Buying "cheap" bullion off Ebay?

[CR1414]

I'm looking into buying some gold and silver, but I know absolutely nothing about it. I have a question about some auctions I've seen on Ebay. I realize a lot of the prices reflect the rarity of the object, but I see gold and silver coins/bars that seem to be selling for way less than what they are worth in their own weight. Look at this: http://ngvi.ebay.com/vi?ngvi&backto...ingItemList&pass=mE2iBHGi3Llt/SUQVeuzgNQ5V0I=. Shouldn't that be worth the current price of silver($17+/-)? I see a bunch of examples like that. Why are they so cheap? Is buying things like that a good way to get into gold and silver?

Thanks!

 

[ARealConservative]

I'm looking into buying some gold and silver, but I know absolutely nothing about it. I have a question about some auctions I've seen on Ebay. I realize a lot of the prices reflect the rarity of the object, but I see gold and silver coins/bars that seem to be selling for way less than what they are worth in their own weight. Look at this: http://ngvi.ebay.com/vi?ngvi&backto...ingItemList&pass=mE2iBHGi3Llt/SUQVeuzgNQ5V0I=. Shouldn't that be worth the current price of silver($17+/-)? I see a bunch of examples like that. Why are they so cheap? Is buying things like that a good way to get into gold and silver?

Thanks!

that auction ends in two days, so it simply has an opening bid qnd will go way up.

Go look at completed auctions - what you will find right now is everything is selling way higher then the reported spot price.

http://search-completed.ebay.com/se...&ftrv=1&saprclo=&saprchi=&fsop=2&fsoo=2&fgtp=

 

[CR1414]

Thanks.

I know that a lot of people wait until the last minute on Ebay to bid on just about anything. Then the fools get excited and drive the price way up. I'm going to start watching the auctions and try to learn something.

When you say "spot" price, are you refering to the current value in weight? Forgive my ignorance.

 

[Shed]

The 'spot' price refers to the price of a troy ounce of metal and changes all the time according to the market. You can find an up-to-the-minute price at www.kitco.com .

 

[BW4Paul]

I'm looking into buying some gold and silver, but I know absolutely nothing about it. I have a question about some auctions I've seen on Ebay. I realize a lot of the prices reflect the rarity of the object, but I see gold and silver coins/bars that seem to be selling for way less than what they are worth in their own weight. Look at this: http://ngvi.ebay.com/vi?ngvi&backto...ingItemList&pass=mE2iBHGi3Llt/SUQVeuzgNQ5V0I=. Shouldn't that be worth the current price of silver($17+/-)? I see a bunch of examples like that. Why are they so cheap? Is buying things like that a good way to get into gold and silver?

Thanks!

If you want cheap bullion, your best bet would be to go to BullionDirect and snatch up the silver they're selling at $17.50:
http://www.bulliondirect.com/nucleo/showProducts.do?cat=Silver_Bullion&category=1

Lord knows I wish I had the extra funds to do it!!! :o


ARealConservative is correct that the eBay bids are going to go up at the very end of the auction.

 

[ARealConservative]

Thanks.

I know that a lot of people wait until the last minute on Ebay to bid on just about anything. Then the fools get excited and drive the price way up. I'm going to start watching the auctions and try to learn something.

When you say "spot" price, are you refering to the current value in weight? Forgive my ignorance.

Yes, essentially spot is the price of the metal at a given point in time.

Some things to be careful with:

1) Troy Pounds are 12 ounces - not 16. Based on how some bids go down, I swear some people think they are going to get 16 bars when they bid on a 1 pound lot.

2) Graded coins are generally not good deals. If they are claiming an ms-xx, then they are looking to woo buyers that care more about quality then the precious metal content (although I have gotten some deals on slabbed coins over the years)

3) Shy away from generic silver unless the seller has a perfect selling rating. Also shy away from large coins weighing a half pound or more - alot of times they are only silver coated. You will eventually learn to trust some dealers and can branch out.

4) Be aware of different types of silver. Sterling Silver is not fine silver, so if you do bid on it, treat it more like junk silver.

5) Don't buy from anybody with high restock fees. They are going to send you crap knowing you will return it. They don't care, their business model is the restock fee.

6) Paypal is your friend. Many sellers don't use it because it effects their bottom line while also giving all the protection to you. But you will also find that the best deals are from large lots that won't take paypal. I have never been burned, but keep in mind their is no buyer protection through ebay when not using paypal.

Good luck