins in a pawnshop (I have personally never tried this myself), but trust me the owner is not losing money on the deal.

One possible reason a pawn shop might sell silver coins for a reasonable/cheap price is this. Let's say they buy them from someone with low brain activity for 5X face. They then sell them to a silverbug for a price less than the "going rate" where the silver bug pays cash. In this instance the pawn broker has made a tidy profit and has the cash in hand, where if he/she sent the coins to a wholesaler or smelter there would be a check and paper trail.

Jim

 

[apush]

LOL Jim4Silver--on the "low brain" activity. That was a nice chuckle. Yes, a business cannot remain in business without a profit to pay overhead/bills.

apush

 

[CHAINCHOMP]

Whats his address? i will go visit him while you contemplate what to do

haha.....i just posted this last night...
haha i think ill take everyones advice, and ask what he wants for them and also, yes, i agree a pawn shop has to make money, but he actually told me he has no idea what they r worth, and if u met my uncle u'd understand.....talk about low brain activity
thank u everyone for all of your replies
keep it up and hh!

 

[SFBayArea]

Whats his address? i will go visit him while you contemplate what to do

haha.....i just posted this last night...
haha i think ill take everyones advice, and ask what he wants for them and also, yes, i agree a pawn shop has to make money, but he actually told me he has no idea what they r worth, and if u met my uncle u'd understand.....talk about low brain activity
thank u everyone for all of your replies
keep it up and hh!

So what does he pay for gold? Hope he doesn't open a 2003 book for gold prices.

 

[CHAINCHOMP]

Whats his address? i will go visit him while you contemplate what to do

haha.....i just posted this last night...
haha i think ill take everyones advice, and ask what he wants for them and also, yes, i agree a pawn shop has to make money, but he actually told me he has no idea what they r worth, and if u met my uncle u'd understand.....talk about low brain activity
thank u everyone for all of your replies
keep it up and hh!

So what does he pay for gold? Hope he doesn't open a 2003 book for gold prices.

haha good question.....im not sure what his "rates" are, but i know once he bought a gold coin from a customer for $1,000.00 and turned around that week and sold it to a local coin shop for $1,400.00 and that was melt value alone, so he paid less than melt for a coin that also had numismatic value
keep it up and hh!

 

[SFBayArea]

Whats his address? i will go visit him while you contemplate what to do

haha.....i just posted this last night...
haha i think ill take everyones advice, and ask what he wants for them and also, yes, i agree a pawn shop has to make money, but he actually told me he has no idea what they r worth, and if u met my uncle u'd understand.....talk about low brain activity
thank u everyone for all of your replies
keep it up and hh!

So what does he pay for gold? Hope he doesn't open a 2003 book for gold prices.

haha good question.....im not sure what his "rates" are, but i know once he bought a gold coin from a customer for $1,000.00 and turned around that week and sold it to a local coin shop for $1,400.00 and that was melt value alone, so he paid less than melt for a coin that also had numismatic value
keep it up and hh!

Well after going to the coin shop to sell the gold piece, I'm sure he knows what they're worth now.

 

[CHAINCHOMP]

Whats his address? i will go visit him while you contemplate what to do

haha.....i just posted this last night...
haha i think ill take everyones advice, and ask what he wants for them and also, yes, i agree a pawn shop has to make money, but he actually told me he has no idea what they r worth, and if u met my uncle u'd understand.....talk about low brain activity
thank u everyone for all of your replies
keep it up and hh!

So what does he pay for gold? Hope he doesn't open a 2003 book for gold prices.

haha good question.....im not sure what his "rates" are, but i know once he bought a gold coin from a customer for $1,000.00 and turned around that week and sold it to a local coin shop for $1,400.00 and that was melt value alone, so he paid less than melt for a coin that also had numismatic value
keep it up and hh!

Well after going to the coin shop to sell the gold piece, I'm sure he knows what they're worth now.

haha u'd think...but actually he went to the coin shop and sold that gold piece a couple weeks ago, and he told me this week (christmas actually, so maybe last week ) that he had no idea of the value of US 90% silver.....hopefully i can go up to his shop (its quite a few miles from my house actually) sometime this week, or maybe next...been kinda busy as of late 8)
keep it up and hh!

 

[SFBayArea]

So now that he knows, has he changed his pricing?

 

[CHAINCHOMP]

So now that he knows, has he changed his pricing?

haha na, cuz he still doesnt know the price
if u knew my uncle u'd understand haha...he's not the brightest crayon in the box
keep it up and hh!