Any success buying stories at these low prices?
- Thread starter Yippe-Ki-Ya
- Start date
Dirtbikepilot
Active Member
Naphthalene Man said:
I'll 2nd a branch in the Hunter Valley. Will even apply to man it on my days off
Dirtbikepilot
Active Member
Yippe-Ki-Ya said:
Well I hope you are wrong YKY. I have done some unallocated buying through Goldstackers who state that all purchases are backed by actual metals.
Perhaps GP could confirm this and allay any fears.
Do a search. They've talked about this a few times on previous threads.XB said:
goldpelican said:
http://forums.silverstackers.com/topic-16367-gold-stacker-s-silver-unallocated-program.html
http://forums.silverstackers.com/message-391668.html#p391668
http://forums.silverstackers.com/message-391901.html#p391901
Dirtbikepilot said:
If it wasn't backed by physical then I have spent about $50k too much on safes that must be empty. A very few members of this forum have had a tour of the "back office" at Gold Stackers. Really wish they would all stop asking if we've had an engineer check out the strength of the floor.
We're not numpties, it's a 100% physical backed offering. The only unbacked liability in our office is the beer fridge which is full of empty promise. Last time I checked I think there was a stain from some lunch of CKs that leaked, that was it.
Yippe-Ki-Ya said:
I've purchased unallocated at Goldstackers a few times in the past, and, to jiggle some things around - and even in the midst of the current hullaballoo have redeemed part of those unallocated holdings - no dramas.
It's not even out our balance sheet as a company asset - it's "metal owned by clients" in the financials.
Anyway, it's not for everyone. We're primarily a physical dealer.
Anyway, it's not for everyone. We're primarily a physical dealer.
Sargeant Argent
New Member
I got a kilo bar at just over 28 an oz and a bison for 30 when spot first dropped below 26. I think Im gonna buzz on a 10 oz bar today.
fiatphoney
New Member
goldpelican said:
I am sure it is a good, useful and helpful service. Just some things to watch out for.
On your business insurance either it is covered as your asset ie stock on hand OR liability ie prepurchased stock awaiting shipment/collection whereby client is a creditor on your balance sheet with all the business risk involved which is normal for unallocated. (Think Clive Peters electrical.) Alternatively you have purchased additional insurance for an allocated storage business?
It has to be one or the other for insurance coverage, and proper accounting.
If you have made a representation that you are 'merely' providing storage, then say "it is allocated" or 'it is depository as in safety deposit storage'. Therefore a prospective client would then like to know if you provide insurance like other allocated/storage providers, over and above your own business assets.
It matters if things go wrong. And insurance companies do like 'legal words' to minimise their own loss.
So 'metal owned by clients' can have three very different meanings, as with 'just providing storage'. It is ambiguous.
Either it is unallocated, allocated or depository storage with disclosure of insurance if any.
'metal owned by clients' - nah
Definitive statements need to be made, with disclosure of risk and insurance coverage; if not a more formal document.
I am sure I have said nothing you don't already know, and you may already have appropriate procedures/documantation in place.
I am sharing this for others consideration. 'metal owned by clients', 'stored on your behalf' what does that mean?
Some nasty stories are coming out of the US involving widows following their deceased husbands pm investment advice/wishes with life insurance payouts.
Without going into the nitty gritty of our business model on a public forum - it's covered. Our insurers meet with us about once a month.
locksmithuk
Member
Sargeant Argent said:
Dealers are definitely skimming off the top on 1kg PAMPs, if my regular one is anything to go by. He charged 6.25% premium at AUD 28 spot, but has yanked it up to 8% at AUD 22.60.
Yippe-Ki-Ya
New Member
Dirtbikepilot said:
Goldstackers is a standout exception in my mind ... I would not hesitate to purchase unallocated through them
Yippe-Ki-Ya
New Member
goldpelican said:
What I like about it as well is that one can swap out gold and silver directly in unallocated via the GSR ratio.
So for example let's say you have 100 kg of silver in unallocated and the price for unallocated is currently $754 (spot + $30)
=> the current fiat value of your holding = $75 400.
Let's say you were crazy enough to want to swap out in to gold at this moment ... :lol:
current value of gold in unallocated = $1,360.50 (spot + $30)
=> you could get the following number of ounces of gold = $75400/$1360.50 = 55.42 ounces ...
So i assume if you give GP the word, your 100kg of unallocated silver will instantaneously become 55.42 ounces of unallocated gold!?
Is that about right GP?
Sorry, i just realised that you offer SPOT for buybacks, but would a GSR swap be valued as a buyback, ie. would my unallocated silver be valued at (spot + $30)/kg for the sake of the swap into gold or only at SPOT?
In order to make it economical, the spread for GSR swaps is currently 50% of the premium on the metal being sold - i.e. if you were selling back a kilo of silver which is normally sold for $30 over spot, there is a $15 charge per kilo. Just selling back outright would be the full $30.
So 100kg of silver:
Retail cost = spot + $30: 752.50 x 100 = $75,250
GSR swap value = spot + $15: 737.50 x 100 = $73,750
Cash value = spot: 722.50 x 100 = $72,250
You would have $73,750 credit towards unallocated gold:
Unallocated gold retail cost = spot + $30: $1,360.50
73750 / 1360.50 = 54oz unallocated ($73,467) + $283 change, or call it 6g ($268.50) + $14.50 change.
So 100kg of silver gets you 54oz + 6g (1685.4g), which is a swap GSR of 100 x 1000g Ag / 1685.4g Au = 59.33, when actual GSR is 1330.50 / 22.47 = 59.2. That's pretty damn close, and a tiny premium over actual GSR.
I know there's a few unallocated offerings in the market now, but I believe we're the only dealer offering GSR swaps on unallocated as simple as this, and we buy back unallocated at spot.
So 100kg of silver:
Retail cost = spot + $30: 752.50 x 100 = $75,250
GSR swap value = spot + $15: 737.50 x 100 = $73,750
Cash value = spot: 722.50 x 100 = $72,250
You would have $73,750 credit towards unallocated gold:
Unallocated gold retail cost = spot + $30: $1,360.50
73750 / 1360.50 = 54oz unallocated ($73,467) + $283 change, or call it 6g ($268.50) + $14.50 change.
So 100kg of silver gets you 54oz + 6g (1685.4g), which is a swap GSR of 100 x 1000g Ag / 1685.4g Au = 59.33, when actual GSR is 1330.50 / 22.47 = 59.2. That's pretty damn close, and a tiny premium over actual GSR.
I know there's a few unallocated offerings in the market now, but I believe we're the only dealer offering GSR swaps on unallocated as simple as this, and we buy back unallocated at spot.
Awesome.