Saw something I never expected to see today, or rather never expected to not see - the gold buying kiosk at the local shopping centre is gone. Given how the price of gold has been the last 2 years (more sideways than up), has the scrap market been tapped out at the current price levels? (Or was it just a particularly poor performing kiosk). I would imagine that there is still a lot of jewellery out there in private possession that hasn't reached a buy back value that's tempting enough for the owners to part with it, or the owners are not currently financially stressed. I like to think of the scrap gold market as oil - all of the easy finds are gone, extraction costs are increasing, and new discoveries are drying up. Anyone else seen a gold buyer close up shop?
Yes the one in Box Hill central didn't last long :lol: I saw a gold buyer inside a second hand laptop shop in Melbourne CBD Just what Melbourne needs are more gold buyers I hope a few more close up
I was just at a relatively small local shopping centre here on the gold coast today (not one of the big 3 here). A Kiosk style booth has been set up selling silverware, jewellery, gold and silver coins. As you would expect the coins were massively over valued and over graded, silverware was expensive but I'm not too knowledgeable on that sort of stuff. Oh boy .... Is this phase 3 starting? They were quite busy as well. Most people were skimming past the coins and looking at the jewellery though.
Might be right.. One of the dealer in Syd CBD (who's paying 95% of spot) was saying that no one is selling anything, not even scrap nowdays..
I noticed the same thing a few months ago in the ACT. I wonder when SilverBuyers kiosks will open up. $70/oz? $100/oz? How much margin do those kiosks really need? $20/oz?
Come to think about it, I haven't seen Gold Buyers where I go shopping for at least few months. Before that they were there religiously.
same thing in my suburb of Perth. I actually know the owner, who with his brother have 180 of these kiosk around the world... and the majority of the ones in australia. they have exclusivity with all the big mall operators like westfield and stockland. he told me that it's been slowing down and they're "shooting the mongrels", his words. he reckons it will pick up when spot goes up again, but he doesn't really care, he made his money already... they don't even have an exit strategy, like selling out. they'll just close everything when the cow runs out of milk. They opened 6 new kiosk in south-africa last week, going for over 40 by may. can't share the turnover but I can assure you it's crazy. They started out of a cash converter in Missouri 6-7 years ago and figured they we're making so much cash buying the gold they should do kiosk in malls just doing that. and the most ironic of it all I guess is: I can certify that these guys DO NOT own one single oz personally. They sell any gold like it's radio-active and invest the cash in RE. anyways,
I looked the other day and I was surprised to see tha the PM pay almost twice for jewelry than these mall operators. Karma is a bitch.
I talked to an antique dealer today and he told me them guys are not even asking for ID when they should.He said ,him and other dealers made numerous complaints to the relevant authorities...
Dont know about elsewhere in the UK but where I am they are everywhere, in fact where I live there are 3 close to each other and where I work 15 miles away there are 5 in a 100m stretch of High Street. Here is something interesting though I recently experimented with. I ran an advert on a free ads site for 2 months to buy Gold at spot 2%, well above the shop rate, got a reasonable amount of enquiries but only one actual seller. Ran another before Christmas for Silver at spot plus 5% and got ZERO enquiries. Interestingly, but just found that this large UK supermarket has a "gold exchange" and sheeple probably being tempted by that instead. https://tescogoldexchange.com/index.aspx?cmpid=PPC/Brand&gclid=CM6byP-aqbUCFdLMtAodQBUAXA Keep Stackin'
the sychology is: if it keep going up, will you keep your gold or sell it ? knowing that it will fetch more in the future.. i guess it depends on the circumstances, and the knowledge of the person....
I think most of these places operated on the concept of 'impulse selling' People drop it, see how much their gold is worth on their wrist/neck etc whilst browsing shops. Lots of this stuff, maybe bought years ago when spot was a lot less, so they think "Wow, i can sell for more than i bought it for!" And they sell.
I saw the TV ad the other day for the Sydney shop that's been buying gold for a few years. The ad wasn't on for a while but its' back. The one with the old man ringing a bell saying 'buying old jewellery' and the narrator then saying 'Now theres a better way to see your old golf jewellery' or somesuch. That ad has probably been on TV at least 5 years.
I think their business model might be to follow the poverty/hardtime's around. I saw a lot of them around the larger shopping centers after Larry and Yassi up here in Cairns and then they disappeared. I spotted one in a larger city shopping center two weeks back and figure they are trying to reap the after Christmas debt/incoming bills period. Also noted that Cashy's is promoting Gold/Silver buying regularly now as well on local media.
KWN must be reading here for ideas. http://kingworldnews.com/kingworldn...ming_As_850_Tons_Of_Gold_Supply_Vanished.html
Went to a gold buyers as a joke about 2 monts back. Expressed my interest in selling a 1oz gold roo. They offered $1280 lol.
