Thoughts on a Group order for UK bullion dealer

[HerefordBullyun]

As we are now in the VAT regime from post Brexit are any of our fellowship of coinsters willing to set up a deal for UK dealers in the forum showing a group order?

Maybe negotiation on the amount of orders could give that discount.

As that Brexit suggests we should keep it British anyone willing to negotiate on behalf of fellow members of the forum doing a bulk order.

I will be looking at dealers amd.sponsors who can help us on this to move it forward, I hope that it is good food for thought for both parties.

I am not well qualified nor full time in the game to consider it but it is in the main to think of others in the forum to help each other out. I am here for bullion but I know that many people on here are for proofs also.

What's your thoughts ladies and gentlemen? 

BTW happy new year all coinsters!

[BackyardBullion]

Hmm, not really going to save a lot of money for people, especially if you have it delivered to one individual who has to ship it out to others.

Yes, lots of UK dealers have price breaks for larger orders but in my opinion that is just pure profiteering and makes them really uncompetitive. 

Even buying in bulk is going to yield prices about 35% to 40% over spot price and when you compare this to the 3% over spot for gold it is a no brainer for serious investors of metals.

If a UK dealer arises that can actually be competitive with their pricing and offer base unit prices like companies in the US or EU then they will likely take the lions share of the UK silver buying market - however much that is. 

Dealers that have the current huge price differentials for a few coins compared to buying a monster box - will continue as they are and remain uncompetitive for silver.

 

[BackyardBullion]

Here is an example, yes you can save a little per coin, but getting enough interested parties to sign up to buy silver at these prices isn't going to be easy.

Also, even if you broke into the 500+ category you would need to factor in shipping from one person to everyone else which eats into your savings if you ordered 50 coins your potential saving is about £45 - sounds good until you realise you are still paying 1.5 times spot price for your silver and to "save" £45 you have to spend over £1500!!

 

[BackyardBullion]

Last thing I will say, I think there is a golden (or silver 😉) opportunity for a business to arise whereby the company exclusively buys and sells second hand silver on the margin scheme.

2nd hand items only need to charge VAT on the profit margin, not the unit price. 

Dealers currently offer only spot price for buying but are happy to sell for FULL VAT added price because they don't/can't be bothered to go on the margin scheme. 

Done right this model could offer better buy prices than dealers (to source stock) and undercut the sell prices because of the lack of VAT. 

That is the true negotiation that is needed to get one of the big names to embrace this business model and take the reins.

[louisfinlay]

Am I correct in thinking that those of us residing in Northen Ireland can still buy silver vat free from the likes of the European mint?

[Uksilverstackers]

4 hours ago, BackyardBullion said:

Here is an example, yes you can save a little per coin, but getting enough interested parties to sign up to buy silver at these prices isn't going to be easy.

Agree, buying coins (as from a mint) will not provide enough of a price break / saving to make it worthwhile.

Maybe a better deal buying bars direct from a UK refiner would generate some interest.... just a thought. Not sure what the appetite would be from the group with regard to buying bars though.

Best wishes for the New Year everyone.

[HerefordBullyun]

Thanks @BackyardBullion

For the insights. As you know I am keen to help fellow members as best we can and your thoughts are invaluable.

[Arganto]

Some dealers such as Chards sell second hand silver and only charge the VAT on their margin but 'in stock' items are hard to come by and usually get bought very quickly after listing. I wonder if a bigger push into the second hand silver market is something some of them will consider, although as it wasn't pursued much prior to leaving the EU maybe it's not a practical proposition for them? 

Maybe some of the independent traders that have websites and trade on TSF will begin to grow the UK secondhand silver market themselves, stepping into the trading gap the big players aren't taking advantage of? An expensive proposition what with secure storage and a physical building being just a couple of considerations. Maybe this is the time for lower rate business loans before the rates go all crisis bananas 🤔