Author Topic: Silver and Gold Anecdotal  (Read 4647 times)

Offline pugbellies

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Silver and Gold Anecdotal
« on: March 03, 2010, 11:26:09 AM »
I've been buying larger shipments of Silver coin and bullion for sometime now.  Buying bulk seems to the most cost effective means to do so, but requires larger sums to make a purchase.  I recently decided to canvas local pawn shops here in San Diego in order to buy smaller amounts in between my bulk purchases.  Here is what I discovered.

I canvased 8 pawn shops and one coin exchange.  All except one stated they take silver and gold bullion, but will not sell it.  After striking up conversations with employees and managers on the subject, I was told (almost on the sly) that the various owners were holding onto the bullion and coins for themselves.  Jewelry would be sent off to a rendering company (makes sense, a pawn shop doesn't have a smelter of course).  When asked why the owners were holding onto the bullion, I received the same answer across the board, "I really don't know why, and they've not done this in the past, only recently".

The only shop that offered smaller silver bullion bars offered them at a ridiculous $5 an ounce over spot.  The proprietor didn't even seem interested in negotiating, despite the fact that offered to buy his entire stock.

I'm not saying there is a vast pawn shop conspiracy, of course.  The owners may be holding onto the metals simply in the hopes of rising prices.  My point is, pawn shop owners are some of the most savvy merchants I know.  They have a good feel for economic ups and downs.  They see the repercussions of economic swings first hand.  My question is, do they see something on the horizon that most do not.

Further, if anyone has any suggestions as to a reliable means of obtaining small amounts of silver bullion at fair prices, please give me a shout.

Thanks, Shayne

Offline Movinfr8

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Re: Silver and Gold Anecdotal
« Reply #1 on: March 03, 2010, 04:34:27 PM »
Verrry interesting.
Hadn't thought about that, but Pawn shop guys are not dumb with money. Think I'll stop in my local shops while job hunting tomorrow..
Norm

Offline pugbellies

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Re: Silver and Gold Anecdotal
« Reply #2 on: March 04, 2010, 08:15:37 AM »
Post what you find out Movinfr8 about how the pawn shops in your state are handling silver and bullion, are they selling at all, and if so at what price over spot. 

By the way, sincere good luck to you on the job hunt, KP

Hare of Caerbannog

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Re: Silver and Gold Anecdotal
« Reply #3 on: March 04, 2010, 05:38:16 PM »
I want to keep an eye on this thread. Its very interesting.
I usually try to buy a little silver every first of the month at my local coin shop. Just 2 or 4 ounces.
I wasn't able to at the first of Feb or March so I made a small purchase from Tea Party Silver (now called he Silver and Gold Shop)
I didn't think to ask why they didn't have any for sale at the coin shop.
Maybe I'll cruise back over there and see what I can learn.

Offline Jonesy

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Re: Silver and Gold Anecdotal
« Reply #4 on: June 17, 2010, 05:06:00 PM »
Hope this serves as a warning to others.

Like many others around the world we lost a lot of our retirement money in 2008 but I managed to get a good amount out of our fund by retiring early (56) and starting a small business.

We bought gold and silver with the money and buried it deep in a location on our property.

Although we bought the gold to protect our savings against inflation we were gratified to see the value of our investment steadily increase.

Our lifes's goal is to be self sufficient on 1 or 2 acres of land on the beautiful Sunshine Coast of Queensland Australia but because of the existing Real Estate bubble still expanding in Aus., we cannot yet afford the land.

We decided to take our small internet business "on the road" and travel round our beautiful Australia until we could afford the land.

We found our perfect motor vehicle for towing our trailer and needed a temporary "Loan" of $5000 from our gold stash to make up the price of the vehicle.

We went to dig up our gold yesterday and to our horror someone had dug up the gold and stolen it (about $70,000.00 worth)!
Someone obviously knew where to look and we have only ourselves to blame as we have been vocal to a lot of people about the world's funny money, debt and the value of precious metals.

Hopefully our experiance will encourage other gold investors to take extra care in what they say to others.

Offline pugbellies

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Re: Silver and Gold Anecdotal
« Reply #5 on: June 17, 2010, 07:52:22 PM »
OMG, thats friggin awful.  Thanks for the warning, I talk to a lot of the guys at work about funny money and investing in silver/gold, and have even split shipments of it with them. These guys are all in law-enforcement, but who knows who they talk to?

Again, thanks for the advice, and sorry about your misfortune.

Hare of Caerbannog

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Re: Silver and Gold Anecdotal
« Reply #6 on: June 17, 2010, 07:55:53 PM »
Wow, Jonesy, that's heart breaking.
So sorry to hear that.

Offline Jonesy

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Re: Silver and Gold Anecdotal
« Reply #7 on: June 18, 2010, 12:49:45 AM »
Thanks heaps guys.
Like I say - can't blame anybody but ourselves and it won't stop us doin' what we intended or stop us buying more of the precious.
All the best to you

Offline Andy44

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Re: Silver and Gold Anecdotal
« Reply #8 on: June 18, 2010, 05:31:27 AM »

Interesting to hear this. In the UK we've had a run of "Cash for Gold" adverts on TV and in the mainstream media over the last couple of years (they seem to have tailed off in the last few months). Clearly a lot of organisations/people have been buying that stuff. It doesn't seem any harder to buy, but in the case of gold the price is still way up. That sort of implies that supply isn't meeting demand, and therefore someone somewhere is hanging on to it.

I'm still plugging away at the odd silver purchase on a regular basis as I think silver is probably slightly underpriced and gold is massively overpriced.

Jonesy, That's a seriously bad experience you've had there my friend. It should serve as a wakeup to us all! No matter how safe we think we are being with storing our physical precious metals (and anything else), we probably need to re-think!

Offline Jonesy

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Re: Silver and Gold Anecdotal
« Reply #9 on: June 18, 2010, 01:00:33 PM »
Thanks Andy.
We appreciate your words.
The more we think about the situation the more we are sure that this is the work of someone very close to us.
Although we are vocal about the benefits of owning PMs we never told people were we kept our stash except for a trusted few family members in case of our death.
The perpetrator knew exactly where to go, no digging or "exploring" anywhere but right where the stash was.
Only gold was taken, not silver.
The police forensic sqad told us that gold is now the #1 item stolen in home robberies and the proliferation of Gold bullion buyers operating in shopping centres along with ebay make it easy and quick to get rid of the stuff.
Also the police told us that the general awareness of gold's value has increased dramatically since the GFC.
This adds to the attraction for thieves.
They also have evidence of thieves with quite sophisticated equipment to melt jewelry and other gold themselves.
We are sure that it would have been impossible to find our stash without exact knowledege of where it was and of course this is harder to accept than the loss of the gold.
At the end of the day we totally accept that we only have ourselves to blame. As one of the guys on another forum said "Loose lips sink ships".
Just wanted to post our situation as advice/warning to others who keep PMs at home.
Keep stashin' all of you - the positivies far outway the negatives.

Offline steel

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Re: Silver and Gold Anecdotal
« Reply #10 on: June 18, 2010, 01:52:54 PM »
Quote
Further, if anyone has any suggestions as to a reliable means of obtaining small amounts of silver bullion at fair prices, please give me a shout.

Check out www.QualitySIlverBullion.com.  Usually has a monthly free shipping coupon codes for orders over $200.  June's code is liberty.

Pretty good prices and cheazp shipping if you order less than $200.  They also have a dutch auction a few times a week where you can get even better prices.  Not associated with them just a very satisfied customer.

Offline Mastoo

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Re: Silver and Gold Anecdotal
« Reply #11 on: June 18, 2010, 06:01:52 PM »
Can't they use metal detectors to locate it, so there wouldn't be any extra digging?  I've only used a metal detector once (to locate a buried water shutoff valve) but it seemed pretty good at finding stuff.

Offline Mr. Bill

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Re: Silver and Gold Anecdotal
« Reply #12 on: June 18, 2010, 09:35:32 PM »
Hope this serves as a warning to others. ...

Jonesy, thank you for posting about this awful experience.

I know there are a lot of preppers who focus on the risks from collapsing banks, government seizures, market crashes, hyperinflation, etc., but don't plan adequately for the mundane risks such as theft.  I hope your story will be a reminder.

And I'm very sorry this happened to you.

Offline Jonesy

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Re: Silver and Gold Anecdotal
« Reply #13 on: June 19, 2010, 04:44:04 PM »
Thanks Mr Bill
The experience has certainly taught us something thats for sure.
Kind Regards