LOL Point is there is very little the PM can do legally to prevent gouging (your word not mine) - that's the way the law is. Free markets and all that
To be honest, there is a lot that they can do within legal boundaries, they can't make retailers obey but they can discourage such behavior. But the issue is dead, the statement from perth mint is pretty clear, sucks to be you (my interpretation again).
Anyways... AeL will pay $40 over cost price plus post for any and all Dragons people want to sell him.....
In a free market, anyone could buy from the Perth Mint at wholesale rates provided they buy enough. The market isn't free, it has restrictions placed on it by the Perth Mint as to who they're prepared to sell to and for how much. The Perth Mint could do something about it if they wanted to because they control access to the primary market.
Not going go buy via the perth mint. Have to pass the 100 point ID check in accordance with "anti-money laundering legislation" which is code for the Government and its organs like the ATO tracking you every move. If the coins are $50 each or something, then you are handing over your details to buy a whole $1,000 worth of goods. I buy more than that at a department store in cash and no-one asks any questions. In the words of my generation perth mint - - - > Up yours! .....................//) ...................,/../ ................../..../ ............//'...'/` ........./'/.../..../......./\ .......('(.......... ~/'...') ........\.................'.../ .........''...\.......... _. ...........\..............( .............\.............\....
Assuming the Perth Mint retail price of 1oz dragons is $50 on the 1/9/11. I add my buyback premium of $2 per coin There's an additional cost of nearly a dollar a coin to get it to me I then add my $2 retail margin and I got a store price of $55 per coin whereas the Perth Mint will be offering the same deal for $50 Am I gouging my customers or ripping off resellers. Depends whether you are a buyer or a seller. Give me a break!
It's pretty simple really. If Perth Mint actually gave a shit about the public getting their product without getting ripped off, they could just not give the whole order in one go. Then any dealer gouging could get the same treatment they gave other dealers who did the pre-order. Sorry KJC or (AEL or Bullion Bourse or Maggie) or who ever it is that gouges, your allocation has been cut due to high demand. Watch how happy the rip of dealers remaining customers are as the potential customers head back to the PM to purchase through their retail avenues. Steve (AEL) my hats off for offering an instant $40 profit to anyone that wasn't going to get them for their own stack anyway and attempting to look after your customers without a price gouge. I will deal with you anytime.
Hello Lovey80, I make $0 from group buy, today I sent an email to a German Mint where there is slim chance to purchase 1oz Silver Dragons at around $80.00AUD which I rejected because of the blatant gouge. I refuse to believe that those you mentioned would gouge fellow stackers. It is an extremely sought after mintage. I am sure the distributors would only have accepted pre-orders in good faith, in accordance with their normal mintage allocation, only to have the rug pulled from under them. It saddens me that people are thinking so negatively. Regards Maggie
I can't believe this. Steve makes a pretty good and genuine offer to help out people and some here just want to accuse him of "gouging". I call bullshit. There is NO other dealer that I would prefer to deal with.
WOW, i saw this post and the amount of replies, then thought...Steve has got heaps of people linning up for him..lucky bugger. But no... tis was a keyslapfest!! We need a little more love in the room people STAT.. lol always lively
Interesting topic, and also quite emotive. However, when I do the sums of purchasing the maximum allocation of 1oz dragons from the PM, and also based on a static AG price of say $40 on the day, the calculation is as follows for me. For others it may vary. 20 x 1oz @ $40 + $10 retail premium =$1000 Postage@ $17.50/Kg = $17.50 Insurance @ 1% = $10.00 Total = $1027.50 Per coin = $51.375 Whilst it is nice to support other stackers, personally, and perhaps I may be mean in this aspect, for a potential profit of $0.62 per coin vs possibly say >$10 in a few weeks/months. Well, it really is a no brainer.
You saved me from making a similar post. What the PM should have done is have small initial allocations and mention that price gouging would not be appreciated. The ones who initially gouge, get no more coins. Those who do not gouge, get the rest. That should pass the legal tests. I fully expect Apmex and Gainesville to price gouge and I will be telling them that I am dropping them as suppliers. I discovered Gainesville about 11 months ago and I have already purchased about $125,000 from them (not all mine ). That amount would have increased substantially in the next year as some of my larger clients are beginning to understand the importance of owning physical pms. Since I have been expecting the price gouge for months, I am not suffering any disappointment. The advantage of situations like this is that customers learn the true nature of a dealer. You have dealers like AEL Steve who are scrounging for coins to honor commitments to customers and then there are the german and american dealers that are price gouging. I currently buy from about 7 dealers and I will likely reduce that list to 2-3 by the end of the year. It will be interesting as to whether the dragon mania enhances or decreases the interest in lunars. For myself, I was going to concentrate on lunars. Now, I am dropping that idea and I will likely not even keep my five series 2 sets going. I still plan on swapping a box of ASEs for some 2014 lunar horses, but that may be the end of it for me. I have been concentrating on buying gold anyway and between physical gold and mining stocks, any spare fiat will find a home.
