when you buy a gold coin what is the appropriate increase on the point where it is?
03.23.10
when I bought my coin gold was at 670 aprocamatly they charged me 10 dollars so I paid 680. Now when I retured gold what still again at 670 so I expected to pay a 10 dollar fee, this @#%C$% said Ill give you 540 for it , he then said how am I supposed to make a profit , I had to bargain with him like I was in tijuana. he gave me 630 . he is the only gold dealer in town is he useing his monoply or what when I lived in salt lake whether you bought or sold they would charge the same sellers finders fee , which is fine but 540! what s the point of even investing in gold or silver. I think he is just a crook or am I wrong?
Tags: gold
Your local dealer was definitely trying to scam you.
Dealers make their money, not on the price of the metal, but from a premium they charge at time of purchase or sale. They make money on both sides of the transaction, which is very typical and acceptable. Normally you can expect to pay an extra 2-2.5% at time of purchase, and a little less when you sell it back to the dealer. This really depends on the type of metal (gold, silver, platinum, palladium). I would definitely look for another dealer.
You should consider going to local coin shows, or give eBay a try. Lots of precious metals are bought and sold each day on eBay with great success. Keep in mind that between eBay and PayPal fees you could lose about 10% of the sale price.
My suggestion would be to check the yellow pages for another dealer, or check out online brokers such as http://www.apmex.com. American Precious Metals Exchange (apmex) both buys and sells gold and silver. Another source is Bullion Direct at http://www.bulliondirect.com. Both sites will list the current spot (market) prices for the metals. I’m not affiliated with any of these companies, but know several people that use them. They’ve been around for quite a while, and are very reputable.
Good luck to you!
DJ