Interested to hear from dealers what volume of sales they are seeing in silver and gold after this price drop?
Bloody busy. All buyers, no sellers, but have heard of a few major sellbacks at other dealers. At these prices though non-payment becomes a major issue - we've already had to exercise our market loss policy against several delinquent customers. Amazing how many people suddenly have rego or rent they forgot they need to pay for when spot drops $40/oz on the ounce of gold they bought the day before.
Speaking to a couple of dealers today - all experiencing it. Market losses can be in the thousands on a single large order - someone buys a box of PAMP silver kilos late in the week, spot drops $100/kg like it has, suddenly you're sitting on a $1500 loss from one customer that takes $60,000 in new sales to earn back. That's a real loss too - not some unrealised paper loss. There's a small blacklist of "do not deal withs" growing.
like i said before we need a consolidated blacklist of people who lock in orders and then don't commit. That will fix them up real quick, too many people hop around to another dealer when they cancel out on one dealer, but if they have no choice in the market that should solve alot of the issues.
Who are you giving credit to? Fiat up front or there is the door. Order & pay. Or good day to you sir. Kindness & credit have NO place in the bullion market.....
Can't dealers take 10% or 20% upfront deposit to secure the order and lock in price. If they change their mind, too bad, they forfeit the deposit. Also don't dealers make you sign a contract of purchase when they lock in the order. At least I know Perth Mint does. Slam
True about continuing your order with a big drop in spot but at the end of a day, some people would rather a dollar in their pocket than a dollar in your pocket. Yes its a situation of their making and shafts the seller but I guess people think that the money would be better used on their kids, mortgage or whatever you can understand their thinking, but doesnt me I condone it of course.
We've previously considered it, but the overwhelming response during client surveys was that it was a barrier to trading with us. Have to weigh the pros and cons of such an approach, but there are obvious benefits.
