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View Full Version : Brokering instead of dealing



TomAlciere
23rd April 2008, 05:34
Dealers buy and sell with their own money. You transact, and walk away, it is a done deal.

When silver spot is artificially low, supply dries up. If spot is $16 then dealers don't want to pay $17 and hope to resell at $19 (just to make up numbers.) If spot is $21 they don't want to pay $20 and hope to find a buyer at $22 because they might get stuck.

It seems to me that this could be changed with brokering.

You go into the coin shop with silver for sale at $17 when spot is $16. The dealer hesitates. It would be REALLY bad manners for me to offer you $18 right there in the coin shop somebody else runs, to cut the dealer out of the middle, in the middle of his own shop. Besides, you could rip me off, or I could rip you off.

What needs to be done is the dealer has the customer at $19 and the supplier at $17 in the shop, checks the silver, explains to the customer what it is, how much and the resale price. The dealer handles the transactions and the money, and makes the mark-up. This would require that the pedestrians loiter in the store, perhaps, waiting for a buyer or seller. But at least there would always be a supply and a demand.

DaveK
24th April 2008, 11:19
You go into the coin shop with silver for sale at $17 when spot is $16. The dealer hesitates. It would be REALLY bad manners for me to offer you $18 right there in the coin shop somebody else runs, to cut the dealer out of the middle, in the middle of his own shop.


It may be offensive to the shop owner because I'm dealing in a locality in which he has sunk costs and thereby am possibly benefiting from his expenses. Since offending someone in his position is not beneficial to me (he may refuse to do business with me, etc) it would be in my interest to instead offer him the $18 while the other customer's offer is still on the table. If he is still not interested then the customer and I have the option of dealing directly without offending him.

If he is a shop owner who haggles prices then he'd probably prefer we two customers didn't have the option to deal with each other, but that's not something he can justifiably control unless he wants to take each customer in the back and discuss pricing privately.

TTAZZMAN
24th April 2008, 16:43
if i was a shop owner.....having paid the rent...paid the utilitys....paid taxes...paid for security...paid for labor .....advertized...


about the time someone tried to deal with someone in my shop with out me in the middle would be the time they would hear the sound ...cherchunk..cerchunk...sound of a 870 pump shotgun cycling with someones name on it.

I dont know how many times over the years i have been in a coin shop and paitiently waited while i saw a person selling/haggleing a handfull of Morgan silver dollars for 5$ each less than what i was getting ready to pay for them 5 min later.

If you wana buy direct....advertize and do it yourself....remember to keep that 870 pump shot gun ready when they show up at your house to sell silver for cash....cause they might not really have the silver...

Dave i said the same thing as you ....just in a more Redneckie fashion..

...and actually the dealer is brokering for you...the expenses are the same either way....so the results are the same either way he is just saving you the time of camping in his shop wasting your time...

Hell....i call my locals and they will even deliver what ever deal we make on the phone...saves me the gas...

Have you ever wondered what it would be like to be a dealer and every guy that comes thru the door is a potiential robber?...just a thought to remember...