Gyroscopic Investing

I have had no problems, upon my request he supplied me with a reference in my metro area who verified that he also had a good experience. Maybe gold is loss-leader for his advisory service, which is darned expensive. COSTCO breaks even on food, makes it up in memberships. That sort of thing. He has no physical gold inventory, he places the order for you when you want to buy from his wholesale sources, then he marks it up 1%. He's a family business, his website is simple, his costs must be really small, and he's a trader too, so that's where he must make some of his living.

Gold as a loss leader? That is some loss leader!

dualstow wrote: Gold as a loss leader? That is some loss leader!

Maybe he has a a few million in retirement gold that he wants to draw down and figured: why pay a dealer the spread when I can be the dealer myself?

dragoncar wrote:

dualstow wrote: Gold as a loss leader? That is some loss leader!

Maybe he has a a few million in retirement gold that he wants to draw down and figured: why pay a dealer the spread when I can be the dealer myself?

I'm sure that's it.  It's not like setting up the business is a hassle or anything.

dualstow wrote: Nothing against buygoldandsilversafely or Doug E Fresh, but I don't trust the BBB the way I used to. They are pay-to-play now, last I read.

Doug E. Fresh is da man!!!

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The prices on his site are higher than Goldmart's.

Goldmart Maple Leaf - 1220.25
BSAGS Maple Leaf - 1227.50

Goldmart Eagle - 1237.40
BSAGS Eagle - 1238.50

Kriegsspiel wrote: The prices on his site are higher than Goldmart's.

Goldmart Maple Leaf - 1220.25
BSAGS Maple Leaf - 1227.50

Goldmart Eagle - 1237.40
BSAGS Eagle - 1238.50

They have different schedules for shipping fees. Goldmart have free shipping above $10,000. BSAGS always free shipping I think. That makes up the difference at lower purchase amounts.

barrett wrote:

ochotona wrote:

ochotona wrote: I get my gold with 1% markup. 4-5%? Goodness. Anyone can send me a PM for the dealer name.

Doug Eberhardt, San Diego. Free insured shipping. Really good prices, straight-up fellow, very helpful.

Buygoldandsilversafely.com

Thanks for posting that, ochotona. I am really having trouble figuring out how someone can sell gold with only a 1% markup. It would seem that a gold dealer just takes on too much risk with a very slim markup like that. For example, I just checked gold prices and I see that overnight they are off by 1%. Someone buying coins even yesterday is already losing money selling them at a markup of 1%. We all know the old adage of "when something seems too good to be true...". What am I missing here?

Dealers hedge their metals in real-time, as that is the only way they can do business honestly. If you ever dealt with one in person, you will probably hear him call down to their trader to lift or add a hedge, depending on whether you are buying or selling.