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How to sell gold at a discount!

by stanton
9 replies
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This is not a scam, I know the people who have been running it, and it has been running for a couple of years now.

Basically, you are buying gold before it is mined so you get a 6% discount on the spot price.

The gold is delivered in three months at which time you can cash out, reinvest, or take delivery of the gold.

The minimum purchase amount is $1,500 and there are no real restrictions on who can buy it as it is a physical purchase of gold.

Becuase this is not a scam the commissions aren't that great so repeat business is where you make the real money.

But the low commissions also mean that you are very restricted with what you can do to get a customer.

Whilst I think it is a great product I am having trouble figuring out how to sell it in a cost-effective manner.

Any suggestions?
#discount #gold #sell
  • Profile picture of the author whateverpedia
    What happens if the spot price falls below the discounted rate you pay for it? You'll be taking delivery of the gold at a higher price than you can buy it on the spot market. Either that or have to sell it on the market at a loss.

    If you take physical delivery of the gold hoping for a price rise, where are you going to store it? What about the costs of storage? What happens if the price falls even further? What about the opportunity cost of having your money tied up?

    Unless your talking about millions or even billions to invest, the best option is to put your money into a gold ETF. Then take the price swings on the chin knowing that you can quickly sell if you need to, or if the price falls too much.
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    • Profile picture of the author stanton
      Originally Posted by whateverpedia View Post

      What happens if the spot price falls below the discounted rate you pay for it? You'll be taking delivery of the gold at a higher price than you can buy it on the spot market. Either that or have to sell it on the market at a loss.

      If you take physical delivery of the gold hoping for a price rise, where are you going to store it? What about the costs of storage? What happens if the price falls even further? What about the opportunity cost of having your money tied up?

      Unless your talking about millions or even billions to invest, the best option is to put your money into a gold ETF. Then take the price swings on the chin knowing that you can quickly sell if you need to, or if the price falls too much.

      Have you ever owned gold? Sounds like a no to me, since you can stash an ounce of gold just about anywhere and no-one will find it.

      A one-ounce bar is currently worth $1350 and one refinery I know make them in the following dimensions: 42mm (1.65") * 24mm (0.94") * 2mm (0.07"). Your biggest problem is not hiding it, but making sure you don't lose it.

      If you don't want to store it then roll the money over into another 3-month contract or else cash out.

      You receive a 6% premium to run the risk that gold might drop more than 6% in three months (i haven't got the numbers but I bet it doesn't happen more than 50% of the time, probably more like 20% as that is a major downward trend)

      So if I buy gold in an ETF there is a 50% likelihood that I will lose money straight away, but if I buy gold the way I am talking about then there is an 80% likelihood I will make money and only a 20% likelihood I will lose money.

      Thanks for getting me to think about dealing with these objections.
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      • Profile picture of the author tagiscom
        Originally Posted by stanton View Post

        Have you ever owned gold? Sounds like a no to me, since you can stash an ounce of gold just about anywhere and no-one will find it.

        A one-ounce bar is currently worth $1350 and one refinery I know make them in the following dimensions: 42mm (1.65") * 24mm (0.94") * 2mm (0.07"). Your biggest problem is not hiding it, but making sure you don't lose it.

        If you don't want to store it then roll the money over into another 3-month contract or else cash out.

        You receive a 6% premium to run the risk that gold might drop more than 6% in three months (i haven't got the numbers but I bet it doesn't happen more than 50% of the time, probably more like 20% as that is a major downward trend)

        So if I buy gold in an ETF there is a 50% likelihood that I will lose money straight away, but if I buy gold the way I am talking about then there is an 80% likelihood I will make money and only a 20% likelihood I will lose money.

        Thanks for getting me to think about dealing with these objections.
        Looked into buying gold at half the price from individuals and then reselling it in the city, (it can work, but it is not for everyone).

        I put an add in the local paper, and waited til someone rang, then carrying a electronic weight, weigh the gold jewellery and half it.

        My first sale didn't happen, and it wasn't the most pleasant experience going to someones house, but shopping centres had a similar business a while ago,and they were there for a few years so must have made a profit.

        As l said, not the best experience, and l would rather stay with lazier options.

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      • Profile picture of the author whateverpedia
        Originally Posted by stanton View Post

        Have you ever owned gold? Sounds like a no to me, since you can stash an ounce of gold just about anywhere and no-one will find it.

        A one-ounce bar is currently worth $1350 and one refinery I know make them in the following dimensions: 42mm (1.65") * 24mm (0.94") * 2mm (0.07"). Your biggest problem is not hiding it, but making sure you don't lose it.

        If you don't want to store it then roll the money over into another 3-month contract or else cash out.

        You receive a 6% premium to run the risk that gold might drop more than 6% in three months (i haven't got the numbers but I bet it doesn't happen more than 50% of the time, probably more like 20% as that is a major downward trend)

        So if I buy gold in an ETF there is a 50% likelihood that I will lose money straight away, but if I buy gold the way I am talking about then there is an 80% likelihood I will make money and only a 20% likelihood I will lose money.

        Thanks for getting me to think about dealing with these objections.
        To make the exercise worthwhile you're going to have to do it in far greater quantities than 1 oz at a time. A 6% discount is $81 (based on your $1350/oz figure). So yeah, storage does become a problem unless you're only after pocket money ($81) for 3 months worth of risk/investment.

        Instead of trying to sell other people on this idea though, why not do it for yourself and come back and post your results here. Then other people can see what's possible and buy from you. You won't need to sell anything.

        Before I (and probably everyone else) would buy into this strategy, I/we would like to see verified data that proves you are making more than pocket money from it.

        The first question I'd ask of you is for proof that you're making money from the strategy, rather than making money from selling the strategy to other people.

        If you're making money from selling the strategy rather than implementing the strategy, I'd be "showing you the door" with "extreme prejudice". Other people may not even be that polite.
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        • Profile picture of the author OptedIn
          Originally Posted by whateverpedia View Post

          Before I (and probably everyone else) would buy into this strategy, I/we would like to see verified data that proves you are making more than pocket money from it.
          Oh, I don't think so. Remember - gold is 'shiny.' They'll be lined-up for a piece of that action.
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  • Profile picture of the author Kay King
    They'll be lined-up for a piece of that action.
    A few restrictions - it would need to be free and guaranteed....but there are many who would definitely talk it to death.
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  • Profile picture of the author hardraysnight
    but what purity are you paying for

    is it benin or nigeria you are taking about
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    • Profile picture of the author stanton
      Originally Posted by hardraysnight View Post

      but what purity are you paying for

      is it benin or nigeria you are taking about
      Purity is 99.999, it all goes through gold dealers in Dubai. Brinks do the deliveries.
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  • Profile picture of the author hardraysnight
    Originally Posted by stanton View Post

    This is not a scam, I know the people who have been running it, and it has been running for a couple of years now.

    Basically, you are buying gold before it is mined so you get a 6% discount on the spot price.

    The gold is delivered in three months at which time you can cash out, reinvest, or take delivery of the gold.

    The minimum purchase amount is $1,500 and there are no real restrictions on who can buy it as it is a physical purchase of gold.

    Becuase this is not a scam the commissions aren't that great so repeat business is where you make the real money.

    But the low commissions also mean that you are very restricted with what you can do to get a customer.

    Whilst I think it is a great product I am having trouble figuring out how to sell it in a cost-effective manner.

    Any suggestions?
    give free samples
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