vincecate wrote:A friend made a video of my gold operation. I buy gold, refine it, and make coins. It is just 3 minutes long.
How does incurring the expense of making private label coins from gold add value to the raw price of gold?
I understand the differences between buying and selling gold coins that are also the legal tender of countries, and buying and selling raw gold, but what does a private label coin do for you ?
Is it just a marketing hype that allows you to charge more for "perceived value" ?
Last edited by Reality Check on Wed Jul 18, 2012 7:45 pm, edited 2 times in total.
Maybe, just maybe, there will be both deflation and hyperinflation.
Maybe the current U.S. dollar will become nearly worthless as the result of hyperinflation and devaluation, but cost of goods in gold will also deflate.
These results are not mutually exclusive.
Look at what happened to the 1920s German Mark and property values during the Great Depression priced in precious metal backed currencies like the U.S. dollar and the British Pound before they were devalued.
There are two other precious metals that back up the U.S. dollar that we may be discounting.
Highly enriched Uranium and highly processed Plutonium found in value added packaging capable of destroying cities around the globe in a matter of minutes.
Granted, President Obama, is determined to slash these strategic metal, value added, stockpiles from over 2,000 before his Presidency to as little as 200, but at this point the United States still has between 1,500 and 2,000 of these highly sought after, value added precious metal repositories.
As the current crisis in Europe has demonstrated, flight to safety does still occur, and the United States has unique security attributes.
vincecate wrote:A friend made a video of my gold operation. I buy gold, refine it, and make coins. It is just 3 minutes long.
How does incurring the expense of making private label coins from gold add value to the raw price of gold?
I understand the differences between buying and selling gold coins that are also the legal tender of countries, and buying and selling raw gold, but what does a private label coin do for you ?
Is it just a marketing hype that allows you to charge more for "perceived value" ?
What he does is take 14K, 18K, etc., gold jewelry and melts it down and makes 24K coins. I'm sure he only charges market prices. have you ever bought and sold gold? There are "bid" and "ask" prices. He makes money off buying it at the "bid" price and selling it at the "ask" price. Meanwhile, he will either make or lose more money depending on the fluctuation of the price of gold from when he bought, to when he sells. Not sure how you surmise he is participating in "market hype and obtaining a "perceived value". Prices are not set by Vince, but by the market.
Psalm 34:4 - “I sought the Lord, and he answered me and delivered me from all my fears.”
Reality Check wrote:
How does incurring the expense of making private label coins from gold add value to the raw price of gold?
What he does is take 14K, 18K, etc., gold jewelry and melts it down and makes 24K coins. I'm sure he only charges market prices. have you ever bought and sold gold? There are "bid" and "ask" prices. He makes money off buying it at the "bid" price and selling it at the "ask" price. Meanwhile, he will either make or lose more money depending on the fluctuation of the price of gold from when he bought, to when he sells. Not sure how you surmise he is participating in "market hype and obtaining a "perceived value". Prices are not set by Vince, but by the market.
In the grand view gold is moving from jewelry to investment as bars and coins. The market is pushing gold toward investors. Someone who helps by refining gold can make some money. I can buy scrap gold for less than what I can sell it for as pure gold to investors.
Tourists visiting Anguilla like coins made in Anguilla. My coins are smaller and so a small investor can buy them. But they don't get as good a price as when they buy bars, but that is a bigger investment, sort of a volume discount. A smaller coin lets them cash out just what they need to when they need some paper money. It is more convenient.
My coins have a hand engraved number that is part of a URL like http://gold.ai/0034 and when you go to that number you see a high resolution picture of that coin. This is a way to authenticate the coin that anyone can use, even if you don't have gold testing equipment. I think this makes my coins the hardest to counterfit in the world. I think this adds some value compared to raw gold.
Reality Check wrote:
How does incurring the expense of making private label coins from gold add value to the raw price of gold?
What he does is take 14K, 18K, etc., gold jewelry and melts it down and makes 24K coins. I'm sure he only charges market prices. have you ever bought and sold gold? There are "bid" and "ask" prices. He makes money off buying it at the "bid" price and selling it at the "ask" price. Meanwhile, he will either make or lose more money depending on the fluctuation of the price of gold from when he bought, to when he sells. Not sure how you surmise he is participating in "market hype and obtaining a "perceived value". Prices are not set by Vince, but by the market.
In the grand view gold is moving from jewelry to investment as bars and coins. The market is pushing gold toward investors. Someone who helps by refining gold can make some money. I can buy scrap gold for less than what I can sell it for as pure gold to investors.
Tourists visiting Anguilla like coins made in Anguilla. My coins are smaller and so a small investor can buy them. But they don't get as good a price as when they buy bars, but that is a bigger investment, sort of a volume discount. A smaller coin lets them cash out just what they need to when they need some paper money. It is more convenient.
My coins have a hand engraved number that is part of a URL like http://gold.ai/0034 and when you go to that number you see a high resolution picture of that coin. This is a way to authenticate the coin that anyone can use, even if you don't have gold testing equipment. I think this makes my coins the hardest to counterfit in the world. I think this adds some value compared to raw gold.
I've considered getting into a similar business (or even just getting the equipment to make coins for myself from scrap gold jewelry that I would buy) myself, but haven't thought of it enough to find out what the capital equipment costs would be. Can you provide any insight?
Psalm 34:4 - “I sought the Lord, and he answered me and delivered me from all my fears.”
thomasglee wrote:
What he does is take 14K, 18K, etc., gold jewelry and melts it down and makes 24K coins. I'm sure he only charges market prices. have you ever bought and sold gold? There are "bid" and "ask" prices. He makes money off buying it at the "bid" price and selling it at the "ask" price. Meanwhile, he will either make or lose more money depending on the fluctuation of the price of gold from when he bought, to when he sells. Not sure how you surmise he is participating in "market hype and obtaining a "perceived value". Prices are not set by Vince, but by the market.
Sounds like pure speculation on your part.
All I did was ask a question, which you clearly can not answer, because you have no first hand information, and instead all you do is speculate on what might, or might not, be true. This is not unusual. Lots of people practice this method to avoid being responsive to questions. However, in this case the person who was ask the question is more than capable of truthfully answering the question and does not need your help in evading an answer.
I have a question for you thomasglee, are you a Generation Xer ?
thomasglee wrote:
What he does is take 14K, 18K, etc., gold jewelry and melts it down and makes 24K coins. I'm sure he only charges market prices. have you ever bought and sold gold? There are "bid" and "ask" prices. He makes money off buying it at the "bid" price and selling it at the "ask" price. Meanwhile, he will either make or lose more money depending on the fluctuation of the price of gold from when he bought, to when he sells. Not sure how you surmise he is participating in "market hype and obtaining a "perceived value". Prices are not set by Vince, but by the market.
Sounds like pure speculation on your part.
All I did was ask a question, which you clearly can not answer, because you have no first hand information, and instead all you do is speculate on what might, or might not, be true. This is not unusual. Lots of people practice this method to avoid being responsive to questions. However, in this case the person who was ask the question is more than capable of truthfully answering the question and does not need your help in evading an answer.
I have a question for you thomasglee, are you a Generation Xer ?
First off, you were the one that proffered a speculation. Go back and read your initial post to which I had replied. And yes, I did offer a speculative answer, based on experience. An answer that, by the way, proved to be more correct than incorrect.
Not sure what generation you're from, and I really don't care. Manners are not your strong suit.
Psalm 34:4 - “I sought the Lord, and he answered me and delivered me from all my fears.”