Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

eBay Gold and Silver Sales Booming; Buyers Beware

  by    2   2

You probably think of eBay as a good place to snag a deal on electronic gadgets, musical instruments, or sporting goods. But increasingly people are logging onto the auction site to buy gold and silver.

ebay

 

EBay officials told CNBC the company is touting its global user base of 150 million people to reach non-traditional buyers. With so many people entering the market for precious metals, buyers should beware. The strong demand creates a breeding ground for scammers. In fact, eBay is apparently using the demand for gold and silver bullion to peddle collectibles.

EBay is leveraging increasing interest in precious metals on its platform this holiday season. The company is marketing branded coins as the perfect stocking stuffers, an alternative to the traditional lump of coal. The company is offering deals on DC Comics’ Superman, Disney’s Snow White coins created by Royal Canadian Mint and a LucasFilm Star Wars coin from ModernCoinMart.”

As Peter Schiff points out in his special report Classic Gold Scams: How to Avoid Getting Ripped Off, many of these “collectibles” range from being major ripoffs to virtually worthless. For instance, the 1-ounce silver Star Wars collectible coin on eBay is priced at $129. That’s more than an 800% markup over the current spot price for silver.

According to a CNBC report, the sale of gold and silver bullion on eBay has surged over the last several months. On Thanksgiving, the online marketplace sold about one gold bar every minute, generating just under $1 million in sales.

EBay’s gross merchandise volume for bullion has spiked 60% from last year, and 27% from October, with about a quarter of sales on mobile devices.”

Silver is also a hot commodity on eBay. The site did a brisk business on American Silver Eagles bullion coins Thanksgiving as well.

Its sellers sold the silver weight equivalent of twenty-five fifteen pound turkeys on turkey day. Last weekend in just one day, it sold 2,500 rolls of 20 Silver American Eagles…That translates to more than $850,000 in gross merchandise volume and sales of 50 ounces of silver every 60 seconds.”

The sale of gold and silver bullion on eBay reflects generally strong demand for physical precious metals. Earlier this month, the World Gold Council reported global gold demand in Q3 increased 8% year-on-year. Investor demand was a major factor in the increase, surging 27%, primarily on the strength of gold bar and gold coin purchases. In the US, bar and coin demand hit the highest total in five years. American Gold Eagle coin sales are at the highest level since the financial crisis.

Just because a lot of people are shopping at eBay doesn’t mean it’s the wisest choice. Stick with a dealer you know you can trust. If you see a lower price, call us and find out if we can match or beat it.

scam-2-sm

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Nearly Half of Small Business Owners Expect to Close Down Permanently

The economy was booming. The stock market was setting records. Then coronavirus came along and governments shut things down to minimize the pandemic. That led to massive layoffs and a nasty recession. But once states open up, things will spring back to life and the economy will go back to being great again. That’s the […]

READ MORE →

Over-Leveraged Zombie Companies Threaten Economic Recovery

There seems to be mounting optimism that the US economy will rebound relatively quickly as states begin opening up and there is progress toward a coronavirus vaccine. But the optimism ignores deep problems in the US economy that existed before the pandemic  – chief among them staggering levels of debt and the proliferation of zombie […]

READ MORE →

Silver Joins Gold at the Party

Silver has finally joined gold at the party. In the last week, the price of the white metal has moved up from $15.51 to $17.35. (as I type this on Tuesday morning May 19) That’s an 11.9% increase. With the jump in the price of silver, the silver-gold ratio has dropped from over 113-1 earlier […]

READ MORE →

QE Infinity: Money Supply Grew at Record Rate in April

The money supply growth rate surged to an all-time high in April as the Federal Reserve created cash at an unprecedented rate through quantitative easing and other money-creating monetary policies. According to Ryan McMaken at the Mises Institute, the only time the Fed has come close to this level of money creation was in the […]

READ MORE →

Staggering April Budget Deficit Just the Tip of the Iceberg

The April federal budget deficit came in at a staggering $738 billion as government coronavirus stimulus began flowing through the pipelines and revenue dipped due to the government lockdowns.

READ MORE →

2 thoughts on “eBay Gold and Silver Sales Booming; Buyers Beware

  1. Jeremy says:

    Could you elaborate further on the statement “EBay officials told CNBC the company is touting its global user base of 150 million people to reach non-traditional buyers.”?

    What is meant by “…150 million people to reach non-traditional buyers”? Are the 150 million people buying silver and gold on Ebay? Are they the individuals considered non-traditional buyers?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now