Expert: Troy Thoreson - 9/16/2010

Question
I'm just getting into the business of buying gold bars and coins for my retail store (I have my business license and tax ID #).  I want to start out small and purchase around $3,000 a month and see how much I move.  I haven't made any purchases yet and I'm looking for a source to buy from.  I've emailed Pamp Suisse but don't know if there is a language barrier or if they don't sell gold that is much closer to the spot price directly to businesses.  I've just been directed to their online retail store that are much higher prices then online dealers such as APMEX, etc.  Besides going to a convention or coin show where else can I purchase gold bars from directly that are closer to the spot price?  Does Pamp Sussie sell directly to businesses that are closer to the spot price?  If I bought from places online like APMEX where their spot price is already $25 over then it wouldn't even be worth it for me because I would make no profit off of it but if I could buy it closer to spot and then sell it for around $25 then it would.  Any help you can give me will be greatly appreciated as I am out of search suggestions on google and don't know where else to go.

Answer
Hi Jack,

Wholesale lots are sold at contract levels - 100 oz Gold lots and 5000 oz Silver lots.  So unless you have the resources to push over $100,000 in metal per month you will find resistance with large companies.  Plus, many companies will require financial information and patriot act compliance among other things.  There are other factors to consider that I do not have time to explain.  Not to mention everyone pays a premium over gold price - dealers make money by turning large amounts of product.  I hope this helps explain some of the push back you are experiencing.  You might want to check around at local coin shops for one off deals that may help you get started at the $3000 level.  

Yes, the following is a canned response designed to help the novice collector with general information.  If you need more explanation or you feel my answer is to short, please call me or reply with a more specific question.  I own and operate two active coin shops and I apologize in advance if my answer is short, to the point, or lacking detail.  Again, please reply or if I missed something or if you need more information.

Information given about values is general and determined by current market conditions and/or the price of metals.  Prices and values are subject to change.

Please remember to never clean coins, this can damage and lessen their value.  Also, soft plastics can contain harmful chemicals that can react with coins over time.  Try using inert materials when storing coins.  Plus, it is always a good idea to store coins in a safe.  The safe should not be exposed to the elements and should not be up against a wall to the outside.  These are just a few tips I have learned over the years to help keep your collection in top shape.

We can accept collections by mail at our Los Banos address.  We pay national competitive prices for all coins (including Gold and Silver), both U.S. and World.   If mailing us coins PLEASE insure by registered mail for full value.  Once received we are fully insured. If coming through Los Banos, CA please feel free to look us up at Thoreson Numismatics, 947 6th Street, Los Banos, CA  93635.  209-826-0777, troy@aucpro.com or Thoreson Numismatics, formally S&T Coins,  located at 118 West Main Street, in Turlock, CA  95380  209-668-3682.   Please remember that we are always in the market to buy and sell coins, currency, tokens, and medals both U.S. and World.  We are also licensed to buy scrap gold & platinum jewelry.

Best Regards and Happy Collecting,



Troy Thoreson, President
Auc Pro, Inc.
Thoreson Numismatics