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N FLA | Looking around town here, I think the county has 50,000 people, and i'm sure there are 100 or more "we buy gold and silver" places in this city, the county seat. And I see the same thing in other places. I've been thinking that we are going through a trend where these people have "we buy gold", and that in a few years, gold and silver will go mainstream, and many more people will be buying. And then these would turn into "we sell gold" stores. After this weekend i think i am wrong about that.
I was at the local rare coin store, kind of a redneck place with ziplock bags full of old silver coins. He has a we buy gold and silver sign up too. He had three american eagles for sale somebody sold him that morning, but no other inventory of silver rounds or ingots etc. So he said he isnt a big fan of buying silver and holding it in inventory, in case it drops and he's losing money on it. So his business is mostly rare coins that don't fluctuate as much. He said if i want to buy ingots or rounds, just tell him and he will get it, but he isn't taking the day to day risk.
So that tells me that none of these new businesses are sitting on this silver and gold. So I was wondering if anybody knows what the business model is of all these we buy gold stores? What are they paying below spot, and who are they selling to? I can't believe they can cover the rent, especially if there are 100 or more in a small town.
Anybody know anything about this business? | |
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