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Gold or Silver Bullion: Can a Coin Dealer Borrow Money from his Bank with the Metals as Collateral?
Posted by admin on February 28th, 2010 filed in Gold Stock
http://www.qualitysilverbullion.com/
Can a Coin Dealer Borrow Money (SBA Loan) from his Bank with the Metals as Collateral? After several videos regarding Coin Dealers being able to buy Large Silver or Gold Bars from his customers and using the clients bullion as collateral for his loan. I decided to do some research of my own to come to a conclusion on this matter.
Duration : 0:10:46
February 28th, 2010 at 12:33 pm
@veriappelinsiini
…
@veriappelinsiini
Maybe in the 2014 Olympics we will see a Silver Metal as a 1st Place finisher rather than a Gold Metal at the Olympics :>)
February 28th, 2010 at 12:33 pm
@veriappelinsiini
…
@veriappelinsiini
Would you agree that we may not see ourselves measuring the value of silver according to inflation? Because if their was a true Free Market without the manipulation, it would be valued on supply and demand right? Our industry is becoming more and more dependent on silver as an industrial metal for producing goods. If things were fair, we would see a higher silver price according to supply and demand and gold used to measure inflation.
February 28th, 2010 at 12:33 pm
Hmm.. Since silver …
Hmm.. Since silver is a raw material, the rise in silver price means simply that the currency is weaker.
10 000 dollars is not a big money in terms of real purchasing power those days – it has the same purchasing power as 200 dollars have today.
February 28th, 2010 at 12:33 pm
“Words straight out …
“Words straight out of the horse’s mouth.” (long pause for horse noise) haha that was amazing!
February 28th, 2010 at 12:33 pm
Thanks Rob :>)
…
Thanks Rob :>)
Mike
February 28th, 2010 at 12:33 pm
@clearasvodka
LOL! …
@clearasvodka
LOL! What you say is true. I can only assume that there has been historically been defaults in such loans. As most people in the market, they usually get in too late and stay too long. As I mentioned, a bank will not expect an average price but as what a Gold Buyer will give them for the metals. And that’s usually under 30%. Gold Buyers make HUGE profits. How else can one advertise during the Super Bowl? :>)
February 28th, 2010 at 12:33 pm
But precious metals …
But precious metals are tangible assets. The ultimate asset really. The only real money. Banks should fall all over themselves to get gold or silver eagles as collateral against a loan! The opportunity for the bank would be to aquire gold and silver at pennies on the dollar. Lets say the bank values the metals at only 60% of the spot price. They have nothing to lose by an agreement that nets them gold.
February 28th, 2010 at 12:33 pm
Mike,
Excellent …
Mike,
Excellent video and you sure do make a lot of “horse sense” thank you. Keep up the great work.
Rob
February 28th, 2010 at 12:33 pm
good comments Mike, …
good comments Mike,..by the way …how are u doing with the metal detector,…found much lately,…Marc,,Knoxville
February 28th, 2010 at 12:33 pm
@cvenzke410 Yes, we …
@cvenzke410 Yes, we should expect places like APMEX to be able to buy large bars. And the banks I’ve spoken to regarding a loan to purchase metals that come through his doors will NOT be granted without a tangible asset as collateral. Not even JP Morgan. And yes, some may have a refinery near buy that could/would take quick possession if a representative scampered to the dealer right quick :>) But the video speaks of all dealers in general. It’s best to ask your Bank about such loan. Thanks…..
February 28th, 2010 at 12:33 pm
If you have (100) …
If you have (100) 1oz silver coins and I have a 100oz silver bar what’s the differnece? The bank will issue a line of extention loan but not a personal loan. You need to make sure your dealer has contact with a broker and refinery and there are no problems at all with owning I would say no more than a couple 100oz silver bars. The only differnce is 1oz is easier to sell to small time dealers and places like APMEX is a big buyer. If metals are that high, big dealers will be able to buy.
February 28th, 2010 at 12:33 pm
I learned alot …
I learned alot during your video. Thank you very much. God bless.
February 28th, 2010 at 12:33 pm
By the way….you …
By the way….you don’t know how much I appreciate a positive comment :>)
Mike
February 28th, 2010 at 12:33 pm
RoleModel….I …
RoleModel….I understand your point but, the video is in reference to a Bank (which has been said that it would loan a dealer money). My statement and purpose of this upload is to in fact explain to people that a Bank will not loan money (in my area) to a dealer to buy metals. Although I do certainly understand your point :>)
February 28th, 2010 at 12:33 pm
Excellent Video !! …
Excellent Video !! It’s always a pleasure to watch a video from someone who did his homework !
February 28th, 2010 at 12:33 pm
@ …
@RoleModelsForDummies It’s possible that if there is a “Rush” to sell on the part of the local people in the community that the small to midsize dealers may have to turn people away until their cash position is at a point where they can buy again. I see this as unlikely, but perhaps in some smaller communties it could happen. Youre 100% correct about wanting to keep your silver position “Liquid” in terms of being able to sell numerous 1oz silver coins to secure cash.
February 28th, 2010 at 12:33 pm
@WhyMeWhySilver …
@WhyMeWhySilver Daveg1311 made a good point. Every small to midsize coin dealer why buys from local sellers will themselves sell their own silver to a Larger dealer so they can recover some of the cash that they made on their purchases. Your local dealer will offer you less money on a buy then he will make on the sell to a larger dealer. Hence, that’s how the small to midsize coin dealers make their money.
February 28th, 2010 at 12:33 pm
Oh I agree tokyo… …
Oh I agree tokyo…..there will still be large buyers such as APMEX.
February 28th, 2010 at 12:33 pm
You’re correct …
You’re correct dave1311…..I’m pointing out that if we assume from what we have been told by other video’s here on YouTube that the Banks are going to be loaning money to Dealers to buy metals, then I think I’ve given those viewing a solid answer according to the Bank. How a Dealer moves his inventory of sells and buys is determined by good business practices in order for him to stay in business. I do agree with you.
February 28th, 2010 at 12:33 pm
big money will be …
big money will be seeking direct buyers too…i buy 10 kilo bars only..
February 28th, 2010 at 12:33 pm
Good stuff Mike!
Good stuff Mike!
February 28th, 2010 at 12:33 pm
Fascinating…
you …
Fascinating…
you need land… that you never really own (see definition “allodial title”, which you will never possess)
you need autos… a depreciating, decaying object
you need houses… an object sitting on land requiring property taxes (again, no allodial title)
February 28th, 2010 at 12:33 pm
Great video i can …
Great video i can back you up on what your saying i called J.P. MORGAN CHASE bank and they said that there is no way that they will loan money using gold and silver coins or bullion as collateral period. you need land houses autos etc but not something as volatile as precious metals and if J.P. MORGAN CHASE will not do it i personally do not think any bank will do it
February 28th, 2010 at 12:33 pm
Like I said….talk …
Like I said….talk to your banker.
February 28th, 2010 at 12:33 pm
great shirt … …
great shirt …great video.
June 27th, 2010 at 1:30 pm
If you are insured, I would imagine a bank would give you a loan and use your inventory as assests.
Like any business.
Silver Buyers