So here’s the thing about gold. If youre in the gold buying and selling gold business, one of the things you try to avoid is buying a large amount of gold and holding onto it. The reason is obvious – if you buy 100 ounces of gold from a customer and the price drops $20 overnight, you’ve just lost two grand. Now, yes, the market could go up $20 overnight and you’d be ahead two grand… but thats not a chance you really want to take in the metals business. I asked my buddy about this and asked why he wouldn’t simply refuse the offer and take a pass on the deal. His answer, which made perfect sense, was that in the buying/selling business (of any product) you don’t last long or get a good reputation if you turn away people who want to sell you stuff.
So, what does this lead up to? Well, my buddy at the coin shop texts me and tells me that a rare opportunity to get a supremely good deal on gold and silver is available.
Apparently, he bought out an estate and wound up with several thousand one gram Valcombi bars, and a whole mountain of 100-gram divisible Valcombi silver bars. How good a deal? Well, I was told not to say, but it was an exceptionally good deal. Good enough to the point that I moved a good chunk of cash into them. He did not want to get caught holding the bag if the market shifted, so he almost immediately turned around and sold the whole thing to a wholesaler. BUT….he knows that Im always willing to buy gold if I can get a good deal on it.
So, I beefed up my gold and silver holdings. I usually prefer 1 oz. bars for my silver, but the Valcombi bars are always interesting and the price was too good to pass up, so I got a big stack of them as well.
Expensive day.