Silver on ebay, what's with the prices?

[Tireau]

Hi members, I'm new here!

I'm from the Benelux and amazed at the prices you have to pay for silver on UK websites. (probably b/c of the VAT en Pound/Euro ratio).

But even more appalled by the premiums people are willing to pay on Ebay or other online trading websites.

 

Not so long ago I had a conversation with a silver seller on a Dutch Ebay-like website. He offered silver coins that he priced 3 euro's higher than you would pay for through a "certified" dealer. When confronted with this, he said "Just be patient".

 

What do you guys think? Will this market ever change so we can trade for "real market value" instead of this scam-like nonsense. 

You'd think these online trading sites are the ultimate opportunity for silver/gold traders, however we've let it become a theatre.

 

Are there any new/other options available?
And why do you think people pay these ridiculous amounts?

 

[Danny-boy]

Welcome.

As far as I see it, as long as people are happy with the price they paid, then I don't see a problem.

They are obviously unaware of cheaper sources, but are obviously happy (at the time) with the price they paid.

eBay does throw up some good deals, I have purchased silver under spot, and got some awesome deals with semi-numi coins.

It can be a great place to sell, even after the fees, or sometimes it ends up lower. It's the gamble you take.

Trading on a forum is a great idea if your prices are right.

[klacey]

Welcome to the forum mate.

 

The biggest issue we have in the UK is having to add 20% VAT charge on top of the value. Most dealers in the UK have a set premium and adding all these charges on top of the market rate soon adds up.

 

The people who buy from these dealers have either accepted the price hike and generally have no knowledge that they are being over charged. Or are just to lazy to shop around, look abroad with in the EU. I myself sell in the UK and find for small quantities im one of the cheapest around. I buy VAT free silver and pass the savings onto my customers. I dont make as much as I would like, but its pretty steady.

[morezone]

You have to remember that eBay take a 10% cut off the total sale inc any postage charges.  Then in order to process the payment Pay Pal take a cut of 2.9% (less for volume traders).

 

People pay the higher prices because either they don't know where else to source or it's convenient.

 

I myself buy from within the EU, USA, Canada & Australia.  I still buy from eBay if it's convenient or if it makes more economical sense and the same applies to UK Bullion Dealers.

[Pete]

It is very easy to buy on eBay and pay with PayPal.

Add the shipping from say Atkinsons for one coin and the fact that you have to pay in cash there might not always be much difference compared to the Bay. On eBay you see precisely the coin for sale, year etc and you cannot get this from a dealer.

[Tireau]

Thanks for the replies people.

@Morezone
You say you buy in Canada and US, but don't you have to pay VAT when it goes through UK customs?

And how is that when you buy from Germany and you ship to UK, no VAT required?

[morezone]

You say you buy in Canada and US, but don't you have to pay VAT when it goes through UK customs?

From USA and Canada, I pay VAT.

What I'm saying is that it is cheaper buying from bullion dealers there than it is on eBay. Even so, I will still use eBay for hard to find or low qty purchases.