That doesnt work because who are you gonna sell to? The moneyfornothing clubs, including the big ones and those on the Comex, are usually smarter than buying high. So who remains then? Poor fellow stackers/dealers. A group buy as dexcribed should be stacker fashioned. Hedging against inflation. Longterm holding. Not to join the moneyfornothing clubs by doing the exact same. I thought that was obvious?
About logistics, the problem origins in that single 10oz bar "each". I rather doubt Chillidog ment this literally. Why wouldnt anyone order any quantity of whatever 'very common bullion' they want? The bigger the quantity, the smaller the impact of the shipping cost, so this group buy decision would be no different than any silver purchasement decision. Pro's versus contra's. About margins, I can't see how they are relevant? I see in a group purchase as crucial element the synchronized/simultaneous ordering from the supply chain. Eventual big quantity reductions are only second. In the end, if a quantity reduction is 1%, what does it matter, we see silvers price movements 25 times more. A couple months ago a Netherland based dealer offered a group deal at a 3% reduced fixed price. He found enough willing to buy, but the price dropped 15% since, and already 5% on the very day of the group deals end. So I would say a quantity based price reduction is a side story, not the main story. In short, I see this group buy proposal as an organisational effort to concentrate physical purchases at a bottom price level.
Hey thats my idea . 1 ounzer Horse. I cant elaborate myself well all my idea got stolen. I have more to come , will see what other have to contribute.
What drugs you on ? FFS stop crapping on people's threads , most of your crap seems you want to buy the item But you don't
Been thinking, and don't get me wrong I am big on physical silver, but what if we were to pick a silver mining stock or unallocated silver with Silver Stackers members and try to get a rush on that particular stock due to the huge amount of shares purchased, sell take profits and repeat with another stock? Just thinking out load, get's rid out postage & transport/storage/insurance ect
The only way to do this is to get a dealer who already has storage and distribution infrastructure in place, in which case it would only be fair to give them an opportunity to make a small profit on the purchase, since we are using their infrastructure. I think you will find that spot + mintage + shipping + storage + distribution + small profit for dealer is going to add up to what most of the site sponsors are already offering. Also here is the risk of spot dropping significantly whilst the deal is going through, and somebody being left holding the bag. Big time dealers can buy puts or short futures to insure against price movements, a big enough group buy might justify taking an insurance position but again it adds cost. A group buy would be better suited to a product which has more 'value added', i.e where the purchase can be made direct from the factory at a sizable discount because the raw material & labor costs do not make up such a large percentage of the retail price. Example - Russell Kogan's enterprises.
What GBN said plus whomever backs the purchase would need to get a percentage from anyone who commits but then pulls out at the last minute, so they aren't left out of pocket.. Alternatively oversubscribe an item with the possibility of some losing out? Would also require software to do it more then once though could use something like http://drupal.org/project/opendeals but that needs a VPS to run smoothly, so more cost but it's pretty straight forward to use
I think the proposed point was missed. It doesn't need one dealer. It doesn't need one /central storage. A group purchase could be nothing more than X stackers/dealers acting as if there were one entity. Starting from a premade agreement, target price and quantity. Example: Stacker 1 100 ounces Stacker 2 200 ounces Stacker 3 300 ounces Stacker 4 400 ounces Stacker 5 500 ounces Agreement with dealer A: as soon as spot price is $X, process all our orders. This dealer A based group buy is then a part of the forumwide group buy. The same for another chunk stackers and dealer B. You just order at the dealer you want or even more dealers/divided. For ex, dealer A could say the other dealers 'I do this kind of coin', so that its easier to 'construct' monsterbox orders per dealer due to same coin kinds, or to benefit from eventual quantity reductions. The crucial element is that spot price $X that is agreed upon. Because that is the element that converts all these individual orders on individual times to one price/moment, as to 'surprise' the high supply chain with a price lock. This is the crucial element that should give success: because ex on the Comex futures market, the price mechanism works at the resolution of 1 position take or dump. After every position change, the spot price is updated. But the physical market has a latency, and due to the price locks at dealer A (and B and C etc) level, the high supply chain is unable to adjust the price in time to inflict us less silver. At least that's my theory. For the rest, nothing changed. Dealers make the same profit as they made without group deal. That agreed upon price $X is a moment determinator, it's of course not the price paid, and individual dealers can maintain the margins they had.
I truly don't want to put a damper on this idea but a similar venture like this was proposed at least twice before. And it began like this one, with the initial positive momentum however, due to other many variables both fell over and withered away. I hope this time you make it across the finishing line I'll watch how it develops with the eye on joining your merry crew once the finer details are rock solid. http://forums.silverstackers.com/topic-7329-why-not-buy-a-comex-contract.html Hopefully I haven't put the mockers on it now
Well, one drawback may be for dealers, X weeks/months no work and then all that delayed work together in a day haha. But if it delivers 10% more silver due to a well chosen target price, there is some compensation.
Bullion List is actually giving a (large) discount to Silver Stackers members at the moment and we're taking care of the shipping too. If you guys want to keep ordering, I'll ask Roo about keeping the prices down. Joey
Yeah! It reminded me of this link for bullion discounts from Perth http://www.perthmintbullion.com/au/New-Bullion-Coin-Volume-Price-Breaks.aspx
The idea sounds great in theory and I would also support a group buy BUT. IMO , as so many have already mentions....to buy say 3 bars and save a possible $60...its not really worth the the exercise unless your prepared to buy in bulk as an individual we're your saving $600+ then it starts to make the idea of a bulk purchase worthwhile. If your interested in 1 or 2 bars.....your better of just sticking with the site sponsors....who have great deals on a regular basis and their only a pm away , plus more importantly less headaches.
Seems the general feel is get a dealer to be involved as they have the set up. So how about it? We have done multiple monster boxes in group buys through a dealer here on SS.
CD, maybe if you throw out in the pan what roughly you plan to do...and then tweak as you go along with the consensus? It will be easier if we have an object to aim for, rather than shooting across the park My self, I have not done any major group buy. I've done bulk buying, and divide it between other member (mostly within the same city, to avoid the postage). When I offer it around, there is something to aim for (top down approach, instead of bottom to top approach). So instead of working out what to buy, I just workout who want to buy and how much. Iceblue SGB group buy and Maggie's group buy would be a good example.
