So here’s the thing about gold. If youre in the gold buying and selling gold business, one of the things you try to avoid is buying a large amount of gold and holding onto it. The reason is obvious – if you buy 100 ounces of gold from a customer and the price drops $20 overnight, you’ve just lost two grand. Now, yes, the market could go up $20 overnight and you’d be ahead two grand… but thats not a chance you really want to take in the metals business. I asked my buddy about this and asked why he wouldn’t simply refuse the offer and take a pass on the deal. His answer, which made perfect sense, was that in the buying/selling business (of any product) you don’t last long or get a good reputation if you turn away people who want to sell you stuff.
So, what does this lead up to? Well, my buddy at the coin shop texts me and tells me that a rare opportunity to get a supremely good deal on gold and silver is available.
Apparently, he bought out an estate and wound up with several thousand one gram Valcombi bars, and a whole mountain of 100-gram divisible Valcombi silver bars. How good a deal? Well, I was told not to say, but it was an exceptionally good deal. Good enough to the point that I moved a good chunk of cash into them. He did not want to get caught holding the bag if the market shifted, so he almost immediately turned around and sold the whole thing to a wholesaler. BUT….he knows that Im always willing to buy gold if I can get a good deal on it.
So, I beefed up my gold and silver holdings. I usually prefer 1 oz. bars for my silver, but the Valcombi bars are always interesting and the price was too good to pass up, so I got a big stack of them as well.
Expensive day.
I would presume your dealer bought the Valcombi bars significantly below melt at the estate sale, and passed them to you at melt or just above. Otherwise the premium tends to be quite high – and outrageously so on the silver. Don’t see much point for one gram silver bars other than as a curiosity.
We gifted some of the gold one gram bars to friends in fall 2023; the price now is about 75% more than we paid. Wouldn’t buy gold now with its price high and going higher.
I’m not buying either – my money goes much further in other areas.
Having said that, I would definitely consider a reasonable price on those gram bars – I see them as more useful than larger bars and they normally have an enormous premium on them. Getting them at little premium at this point would be worth it.
I like the idea of the small sizes in gold or “breakable” silver cards for transactional purposes in a “bad times scenario”. But, like noted above, the premium is high. On the other hand, the sealed card with the assay guarantee on the gold card is a good feature. I expect, like always, you got a good deal.
CZ, I’ve been buying from a dealer in the Missoula area whom you used to call your Metals Pimp, Gold Pimp or something like that, and I’ve been pleased with his prices and service. If I remember correctly, you quit using that guy for whatever reason and it sounds like you have a new connection for metals. Any chance you could pass along that guy’s contact info or perhaps just the name of the coin shop? I realize there may be a dozen valid reasons you may not want to share that info, but I figured it couldn’t hurt to ask. You have my email address should you be willing to share privately.
Obviously you already know the divisible gold “bars” will be much more useful in a barter scenario than a full 1 ounce coin or bar, so congratulations on the score. I strongly believe the U.S. paper dollar is in its last years as the world’s reserve currency and that fiat currencies the world over will start to be backed by gold/silver again or they, too, won’t survive. Everyone should have some precious metals, so long as they realize they aren’t an investment, they are a form of stable wealth or insurance if you will.
The Metals Pimp has somewhat semi-retired, so the deals don’t come as fast and furious as they did before. I usually deal with Bob over at Grizzly Gold and Silver. Bob’s a straight shooter, and, like the Metals Pimp, isn’t a stranger to our particular interests and lifestyle.
Thanks! As with most things important to me, two is one and one is none, so I’ve been a bit anxious to line up another recommended source in addition to the Pimp.
I’ve done a few deals with the Pimp now and have seen some of his other “particular interests.” I agree he’d likely fit in just fine with the crowd here.